Forum Energy Technologies, Inc. (NYSE: FET) has recently disclosed its fourth-quarter financial outcomes, revealing a strategic adaptability in the face of a volatile energy market. The company's performance across its operational segments showed mixed results, with a notable decline in the Drilling and Completions segment but significant growth in the Artificial Lift and Downhole segment. The Drilling and Completions segment saw a 10.1% sequential revenue drop to $111.1 million, attributed to lower sales in capital equipment, wireline cable, and coiled tubing, largely due to reduced U.S. completions activity. However, the segment's book-to-bill ratio of 93.0% hints at a possible future rebound.
On the other hand, the Artificial Lift and Downhole segment flourished, with revenue climbing 6.8% sequentially to $89.9 million, fueled by increased demand for artificial lift products and processing equipment technologies. Orders for this segment also rose by 14.0% to $87.0 million, underscoring the segment's strong market potential. A key achievement for FET in the quarter was its debt refinancing initiative, which has improved the company's financial flexibility. Additionally, FET launched a $75.0 million share repurchase program in January, with plans to dedicate half of its free cash flow to reducing net debt and the other half to strategic investments.
The company's free cash flow reached $56.9 million in the fourth quarter, marking a $32.4 million sequential increase and the highest since 2015. This success is credited to the effective integration of the Variperm acquisition and adept working capital management. Looking ahead, FET has set its 2025 adjusted EBITDA guidance between $85.0 million and $105.0 million, expecting to gain market share even as global drilling and completion activity is projected to decline by 2% to 5%. Free cash flow for the same period is forecasted to be between $40.0 million and $60.0 million.
FET's strategic initiatives, including its 'Beat the Market' strategy and the Variperm acquisition, have already contributed to a 15.0% increase in market share, as measured by revenue per global rig. This strategic positioning indicates the company's potential to navigate the complexities of the current energy market landscape effectively. For more information on FET's financial strategies and market performance, visit https://www.f-e-t.com.
