Forum Energy Technologies, Inc. · NYSE:FET
Forum Energy Technologies — Q1 2025 Earnings Presentation
29 slides from Forum Energy Technologies's earnings presentation, May 2, 2025
Slide 1: Investor Presentation First Quarter 2025
INVESTOR PRESENTATION FIRST QUARTER 2025
Slide 2: Forward Looking Statements and Non-GAAP Reconciliation
Forward Looking Statements and Non-GAAP Reconciliation The statements made during this presentation, including the answers to your questions, may include information that the Company believes to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward
Slide 3: Forum Energy Technologies at a Glance
Forum Energy Technologies at a Glance FET Makes It Happen Full Cycle Well Exposure With Global Reach Financial Performance ($ in millions) Downhole Drilling We don’t drill the holes… Production Equipment Subsea 816 Valve Solutions Stimulation and Intervention 739 700 Coiled Tubing 541 We don’t stimu
Slide 4: Why FET?
Why FET? World Needs Energy Increasing global energy demand will propel investment in energy production Revenue Growth Executing on our strategy to “Beat the Market” Margin Expansion Growing faster than revenue through operating leverage and portfolio optimization Free Cash Flow Strong conversion th
Slide 5: Global Energy Demand Increasing Over Time
Global Energy Demand Increasing Over Time Energy Demand Drivers Global Energy Use, Total Global Energy Use, Sources Quadrillion BTUs Quadrillion BTUs 1,200 900 Population Growth 1,000 750 800 600 Energy Security Fossil fuels 600 450 400 300 Non-fossil fuels Quality of Life 200 150 - - 2020 2030 2040
Slide 6: Revenue Driven By Global Activity
Revenue Driven By Global Activity FET Revenue vs Global Rig Count Revenues by Purchase Cycle* FET Revenue Average Yearly Global Rig Count 1,896 1,796 1,654 1,706 202 Capital 189 193 equipment 1,236 155 115 Activity driven consumables ✓ Consumable products constitute a small share of overall customer
Slide 7: Execute Our “Beat the Market” Strategy
Execute Our “Beat the Market” Strategy GROW PROFITABLE ✓ Align product portfolio with activity 1 MARKET SHARE THROUGH ✓ Focus on niche markets with few players COMPETITIVE ADVANTAGES ✓ Leverage our brands and experts ✓ Operators are demanding greater efficiencies, lower well delivery costs, and incr
Slide 8: Grow Profitable Market Share Through Competitive Advantages
Grow Profitable Market Share Through Competitive Advantages Niche Market Focus High Barriers to Entry Focus on niche markets with meaningful market Intellectual property, patents, specialized share, limited competition, and differentiation manufacturing know-how, as well as significant through intel
Slide 9: Develop Differentiated Products and Technologies
Develop Differentiated Products and Technologies Continuous Innovation with Customers Selected Examples of Co-Development Quality Wireline The Enviro-Lite E-Line Greaseless Cable enables faster running speeds and transitions between frac stages, thereby increasing pressure pumping efficiency. Global
Slide 10: Optimized Global Manufacturing and Distribution Footprint
Optimized Global Manufacturing and Distribution Footprint Balanced Geographic Mix* Manufacturing and Distribution Footprint nton, Alber Hamb mo ur Ed ta g, Ger many 14 1 International United States 1 1 xas Te 23 n, Brya 1 1 1 1 Damm am , Saudi Arab Extensive global reach with strategically located H
Slide 11: Expand Participation in New Energy & Sustainability
Expand Participation in New Energy & Sustainability ▪ A “good place to work” is a core value promoting Biogas Drilling Geothermal mutual respect, personal development, a safe es & Do alv wn environment, and workforce diversity Social V ▪ Female, ethnic, and racial diversity above US oil and gas indu
Slide 12: Delivering Revenue, EBITDA, and Free Cash Flow Growth
Delivering Revenue, EBITDA, and Free Cash Flow Growth Revenue EBITDA Free Cash Flow ($ in millions) ($ in millions) ($ in millions) 816 739 105 100 105 700 85 541 2025E EBITDA to Free Cash 67 Flow Conversion of ~50% 59 60 40 20 11 4% 8% 9% 12% (11) 2 2021 2022 2023 2024 2021 2022 2023 2024 2025E* 20
Slide 13: Shareholder Returns
Shareholder Returns Uses of Cash Substantial Deleveraging Since 2019 ($ in millions) Net Debt = 344 58% Expect to allocate 50% of free cash flow to net 1 debt reduction 146 December 31, 2019 March 31, 2025 4.73x Net Leverage Ratio* 1.56x Remaining 50% of free cash flow allocated to 2 strategic inves
Slide 14: FET Reporting Segments, Product Lines, and Other Financial Information
FET Reporting Segments, Product Lines, and Other Financial Information
Slide 15: Balanced Product Portfolio
