Forum Energy Technologies(US:FET)2025-02-20 22:04Financial Performance - Fourth quarter 2024 revenue was $201 million, with a net loss of $104 million, including a non-cash impairment of $119 million[1]. - Full year 2024 revenue reached $816 million, a 10% year-over-year increase, with adjusted EBITDA of $100 million, a 49% increase from 2023[3]. - The net loss for 2024 was $135 million, or $11.00 per diluted share, compared to a net loss of $18.9 million in 2023[17]. - The company reported a net loss of $135.3 million for the year ended December 31, 2024, compared to a net loss of $18.9 million in 2023[21]. - Total revenue for the year ended December 31, 2024, was $816.4 million, an increase from $738.9 million in 2023, representing an increase of approximately 10.5%[25]. - The total EBITDA for the year ended December 31, 2024, was $(43.2) million, compared to $45.2 million in 2023, reflecting a significant decline[25]. - For the three months ended December 31, 2024, the company reported an operating loss of $106.8 million, representing a 53.1% loss margin on revenue[30]. - The net income for the same period was a loss of $88.7 million, compared to a loss of $16.8 million in the prior year, indicating a significant decline in profitability[30]. - Adjusted EBITDA for Q4 2024 was $8.1 million, or 4.0% of revenue, while the adjusted net loss was $5.9 million[30]. Cash Flow and Capital Management - Operating cash flow for 2024 was $92 million, and free cash flow was $105 million, the highest since 2015[1]. - The company expects to allocate 50% of free cash flow to net debt reduction and the remainder to strategic investments, including share repurchases[2]. - Free cash flow before acquisitions for Q4 2024 was $56.9 million, a substantial increase from $8.9 million in Q4 2023[39]. - Free cash flow before acquisitions for the year ended December 31, 2024, was $105.1 million, a significant increase from $1.6 million in 2023[41]. - The company had capital expenditures of $8.1 million for property and equipment in 2024, slightly up from $7.9 million in 2023[21]. - The company’s capital expenditures for property and equipment in Q4 2024 were $(2.4) million, reflecting ongoing investment in operational capabilities[39]. Segment Performance - The Drilling and Completions segment revenue decreased by 10% to $111 million, while the Artificial Lift and Downhole segment revenue increased by 7% to $90 million[5][6]. - Operating income for the Drilling and Completions segment was $17.8 million with an operating margin of 3.8% for the year ended December 31, 2024, compared to $19.4 million and 3.9% in 2023[25]. - The Artificial Lift and Downhole segment reported an operating income of $48.9 million with a margin of 14.1% for the year ended December 31, 2024, up from $31.6 million and 13.4% in 2023[25]. - Revenue from the Drilling segment for the three months ended December 31, 2024, was $35.5 million, accounting for 17.6% of total revenue, compared to $41.6 million and 22.5% in 2023[44]. - The Subsea segment generated $18.6 million in revenue for the three months ended December 31, 2024, a decrease from $27.6 million in 2023, reflecting a decline of 32.5%[44]. - Revenue from the Stimulation and Intervention segment was $31.1 million, representing 15.5% of total revenue, compared to $32.1 million and 17.3% in the previous year[44]. - The Drilling and Completions segment contributed $111.1 million, or 55.3% of total revenue, down from $126.6 million and 68.4% in 2023[44]. - Downhole revenue increased to $51.5 million, representing 25.6% of total revenue, compared to $21.7 million and 11.7% in the same period of 2023[44]. - The Artificial Lift and Downhole segment saw revenue of $89.9 million, a significant increase from $58.6 million in 2023, representing a growth of 53.3%[44]. Market Demand and Strategic Initiatives - The "Beat the Market" strategy led to a 15% market share growth as measured by revenue per global rig[4]. - Total orders for the three months ended December 31, 2024, were $190.0 million, compared to $160.3 million in the same period of 2023, indicating a year-over-year increase of approximately 18.6%[27]. - The book-to-bill ratio for total orders was 0.95 for the three months ended December 31, 2024, compared to 0.87 in the same period of 2023, suggesting improving market demand[27]. - The company highlighted strategic opportunities for future growth, including potential acquisitions and investments in business expansion[30]. Impairments and Losses - The company incurred $119.1 million in impairment of intangible assets during the year ended December 31, 2024[21]. - The company incurred $119.1 million in impairment of intangible assets during the quarter, which heavily impacted the financial results[30]. - The diluted EPS as reported for Q4 2024 was $(8.39), while the adjusted diluted EPS was $(0.48)[30].