Forum Energy Technologies(US:FET)2025-10-31 21:08Revenue Performance - For the three months ended September 30, 2025, total revenue was $196.2 million, a decrease of $11.6 million, or 5.6%, compared to the same period in 2024[105]. - The Drilling and Completions segment generated revenue of $117.5 million, down $6.1 million, or 5.0%, from the prior year, primarily due to a decline in global drilling activity[105]. - The Artificial Lift and Downhole segment reported revenue of $79.0 million, a decrease of $5.2 million, or 6.2%, attributed to tariff impacts and lower market activity[106]. - Revenue for the nine months ended September 30, 2025 was $589.3 million, a decrease of $26.1 million, or 4.2%, compared to $615.4 million for the same period in 2024[115]. - Drilling and Completions segment revenue was $350.3 million for the nine months ended September 30, 2025, a decrease of $9.4 million, or 2.6%, compared to $359.7 million for the same period in 2024[115]. - Artificial Lift and Downhole segment revenue was $239.3 million for the nine months ended September 30, 2025, a decrease of $16.4 million, or 6.4%, compared to $255.7 million for the same period in 2024[116]. Operating Performance - The operating loss for the Drilling and Completions segment was $13.55 million, compared to an operating income of $7.03 million in Q3 2024, reflecting a significant decline[104]. - Segment operating loss for the three months ended September 30, 2025 was $10.2 million, a decrease of $19.6 million compared to income of $9.4 million for the same period in 2024, resulting in an operating margin percentage of (5.2)% compared to 4.5%[107]. - Segment operating income for the nine months ended September 30, 2025 was $6.9 million, a decrease of $20.9 million compared to $27.9 million for the same period in 2024, with an operating margin percentage of 1.2% compared to 4.5%[117]. Net Loss and Financial Position - The company reported a net loss of $20.55 million for the three months ended September 30, 2025, compared to a net loss of $14.82 million in the same period last year, representing a 38.7% increase in losses[104]. - Net cash provided by operating activities decreased to $48.0 million for the nine months ended September 30, 2025, down from $53.7 million in the same period of 2024, reflecting a decline of approximately 13%[130]. - Net working capital provided cash of $18.6 million in 2025, compared to $30.8 million in 2024, indicating a decrease of about 40%[130]. - The net decrease in cash, cash equivalents, and restricted cash was $12.97 million in 2025, slightly higher than the decrease of $12.85 million in 2024[129]. Orders and Market Activity - Total inbound orders for the three months ended September 30, 2025, were $239.99 million, a decrease from $263.13 million in the previous quarter[103]. - The global active rig count decreased by 7.7% in Q3 2025 compared to Q3 2024, driven by lower oil prices and increased production efficiencies[99]. - The average number of active drilling rigs in the U.S. was 540 in Q3 2025, down from 586 in Q3 2024[103]. - Average global oil prices for WTI were $65.78 per barrel in Q3 2025, down from $76.43 in Q3 2024, while average natural gas prices at Henry Hub increased to $3.03 per Mcf from $2.11[100]. Capital Expenditures and Share Repurchase - The company expects total capital expenditures for 2025 to be below $10.0 million, primarily for replacement of end-of-life machinery and equipment[126]. - The company repurchased 966 thousand shares of common stock for approximately $21.3 million during the nine months ended September 30, 2025, with remaining authorization under the repurchase program of $53.7 million[128]. - The company repurchased $21.1 million in stock during the nine months ended September 30, 2025, compared to $73.0 million in repurchases of 9.00% Senior Convertible Secured Notes in 2024[132]. Tax and Interest Expenses - Interest expense for the nine months ended September 30, 2025 was $14.1 million, a decrease of $11.0 million compared to $25.1 million for the same period in 2024, due to decreased borrowings[121]. - Tax expense for the nine months ended September 30, 2025 was $20.1 million, an increase of $9.4 million compared to $10.6 million for the same period in 2024[123]. Cash Flow Activities - Net cash provided by investing activities was $10.3 million in 2025, primarily from $14.6 million in sale-leaseback transactions, contrasting sharply with a net cash outflow of $155.9 million in 2024 due to the Variperm acquisition[131]. - Net cash used in financing activities was $72.4 million in 2025, a significant change from the $89.4 million cash inflow in 2024, primarily due to $47.6 million in net repayments of the revolving Credit Facility[132]. Accounting and Controls - There were no material changes in critical accounting policies and estimates during the nine months ended September 30, 2025[133]. - The company's disclosure controls and procedures were evaluated as effective at the reasonable assurance level as of September 30, 2025[135]. - No changes in internal control over financial reporting were reported that materially affected the company's financial reporting during the quarter ended September 30, 2025[136].