Stonegate Capital Partners Updates Coverage on Forum Energy Technologies, Inc. (FET) Q4 24

Rhea-AI Summary

Forum Energy Technologies (NYSE: FET) reported Q4 2024 financial results with revenue of $201.0M, adjusted EBITDA of $22.2M, and adjusted net loss of $5.9M. Revenue aligned with analyst expectations, while gross profit margins came in slightly below forecasts. The company achieved adjusted EBITDA margins of 11.0%, slightly below expectations.

Notable highlights include strong free cash flow of $56.9M, representing a sequential increase of $32.4M. The Artificial Lift and Downhole segment showed growth with revenue increasing 6.8% sequentially to $89.9M. The company has also initiated its previously announced $75.0M share repurchase program.

Positive

• Strong FCF generation of $56.9M in Q4, up $32.4M from previous quarter
• Artificial Lift and Downhole segment revenue grew 6.8% sequentially to $89.9M
• Implementation of $75.0M share repurchase program
• Revenue of $201.0M met analyst expectations

Negative

• Adjusted net loss of $5.9M, missing consensus estimates
• EBITDA margins below expectations at 11.0%
• Weaker than expected operating profit margins
• Release of valuation allowance on deferred tax assets in Germany and Saudi Arabia impacting earnings

Dallas, Texas--(Newsfile Corp. - February 24, 2025) - Forum Energy Technologies, Inc. (NYSE: FET) Stonegate Capital Partners updates their coverage on Forum Energy Technologies, Inc. (NYSE: FET). FET reported revenue, adj EBITDA, and adj net income of $201.0M, $22.2M, and ($5.9)M, respectively. This compares to our/consensus estimates of $201.9M/$201.9M, $24.1M/$24.1M, and $1.0M/($0.6)M. It is noted that revenues were in-line with our expectations while GPM was slightly below expectations. Adj. EBITDA margins were also slightly below expectations at 11.0%. Adj. NI fell short of our expectations due to weaker than expected OPM and the release of a valuation allowance on deferred tax assets in Germany and Saudi Arabia.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• FCF of $56.9M in 4Q24, up $32.4M sequentially.
• Artificial Lift and Downhole revenue increased by 6.8% sequentially to $89.9M
• FET began executing on its announced $75.0M share repurchase program.

Click image above to view full announcement.

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About Stonegate Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242067

FAQ

What was Forum Energy Technologies (FET) revenue in Q4 2024?

Forum Energy Technologies reported revenue of $201.0M in Q4 2024, which was in line with analyst consensus estimates of $201.9M.

How much free cash flow did FET generate in Q4 2024?

FET generated $56.9M in free cash flow during Q4 2024, representing a sequential increase of $32.4M from the previous quarter.

What is the size of FET's share repurchase program?

FET has begun executing a $75.0M share repurchase program.

How did FET's Artificial Lift and Downhole segment perform in Q4 2024?

The Artificial Lift and Downhole segment revenue increased by 6.8% sequentially to $89.9M in Q4 2024.

What was FET's adjusted EBITDA margin in Q4 2024?

FET reported an adjusted EBITDA margin of 11.0% in Q4 2024, which was slightly below expectations.