Financial Performance - First quarter 2025 revenue was $193 million, with a net income of $1 million or $0.09 per diluted share[2] - Total revenue for the three months ended March 31, 2025, was $193.3 million, a decrease of 4.5% compared to $202.4 million for the same period in 2024[21] - The company reported a net income of $1.1 million for Q1 2025, a significant improvement from a net loss of $10.3 million in Q1 2024[27] - Operating income for the three months ended March 31, 2025, was $8.8 million, representing an operating margin of 4.6%, compared to $3.2 million and 1.6% in the same period of 2024[25] - EBITDA for Q1 2025 was $18.9 million, with an EBITDA margin of 9.8%, compared to $15.8 million and 7.8% in Q1 2024[25] Cash Flow - Free cash flow generated in Q1 2025 was $7 million, marking the seventh consecutive quarter of positive free cash flow[4] - The company maintains its full year 2025 free cash flow guidance of $40 to $60 million[5] - Free cash flow before acquisitions for Q1 2025 was $7.2 million, significantly up from $2.3 million in Q1 2024[29] - Net cash provided by operating activities was $9.3 million in Q1 2025, up from $5.0 million in Q1 2024[29] - The Company emphasizes that free cash flow before acquisitions is a critical measure for evaluating profitability and capital management[29] Segment Performance - Drilling and Completions segment revenue rose 4% to $116 million, driven by increased demand for completions equipment[7] - Artificial Lift and Downhole segment revenue decreased 13% to $78 million, primarily due to reduced demand for valve products[8] - Revenue from the Drilling and Completions segment was $115.6 million, accounting for 59.8% of total revenue in Q1 2025[32] - The Stimulation and Intervention segment generated $37.4 million in revenue, representing a 19.3% share of total revenue for Q1 2025[32] - Downhole revenue was $47.7 million, making up 24.7% of total revenue in Q1 2025[32] - The Artificial Lift and Downhole segment contributed $77.8 million, which is 40.2% of total revenue for Q1 2025[32] Orders and Book-to-Bill Ratio - Orders totaled $201 million with a book-to-bill ratio of 104%[6] - Orders for Drilling and Completions increased to $132.1 million in Q1 2025, up 13.3% from $116.6 million in Q1 2024[23] - The total book-to-bill ratio for the company was 1.04 in Q1 2025, indicating improving market demand compared to 1.01 in Q1 2024[23] - Total orders for the company were $200.7 million in Q1 2025, slightly down from $204.4 million in Q1 2024[23] Cost Management - The company is implementing actions to eliminate $10 million in annualized costs to adapt to potentially lower demand levels[3] - Adjusted EBITDA for Q1 2025 was $20 million, despite tariff uncertainties impacting results[6] - For Q2 2025, adjusted EBITDA is expected to be in the range of $18 to $22 million[5] Impairment and Capital Expenditures - The company experienced a significant impairment of intangible assets amounting to $119.1 million in Q4 2024, impacting overall financial performance[25] - Capital expenditures for property and equipment were $2.1 million in Q1 2025, compared to $2.9 million in Q1 2024[29] - The Company reported proceeds from sale-leaseback transactions of $20.3 million in Q4 2024, which positively impacted cash flow[29]

Core Viewpoint - Forum Energy Technologies (FET) is expected to report first-quarter earnings on May 2, 2025, with earnings estimated at 43 cents per share and revenues at $196.3 million, reflecting a significant year-over-year earnings increase but a slight revenue decline [1][2]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for FET's earnings indicates a 458.3% year-over-year increase [2] - Revenue estimates suggest a 3% decline compared to the previous year's actual figures [2]. Group 2: Business Operations - FET generates income primarily through manufacturing and selling consumable and capital equipment products, with additional revenue from rental services and aftermarket technical services [3]. - The company has seen a 15% year-over-year increase in market share in 2024, attributed to its focus on niche markets and differentiated technologies [4]. Group 3: Cost and Market Challenges - Rising costs, particularly in the fourth quarter, were driven by higher cost of sales and increased operating expenses, contributing to a net loss of $103.5 million [5]. - Management noted inflationary pressures and commodity price volatility, with expectations of a 2-5% decline in global drilling and completion activity in 2025, which may continue to impact margins [6]. Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for FET, as the Earnings ESP is 0.00% and the Zacks Rank is 3 (Hold) [7][8].

Company Overview - Forum Energy Technologies, Inc. (FET) is a global manufacturer serving the oil and gas, industrial, and renewable energy sectors [1] - The company operates through two main segments: Drilling and Completions, and Artificial Lift and Downhole [1] Segment Details - The Drilling and Completions segment focuses on selling capital equipment [1] - The Artificial Lift and Downhole segment is also a key area of operation for the company [1]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Forum Energy Technologies (FET) as a strong candidate for value investors due to its attractive financial metrics and strong earnings outlook [2][7]. Company Analysis - Forum Energy Technologies (FET) has a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating it is among the strongest value stocks currently available [4]. - FET's P/E ratio stands at 7.35, significantly lower than the industry average of 11.41, suggesting it may be undervalued [4]. - The stock's Forward P/E has fluctuated between 6.63 and 49.18 over the past 52 weeks, with a median of 36.35, indicating volatility in its valuation [4]. - FET's P/B ratio is 0.58, which is attractive compared to the industry's average P/B of 0.99, further supporting the notion of undervaluation [5]. - The P/S ratio for FET is 0.23, compared to the industry average of 0.65, reinforcing its status as a potentially undervalued stock [6]. Industry Context - The article discusses the broader trend of value investing, which remains popular across various market conditions, and highlights the metrics used by value investors to identify undervalued companies [2][3].

