Forum Energy Technologies Announces Fourth Quarter and Full Year 2025 Results and Outlook; Repurchased 11% of Shares Outstanding in 2025

News > Business News

Audio By Carbonatix

2:46 PM on Thursday, February 19

The Associated Press

HOUSTON--(BUSINESS WIRE)--Feb 19, 2026--

Forum Energy Technologies, Inc. (NYSE: FET) today announced fourth quarter 2025 revenue of $202.2 million and net income of $2.1 million or $0.17 per diluted share. Adjusted for $2.9 million of foreign tax settlement, asset impairments, restructuring costs and other items, adjusted net income was $5.0 million or approximately $0.41 per diluted share. 1

Neal Lux, President and Chief Executive Officer, remarked, “2025 was another great step forward and further positioned FET to deliver the 2030 vision. Our commercial efforts and innovation focus supplied meaningful bookings and backlog growth. Entering 2026, our backlog of $312 million is the highest in 11 years and 46% greater than a year ago. Nearly 12% of our backlog is from products developed in the last few years. These results are driven by the execution of our “Beat the Market” strategy. We are gaining market share and leveraging our global footprint.

“Our financial performance accelerated through the second half of the year, with EBITDA up nearly 13% compared to the prior six months. Higher EBITDA, along with working capital efficiency and asset monetization, generated full year free cash flow of $80 million. In line with our capital allocation framework, we repurchased 11% of our total shares outstanding and reduced net debt by 28%.

“In 2026, we believe global market activity will remain relatively flat. However, we expect revenue and EBITDA growth, supported by strong backlog, structural cost reductions, and market share gains. Our execution in 2026 will keep us on track for FET 2030.”

_________________________________
1	See Tables 1-9 for a reconciliation of GAAP to non-GAAP financial information, including a breakdown of adjusting items.

Segment Results(unless otherwise noted, comparisons are fourth quarter 2025 versus third quarter 2025)

Drilling and Completions revenue was $127 million, an 8% increase, primarily related to strong demand for drilling-related capital equipment for international markets, subsea ROVs, and coiled line pipe. Adjusted EBITDA was $12 million. Book-to-bill was 84%, coming off strong orders for ROVs and drilling-related capital equipment in the prior quarter that did not recur. Drilling and Completions provides consumable products and capital equipment for drilling, subsea, coiled tubing, wireline, and stimulation markets.

Artificial Lift and Downhole revenue was $75 million, a 4% decrease, primarily related to lower volumes of production equipment and technologies. However, adjusted EBITDA was relatively flat at $17 million, due to favorable product mix for sand and flow control products. Book-to-bill was 107%, due to large orders for production-related equipment. Artificial Lift and Downhole engineers, manufactures, and supplies products for well construction, artificial lift, and oil and natural gas processing.

FET is a global manufacturing company, serving the oil, natural gas, defense, and renewable energy industries. With headquarters located in Houston, Texas, FET provides value added solutions aimed at improving the safety, efficiency, and environmental impact of our customers' operations. For more information, please visit www.f-e-t.com.

Non-GAAP Financial Measures

The Company presents its financial results in accordance with GAAP. However, management believes that non-GAAP measures are useful tools for evaluating the Company's overall financial performance. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for those prepared in accordance with GAAP and should, therefore, be considered only as a supplement. Please see the attached schedules for reconciliations between GAAP and the non-GAAP financial measures used in this press release. The company is unable to provide a reconciliation of forward-looking adjusted net income and adjusted EBITDA to GAAP net income because items that impact GAAP net income, such as restructuring charges, transaction expenses, and foreign exchange losses (gains), cannot be reasonably predicted.

Forward Looking Statements and Other Legal Disclosure

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including any statement about the Company's outlook, future financial position, liquidity and capital resources, operations, performance, cash flow, acquisitions, returns, capital expenditure budgets, new product development activities, strategic investments, share repurchases, costs and other guidance included in this press release.

