Forum Energy Technologies (NYSE: FET) reported mixed financial results for the fourth quarter of 2024, with strategic moves aimed at maintaining market position and financial flexibility. The company's revenue reached $201.0 million, slightly below initial estimates, while delivering notable performance in key business segments.
The Drilling and Completions segment experienced a 10.1% sequential revenue decline, primarily due to reduced U.S. completions activity. Despite this challenge, the segment maintained a book-to-bill ratio of 93.0% and remains positioned to leverage international market opportunities.
Conversely, the Artificial Lift and Downhole segment demonstrated strength, with revenue increasing 6.8% sequentially to $89.9 million. This growth was driven by increased demand for artificial lift products and processing equipment technologies.
A significant strategic development was the company's debt refinancing initiative and the launch of a $75.0 million share repurchase program. Management committed to allocating 50% of free cash flow to net debt reduction, with the remainder dedicated to strategic investments.
Free cash flow performance was particularly impressive, reaching $56.9 million in the fourth quarter and $105.0 million for the full year—the highest since 2015. This achievement was attributed to successful Variperm acquisition integration and effective working capital management.
Looking forward, Forum Energy Technologies provides 2025 guidance with projected adjusted EBITDA between $85.0 million and $105.0 million. The company anticipates market share gains despite an expected 2% to 5% decline in global drilling and completion activity.
Valuation analyses using discounted cash flow and enterprise value-to-EBITDA methods suggest a target price range between $25.37 and $31.04, indicating potential investor optimism about the company's strategic direction.
