Forum Energy's Innovation Strategy Fuels Growth & Shareholder Returns

Forum Energy Technologies, Inc. FET is primarily involved in providing highly engineered products to support the operations of oil, natural gas and renewable companies. As a global manufacturing firm, FET offers consumable products that are used in drilling, well construction and completion, as well as capital products that are used for the construction of new rigs and subsea projects.

Forum Energy stated that its key driver of growth is innovation. The company introduced 10 new products in 2025 by working closely with its customers to understand and solve their operational issues, improving efficiencies and increasing productivity. Through the new product offerings and a continued focus on innovation, FET is building a strong technology pipeline that is expected to support its growth and revenues in the future. In fact, FET’s project backlog at the end of 2025 stood at $312 million, 46% higher than at the end of 2024. The company is focused on structural cost reductions that could help improve margins.

FET’s focus on growing its market share, innovation and cost reduction has resulted in improved financial performance in 2025, including $80 million in free cash flow. The improved financial performance has enabled the company to generate value for its shareholders through share buybacks. Using its free cash flow, FET has repurchased approximately 1.4 million shares, which translates to nearly 11% of its outstanding shares. FET reduced its net debt by 28% throughout the year. The company’s growing technology pipeline, strong backlog growth and free cash flow position it well for future growth.

Peer Companies of FET

National Energy Services Reunited NESR and NOV Inc. NOV are two companies within the same sub-industry, carrying a Zacks Rank #1 (Strong Buy) and a Zacks Rank #3 (Hold), respectively.

NESR shares have soared 173.9% in the past year, and it reported fourth-quarter earnings of 32 cents per share, beating the Zacks Consensus Estimate. The company is one of the largest oilfield service providers in the Middle East and North Africa (“MENA”) region. While drilling activity has softened in the United States, NESR is poised to witness growth across Latin America, in countries like Guyana and Brazil, and in the MENA region. The company is focused on securing a robust backlog and building a solid project pipeline that boosts revenue visibility.

NOV is a leading provider of oil and gas equipment and services. The company is involved in the design, manufacture and sale of comprehensive systems, components, products and equipment that are used in oil and gas production. Its Energy Equipment segment has posted four consecutive years of revenue growth, largely driven by a shift toward a higher-quality, production-oriented backlog (e.g., FPSO modules, subsea pipe). This high-quality backlog supports revenue visibility and margin stability due to its less cyclical nature. NOV shares have gained 28.7% in the past year.

FET’s Price Performance, Valuation & Estimates

Shares of FET have soared 189.5% over the past year compared with the industry’s 46.5% growth of composite stocks.

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From a valuation standpoint, FET trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.93X. This is above the broader industry average of 8.74X.

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The Zacks Consensus Estimate for FET’s 2026 earnings has witnessed upward revisions over the past seven days.

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FET currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

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