UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ___________________________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 001-35504 FORUM ENERGY TECHNOLOGIES, INC. (Exact name of registrant as specified in its ...

Financial Data and Key Metrics Changes - Company achieved strong results with sequential growth in bookings, revenue, EBITDA, and free cash flow, with revenue of $200 million at the top end of guidance range [6][18] - Free cash flow for Q2 was $23 million, totaling $30 million for the first half of the year, marking a 27% year-over-year increase [7][26] - Full year 2025 free cash flow guidance raised to between $60 million and $80 million, a $20 million increase [8][27] Business Line Data and Key Metrics Changes - Subsea product lines saw significant bookings, particularly for ROVs and a large submersible rescue vehicle system [6][19] - Artificial lift and downhole segment revenue increased by 6%, driven by demand for higher margin products [26] - Drilling and Completion segment revenue increased by 1%, with growth in coiled line pipe offerings [24] Market Data and Key Metrics Changes - U.S. revenue was up 3% despite a 3% decline in rig count, while international revenue (excluding Canada) increased by 6% [19] - Bookings were up 31% from the previous quarter, with a book-to-bill ratio of 132% [20] - Company expects commodity prices to remain stable, anticipating a gradual decline in industry activity [29] Company Strategy and Development Direction - Company has refined its strategy into leadership and growth markets, with leadership markets accounting for two-thirds of revenue and a 36% market share [10][11] - Growth markets, estimated to be twice the size of leadership markets, present significant opportunities for revenue increase [12][13] - The "Beat the Market" strategy aims to grow profitable market share through targeted competition and leveraging competitive advantages [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining momentum despite a declining rig count, supported by a strong backlog and cost reduction efforts [29][80] - The company anticipates continued strong free cash flow and plans to reduce net leverage to 1.3 times by year-end [28][29] - Management highlighted the potential for significant growth in the defense market and the importance of their operating systems in driving sales [66][69] Other Important Information - Company repurchased approximately 5% of shares outstanding in 2025, with plans to repurchase an additional 10% based on current stock price levels [8][28] - The company aims to balance capital returns with strategic investments, focusing on organic growth opportunities while remaining open to acquisitions [106] Q&A Session Summary Question: Timeframe for Doubling Market Share in Growth Markets - Management indicated that achieving this goal would take three to five years, focusing on customer acquisition and geographic expansion [37][38] Question: Details on Offshore Defense Orders - Management noted a mix of short-term and long-term products, with some orders expected to deliver over the next two years [39][40] Question: Expectations for Shares Outstanding in Q3 and Q4 - Management expects to repurchase an additional 1.2 million shares, potentially reducing shares outstanding by nearly 15% by December [48] Question: Factors Contributing to Increased Free Cash Flow Guidance - The primary driver for increased cash flow is expected to be working capital reduction, with improvements in operational efficiency [50][90] Question: Competitive Positioning and Market Outlook - Management emphasized a strong balance sheet and the ability to invest in growth, positioning the company favorably against competitors [110][111]

Forum Energy Technologies (FET) came out with a quarterly loss of $0.1 per share versus the Zacks Consensus Estimate of $0.15. This compares to a loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -166.67%. A quarter ago, it was expected that this provider of manufactured technologies and applied products in the energy sector would post earnings of $0.43 per share when it actually produced earnings of $0.04, deliver ...

Exhibit 99.1 Forum Energy Technologies Announces Second Quarter 2025 Results; Raises Full Year 2025 Cash Flow Guidance HOUSTON, TEXAS, August 7, 2025 - Forum Energy Technologies, Inc. (NYSE: FET) today announced second quarter 2025 revenue of $200 million and net income of $8 million or $0.61 per diluted share. Adjusted for a $7 million sale leaseback transaction gain and $4 million of foreign exchange gains, partially offset by restructuring costs, net loss was $1 million or approximately $0.10 per diluted ...

Core Insights - Forum Energy Technologies (FET) experienced a significant share price increase of 32% in June due to securing a large contract with a military client [1] - The company announced a contract with the Indonesian Navy for a submarine rescue vehicle (SRV) system, which includes a custom-designed launch and recovery system and a decompression system [2][4] Contract Details - The SRV, named LR600, is designed for rescue operations, capable of operating at depths of up to 605 meters (1,985 feet) and can carry up to 20 people [4] - The LR600 will be integrated with a hyperbaric rescue facility, with construction taking place in England and Texas [4] Company Statements - CEO Neal Lux emphasized the company's advanced technologies and their importance in the subsea sector, highlighting the diverse product portfolio and technology capabilities [5] Financial Performance - Forum's annual sales have increased from just under $512.5 million in 2020 to over $816 million last year, indicating a strong growth trajectory [6][7] - The company has only reported a net profit once during this period, with a profit of $3.7 million in 2022, suggesting challenges in profitability despite revenue growth [7]

