Key Highlights

  • Third quarter Revenue was $237 million, up from $196 million a year earlier and 5% above the second quarter.
  • Diluted EPS was $0.93, compared with a loss of $1.76 in the third quarter of 2025.
  • Adjusted EBITDA was $36 million, with an adjusted Margin of 15.2% versus 11.8% a year ago.
  • Orders came in at $244 million, a book-to-bill ratio of 103%.
  • Full year 2026 revenue guidance is $900 million to $920 million, with adjusted EBITDA of $123 million to $129 million.

Revenue climbs to $237 million as orders hold near $244 million

Forum Energy Technologies (NYSE:FET), a Houston-based manufacturer that serves the oil, natural gas, defense and renewable energy industries, released third quarter 2026 results on October 29, 2026. Revenue was $236.8 million, versus $196.2 million in the third quarter of 2025, an increase of about 20.7% on a calculated basis, and 5% above the $226.2 million recorded in the second quarter.

Orders totaled $243.8 million, against $240.0 million a year earlier, producing a book-to-bill ratio of 103%, down from 122% in the prior year quarter.

Drilling and Completions leads, while Artificial Lift and Downhole earns the higher margin

Drilling and Completions revenue reached $147.2 million, up from $117.5 million a year ago and 6% above the prior quarter, with growth in every product line. The segment supplies consumable products and Capital equipment for drilling, subsea, coiled tubing, wireline and stimulation markets, and its adjusted EBITDA of $21.0 million jumped 28% sequentially.

Artificial Lift and Downhole revenue was $89.9 million, compared with $79.0 million a year earlier, aided by the Premiere Torque Rings Acquisition and stronger Demand for sand and flow control solutions and valve products. Book-to-bill was 113%, and higher freight and Tariff costs offset revenue gains within the segment.

Reported EPS of $0.93 and adjusted EPS of $1.51 tell different stories

Net income was $11.2 million, or $0.93 per diluted share, versus a net loss of $20.6 million, or $1.76 per share, a year earlier. Net Income and EPS fell 9% and 11% from the second quarter, when EPS was $1.05. Operating Income reached $20.0 million, compared with a loss of $6.1 million.

Adjusted net income was $18 million and adjusted EPS was $1.51, up 33% and 30% on the prior year period. Adjusted EBITDA came in at $36.0 million.

Free Cash Flow tops $30 million as net Leverage falls to 0.9 times

Operating cash flow was $32 million and free cash flow was $30 million, up 158% and 214%. Net Debt stood at $97.0 million on September 30, 2026, down from $114.8 million on June 30, 2026, and the net Leverage Ratio dropped to 0.9 times from 1.1 times.

Cash ended the quarter at $35.2 million. Over the first nine months, the company paid $11.8 million for the acquisition and bought back $9.0 million of stock, while revenue reached $671.7 million, up from $589.3 million.

Guidance raised for the fourth quarter and full year 2026

For the fourth quarter, the company guided to revenue of $230 million to $250 million, adjusted EBITDA of $33 million to $39 million, adjusted net income of $15 million to $21 million and free cash flow of $25 million to $30 million. For the full year, it expects revenue of $900 million to $920 million, up 15%, and free cash flow of $66 million to $71 million.

Management said it expects strong demand and improving industry activity to carry momentum into 2027 as it advances toward its FET 2030 objectives. The Earnings Call was set for October 30, 2026, at 10:00 a.m. Central Time. Drilling and Completions book-to-bill of 97% and freight and tariff costs are worth watching.