Can FET Continue to Deliver Strong Cash Flow Growth Momentum?

Forum Energy Technologies, Inc. FET operates globally, providing equipment and solutions to oil, gas, industrial and renewable sectors. Backed by a strong customer base, FET operates through drilling and completions and artificial lift and downhole segments. Its offerings are designed to improve operational efficiency and safety in energy development activities.

Supported by a broad portfolio of equipment and solutions for the energy sector, FET has generated strong revenues and cash flows, enabling it to outpace the broader market. From 2021 through 2025, the global equipment and service providers delivered cumulative average revenue growth of 10%, compared with 7% for the Russell 2000 Index, a key benchmark tracking about 2,000 small-cap U.S. companies. Meanwhile, FET’s adjusted cash flow cumulative average growth rate (CAGR) was 46%, significantly exceeding the 9% benchmark.

The company’s performance has been driven by expanding market share and acquisition-led growth. The global equipment and service provider exited 2025 with its highest backlog in 11 years. Forum Energy Technologies is entering 2026 with a backlog of $312 million, up 46% from year-end 2024. With a strong backlog coupled with strong operating leverage and low capital requirements, FET is expected to enhance returns in the coming days.

Will FTI & HAL Perform Like FET?

TechnipFMC plc FTI and Halliburton Company HAL are equipment and service providers that are expected to generate enhanced cash flow going forward.

Headquartered in the U.K., TechnipFMC specializes in oilfield development through its subsea and surface segments. With backlog rising 15.3% year over year to $16.6 billion in 2025, FTI is likely to see stronger cash flow in the coming days.

With operations spread across more than 70 countries, Halliburton provides integrated solutions across the entire reservoir lifecycle to maximize asset value from start to finish. HAL reported fourth-quarter 2025 revenues of $5.7 billion, reflecting year-over-year growth and expects additional cash flow supported by new contracts and awards.

FET’s Price Performance, Valuation & Estimates

FET shares have gained 207.9% over the past year compared with the 48.1% increase of the composite stocks belonging to the industry.

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From a valuation standpoint, FET trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 9.95X. This is above the broader industry average of 8.67X.

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The Zacks Consensus Estimate for the first quarter of 2026 and full-year 2026 have seen upward revisions over the past seven days. Meanwhile, for the second quarter of 2026, FET’s earnings estimates have seen downward revisions.

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Forum Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Halliburton Company (HAL): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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