Investors with an interest in Oil and Gas - Mechanical and and Equipment stocks have likely encountered both National Energy Services Reunited (NESR) and Forum Energy Technologies (FET) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best r ...

Key Takeaways Forum Energy enters 2026 with a $312M backlog, up 46% from 2024-end, the highest in 11 years.FET posted a 113% book-to-bill ratio, signaling rising demand and future revenue potential.The "Beat the Market" strategy drives market share gains, higher revenue per rig and diversification.Forum Energy Technologies, Inc. (FET) is primarily involved in providing highly engineered products to support the operations of oil and natural gas and renewable companies. As a global manufacturing firm, FET off ...

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing its offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing its extensive coverage and growth in the transcript market [1] - There is an ongoing effort to expand coverage, suggesting a strategic initiative to capture more market share and improve service offerings [1]

Summary of Forum Energy Technologies (NYSE:FET) Conference Call Company Overview - **Company**: Forum Energy Technologies (FET) - **Ticker**: FET - **Industry**: Oil and Gas Equipment Manufacturing - **Key Segments**: - Artificial Lift and Downhole - Drilling and Completions - **Primary Customers**: Operators like ExxonMobil, Canadian Natural Resources, Saudi Aramco, and major oil field service companies like Baker Hughes, SLB, Halliburton, and DOF Subsea [5][6] Financial Performance - **2025 Performance**: Strong free cash flow generation despite a challenging oil and gas market [1] - **2026 Guidance**: Revenue expected to be $840 million, a 6% increase from 2025 [8] - **EBITDA Growth**: Expected EBITDA for 2026 is $100 million, up 16% from 2025 [9] - **Revenue Growth Rate**: FET has grown revenue at a compound annual rate of 10% from 2021 to 2025, outperforming the Russell 2000 index which grew at 7% [10] - **Adjusted Cash Flow Growth**: 46% compound annual growth rate, significantly higher than the Russell 2000's 9% [10] - **Stock Price Growth**: 25% compound annual growth rate over the last five years, five times greater than the Russell 2000 [10] Investment Thesis - **Track Record of Outperformance**: FET has consistently outperformed key financial metrics compared to the Russell 2000 [9][10] - **Valuation Metrics**: FET offers a higher free cash flow yield and is 2-3 times less expensive than the average Russell 2000 stock [12] - **Capital Returns**: Significant capital returns through share repurchases and debt reduction; reduced shares outstanding by 10% in 2025 [13] - **Strong Balance Sheet**: Reduced debt by 69% and net leverage ratio from 3.9 times to 1.2 times [13] Growth Strategy - **Market Focus**: Competing in targeted markets with limited competition and differentiated products [15] - **Innovation and Product Development**: Continuous innovation to expand addressable markets and improve product offerings [15][16] - **Global Footprint**: Approximately 50% of sales are from outside the U.S., allowing rapid response to customer demand [16] - **Market Share Growth**: Aiming to double market share in growth markets from 8% to 16% over the next five years [23] Market Outlook - **Industry Growth**: Anticipated market growth of 9% annually over the next five years, with FET aiming for a 15% annual sales growth [25] - **Revenue Projections**: Potential to grow revenue from $800 million in 2025 to $1.6 billion by 2030 [26] - **Impact of Global Events**: Current geopolitical tensions may affect short-term operations but could also lead to increased demand for U.S. LNG and crude oil [32][33] Backlog and Order Growth - **Backlog Performance**: Ended 2025 with a backlog of $312 million, the highest in 11 years, driven by new product development [51] - **Book-to-Bill Ratio**: 113% in 2025, indicating strong demand for products [49] Conclusion - **Overall Sentiment**: FET is positioned as a strong investment opportunity with a solid track record, compelling valuation, significant capital returns, and a clear growth trajectory ahead [27][67]

Key Takeaways Forum Energy shares jumped 192.5% in a year, beating broader industry and peers NESR and NOV.FET faces headwinds from the Middle East conflict, curbing output and weakening drilling activity.About 51% of Forum Energy revenues come from the United States, where the rig count has declined y/y.Forum Energy Technologies, Inc. (FET) provides highly engineered products to support the operations of oil and natural gas and renewable companies. The company’s offering includes consumable products used i ...