These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Among other things, these include the volatility of oil and natural gas prices, oilfield development activity levels, the availability of raw materials and specialized equipment, the Company's ability to deliver backlog in a timely fashion, the availability of skilled and qualified labor, competition in the oil and natural gas industry, governmental regulation and taxation of the oil and natural gas industry, the Company's ability to implement new technologies and services, the availability and terms of capital, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business, and other important factors that could cause actual results to differ materially from those projected as described in the Company's filings with the U.S. Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Forum Energy Technologies, Inc.
Condensed consolidated statements of net income (loss)
(Unaudited)

	Three months ended
	December 31,		September 30,
(in thousands, except per share information)		2025			2024			2025
Revenue	$	202,200		$	201,018		$	196,231
Cost of sales		141,118			138,553			155,994
Gross profit		61,082			62,465			40,237
Operating expenses
Selling, general and administrative expenses		48,888			54,642			50,449
Transaction expenses		57			—			254
Impairment of intangible assets		—			119,123			—
Gain on sale-leaseback transactions and other		(627	)		(4,483	)		(4,360	)
Total operating expenses		48,318			169,282			46,343
Operating income (loss)		12,764			(106,817	)		(6,106	)
Other expense (income)
Interest expense		4,258			6,421			4,365
Foreign exchange losses (gains) and other, net		247			(6,549	)		9
Loss on extinguishment of debt		—			552			—
Total other expense, net		4,505			424			4,374
Income (loss) before income taxes		8,259			(107,241	)		(10,480	)
Income tax expense (benefit)		6,187			(3,741	)		10,074
Net income (loss) (1)	$	2,072		$	(103,500	)	$	(20,554	)

Weighted average shares outstanding
Basic		11,209			12,333			11,682
Diluted		12,085			12,333			11,682

Earnings (loss) per share
Basic	$	0.18		$	(8.39	)	$	(1.76	)
Diluted	$	0.17		$	(8.39	)	$	(1.76	)

(1) Refer to Table 1 for schedule of adjusting items.

Forum Energy Technologies, Inc.
Condensed consolidated statements of net loss
(Unaudited)

	Year ended
	December 31,
(in thousands, except per share information)		2025			2024
Revenue	$	791,474		$	816,425
Cost of sales		572,438			561,392
Gross profit		219,036			255,033
Operating expenses
Selling, general and administrative expenses		199,905			219,325
Transaction expenses		546			7,728
Impairment of intangible assets		—			119,123
Gain on sale-leaseback transactions and other		(11,560	)		(4,376	)
Total operating expenses		188,891			341,800
Operating income (loss)		30,145			(86,767	)
Other expense (income)
Interest expense		18,312			31,490
Loss on extinguishment of debt		—			2,854
Foreign exchange losses (gains) and other, net		(4,754	)		7,315
Total other expense, net		13,558			41,659
Income (loss) before income taxes		16,587			(128,426	)
Income tax expense		26,247			6,900
Net loss (1)	$	(9,660	)	$	(135,326	)

Weighted average shares outstanding
Basic		11,883			12,299
Diluted		11,883			12,299

Loss per share
Basic	$	(0.81	)	$	(11.00	)
Diluted	$	(0.81	)	$	(11.00	)

(1) Refer to Table 2 for schedule of adjusting items.

Forum Energy Technologies, Inc.
Condensed consolidated balance sheets
(Unaudited)

(in thousands of dollars)	December 31, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	34,661		$	44,661
Accounts receivable—trade, net		142,396			153,926
Inventories, net		239,420			265,487
Other current assets		32,407			31,563
Total current assets		448,884			495,637
Property and equipment, net of accumulated depreciation		51,905			63,421
Operating lease assets		80,733			70,389
Goodwill and intangible assets, net		158,304			170,883
Other long-term assets		12,629			15,624
Total assets	$	752,455		$	815,954
Liabilities and equity
Current liabilities
Current portion of long-term debt	$	1,407		$	1,866
Other current liabilities		205,127			199,990
Total current liabilities		206,534			201,856
Long-term debt, net of current portion		134,521			186,525
Other long-term liabilities		120,257			107,673
Total liabilities		461,312			496,054
Total equity		291,143			319,900
Total liabilities and equity	$	752,455		$	815,954

