Forum Energy Technologies Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Daniel Pickering - Pickering Energy Partners - Analyst : Can you hear me?

Question: Daniel Pickering - Pickering Energy Partners - Analyst : Great. Just checking to make sure the system is working here. A couple of questions. I mean, bookings is obviously quite strong. Neal or Lyle, can you talk a little bit about -- I'm just wondering, have you changed your incentive system for your sales guys? Are you tackling things in a different way? I mean, bookings have obviously accelerated, and the world looks a little bit worse. And so you're doing something right. I'm just wondering if there's a redesign of the way you're attacking things or if it's just all the efforts finally resulted in a bunch of orders.

Question: Daniel Pickering - Pickering Energy Partners - Analyst : Okay. And as we look at that backlog, you're showing strong margins because of the reasons you talked about, Lyle. But how do we think about margins in the backlog, better than what we print in 2025, the same? Are you seeing any improvement in margins on the new orders?

Question: Daniel Pickering - Pickering Energy Partners - Analyst : Okay. Second question would be the discussion around the facility consolidation. Kind of a big picture question. You're obviously talking about targeting substantial revenue growth. If we're going to fewer facilities, I mean, how do you think about the revenue-generating potential of your manufacturing base? So if we're going to run $800 million in revenues this year, what can your manufacturing capacity do? Is it $1 billion? Is it $1.2 billion? Is it $900 million? How much utilization are we really looking at now versus the future?

Question: Daniel Pickering - Pickering Energy Partners - Analyst : Final question. Lyle, given the constraints that you have on share repurchase and leverage levels, et cetera, what's our capacity to repurchase shares over the next couple of quarters, given where the balance sheet is today?

Question: Daniel Pickering - Pickering Energy Partners - Analyst : And Lyle, what does -- how does that look in '26 then? Does that reset? Or is it $15 million until we get to the end of '26?

Question: Daniel Pickering - Pickering Energy Partners - Analyst : So call it kind of $40 million-ish or something like that?

Question: Joshua Jayne - Daniel Energy Partners. - Analyst : Okay. I don't know what happened. Sorry about that. So first question for me, just given the diversified nature of your business, could you speak to where you think we are in the cycle in each geography? And I'll sort of break them down into US land, international and offshore. And based on where you think we are in each of those geographies, sort of how does that (technical difficulty) about the spending moving forward in the next 12 to 24 months, allocating resources and capital? Maybe just as the first question.

Question: Joshua Jayne - Daniel Energy Partners. - Analyst : And when -- I think you mentioned coiled line pipe on the call. So that was a product, for example, I think, grew 28% quarter-over-quarter. When I hear about growth like that, is that a business that you think heading into 2026 could roughly double as an example?

Question: Joshua Jayne - Daniel Energy Partners. - Analyst : And then, last question, maybe just to give you the floor on. As you're constantly introducing new products to the market, I mean, is there anything else just when we think about on the new product side heading into '26 that you're especially excited about that ultimately help E&Ps become more efficient? What are the things that you're thinking about introducing in '26 that could really drive some of this growth you're seeing sort of even if the market doesn't improve much going forward? Maybe talk about some of those products. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. OCTOBER 31, 2025 / 3:00PM, FET.N - Q3 2025 Forum Energy Technologies Inc Earnings Call

Question: Jeff Robertson - Water Tower Research. - Analyst : Neal, if we think about the growth markets, you talked about coiled line pipe and some of the downhole pump products that FET supplies. Does a period of lower oil prices increase adoption of some of those technologies by customers? Or is it more just industry trends as people -- as companies or countries around the world move toward more unconventional resource development?

Question: Jeff Robertson - Water Tower Research. - Analyst : Do you have -- can you just remind me what the capacity at your Dayton pipe facility is? And when you talk about growing share in coiled tubing and coiled line pipe, how much you can accommodate before you would have to consider any kind of capital investment?

Question: Jeff Robertson - Water Tower Research. - Analyst : And then, as you think about the 2030 goals, does the growth in -- or does the goal to double revenue in growth markets, does that just -- is that just traditional oil and gas? Or do you see opportunities for any of your product lines or the flexibility to make any acquisitions that could expose FET to any kind of adjacent markets? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. OCTOBER 31, 2025 / 3:00PM, FET.N - Q3 2025 Forum Energy Technologies Inc Earnings Call