Financial Data and Key Metrics Changes - Fourth quarter revenue reached $202 million, exceeding the top end of guidance and increasing 3% sequentially, driven by strength in offshore and international markets [13] - Adjusted EBITDA for the quarter was $23 million, at the top end of guidance, reflecting higher revenue and cost reductions [13] - Free Cash Flow generation was strong, totaling $80 million for the year, with a fourth quarter Free Cash Flow of $22 million [10][15] Business Line Data and Key Metrics Changes - Drilling and completion revenue was $127 million, up 8%, with Subsea product line revenue increasing 25% due to ROV projects and a significant rescue submarine order [14] - Coiled tubing revenue rose 13%, supported by strong sales in North America, while drilling product line revenue increased 11% due to international demand [14] - Artificial Lift and Downhole segment revenue was $75 million, down 4% sequentially, with a book-to-bill of 107% driven by large orders for natural gas processing units [15] Market Data and Key Metrics Changes - International revenue increased by 8%, surpassing U.S. revenue, which declined by 2% due to project timing and softer demand [13] - The company reported a book-to-bill ratio of 93% for the fourth quarter, primarily reflecting order timing in the drilling and completion segment [14] Company Strategy and Development Direction - The company is focused on its "Beat the Market" strategy, which has led to a 20% increase in revenue per global rig since its inception in 2022 [5] - The strategic vision, FET 2030, aims to double revenue in five years by expanding addressable markets and gaining market share [11] - Innovation remains central to growth, with 10 new products commercialized in 2025, including the Secura Series stage collars and DURACOIL 95 [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a bullish long-term outlook, anticipating a 6% revenue growth and a 16% increase in EBITDA for 2026 [11] - The company expects to convert 65% of EBITDA into Free Cash Flow, projecting between $55 million and $75 million for 2026 [12] - Management highlighted the importance of maintaining margin and cost discipline while navigating a challenging operating environment [10] Other Important Information - The company ended the year with a net debt of $107 million and a net leverage ratio of 1.2x, with liquidity of $108 million [16] - The credit facility maturity was extended to February 2031, providing flexibility for strategic initiatives [16] Q&A Session Summary Question: Trajectory in Subsea business for 2026 and 2027 - Management expects strong demand in the Subsea business, with a 190% book-to-bill in 2025 and plans to convert backlog in 2026 [26] Question: Areas for potential acquisitions - Management is interested in downhole type businesses that meet their criteria of being differentiated and accretive without stressing the balance sheet [30] Question: Performance in Q4 and guidance for Q1 - Management noted solid execution in Q4, with strong revenue growth in the Subsea product line and no significant end-of-year slowdown [36] Question: Free Cash Flow guidance and working capital management - Management highlighted strong working capital efficiencies and expects to maintain good cash flow despite growth challenges [40] Question: Impact of tariffs and deferred tax assets - Management discussed the ongoing impact of tariffs on steel supply and the complexities of their tax situation due to deferred tax assets [95][96]

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]