Forum Energy Technologies, Inc. (FET): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out if Forum Energy Technologies, Inc. (FET) is set for a strong run, especially after building up its highest backlog in over a decade. Honestly, looking at their late 2025 setup, the picture is clear: they are banking on engineering differentiation, like the sand control tech from the Variperm acquisition, to drive their full-year revenue guidance between $\mathbf{\$770}$ million and $\mathbf{\$790}$ million. Still, you see the costs-like that $\mathbf{\$22}$ million restructuring charge in Q3-so understanding how they manage that while chasing $\mathbf{\$70}$ million to $\mathbf{\$80}$ million in free cash flow is key. Let's break down the nine blocks of the Business Model Canvas for Forum Energy Technologies, Inc. (FET) so you see exactly where the money is coming from and where it's going.

Forum Energy Technologies, Inc. (FET) - Canvas Business Model: Key Partnerships

You're looking at the network of relationships Forum Energy Technologies, Inc. (FET) relies on to deliver its value proposition across the oil, natural gas, industrial, and renewable energy sectors. These aren't just casual agreements; they are critical for market access, operational efficiency, and financial stability.

Strategic Alliances for Subsea Operations

Maintaining a strong local presence in key energy regions is non-negotiable, so FET formalizes relationships with in-country experts. For instance, to bolster its Subsea Technologies product line in South America, Forum Energy Technologies appointed OGEQUIP in July 2025 to handle local business development, technical, and administrative support in Brazil. This move supports an ambitious strategy to grow presence in that specific market. This follows earlier strategic moves, like the 2021 partnership with Deepsea Technologies Equipamentos Industriais Ltda for similar support, including servicing remotely operated underwater vehicles (ROVs).

The strength of these partnerships directly feeds into order flow. For example, Q3 2025 saw meaningful bookings for subsea projects, contributing to an overall backlog that reached its highest level since 2015. Offshore revenue accounted for 22% of the total revenue reported in Q3 2025.

• OGEQUIP: Represents Subsea Technologies product line in Brazil as of July 2025.
• Deepsea Technologies (Prior): Provided business development and engineering support in Brazil.
• Subsea Backlog: Increased 21% in Q3 2025, reflecting strong offshore market demand.

Integration Partners for Acquired Entities like Variperm

The integration of acquired companies like Variperm Energy Services, completed in January 2024, relies on structured financial partnerships to manage the transaction cost. The acquisition was a significant event, adding customized downhole technology solutions for heavy oil applications to FET's portfolio. The total consideration involved $150 million of cash and 2 million shares of FET's common stock. This required careful structuring with financial partners to maintain balance sheet strength.

The initial cash portion was funded through a mix of cash on hand, borrowings under the ABL credit facility, and a specific $60 million seller term loan. This seller term loan, which carried an initial interest rate of 11%, was a key element of the financing structure that needed subsequent management.

Financial Partners for Debt Refinancing and Liquidity Management

Forum Energy Technologies, Inc. has been actively managing its capital structure, using financial partners to execute strategic refinancing. A major step was the late 2024 private offering of $100 million in senior secured bonds, which carried a 10.5% interest rate and mature in November 2029. This was a direct move to streamline the balance sheet.

The proceeds from this bond offering, combined with cash on hand, were used to retire all outstanding 9.000% Convertible Senior Secured Notes due in 2025 and fully repay the Variperm seller term loan. This refinancing effort has significantly improved near-term obligations. As of the end of Q1 2025, FET reported $108 million of liquidity and confirmed no debt maturities until 2028. By Q3 2025, the company had further reduced its net debt to $114 million, achieving a net leverage ratio of 1.3x ahead of schedule. This is down from the $146 million net debt and 1.56 times leverage ratio reported at the end of Q1 2025.

Here's the quick math on the debt structure management:

Suppliers for Raw Materials and Complex Components

Forum Energy Technologies, Inc. relies on a global network of suppliers for raw materials and complex components, a dependency highlighted by recent trade policy impacts. The company is focused on managing supply chain costs to protect cash flow guidance. In Q1 2025, FET executed cost-saving measures amounting to $10 million annually to align with potential demand fluctuations. By Q3 2025, the company accelerated these efforts, extending the annualized cost savings target by 50% to $15 million. This focus on internal efficiency helps support the raised full-year 2025 free cash flow guidance of $70 - $80 million.

