Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

Forum Energy Technologies  / Equity Bottom-Up

<div><ul><li style="list-style-type: square;">FET’s FY25 free cash flow outlook is now $70-80 million compared with management’s initial outlook (February 20, 2025) of $40-60 million. </li><li style="list-style-type: square;">FY25 free cash flow includes proceeds from sale-leaseback transactions that have contributed $14.6 million through the first nine months of 2025.</li><li style="list-style-type: square;">Free cash flow for the first nine months totaled $58.2 million.</li></ul></div>

FET’s FY25 free cash flow outlook is now $70-80 million compared with management’s initial outlook (February 20, 2025) of $40-60 million. FY25 free cash flow includes proceeds from sale-leaseback transactions that have contributed $14.6 million through the first nine months of 2025.Free cash flow for the first nine months totaled $58.2 million.

FET: Free Cash Flow Yield Supports Share Buyback Strategy

<ul><li>FET expects FY25 free cash flow to fall in the range of $60-80 million and for adjusted EBITDA to come in at ~$85 million.</li><li>FY25 revenue is expected to range from $760-800 million. Total revenue in 1H25 was $393 million.</li><li>Solid performance in 1H25 and the highest 2Q25 order backlog in 10 years underpin management’s expectations that FET can deliver attractive free cash flow despite near-term macro headwinds. </li></ul>

FET expects FY25 free cash flow to fall in the range of $60-80 million and for adjusted EBITDA to come in at ~$85 million.FY25 revenue is expected to range from $760-800 million. Total revenue in 1H25 was $393 million.Solid performance in 1H25 and the highest 2Q25 order backlog in 10 years underpin management’s expectations that FET can deliver attractive free cash flow despite near-term macro headwinds. 

Forum Energy Technologies, Inc: Execution Drives Free Cash Flow

<ul><li>FET’s Beat-the-Market strategy is geared to position the company to gain share with customers during cyclical troughs that can support accelerated growth as the cycle turns higher.</li><li>The strategy is underpinned by the company’s focus on developing specialized technological solutions that allow its customers to develop their assets cost-efficiently and safely.</li><li>Increased drilling and completion intensity as operators push the limits of lateral lengths and stimulation intensity drives demand for the consumable products that account for ~80% of FET’s revenue.</li></ul>

FET’s Beat-the-Market strategy is geared to position the company to gain share with customers during cyclical troughs that can support accelerated growth as the cycle turns higher.The strategy is underpinned by the company’s focus on developing specialized technological solutions that allow its customers to develop their assets cost-efficiently and safely.Increased drilling and completion intensity as operators push the limits of lateral lengths and stimulation intensity drives demand for the consumable products that account for ~80% of FET’s revenue.

Forum Energy Technologies, Inc: Beat-The-Market Strategy Supports Through Cycle Value Creation

<ul><li>FET expects FY25 free cash flow to fall within management’s original guidance range of $40-60 million despite macro headwinds that could affect 2H25 spending patterns by its customers.</li><li>1Q25 free cash flow totaled $7.2 million and, because of seasonal events, is typically the company’s lowest free cash flow quarter in a calendar year.</li><li>FET is actively managing its business in anticipation of potentially lower demand driven by macroeconomic and tariff uncertainty. </li></ul>

FET expects FY25 free cash flow to fall within management’s original guidance range of $40-60 million despite macro headwinds that could affect 2H25 spending patterns by its customers.1Q25 free cash flow totaled $7.2 million and, because of seasonal events, is typically the company’s lowest free cash flow quarter in a calendar year.FET is actively managing its business in anticipation of potentially lower demand driven by macroeconomic and tariff uncertainty. 

Forum Energy Technologies, Inc: Free Cash Flow Outlook Supports Share Repurchase Plan

<ul><li>FET’s confident free cash flow outlook in FY25 positions the company to consider returning cash to shareholders through an existing share repurchase authorization in 2025.</li><li>In December 2024, FET’s Board of Directors authorized a share repurchase program of up to $75 million.</li><li>The senior secured bonds (due 2029) issued in November 2024 allow repurchases after FET meets a defined leverage test. </li></ul>

FET’s confident free cash flow outlook in FY25 positions the company to consider returning cash to shareholders through an existing share repurchase authorization in 2025.In December 2024, FET’s Board of Directors authorized a share repurchase program of up to $75 million.The senior secured bonds (due 2029) issued in November 2024 allow repurchases after FET meets a defined leverage test. 

Forum Energy Technologies, Inc: Confident Free Cash Flow Outlook

United States

Forum Energy Technologies, Inc. offers manufactured technologies and applied products to the energy industry. The Company designs, manufactures, and provides products and related services to the drilling and intervention sectors, as well as to the subsea services and construction sectors.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Forum Energy Technologies (FET US)

Forum Energy Technologies, Inc: Execution Drives Free Cash Flow

FET expects FY25 free cash flow to fall in the range of $60-80 million and for adjusted EBITDA to come in at ~$85 million.

Water Tower Research

Forum Energy Technologies, Inc: Beat-The-Market Strategy Supports Through Cycle Value Creation

FET’s Beat-the-Market strategy is geared to position the company to gain share with customers during cyclical troughs that can support accelerated...

Water Tower Research

Forum Energy Technologies, Inc: Confident Free Cash Flow Outlook

FET’s confident free cash flow outlook in FY25 positions the company to consider returning cash to shareholders through an existing share...

Water Tower Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

FET: Free Cash Flow Yield Supports Share Buyback Strategy

FET’s FY25 free cash flow outlook is now $70-80 million compared with management’s initial outlook (February 20, 2025) of $40-60 million.

Water Tower Research

Forum Energy Technologies, Inc: Execution Drives Free Cash Flow

FET expects FY25 free cash flow to fall in the range of $60-80 million and for adjusted EBITDA to come in at ~$85 million.

Water Tower Research

Forum Energy Technologies, Inc: Beat-The-Market Strategy Supports Through Cycle Value Creation

FET’s Beat-the-Market strategy is geared to position the company to gain share with customers during cyclical troughs that can support accelerated...

Water Tower Research

Forum Energy Technologies, Inc: Free Cash Flow Outlook Supports Share Repurchase Plan

FET expects FY25 free cash flow to fall within management’s original guidance range of $40-60 million despite macro headwinds that could affect...

Water Tower Research

Forum Energy Technologies, Inc: Confident Free Cash Flow Outlook

FET’s confident free cash flow outlook in FY25 positions the company to consider returning cash to shareholders through an existing share...

Water Tower Research