Forum Energy Technologies Announces Third Quarter 2024 Results; Raises Free Cash Flow Guidance

In This Article:

  • Revenue: $208 million, a 16% year-over-year increase

  • Orders: $206 million and book-to-bill of 99%

  • Net loss: $15 million, or $1.20 per diluted share

  • Adjusted EBITDA: $26 million, up 55% year-over-year

  • Operating cash flow and free cash flow: $26 million and $25 million, respectively

  • Raises 2024 full year free cash flow guidance: $60 to $70 million

HOUSTON, October 31, 2024--(BUSINESS WIRE)--Forum Energy Technologies, Inc. (NYSE: FET) today announced third quarter 2024 revenue of $208 million, a 1% sequential increase. Orders increased 14% sequentially to $206 million, with a book-to-bill ratio of 99%. The third quarter 2024 net loss was $15 million, or $1.20 per diluted share, compared to a second quarter net loss of $7 million, or $0.54 per diluted share. The adjusted net loss for the quarter was $2 million, or $0.19 per diluted share, compared to the second quarter 2024 adjusted net loss of $0.07 per diluted share.1

Neal Lux, President and Chief Executive Officer, remarked, "FET will significantly bolster our balance sheet upon closing the recently announced offering of $100 million, 10.5% Senior Secured Bonds. Net proceeds and cash on hand will fully retire existing long-term debt and extend the maturity of our bonds to November 2029. We expect this transaction to enhance our ability to further reduce indebtedness, return cash to shareholders, and pursue strategic M&A opportunities.

"In addition, FET continues to deliver strong financial results. Our year-over-year revenue and adjusted EBITDA growth reflects the benefits of the Variperm acquisition. Furthermore, third quarter bookings increased 14% on strong demand for our capital equipment from Middle Eastern customers. Finally, our cash flow focus is paying off. During the quarter, we generated free cash flow of $25 million, up 14% from the prior quarter. Through the third quarter, FET delivered $48 million of free cash flow, which is nearly within our previous full-year guidance range. Given these strong results, we are raising our full year 2024 free cash flow guidance to between $60 and $70 million.

"Commodity prices remain volatile, driven by Middle East unrest, lower demand in China, and OPEC+ supply uncertainty. In the U.S., we expect oil and gas operators to remain disciplined with their capital budgets and production targets. Service company efficiency gains, enabled through the utilization of products supplied by manufacturers like FET, have accelerated planned 2024 drilling and completions activity. Therefore, we are forecasting budget exhaustion to moderate U.S. demand at year end. However, we expect this impact to be partially mitigated with international activity. Based on these dynamics, we expect fourth quarter 2024 revenue and adjusted EBITDA in the ranges of $190 to $210 million and $22 to $26 million, respectively."

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