Technology Co-development Partners for New Energy Solutions

While specific financial details on technology co-development partners for new energy solutions aren't public, the company's strategy points to this area as a growth vector. The plan, referred to as Plan FET 2030, aims to double revenue by focusing on market share gains in leadership markets, estimated at $1.5 billion where FET holds a 36% share, and growth markets, estimated at roughly $3 billion where FET holds a low 8% share. Partnerships in the renewable space would be crucial to capturing share in these larger growth markets.

Finance: draft 13-week cash view by Friday.

Forum Energy Technologies, Inc. (FET) - Canvas Business Model: Key Activities

You're looking at the core engine driving Forum Energy Technologies, Inc. (FET) right now, late in 2025. It's all about making things, selling them, and executing a very clear, long-term plan.

Manufacturing and distributing engineered capital equipment is central, supported by strong bookings across its segments. For the third quarter of 2025, Forum Energy Technologies, Inc. reported total revenue of $196 million, with the Drilling and Completions segment bringing in $117 million for that same period. The company's backlog is currently the highest it has been in more than ten years, reflecting strong demand for its manufactured goods.

Providing aftermarket parts supply and field services complements the capital equipment sales, ensuring recurring revenue streams. While specific aftermarket revenue isn't broken out, the overall performance shows strength in product lines that feed into service and support. For instance, the Artificial Lift and Downhole segment saw its revenue increase by 6% in Q2 2025, driven by demand for processing equipment technologies and sand control products.

The execution of strategic growth plans is clearly quantified. Forum Energy Technologies, Inc. is actively executing the 'Beat the Market' strategy, which drove strong bookings, and the long-term 'Plan FET 2030'. This long-term plan targets doubling annual revenues to $1.6 billion by 2030, based on an expected market growth rate of nearly 9% per year over the next five years. The Q3 2025 book-to-bill ratio hit 122%, showing new orders significantly outpaced current revenue recognition.

A major activity supporting financial health is consolidating facilities to achieve cost savings. Management accelerated these efforts in the third quarter of 2025, extending the annualized cost savings target by 50% to a total of $15 million. Earlier in the year, the company had initiated actions to eliminate $10 million of annualized costs. These consolidation actions are expected to contribute over $5 million in additional annualized cost savings by the second quarter of 2026.

Finally, research and development of differentiated downhole and subsea technology is evident in product performance. Subsea bookings surged nearly 60% in the first quarter of 2025, driven by customer adoption of new products. The company also saw a 28% sequential revenue increase for coiled line pipe in Q3 2025.

Here's a quick look at the key financial metrics tied to these activities as of late 2025:

The focus on product development and cost control is clearly translating into cash generation. The company raised its full-year 2025 free cash flow guidance to between $70 million and $80 million.

You can see the operational focus through these key performance indicators:

• Drilling and Completions Segment Revenue (Q3 2025): $117 million
• Artificial Lift and Downhole Segment Revenue (Q2 2025): $83 million
• Subsea Bookings Growth (Q1 2025): Nearly 60% increase
• Net Debt Reduction Goal (Year-End 2025): Target leverage of 1.3 times
• Shares Repurchased YTD (Q3 2025): 8% of outstanding shares

Forum Energy Technologies, Inc. (FET) - Canvas Business Model: Key Resources

You're looking at the core assets Forum Energy Technologies, Inc. (FET) relies on to deliver its value proposition across the energy sector. These aren't just line items; they are the engines driving future earnings, so let's break down the hard numbers we see as of late 2025.

Global network of manufacturing and service facilities

Forum Energy Technologies, Inc. maintains a global footprint, which is a physical asset supporting its worldwide operations. While a precise, all-inclusive facility count isn't public, we know the structure is actively managed. For instance, in 2024, the company sold two manufacturing facilities located in Texas for $20 million USD. The company's service network includes known locations such as the Dayton, TX, manufacturing & service headquarters and a Red Deer, AB, Service Center. This network is crucial for supporting the global customer base mentioned in their strategy.