Forum Energy Technologies, Inc.
Condensed consolidated cash flow information
(Unaudited)

	Year ended
	December 31,
(in thousands of dollars)		2025			2024
Cash flows from operating activities
Net loss	$	(9,660	)	$	(135,326	)
Depreciation and amortization		33,755			53,717
Impairment of intangible assets		—			119,123
Impairment of property and equipment and other assets		4,291			—
Inventory write down		19,673			2,716
Gain on sale-leaseback transactions		(11,182	)		(4,860	)
Loss on extinguishment of debt		—			2,854
Other noncash items and changes in working capital		33,525			53,967
Net cash provided by operating activities		70,402			92,191

Cash flows from investing activities
Capital expenditures for property and equipment		(6,015	)		(8,145	)
Proceeds from sale of property and equipment		1,007			703
Proceeds from sale-leaseback transactions		14,574			20,324
Acquisition of businesses, net of cash acquired		—			(150,408	)
Net cash provided by (used in) investing activities		9,566			(137,526	)

Cash flows from financing activities
Borrowings of debt		562,324			874,320
Repayments of debt		(617,043	)		(819,454	)
Repurchases of stock		(34,612	)		—
Payments of withheld taxes on stock-based compensation plans		(1,321	)		(1,090	)
Deferred financing costs		(914	)		(8,534	)
Net cash provided by (used in) financing activities		(91,566	)		45,242

Effect of exchange rate changes on cash		1,598			(1,411	)
Net decrease in cash, cash equivalents and restricted cash	$	(10,000	)	$	(1,504	)

Forum Energy Technologies, Inc.
Supplemental schedule - Segment information
(Unaudited)

	As Reported		As Adjusted (3)
	Three months ended		Three months ended
(in thousands of dollars)	December 31, 2025		December 31, 2024	September 30, 2025		December 31, 2025	December 31, 2024		September 30, 2025
Revenue
Drilling and Completions	$	126,916		$	111,084		$	117,469		$	126,916		$	111,084		$	117,469
Artificial Lift and Downhole		75,461			89,943			78,981			75,461			89,943			78,981
Eliminations		(177	)		(9	)		(219	)		(177	)		(9	)		(219	)
Total revenue	$	202,200		$	201,018		$	196,231		$	202,200		$	201,018		$	196,231

Operating income (loss)
Drilling and Completions	$	9,736		$	3,302		$	(13,551	)	$	9,268		$	3,763		$	8,658
Operating margin %		7.7	%		3.0	%		(11.5	)%		7.3	%		3.4	%		7.4	%
Artificial Lift and Downhole		11,708			12,863			11,778			11,851			13,127			11,830
Operating margin %		15.5	%		14.3	%		14.9	%		15.7	%		14.6	%		15.0	%
Corporate		(9,250	)		(8,342	)		(8,439	)		(8,838	)		(8,450	)		(8,299	)
Total segment operating income (loss)		12,194			7,823			(10,212	)		12,281			8,440			12,189
Other items not in segment operating income (loss) (1)		570			(114,640	)		4,106			(14	)		(377	)		81
Total operating income (loss)	$	12,764		$	(106,817	)	$	(6,106	)	$	12,267		$	8,063		$	12,270
Operating margin %		6.3	%		(53.1	)%		(3.1	)%		6.1	%		4.0	%		6.3	%

EBITDA (2)
Drilling and Completions	$	12,984		$	(106,688	)	$	(10,505	)	$	12,050		$	9,541		$	11,758
EBITDA margin %		10.2	%		(96.0	)%		(8.9	)%		9.5	%		8.6	%		10.0	%
Artificial Lift and Downhole		15,961			18,754			20,419			16,902			19,262			16,977
EBITDA margin %		21.2	%		20.9	%		25.9	%		22.4	%		21.4	%		21.5	%
Corporate		(8,587	)		(725	)		(8,166	)		(6,266	)		(6,586	)		(5,597	)
Total EBITDA	$	20,358		$	(88,659	)	$	1,748		$	22,686		$	22,217		$	23,138
EBITDA margin %		10.1	%		(44.1	)%		0.9	%		11.2	%		11.1	%		11.8	%

(1) Includes transaction expenses, gain on sale-leaseback transaction, and gain (loss) on disposal of assets and other.
(2) The Company believes that the presentation of EBITDA is useful to investors because EBITDA is an appropriate measure for evaluating operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing securities and making strategic acquisitions. In addition, EBITDA is a widely used benchmark in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information.
(3) Refer to Table 1 for schedule of adjusting items.

