On November 3, 2023, Forum Energy Technologies Inc (FET, Financial) released its earnings report for the third quarter of 2023. The company reported a net income of $8 million, or $0.77 per diluted share, a significant turnaround from a net loss of $7 million, or $0.64 per diluted share, in the second quarter of 2023. The company's revenue for the quarter was $179 million, marking a 3% sequential decrease.
Financial Performance
Orders for the quarter increased by 7% sequentially to $199 million, with a book-to-bill ratio of 111%. The company's adjusted EBITDA for the quarter was $17 million. Operating cash flow and free cash flow for the quarter were $26 million and $24 million, respectively.
Segment Results
The Drilling & Downhole segment reported revenue of $81 million, a 1% increase, despite a slight decline in global rig count. The Completions segment reported a 13% decrease in revenue to $63 million, primarily related to lower U.S. hydraulic fracturing activity levels. The Production segment reported a 12% increase in revenue to $37 million, related to higher demand for processing equipment and technologies.
CEO Commentary
Neal Lux, President and Chief Executive Officer, commented on the results, stating,
FET’s international revenue grew 15%, significantly outpacing international rig count growth. Demand for our engineered products and solutions drove strong third quarter bookings, resulting in a book-to-bill ratio of 111%. All three segments increased their backlog. During the quarter, gross profit and EBITDA margins held steady as we maintained strong pricing levels. We also effectively managed our cost base, delivering over $1 million in sustainable cost savings. Finally, we generated $24 million of free cash flow, in line with our expectations."
Outlook
For the fourth quarter, FET anticipates global activity to remain relatively flat with the third quarter. Therefore, it forecasts fourth quarter 2023 revenue and adjusted EBITDA to be in the ranges of $170 to $190 million and $15 to $19 million, respectively. For the full year, the company now expects adjusted EBITDA to be around $70 million.
About Forum Energy Technologies Inc (FET, Financial)
Forum Energy Technologies Inc (FET) is a global company serving the oil, natural gas, industrial, 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 its customers' operations.
Explore the complete 8-K earnings release (here) from Forum Energy Technologies Inc for further details.
