Forum Energy Technologies (FET) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 16% year-over-year to $208 million, driven by the Variperm acquisition and growth in Subsea and Stimulation and Intervention product lines.

• Adjusted EBITDA grew 55% year-over-year to $26 million, with free cash flow for Q3 at $25 million and full-year guidance raised to $60–70 million.

• Net loss for Q3 2024 was $14.8–15 million, primarily due to higher interest expense, foreign exchange losses, and debt extinguishment costs.

• Continued innovation with new products like MagnaGuard and Unity ROV system, expanding addressable markets.

• Focused on free cash flow generation, debt reduction, and returning capital to shareholders.

Financial highlights

• Q3 2024 revenue: $208 million (+16% YoY); nine months ended September 30, 2024: $615.4 million (+11.2% YoY).

• Q3 2024 net loss: $14.8–15 million; nine-month net loss: $31.8 million.

• Adjusted EBITDA for Q3: $26 million (+55% YoY); year-to-date: $77.8 million.

• Free cash flow for Q3: $25 million; year-to-date: $48.2 million; full-year guidance: $60–70 million.

• Net debt at September 30, 2024: $199–231.5 million; cash and equivalents: $33–33.3 million.

Outlook and guidance

• Q4 2024 revenue expected at $190–210 million; adjusted EBITDA at $22–26 million.

• Full-year 2024 EBITDA guidance range of $100–110 million reaffirmed.

• Free cash flow for 2025 expected to be $50–60 million assuming flat EBITDA and working capital.

• U.S. activity expected to remain depressed into Q4 2024 and 2025; international demand expected flat to slightly up.

• 2024 capital expenditures projected at $10 million, focused on machinery and equipment replacement.