Forum Energy ( (FET) ) has released its Q3 earnings. Here is a breakdown of the information Forum Energy presented to its investors.
Forum Energy Technologies, Inc. (NYSE: FET), headquartered in Houston, Texas, is a global manufacturing company serving the oil, natural gas, industrial, and renewable energy industries, focusing on enhancing safety, efficiency, and environmental impact of customer operations.
In its third-quarter 2024 earnings report, Forum Energy Technologies announced a 16% increase in year-over-year revenue, reaching $208 million, alongside a notable rise in adjusted EBITDA by 55%. Despite reporting a net loss of $15 million for the quarter, the company has improved its financial outlook by raising its full-year free cash flow guidance to a range of $60 to $70 million.
The company’s Drilling and Completions segment saw a 6% revenue increase, driven by higher project revenue, while the Artificial Lift and Downhole segment experienced a 5% revenue decline due to reduced sales in casing hardware and valve products. Orders increased 14% sequentially, reaching $206 million, with a book-to-bill ratio of 99%, reflecting strong demand for capital equipment, particularly from Middle Eastern clients.
Forum Energy Technologies is taking strategic steps to strengthen its financial position, including the planned issuance of $100 million in senior secured bonds aimed at retiring existing long-term debt and extending bond maturities. This financial maneuver is expected to enhance the company’s ability to reduce indebtedness and explore strategic mergers and acquisitions.
Looking ahead, Forum Energy Technologies remains cautiously optimistic, anticipating moderate U.S. demand toward the end of the year due to budget constraints. However, increased international activity is expected to partly offset this, keeping fourth-quarter revenue and adjusted EBITDA within projected ranges.