Core Viewpoint - National Energy Services Reunited (NESR) is currently more attractive to value investors compared to Forum Energy Technologies (FET) based on various valuation metrics and Zacks Rank [1][3][7] Valuation Metrics - NESR has a forward P/E ratio of 14.23, significantly lower than FET's forward P/E of 43.62, indicating NESR is undervalued relative to FET [5] - NESR's PEG ratio is 0.62, while FET's PEG ratio is 5.45, suggesting NESR has better earnings growth potential relative to its price [5] - NESR's P/B ratio is 2.28, compared to FET's P/B of 2.3, showing NESR's market value is more favorable in relation to its book value [6] Zacks Rank and Estimate Revisions - NESR holds a Zacks Rank of 1 (Strong Buy), indicating positive earnings estimate revisions, while FET has a Zacks Rank of 4 (Sell) [3] - The stronger estimate revision activity for NESR suggests a more favorable earnings outlook compared to FET [7]

Revenue Performance - Total revenue for the year ended December 31, 2025, was $791.5 million, a decrease of $25.0 million, or 3.1%, compared to 2024[198] - The Drilling and Completions segment generated $477.2 million in revenue, an increase of $6.4 million, or 1.4%, driven by higher revenue from ROV projects and increased coiled line pipe sales[198] - The Artificial Lift and Downhole segment reported revenue of $314.8 million, a decrease of $30.9 million, or 8.9%, primarily due to lower sand control sales and tariff impacts on valve products[199] Orders and Market Activity - Total inbound orders for 2025 reached $891.0 million, an increase of $110.7 million, or 14.2%, compared to 2024[196] - The global active rig count decreased by 6.7% in 2025 compared to 2024, with total active rigs falling from 1,948 to 1,818[194] Oil and Gas Prices - The average global oil price for WTI was $65.39 per barrel in 2025, down from $76.45 in 2024, reflecting a decline of 14.4%[193] - The average global oil price for Brent was $69.14 per barrel in 2025, down from $80.52 in 2024, a decrease of 14.1%[193] - The average North American natural gas price at Henry Hub increased to $3.52 per Mcf in 2025, up from $2.19 in 2024, an increase of 60.6%[193] Operating Income and Loss - Segment operating income for Drilling and Completions was $12.8 million, a decrease of 27.8% from the previous year[197] - Net loss for the year was $9.7 million, a significant improvement of 92.9% compared to a net loss of $135.3 million in 2024[197] - Segment operating income for the year ended December 31, 2025 was $19.1 million, a decrease from $35.7 million in 2024, with an operating margin percentage of 2.4% compared to 4.4% in 2024[200] - The Drilling and Completions segment reported an operating income of $12.8 million (2.7%) for 2025, down from $17.8 million (3.8%) in 2024, primarily due to inventory write-downs and asset impairments totaling $20.2 million[200] - The Artificial Lift and Downhole segment's operating income decreased to $41.2 million (13.1%) in 2025 from $48.9 million (14.1%) in 2024, driven by lower market activity[201] Expenses and Financial Position - Corporate selling, general, and administrative expenses increased by $3.9 million to $34.9 million in 2025, mainly due to higher performance-based compensation and one-time fees[202] - Interest expense for the year ended December 31, 2025 was $18.3 million, a decrease of $13.2 million from 2024, attributed to reduced borrowings[204] - Tax expense rose to $26.2 million in 2025 from $6.9 million in 2024, influenced by losses in jurisdictions where tax benefits are not available[206] - As of December 31, 2025, the company had $37.3 million in borrowings under its Credit Facility and $100.0 million in outstanding 2029 Bonds[208] - Cash and cash equivalents stood at $34.7 million with $72.5 million available under the Credit Facility, indicating adequate liquidity for operations[209] - Net cash provided by operating activities was $70.4 million in 2025, down from $92.2 million in 2024, with a notable decline in net working capital cash provided[213] Share Repurchase - The company repurchased approximately 1.4 million shares for $34.3 million during 2025, totaling 1.7 million shares repurchased for $41.9 million since the program's inception[211] Asset Impairments and Valuation - As of December 31, 2025, long-lived assets totaled $226.2 million, comprising $51.9 million in property and equipment, $93.6 million in definite lived intangibles, and $80.7 million in operating lease right of use assets[234] - In 2024, an impairment loss of $119.1 million was recorded on intangible assets within the Coiled Tubing product line, while in 2025, impairments of $1.2 million and $1.6 million were recognized for property and equipment and operating lease right of use assets, respectively[235] - For the year ended December 31, 2025, the company recognized a tax expense for valuation allowances totaling $4.3 million, including a $1.5 million increase related to U.S. deferred tax assets and a $2.8 million increase for non-U.S. deferred tax assets[236] - The company performed its annual impairment test on October 1, 2025, concluding no impairment as the estimated fair value exceeded carrying value by approximately 40%[233] Taxation and Compliance - The company is subject to various taxing authorities, and changes in tax law or interpretation could impact tax liabilities for a given tax year[238] - The company follows the liability method for accounting for income taxes, recognizing deferred tax assets only if they are more likely than not to be realized[236] - The company has operations in multiple countries, which subjects it to different tax jurisdictions and potential changes in tax liabilities[238] Accounting Standards and Forward-Looking Statements - The company has adopted recent accounting pronouncements as specified by the Financial Accounting Standards Board (FASB)[239] - Forward-looking statements in the Annual Report are subject to risks and uncertainties that may cause actual results to differ materially from expectations[240] - The company disclaims any obligation to update forward-looking statements unless required by law[241]

