Forum Energy Technologies, Inc.

Q2 revenue increased 8% year over year to $226 million. EBITDA increased 39% to $32 million, and net income increased 148% to $14 million. Orders were $236 million and book-to-bill was 104%. Drilling and Completions revenue increased 10% to $139 million with EBITDA up 29% to about $16 million and margin up 180 basis points to 12%. Artificial Lift and Downhole revenue increased 6% to $87 million with EBITDA up 30% to about $22 million and margin near 25%. Free cash flow was $10 million; net debt fell to $115 million and net leverage improved from 1.4x to 1.1x. Full-year 2026 guidance was raised to revenue of $870 million-$910 million, EBITDA of $115 million-$125 million, net income of $42 million-$52 million, and free cash flow of $57 million-$77 million. Q3 guidance was revenue of $225 million-$245 million, EBITDA of $31 million-$37 million, net income of $12 million-$18 million, and free cash flow of $15 million-$25 million.

Neal Lux said the quarter showed the company’s “earnings power” and that FET is executing through market-share gains, international expansion, and operating discipline. He emphasized that the company is benefiting from stronger North America completions, resilient Canadian oil sands activity, and ongoing international demand despite Middle East disruption. His tone was confident and strategically upbeat, with repeated references to the FET 2030 vision and a belief that the company can outperform even in a broadly stable market.

Lyle Williams said revenue, EBITDA, and net income all exceeded the high end of guidance, driven by Canadian oil sands demand, the drilling turnaround, and subsea backlog conversion. He highlighted margin expansion from operating leverage, completed cost reductions, and favorable mix, noting Q2 EBITDA margins of 12% in Drilling and Completions and nearly 25% in Artificial Lift and Downhole. He also pointed to $10 million of free cash flow, net debt of $115 million, leverage of 1.1x, and $96 million of total liquidity, while saying the balance sheet supports both organic growth and acquisitions. The company repurchased about $8 million of shares in the first half and said it will align buybacks with back-half cash generation.

Analysts focused on why results beat guidance, and management pointed to stronger Canadian oil sands activity, drilling product turnaround, and subsea backlog conversion, plus broad execution. Questions also centered on the mix of share gains versus market growth, with Neal saying much of the growth is from share gains because global rig count has been basically flat. Analysts probed capital allocation and leverage, and management said further debt reduction is intended to build dry powder for acquisitions while buybacks will be paced with cash flow. They also asked about frac market tightness and international opportunities; management said inquiries are more one-off than large fleet additions, while new demand is emerging in the Middle East, Latin America, Venezuela, and other frontier regions.