Summary of Forum Energy Technologies (FET) Conference Call Company Overview - **Company**: Forum Energy Technologies (FET) - **Ticker**: FET - **Industry**: Energy Equipment Manufacturing - **CEO**: Neil Lux - **Coverage Initiation**: Coverage launched with a $24 price target due to strong global presence and cash flow generation capabilities [2][10] Core Business and Financial Performance - FET does not drill wells or produce hydrocarbons but manufactures critical capital equipment and consumable products for energy production [6][7] - Revenue segments include: - **Artificial Lift and Downhole**: Products for maintaining production and increasing efficiency [8] - **Drilling and Completion**: Equipment for drilling rigs and well completion activities [9] - Financial performance highlights: - Revenue growth at a compound rate of 15% since 2021 [9] - EBITDA growth over 70% annually, with margins improving from under 4% in 2021 to over 12% in 2024 [10] - Approximately 50% of sales are outside the U.S. [9] Market Demand and Growth Drivers - Global energy demand is projected to increase by 30% over the next two decades, driven by population growth, energy security, and quality of life improvements [13][15] - Fossil fuels are expected to satisfy around two-thirds of energy demand by 2050, despite growth in alternative energy sources [16] - FET's revenue is closely correlated with global drilling rig counts, indicating that increased energy demand will drive revenue growth [17] Competitive Strategy - FET aims to grow market share through: - Developing differentiated products and technologies [20] - Competing in niche markets with limited competition [22] - Focusing on innovation to meet customer demands for efficiency and safety [24] - Examples of innovative products include: - EnviroLite greaseless cable for faster operations [25] - DuraCoil coil tubing for enhanced performance [26] - Veraperm Energy Services for customized sand and flow control solutions [27] Financial Guidance and Shareholder Returns - 2025 is expected to be a transitional year with a potential 2-5% decrease in global drilling activity [32] - Adjusted EBITDA guidance for 2025 is between $80 million to $105 million, with free cash flow guidance of $40 million to $60 million [32] - FET plans to utilize 50% of free cash flow for debt reduction and the remainder for strategic investments, including a $75 million share repurchase program [38][39] Risk Management and Market Conditions - The company is proactively managing risks related to geopolitical and macroeconomic uncertainties, including price increases to offset tariffs [34][35] - FET's low capital expenditure requirements (less than 1% of revenue) allow for better cash flow generation compared to traditional oilfield service companies [54][56] Conclusion - FET presents a compelling investment opportunity with a strong track record of performance, significant free cash flow yield, and a robust growth strategy [39][40] - The company is well-positioned to capitalize on increasing energy demand while maintaining a focus on innovation and shareholder returns [41][63]

Financial Performance & Growth - Forum Energy Technologies (FET) reported Q1 2025 revenue of $193 million[7] - The company's revenue has grown from $541 million in 2021 to $816 million in 2024[7] - Adjusted EBITDA increased from $20 million in 2021 to $100 million in 2024[7] - EBITDA margin has improved from 4% in 2021 to 12% in 2024[7] - The company anticipates 2025 EBITDA to be in the range of $85 million to $105 million and free cash flow between $40 million and $60 million[39] Strategy & Market Position - FET's geographical revenue split is 51% US and 49% international (TTM ended March 31, 2025)[7] - The company has a $75 million share repurchase program and repurchased $2 million of shares in Q1 2025[10, 42] - The company focuses on niche markets with competitive advantages and high barriers to entry[20, 22] - FET aims to allocate 50% of free cash flow to net debt reduction[41] Debt Reduction - The company has substantially deleveraged since 2019, with net debt decreasing from $344 million to $146 million as of March 31, 2025[44] - Net leverage ratio has decreased from 473x in December 31, 2019 to 156x in March 31, 2025[44]

Summary of FET Conference Call Company Overview - FET provides technological solutions to the oil, natural gas, industrial, and renewable energy industries, focusing on operational efficiency and environmental impact reduction [3][4][5] - The company operates in two segments: drilling and completions, and artificial lift and downhole [3] Macro Outlook - Current oil price outlook is uncertain due to global demand growth and OPEC supply adjustments, leading to potential curbing of activity by oil producers [4][6] - Customers are adapting to economic uncertainty, with expectations of stable drilling and completions activity in Q2 2025 [6][7] - Historical trends indicate that declining oil prices lead to reduced rig activity within three to six months [6][7] - If oil prices remain low, rig counts are expected to decrease in the latter half of the year, impacting EBITDA, projected at around $85 million for 2025 [7][8] Industry Dynamics - Natural gas prices remain strong, with a significant portion of drilling activity directed towards gas [13][15] - Increased gas-directed drilling could positively impact FET's business, as the company is agnostic to whether customers are drilling for oil or gas [15][16] - Tariff impacts are significant, particularly in the valve solutions product line, leading to price increases and potential buyer strikes [18][19][20] Strategic Positioning - FET's "beat the market" strategy aims to outperform market trends through innovation and market share growth [24][26] - The company has a strong market share in leadership markets (30-40%) and is expanding in growth markets [26][28] - Revenue per rig has grown at a 5% compound annual growth rate over the past five years, indicating effective market share gains [29][75] Financial Performance - FET's revenue per rig was approximately $455,000 in Q1 2025, reflecting a positive trend in market share [74][75] - The company expects to generate free cash flow between $40 million and $60 million in 2025, despite potential lower EBITDA [70][71] - FET has a share repurchase plan in place, allocating 50% of free cash flow towards debt reduction and strategic investments [80][82] Future Opportunities - The company is exploring opportunities in adjacent markets such as defense and offshore wind, which are expected to be margin accretive [64][66] - Demand for FET's products is anticipated to grow due to the increasing complexity of drilling operations and the need for higher pressure equipment [48][49] - The Middle East and Argentina are key markets for FET, with significant growth potential in unconventional oil and gas production [52][54] Conclusion - FET is well-positioned to navigate current market challenges while capitalizing on long-term growth opportunities through its strategic initiatives and innovative product offerings [96][97][98]