Forum Energy Technologies, Inc.
Supplemental schedule - Segment information
(Unaudited)

	As Reported		As Adjusted (3)
	Year ended		Year ended
(in thousands of dollars)	December 31, 2025		December 31, 2024	December 31, 2025		December 31, 2024
Revenue
Drilling and Completions	$	477,191		$	470,767		$	477,191		$	470,767
Artificial Lift and Downhole		314,785			345,680			314,785			345,680
Eliminations		(502	)		(22	)		(502	)		(22	)
Total revenue	$	791,474		$	816,425		$	791,474		$	816,425

Operating income (loss)
Drilling and Completions	$	12,835		$	17,766		$	36,135		$	20,458
Operating margin %		2.7	%		3.8	%		7.6	%		4.3	%
Artificial Lift and Downhole		41,174			48,894			41,672			49,082
Operating margin %		13.1	%		14.1	%		13.2	%		14.2	%
Corporate		(34,878	)		(30,952	)		(34,006	)		(30,464	)
Total segment operating income (loss)		19,131			35,708			43,801			39,076
Other items not in segment operating income (loss) (1)		11,014			(122,475	)		(74	)		(356	)
Total operating income (loss)	$	30,145		$	(86,767	)	$	43,727		$	38,720
Operating margin %		3.8	%		(10.6	)%		5.5	%		4.7	%

EBITDA (2)
Drilling and Completions	$	30,457		$	(84,604	)	$	47,629		$	49,195
EBITDA margin %		6.4	%		(18.0	)%		10.0	%		10.4	%
Artificial Lift and Downhole		71,731			73,006			64,058			74,417
EBITDA margin %		22.8	%		21.1	%		20.3	%		21.5	%
Corporate		(33,534	)		(31,621	)		(25,284	)		(23,635	)
Total EBITDA	$	68,654		$	(43,219	)	$	86,403		$	99,977
EBITDA margin %		8.7	%		(5.3	)%		10.9	%		12.2	%

(1) Includes transaction expenses, gain on sale-leaseback transaction, and gain (loss) on disposal of assets and other.
(2) The Company believes that the presentation of EBITDA is useful to investors because EBITDA is an appropriate measure for evaluating operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing securities and making strategic acquisitions. In addition, EBITDA is a widely used benchmark in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information.
(3) Refer to Table 2 for schedule of adjusting items.

Forum Energy Technologies, Inc.
Supplemental schedule - Orders information
(Unaudited)

	Three months ended
(in thousands of dollars)	December 31, 2025		December 31, 2024	September 30, 2025
Orders
Drilling and Completions	$	106,407		$	102,999		$	151,473
Artificial Lift and Downhole		80,790			86,956			88,517
Total orders	$	187,197		$	189,955		$	239,990

Revenue
Drilling and Completions	$	126,916		$	111,084		$	117,469
Artificial Lift and Downhole		75,461			89,943			78,981
Eliminations		(177	)		(9	)		(219	)
Total revenue	$	202,200		$	201,018		$	196,231

Book to bill ratio (1)
Drilling and Completions		0.84			0.93			1.29
Artificial Lift and Downhole		1.07			0.97			1.12
Total book to bill ratio		0.93			0.94			1.22

(1) The book-to-bill ratio is calculated by dividing the dollar value of orders received in a given period by the revenue earned in that same period. The Company believes that this ratio is useful to investors because it provides an indication of whether the demand for our products is strengthening or declining. A ratio of greater than one is indicative of improving market demand, while a ratio of less than one would suggest weakening demand. In addition, the Company believes the book-to-bill ratio provides more meaningful insight into future revenues for our business than other measures, such as order backlog, because the majority of our products are activity based consumable items or shorter cycle capital equipment, neither of which are typically ordered by customers far in advance.

