Forum Energy Technologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $237 million, up 5% sequentially from $226 million in the second quarter.
• Net income was $11 million ($0.93 per share), down 9% and 11% respectively compared to the prior quarter.
• Adjusted net income was $18 million ($1.51 per share), up 33% and 30% respectively compared to the prior quarter.
• Adjusted EBITDA was $36 million, up 14% sequentially, with an adjusted EBITDA margin of 15%.
• Operating cash flow was $32 million, up 158% sequentially, and free cash flow was $30 million, up 214% sequentially.
• Net debt was reduced, lowering net leverage to 0.9 times.
• Orders totaled $244 million, resulting in a book-to-bill ratio of 103%.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance was raised to $900 million to $920 million, representing a 15% year-over-year increase.
• Full-year 2026 adjusted EBITDA guidance was raised to $123 million to $129 million, representing a 46% year-over-year increase.
• Full-year 2026 adjusted net income guidance was raised to $52 million to $58 million, representing a 639% year-over-year increase.
• Full-year 2026 free cash flow guidance was raised to $66 million to $71 million, representing a 5% year-over-year increase.
• Fourth quarter 2026 revenue guidance is $230 million to $250 million (19% year-over-year increase).
• Fourth quarter 2026 adjusted EBITDA guidance is $33 million to $39 million (59% year-over-year increase).
• Fourth quarter 2026 adjusted net income guidance is $15 million to $21 million (263% year-over-year increase).
• Fourth quarter 2026 free cash flow guidance is $25 million to $30 million (27% year-over-year increase).
• Management aims to advance toward achieving FET 2030 objectives.

Business Segments and Product Lines:

• Drilling and Completions: Revenue was $147 million, a 6% increase, driven by growth across all product lines. Adjusted EBITDA was $21 million, up 28%, benefiting from operating leverage and cost management. Book-to-bill was 97%.
• Artificial Lift and Downhole: Revenue was $90 million, a 3% increase, attributed to the addition of Premiere Torque Rings and higher demand for sand and flow control solutions and valve products. Adjusted EBITDA was $21 million, comparable to the prior quarter, as revenue growth was offset by higher freight and tariff costs. Book-to-bill was 113%.
• Premiere Torque Rings: Acquired in the third quarter, adding differentiated technology and a trusted brand to expand the addressable market and global growth opportunities.

Market and Competitive Landscape:

• Management cited strong demand and improving industry activity as key drivers.
• The company reported broad-based growth and continued market share gains.
• The book-to-bill ratio of 103% indicates strengthening demand for products.

Risks and Challenges:

• Higher freight and tariff costs impacted the Artificial Lift and Downhole segment's adjusted EBITDA margin.
• Forward-looking statements note risks including volatility of oil and natural gas prices, oilfield development activity levels, availability of raw materials and specialized equipment, delivery of backlog, availability of skilled labor, competition, governmental regulation and taxation, ability to implement new technologies, availability and terms of capital, and uncertainties regarding environmental regulations or litigation.

Management Commentary and Tone:

• Neal Lux, President and CEO, described the quarter as "strong," highlighting the continued effectiveness of the "Beat the Market" strategy.
• Management expressed confidence in carrying meaningful momentum into 2027.
• The tone reflected disciplined execution and a positive outlook on future growth.

Other Key Points:

• The company acquired Premiere Torque Rings during the third quarter.
• Stock repurchases totaled $8,962 thousand for the nine months ended September 30, 2026.
• Proceeds from sale-leaseback transactions were $0 for the nine months ended September 30, 2026, compared to $14,574 thousand in the prior year period.
• The earnings conference call was scheduled for October 30, 2026, at 10:00 a.m. Central Time.
• Reconciliation of GAAP to non-GAAP financial measures is provided in the attached tables, noting that forward-looking adjusted net income and adjusted EBITDA cannot be reconciled to GAAP due to unpredictability of items like restructuring charges, transaction expenses, and foreign exchange losses.