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks [1] - Value investing remains a favored strategy for identifying strong stocks across various market conditions [2] - The Style Scores system, particularly the "Value" category, helps investors find stocks with high value grades [3] Company Analysis: Forum Energy Technologies (FET) - Forum Energy Technologies holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong investment potential [4] - The stock has a P/E ratio of 9.86, significantly lower than the industry average P/E of 13.83, suggesting it may be undervalued [4] - FET's Forward P/E has fluctuated between 9.86 and 56.81 over the past 52 weeks, with a median of 41.72 [4] - The company has a P/B ratio of 0.77, which is favorable compared to the industry average P/B of 1.20, indicating solid valuation metrics [5] - FET's P/B has ranged from 0.39 to 0.81 in the last 12 months, with a median of 0.48 [5] - Overall, the metrics suggest that Forum Energy Technologies is likely undervalued, making it a strong candidate for value investors [6]

Therefore, the Zacks rating upgrade for Forum Energy basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. Most Powerful Force Impacting Stock Prices Investors might want to bet on Forum Energy Technologies (FET) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole deter ...

Here are three stocks with buy rank and strong value characteristics for investors to consider today, March 31st: Kingstone Companies, Inc. (KINS) : This property and casualty insurance company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 22.6% over the last 60 days. Kingstone has a price-to-earnings ratio (P/E) of 8.94, compared with 20.18 for the S&P 500. The company possesses a Value Score of A. Forum Energy Technologies, Inc. (FET) : Th ...

The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Forum Energy Technologies (FET) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.Forum Energy Technologies is a member of our Oils-Energy g ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Company Spotlight - Forum Energy Technologies (FET) - FET has shown a price increase of 12.3% over the past four weeks, indicating growing investor interest [4] - The stock has gained 32.6% over the past 12 weeks, with a beta of 2.33, suggesting it moves 133% higher than the market [5] - FET has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - FET is trading at a Price-to-Sales ratio of 0.31, suggesting it is undervalued at 31 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides FET, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Financial Performance - Total revenue for 2024 was $816.4 million, an increase of $77.6 million, or 10.5%, compared to 2023[195] - The Drilling and Completions segment generated $470.8 million in revenue, a decrease of $31.9 million, or 6.3%, from 2023[195] - The Artificial Lift and Downhole segment reported revenue of $345.7 million, an increase of $109.4 million, or 46.3%, compared to 2023[196] - The company experienced a net loss of $135.3 million in 2024, compared to a net loss of $18.9 million in 2023[194] - Segment operating income for the year ended December 31, 2024 was $35.7 million, an increase from $23.8 million in 2023, with an operating margin percentage of 4.4% compared to 3.2% in 2023[197] - Operating income for the Artificial Lift and Downhole segment increased by 54.8% to $48.9 million in 2024[194] Market Conditions - The global drilling rig count decreased by 4.3% in 2024, primarily due to a 12.8% decline in the U.S. rig count[189] - Average West Texas Intermediate (WTI) crude oil price was $76.45 per barrel in 2024, down from $77.58 in 2023[190] - Average Henry Hub natural gas price was $2.19 per Mcf in 2024, compared to $2.53 in 2023[190] Orders and Capital Expenditures - Total inbound orders for 2024 were $780.3 million, an increase from $724.3 million in 2023[192] - The company expects total capital expenditures for 2025 to be approximately $10.0 million, mainly for replacing end-of-life machinery and equipment[210] Cash Flow and Investments - Net cash provided by operating activities was $92.2 million for 2024, significantly higher than $8.2 million in 2023, with improved inventory management contributing to this increase[214] - Net cash used in investing activities was $137.5 million in 2024, primarily for the Variperm acquisition of $150.4 million and capital expenditures of $8.1 million[215] - The company completed the Variperm acquisition for $150.0 million in cash and 2.0 million shares of common stock in January 2024[213] - The company repurchased approximately 105 thousand shares of common stock for $2.0 million following the board's approval of a $75.0 million share repurchase program[212] Tax and Valuation - For the year ended December 31, 2024, the company recognized a tax expense for valuation allowances totaling $25.1 million related to deferred tax assets[234] - The valuation allowance for U.S. deferred tax assets increased by $29.5 million, along with a $6.9 million increase for certain non-U.S. deferred tax assets in the U.K., Singapore, and China[234] - The company released $11.3 million of valuation allowance on deferred tax assets generated from operations in Germany and Saudi Arabia as they were determined no longer required[234] - The company follows the liability method of accounting for income taxes, recognizing deferred tax assets only if they are more likely than not to be realized[234] Impairment and Fair Value - An impairment loss of $119.1 million was recorded on intangible assets within the Coiled Tubing product line in 2024[232] - As of October 1, 2024, the estimated fair value of the reporting unit exceeded its carrying value by approximately 20%[230] - The company performed an annual impairment test for goodwill and concluded no impairment was necessary due to fair value estimates[230] - The company has significant inherent uncertainties and management judgment in estimating the fair value of the reporting unit[230] - Changes in the operating environment, including tax law changes, could impact the determination of tax liabilities for the company[236] Corporate Expenses - Corporate selling, general and administrative expenses increased by $3.7 million to $31.0 million in 2024, mainly due to higher variable compensation costs[199] - Interest expense for the year ended December 31, 2024 was $31.5 million, an increase of $13.2 million compared to 2023, attributed to increased borrowings related to the Variperm acquisition[202] Future Outlook - The company expects long-term energy demand to rise, with hydrocarbons continuing to play a vital role alongside renewable energy sources[183]