Forum Energy Technologies, Inc.
Reconciliation of GAAP to non-GAAP financial information
(Unaudited)
Table 1 - Adjusting items

	Three months ended
	December 31, 2025		December 31, 2024	September 30, 2025
(in thousands, except per share information)	Operating income (loss)		EBITDA (1)	Net income (loss)		Operating income (loss)	EBITDA (1)		Net income (loss)		Operating income (loss)		EBITDA (1)		Net income (loss)
As reported	$	12,764		$	20,358		$	2,072			$	(106,817	)		$	(88,659	)	$	(103,500	)	$	(6,106	)	$	1,748		$	(20,554	)
% of revenue		6.3	%		10.1	%				(53.1	)%			(44.1	)%				(3.1	)%		0.9	%
Restructuring and other costs		633			633			633				840				840			840			1,501			1,501			1,501
Transaction expenses		57			57			57				—				—			—			254			254			254
Inventory and other assets impairment adjustments		(1,187	)		(1,187	)		(1,187	)			(223	)			(223	)		(223	)		20,900			20,900			20,900
Impairment of intangible assets		—			—			—				119,123				119,123			119,123			—			—			—
Stock-based compensation expense		—			2,598			—				—				1,980			—			—			2,853			—
Loss on extinguishment of debt		—			—			—				—				552			552			—			—			—
Gain on sale-leaseback transactions		—			—			—				(4,860	)			(4,860	)		(4,860	)		(4,279	)		(4,279	)		(4,279	)
Foreign exchange losses (gains) and other, net (2)		—			227			227				—				(6,536	)		(6,536	)		—			161			161
Foreign tax settlement		—			—			3,163				—				—			—			—			—			—
Release of valuation allowance on deferred tax assets		—			—			—				—				—			(11,340	)		—			—			5,205
As adjusted (1)	$	12,267		$	22,686		$	4,965			$	8,063			$	22,217		$	(5,944	)	$	12,270		$	23,138		$	3,188
% of revenue		6.1	%		11.2	%				4.0	%			11.1	%				6.3	%		11.8	%

Diluted shares outstanding as reported					12,085							12,333							11,682
Diluted shares outstanding as adjusted					12,085							12,333							11,682

Diluted EPS - as reported				$	0.17						$	(8.39	)					$	(1.76	)
Diluted EPS - as adjusted				$	0.41						$	(0.48	)					$	0.27

(1) The Company believes that the presentation of EBITDA, adjusted EBITDA, adjusted operating loss, adjusted net loss and adjusted diluted EPS are useful to investors because (i) each of these financial metrics are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of normal operating results and (ii) EBITDA is an appropriate measure of evaluating operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing securities and making strategic acquisitions. In addition, these benchmarks are widely used in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information.

(2) Foreign exchange, net primarily relates to cash and receivables denominated in U.S. dollars by some of our non-U.S. subsidiaries that report in a local currency, and therefore the loss (gain) has no economic impact in dollar terms.

Forum Energy Technologies, Inc.
Reconciliation of GAAP to non-GAAP financial information
(Unaudited)
Table 2 - Adjusting items

	Year ended
	December 31, 2025		December 31, 2024
(in thousands, except per share information)	Operating (income) loss		EBITDA (1)	Net income (loss)		Operating (income) loss	EBITDA (1)		Net income (loss)
As reported	$	30,145		$	68,654		$	(9,660	)		$	(86,767	)		$	(43,219	)	$	(135,326	)
% of revenue		3.8	%		8.7	%				(10.6	)%			(5.3	)%
Restructuring and other costs		4,592			4,592			4,592				3,756				3,756			3,756
Transaction expenses		546			546			546				7,725				7,725			7,725
Inventory and other assets impairment adjustments		19,626			19,626			19,626				(257	)			(257	)		(257	)
Impairment of intangible assets		—			—			—				119,123				119,123			119,123
Stock-based compensation expense		—			9,018			—				—				7,176			—
Loss on extinguishment of debt		—			—			—				—				2,854			2,854
Gain on sale-leaseback transactions		(11,182	)		(11,182	)		(11,182	)			(4,860	)			(4,860	)		(4,860	)
Foreign exchange losses (gains) and other, net (2)		—			(4,851	)		(4,851	)			—				7,679			7,679
Foreign tax settlement		—			—			3,163				—				—			—
Release of valuation allowance on deferred tax assets		—			—			5,205				—				—			(11,340	)
As adjusted (1)	$	43,727		$	86,403		$	7,439			$	38,720			$	99,977		$	(10,646	)
% of revenue		5.5	%		10.9	%				4.7	%			12.2	%