Core Insights - Forum Energy Technologies, Inc. (FET) reported Q1 2025 financial results with revenue of $193.3 million, adjusted EBITDA of $20.1 million, and adjusted net income of $0.5 million, which were slightly below consensus estimates [1][7] Financial Performance - Revenue of $193.3 million was in line with expectations, while gross profit margin (GPM) was slightly below expectations [1] - Adjusted EBITDA margins were reported at 10.4%, which also fell short of expectations [1] - Adjusted net income of $0.5 million was below the anticipated $4.4 million [1] Cash Flow and Cost Management - FET generated approximately $7.0 million in free cash flow (FCF) in Q1 2025, marking the seventh consecutive quarter of positive cash flow results [7] - The company initiated actions to eliminate approximately $10 million in annualized costs [7] Segment Performance - Drilling and Completions revenue increased by approximately 4% sequentially to $116.0 million [7]

Revenue Performance - For the three months ended March 31, 2025, total revenue was $193.3 million, a decrease of $9.1 million, or 4.5%, compared to the same period in 2024[98]. - The Drilling and Completions segment generated revenue of $115.6 million, down $3.5 million, or 2.9%, primarily due to a 12.0% decrease in the Drilling product line[98]. - The Artificial Lift and Downhole segment reported revenue of $77.8 million, a decrease of $5.5 million, or 6.7%, with a notable 8.8% decline in the Downhole product line[99]. Market Conditions - The global drilling rig count decreased by 5.0% in Q1 2025 compared to Q1 2024, driven by a 5.6% decline in the U.S. rig count[92]. - Average oil prices for WTI were $71.78 per barrel in Q1 2025, compared to $77.50 in Q1 2024, while average natural gas prices at Henry Hub increased to $4.14 per Mcf from $2.15[93]. Operating Income - The company’s operating income for Q1 2025 was $8.8 million, a significant increase of 175.1% compared to $3.2 million in Q1 2024[97]. - Segment operating income for Drilling and Completions rose to $9.4 million, with an operating margin of 8.1%, up from 3.8% in the previous year[97]. - Segment operating income for the three months ended March 31, 2025, was $9.0 million, a slight decrease from $9.1 million in the same period of 2024, with an operating margin percentage of 4.6% compared to 4.5%[100]. - The Drilling and Completions segment reported an operating income of $9.4 million, or 8.1%, for the three months ended March 31, 2025, up from $4.6 million, or 3.8%, in the prior year, attributed to reduced amortization expenses[100]. - The Artificial Lift and Downhole segment's operating income decreased to $7.3 million, or 9.4%, for the three months ended March 31, 2025, down from $11.8 million, or 14.1%, due to an unfavorable product mix[101]. Cash Flow and Investments - Net cash provided by operating activities improved to $9.3 million for the three months ended March 31, 2025, compared to $5.0 million in the same period of 2024, driven by an increase in net income adjusted for non-cash items[113]. - Net cash used in investing activities was $2.1 million for the three months ended March 31, 2025, significantly lower than $152.8 million in the prior year, which included a $150.1 million acquisition of Variperm Holdings Ltd.[114]. - Net cash used in financing activities was $21.0 million for the three months ended March 31, 2025, a shift from $151.8 million provided in the same period of 2024, primarily due to net repayments from the revolving Credit Facility[115]. Debt and Capital Expenditures - As of March 31, 2025, the company had $73.8 million in borrowings under its revolving Credit Facility and $100.0 million principal amount of 2029 Bonds outstanding[108]. - The company anticipates total capital expenditures for 2025 to be approximately $10.0 million, mainly for replacing end-of-life machinery and equipment[109]. Shareholder Returns - The board of directors approved a share repurchase program of up to $75.0 million, with $2.0 million spent to repurchase 105 thousand shares during the three months ended March 31, 2025[111]. Tax Expenses - The company recorded a tax expense of $3.8 million for the three months ended March 31, 2025, compared to $3.5 million in the same period of 2024[106]. Future Outlook - The company expects long-term energy demand to rise, with a focus on both hydrocarbons and renewable energy applications[87]. - The company plans to continue developing products aimed at reducing costs and emissions for oil and gas operators while expanding into renewable energy[87].