Forum Energy Technologies Reports $816.4 Million Revenue for Fiscal Year 2024, Despite Net Loss

Forum Energy Technologies, Inc. reported a total revenue of $816.4 million for the fiscal year ending December 31, 2024, marking a 10.5% increase from $738.9 million in 2023. The growth was primarily driven by the acquisition of Variperm Holdings Ltd., which contributed significantly to the company's Artificial Lift and Downhole segment, where revenue surged by 46.3% to $345.7 million. In contrast, the Drilling and Completions segment experienced a decline, with revenue falling 6.3% to $470.8 million, attributed to decreased U.S. drilling activity.

The company's financial performance was impacted by various factors, including a notable impairment charge of $119.1 million related to intangible assets in the Coiled Tubing product line. This impairment, alongside increased interest expenses due to higher borrowings, contributed to a net loss of $135.3 million, compared to a loss of $18.9 million in the previous year. The loss per share for 2024 was $(11.00), significantly lower than $(1.85) in 2023.

In terms of operational developments, Forum Energy Technologies underwent a strategic reorganization following the Variperm acquisition, aligning its reportable segments to better reflect business activity drivers. The company now operates under two segments: Drilling and Completions, and Artificial Lift and Downhole. The acquisition has also led to an increase in employee headcount, with approximately 1,800 employees reported as of December 31, 2024.

Geographically, the company saw a diverse revenue distribution, with the United States accounting for 50.9% of total revenue, followed by Canada at 18.6%. The company’s backlog decreased to $213.5 million from $241.6 million in the previous year, reflecting a shift in market conditions and customer demand. Despite these challenges, Forum Energy Technologies remains optimistic about long-term energy demand, particularly in the oil and gas sector, while also focusing on renewable energy applications.

Looking ahead, the company anticipates that its available cash, cash generated from operations, and access to credit facilities will be sufficient to support its operational needs over the next 12 months. However, it acknowledges the potential for volatility in the energy market and the impact of macroeconomic conditions on its financial performance. The company plans to continue exploring acquisition opportunities and investing in product development to enhance its market position.