Diluted shares outstanding as reported					11,883							12,299
Diluted shares outstanding as adjusted					11,883							12,299

Diluted EPS - as reported				$	(0.81	)					$	(11.00	)
Diluted EPS - as adjusted				$	0.63						$	(0.87	)

(1) The Company believes that the presentation of EBITDA, adjusted EBITDA, adjusted operating loss, adjusted net loss and adjusted diluted EPS are useful to investors because (i) they assist with assessing and understanding operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the Company's normal operating results and (ii) EBITDA is an appropriate measure of evaluating operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing securities and making strategic acquisitions. In addition, these benchmarks are widely used in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information.

(2) Foreign exchange, net primarily relates to cash and receivables denominated in U.S. dollars by some of our non-U.S. subsidiaries that report in a local currency, and therefore the loss (gain) has no economic impact in dollar terms.

Forum Energy Technologies, Inc.
Reconciliation of GAAP to non-GAAP financial information
(Unaudited)
Table 3 - Adjusting Items

	Three months ended
(in thousands of dollars)	December 31, 2025		December 31, 2024	September 30, 2025
EBITDA reconciliation (1)
Net income (loss)	$	2,072		$	(103,500	)	$	(20,554	)
Interest expense		4,258			6,421			4,365
Depreciation and amortization		7,841			12,161			7,863
Income tax expense (benefit)		6,187			(3,741	)		10,074
EBITDA	$	20,358		$	(88,659	)	$	1,748

(1) The Company believes adjusted EBITDA is useful to investors because it is an appropriate measure of evaluating operating performance and liquidity. It reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing securities, and making strategic acquisitions. In addition, adjusted EBITDA is a widely used benchmark in the investment community.

Forum Energy Technologies, Inc.
Reconciliation of GAAP to non-GAAP financial information
(Unaudited)
Table 4 - Adjusting Items
	Year ended
(in thousands of dollars)	December 31, 2025		December 31, 2024
EBITDA reconciliation (1)
Net loss	$	(9,660	)	$	(135,326	)
Interest expense		18,312			31,490
Depreciation and amortization		33,755			53,717
Income tax expense		26,247			6,900
EBITDA	$	68,654		$	(43,219	)

(1) The Company believes adjusted EBITDA is useful to investors because it is an appropriate measure of evaluating operating performance and liquidity. It reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing securities, and making strategic acquisitions. In addition, adjusted EBITDA is a widely used benchmark in the investment community.

Forum Energy Technologies, Inc.
Free cash flow
(Unaudited)
Table 5 - Adjusting items

	Three months ended
(in thousands of dollars)	December 31, 2025		December 31, 2024	September 30, 2025
Free cash flow, before acquisitions, reconciliation (1)
Net cash provided by operating activities	$	22,437		$	38,516		$	22,866
Capital expenditures for property and equipment		(1,562	)		(2,410	)		(1,392	)
Proceeds from sale of property and equipment		844			467			106
Proceeds from sale-leaseback transactions		—			20,324			6,546
Free cash flow, before acquisitions	$	21,719		$	56,897		$	28,126

(1) The Company believes free cash flow, before acquisitions is an important measure because it encompasses both profitability and capital management in evaluating results.

(2) The free cash flow yield disclosed is a financial ratio calculated by dividing annualized free cash flow by the Company's market capitalization as of February 18, 2026, and using the midpoint $65 million of guided full year 2026 free cash flow. As of February 18, 2026, the free cash flow yield was 11%. We believe free cash flow yield is useful to investors as a measure of the Company's ability to generate free cash flow in comparison to its market capitalization and allows for comparisons across peer companies.

