Forum Energy’s Innovation Drives Growth and Returns

Overview of Forum Energy Technologies (FET)

Forum Energy Technologies, Inc. (FET) is a key player in the energy sector, specializing in providing highly engineered products that support the operations of oil, natural gas, and renewable energy companies. As a global manufacturing firm, FET offers consumable products used in drilling, well construction, and completion, as well as capital products for the construction of new rigs and subsea projects.

One of the primary drivers of FET’s growth is innovation. In 2025, the company introduced 10 new products by closely collaborating with its customers to address operational challenges, improve efficiencies, and increase productivity. This commitment to innovation has helped FET build a strong technology pipeline, which is expected to drive future growth and revenue. At the end of 2025, FET’s project backlog reached $312 million, a significant increase of 46% compared to the end of 2024. The company is also focused on structural cost reductions, which could help improve margins.

Financial Performance and Shareholder Value

FET’s strategic focus on market share growth, innovation, and cost reduction has led to improved financial performance in 2025. The company generated $80 million in free cash flow, which enabled it to return value to shareholders through share buybacks. Using its free cash flow, FET repurchased approximately 1.4 million shares, representing nearly 11% of its outstanding shares. Additionally, the company reduced its net debt by 28% throughout the year.

The combination of a growing technology pipeline, strong backlog growth, and robust free cash flow positions FET well for future expansion. These factors contribute to the company’s overall stability and potential for long-term success.

Peer Companies in the Energy Sector

FET operates within a competitive landscape that includes several key players in the energy services industry. Two notable peer companies are National Energy Services Reunited (NESR) and NOV Inc. (NOV).

National Energy Services Reunited (NESR): NESR is one of the largest oilfield service providers in the Middle East and North Africa (MENA) region. Its shares have surged 173.9% over the past year, driven by strong fourth-quarter earnings of 32 cents per share, which exceeded expectations. While drilling activity has slowed in the United States, NESR is positioned for growth in Latin America, particularly in countries like Guyana and Brazil, as well as in the MENA region. The company is focused on securing a robust backlog and building a solid project pipeline to enhance revenue visibility.
NOV Inc. (NOV): NOV is a leading provider of oil and gas equipment and services, involved in the design, manufacture, and sale of comprehensive systems and components used in oil and gas production. Its Energy Equipment segment has achieved four consecutive years of revenue growth, largely due to a shift toward a higher-quality, production-oriented backlog, such as FPSO modules and subsea pipe. This high-quality backlog supports revenue visibility and margin stability. NOV shares have gained 28.7% over the past year.

Price Performance, Valuation, and Market Outlook

Shares of FET have experienced impressive growth, rising 189.5% over the past year, significantly outperforming the industry’s composite stock growth of 46.5%.

Image Source: Zacks Investment Research

From a valuation perspective, FET trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.93X, which is above the broader industry average of 8.74X.

Image Source: Zacks Investment Research