Balanced Product Portfolio Product Segments Drilling and Completions Artificial Lift and Downhole Stimulation & Production Drilling Coiled Tubing Subsea Downhole Valve Solutions Intervention Equipment Product Line % of 1Q25 19% 17% 12% 12% 25% 10% 5% Revenue Manufactures high- Designs and Leads the
Slide 16: Drilling and Completions Segment
Drilling and Completions Segment Product Line Breakdown Key Market Drivers ($ in millions) Drilling Subsea Coiled Tubing Stimulation and Intervention Segment Revenue First Quarter 2025 Segment Overview 127 119 116 Hydraulic Global Fracturing Service 32% 28% Rig Count Fleet Count Intensity Product Li
Slide 17: Artificial Lift and Downhole Segment
Artificial Lift and Downhole Segment Product Line Breakdown Key Market Drivers ($ in millions) Downhole Production Equipment Valve Solutions Segment Revenue First Quarter 2025 Segment Overview 83 78 14% Well Well Well Count Complexity Production 62 Product Line Split 61% 25% Selected Key Customers $
Slide 18: Global Revenue per Rig
Global Revenue per Rig United States: Revenue vs Rig Count International: Revenue vs Rig Count FET U.S. Revenue Average Yearly U.S. Rig Count FET International Revenue Average Yearly International Rig Count 760 1,173 1,136 1,118 1,021 633 129 91 89 623 588 111 843 104 97 393 60 58 68 46 1Q21 1Q22 1Q
Slide 19: Variable Cost Enables Rapid Adaption to Market Conditions
Variable Cost Enables Rapid Adaption to Market Conditions COGS and SG&A Cost Base Variable Cost Breakdown Material costs ~70% Fixed Variable ~15-20% ~80-85% FET leverages its variable cost ~30% base to maintain healthy margins by quickly adapting its operations and passing over cost increases to its
Slide 20: Asset-Light Model Facilitates Low Capex Requirements
Asset-Light Model Facilitates Low Capex Requirements Low Capex Post “Relaunch” in 2019/2020 ($ in millions) Capex for Property and Equipment PP&E Capex as % of Revenue 1 2 “Optimized and relaunched” FET 2.9% 3.3% 2.3% 1.6% 0.4% 0.4% 1.1% 1.1% 1.0% 27 24 Design & Production & Development Manufacturin
Slide 21: Diversified Customer Base with Low Concentration
Diversified Customer Base with Low Concentration Customer Concentration Blue-Chip Energy Clients Percent of Revenue for 2024 Counterparties with low credit risk and Top 20 accounts for ~1/3 stable demand for activity-driven products of revenue in 2024 Selected blue-chip customers 2024 Revenue ~4,500
Slide 22: Get To Know FET
Get To Know FET
Slide 23: Seasoned Leadership Team with Extensive Industry Experience
Seasoned Leadership Team with Extensive Industry Experience Management Team Board of Directors Neal A. Lux D. Lyle Williams Jr. President & CEO, Board Member EVP & CFO Michael McShane 17 18 Chairman of the Board years with FET Group years with FET Group Evelyn Angelle Leslie Beyer John Carrig John C
Slide 24: Core Values
Core Values Our Core Values Permeate All Areas of Our Company Customer Focused No One Gets Hurt Our products enhance our customers’ performance. The safety of our employees and customer is our first We listen to their needs and work with them to solve priority. their challenges. Integrity Good Place
Slide 25: Optimized Portfolio For Resilient and Profitable Growth
Optimized Portfolio For Resilient and Profitable Growth Building a Diversified and Sustainable Business Through Consolidating and Integrating Differentiated Technologies FET Revenue FET Adj. EBITDA Margin Acquisitions Divestment IPO Sold ABZ and Quadrant FET completed its Valve brands for $105m IPO
Slide 26: Variperm Energy Services Acquisition
Variperm Energy Services Acquisition Variperm Acquisition Variperm Premium Downhole Production Solutions Illustrative Thermal Oil Well Pair Application Acquired Variperm Energy Services for approximately USD 150m in cash and Differentiated product offering in niche 2m shares of FET common stock, wit
Slide 27: Appendix
Appendix
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted EBITDA FET ($ in millions) 2021 2022 2023 2024 1Q25 EBITDA reconciliation* Net Income attributable to common stockholders $ (83) $ 4 $ (19) $ (135) $ 1 Interest expense 32 31 18 32 5 Depreciation and amortization 42 37 35 54 9 Income tax expense (benefit) 1 7
Slide 29: GAAP to Non-GAAP Reconciliation (continued)
GAAP to Non-GAAP Reconciliation (continued) Free Cash Flow FET ($ in millions) 2021 2022 2023 2024 1Q25 Free cash flow reconciliation* Net cash provided by (used in) operations $ (16) $ (17) $ 8 $ 92 $ 9 Capital expenditures (2) (8) (8) (8) (2) Proceeds from sale of property and equipment 7 3 1 1 -
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