Core Insights - Forum Energy Technologies, Inc. (NYSE:FET) experienced a significant share price increase of 15.26% from February 13 to February 20, 2026, marking it as one of the top-performing energy stocks during that week [1]. Company Performance - The company reported better-than-expected Q4 2025 results on February 20, with adjusted earnings of $0.41 per share, exceeding estimates by $0.05. Revenue for the quarter was over $202 million, surpassing forecasts by $11.7 million [3]. - Forum's free cash flow for the full year 2025 was reported at $80 million [3]. Backlog and Future Outlook - Forum Energy Technologies entered 2026 with a backlog of $312 million, which is a 46% increase from the previous year and the highest level in 11 years. Notably, nearly 12% of this backlog consists of products developed in the last few years [4]. - The company provided a strong outlook for FY 2026, targeting revenue between $800 million and $880 million, indicating a year-over-year growth of 6% at the midpoint. EBITDA is projected to grow by 16% year-over-year to a range of $90 million to $110 million, with adjusted net income expected between $18 million and $38 million. Free cash flow for the year is anticipated to be between $55 million and $75 million [5].

Group 1 - The Natural Resources Hub aims to help investors discover high-impact investment opportunities in the commodity supercycle, focusing on identifying undervalued assets with multi-bagger potential [1][2] - Forum Energy Technologies, Inc. (FET) is highlighted as a key investment opportunity, specializing in products for oil and natural gas exploration and production, with a significant market presence [2] - The investment group provides members with resources such as weekly newsletters, in-depth analyses, trade alerts, model portfolios, and a community for sharing investment ideas [2]

Core Insights - Forum Energy Technologies reported Q4 2025 revenue of $202 million and adjusted EPS of $0.41, exceeding analysts' expectations of $191 million and $0.36 respectively [5] - The company projects 2026 revenue between $800 million and $880 million, indicating a potential 6% year-over-year growth if the midpoint is achieved [6] - Forum Energy Technologies' backlog reached $312 million at the end of 2025, a 46% increase from the end of 2024, marking the largest backlog in 11 years [7] Financial Performance - Q4 2025 revenue: $202 million, adjusted EPS: $0.41 [5] - Analysts' expectations: $191 million in sales, $0.36 in adjusted EPS [5] - 2026 revenue guidance: $800 million to $880 million, with a midpoint indicating 6% growth [6] - 2025 adjusted EBITDA: $86 million; projected 2026 adjusted EBITDA: $90 million to $110 million, representing a potential 16% increase [6] Market Position - Shares of Forum Energy Technologies increased by 9.3% following the earnings report [1] - The stock is currently priced at 10.4 times forward earnings, suggesting a potentially attractive investment opportunity [8] - The company is positioned as a key supplier to the energy sector, which may attract investor interest despite the focus on oil supermajors [8]