Forum Energy Technologies, Inc.
Free cash flow
(Unaudited)
Table 6 - Adjusting items

	Year ended
(in thousands of dollars)	December 31, 2025		December 31, 2024
Free cash flow, before acquisitions, reconciliation (1)
Net cash provided by operating activities	$	70,402		$	92,191
Capital expenditures for property and equipment		(6,015	)		(8,145	)
Proceeds from sale of property and equipment		1,007			703
Proceeds from sale-leaseback transactions		14,574			20,324
Free cash flow, before acquisitions	$	79,968		$	105,073

(1) The Company believes free cash flow, before acquisitions is an important measure because it encompasses both profitability and capital management in evaluating results.

(2) The free cash flow yield disclosed is a financial ratio calculated by dividing annualized free cash flow by the Company's market capitalization as of February 18, 2026, and using the midpoint $65 million of guided full year 2026 free cash flow. As of February 18, 2026, the free cash flow yield was 11%. We believe free cash flow yield is useful to investors as a measure of the Company's ability to generate free cash flow in comparison to its market capitalization and allows for comparisons across peer companies.

Forum Energy Technologies, Inc.
Table 7 - Leverage Ratio (1)
(Unaudited)


(in thousands of dollars)	December 31, 2025
2029 Bonds	$	100,000
Credit Facility		37,282
Other debt		4,008
Long-term debt, principal amount		141,290
Cash and cash equivalents		34,661
Net debt		106,629

Adjusted EBITDA		86,403
Net leverage ratio		1.2

(1) The Company believes net leverage ratio is an important measure because it represents the Company's ability to meet its financial obligations.

Forum Energy Technologies, Inc.
Table 8 - Revenue Per Rig
(Unaudited)

	Year ended
(in thousands of dollars, except rig count)	December 31, 2025		December 31, 2024	December 31, 2022
Revenue	$	791,474		$	816,425	$	699,913
Average global rig count (1)		1,818			1,948		1,934
Revenue per rig	$	435		$	419	$	362

(1) The table above shows the average number of active drilling rigs operating based on the weekly rig count information published by Baker Hughes Company. In the third quarter of 2025, Baker Hughes implemented a revised methodology for counting rigs, primarily affecting data pertaining to Saudi Arabia. Baker Hughes only adjusted data back January 2024. Consequently, rig count data prior to January 2024 has been adjusted internally.

Forum Energy Technologies, Inc.
Table 9 - Free Cash Flow Conversion
(Unaudited)
	Year ended
(in thousands of dollars)	December 31, 2025

Free cash flow	$	79,968
Adjusted EBITDA		86,403
Free cash flow conversion		93	%

Forum Energy Technologies, Inc.
Supplemental schedule - Product line revenue
(Unaudited)

	Three months ended
(in thousands of dollars)	December 31, 2025		December 31, 2024	September 30, 2025
Revenue	$		%	$		%		$		%
Drilling	$	35,713		17.6	%		$	35,555			17.8	%	$	32,234		16.4	%
Subsea		29,513		14.6	%			18,581			9.2	%		23,582		12.0	%
Stimulation and Intervention		30,854		15.3	%			31,056			15.4	%		34,271		17.5	%
Coiled Tubing		30,836		15.3	%			25,892			12.9	%		27,382		14.0	%
Drilling and Completions		126,916		62.8	%			111,084			55.3	%		117,469		59.9	%

Downhole		47,800		23.6	%			51,547			25.6	%		48,073		24.5	%
Production Equipment		15,574		7.7	%			21,743			10.8	%		18,647		9.5	%
Valve Solutions		12,087		6.0	%			16,653			8.3	%		12,261		6.2	%
Artificial Lift and Downhole		75,461		37.3	%			89,943			44.7	%		78,981		40.2	%
Eliminations		(177	)	(0.1	)%			(9	)		—	%		(219	)	(0.1	)%
Total revenue	$	202,200		100.0	%		$	201,018			100.0	%	$	196,231		100.0	%