High backlog, the highest in over ten years, supporting future revenue

The current order book provides a strong view of near-term revenue visibility. As of the third quarter of 2025, Forum Energy Technologies, Inc. reported orders totaling $240 million. This resulted in a book-to-bill ratio of 122%. This strong intake drove the backlog to its highest level in over ten years, specifically since 2015, following a 21% increase in the backlog during that quarter alone. This backlog is expected to provide a tailwind into 2026.

Intellectual property in sand/flow control from the Variperm acquisition

The acquisition of Variperm Energy Services in early 2024 was a key move to secure specialized intellectual property. Variperm is a leading manufacturer of customized downhole technology solutions focused on sand and flow control for heavy oil applications. The transaction itself involved a significant financial commitment: $150 million in cash consideration plus 2 million shares of Forum Energy Technologies, Inc.'s common stock. The integration of this technology enhances the Artificial Lift and Downhole product portfolio.

Strong liquidity position, with $118 million available as of Q3 2025

Financial flexibility is a major resource, and Forum Energy Technologies, Inc. showed strength here in Q3 2025. Total liquidity stood at $118 million. This was composed of $32 million in cash on hand and $86 million available under the revolving credit facility. This strong position supported capital returns, including $15 million in share repurchases during the quarter.

Specialized engineering talent for complex energy solutions

The human capital, particularly specialized engineering talent, is essential for developing and supporting complex energy solutions. While a precise count of only engineers isn't specified, the total employee base provides a scale reference. As of September 30, 2025, Forum Energy Technologies, Inc. reported approximately 1,800 total employees. Furthermore, the Variperm acquisition brought in approximately 290 employees across eight locations in North America, adding specific expertise to the team. The company's success in generating high bookings is a testament to the execution capability of this talent pool.

Here's a quick summary of the quantifiable resources we see:

Finance: draft 13-week cash view by Friday.

Forum Energy Technologies, Inc. (FET) - Canvas Business Model: Value Propositions

You're looking at how Forum Energy Technologies, Inc. (FET) delivers unique value to its customers in the energy sector, which is really about making their operations safer and more productive. The company explicitly states it provides value-added solutions aimed at improving the safety, efficiency, and environmental impact of oil, natural gas, and renewable energy operations.

One key area of differentiation is in specialized downhole technology, particularly for challenging environments. For instance, in the third quarter of 2025, the Artificial Lift and Downhole segment saw higher revenue specifically from sand control products. This segment, which reported revenue of $79 million in Q3 2025, is where you find those customized downhole technology solutions.

Forum Energy Technologies, Inc. supports the entire well lifecycle, which is reflected in its two main reporting segments. This comprehensive approach means you can source a wide range of necessary equipment and consumables from one provider. For the third quarter of 2025, total revenue hit $196 million. Here's a quick look at how the segments performed in that quarter:

The Drilling and Completions segment, which includes products for drilling, subsea, coiled tubing, wireline, and stimulation, saw strong sales of specific engineered capital equipment and consumables in Q3 2025, including wireline products, heat transfer units, coiled line pipe, and subsea ROVs. Orders in that quarter were strong for ROVs, drilling capital equipment, wireline cables, and heat transfer units.

The company's global footprint is a core part of its value proposition, allowing it to capture international demand. By utilizing this global reach, Forum Energy Technologies, Inc. generated strong bookings in the offshore and international markets, which resulted in a 21% increase in backlog as of the third quarter of 2025. This scale supports the delivery of both high-quality, engineered capital equipment and the consumable products that keep operations running smoothly.

The strength of demand across this portfolio is clear when you look at the overall order book. Total orders for the third quarter of 2025 reached $240 million, leading to a total book-to-bill ratio of 129%, which the company noted was the highest backlog in more than ten years.

• The company's overall 2025 full-year free cash flow guidance was raised to between $70 million and $80 million.
• The Artificial Lift and Downhole segment saw a 2% increase in adjusted EBITDA in Q3 2025, despite a 4% revenue decrease, due to favorable product mix and cost savings.
• The company accelerated cost savings efforts, extending the annualized target by 50% to $15 million.
• Year-to-date through September 2025, Forum Energy Technologies, Inc. repurchased 8% of its outstanding shares.

Forum Energy Technologies, Inc. (FET) - Canvas Business Model: Customer Relationships

You're looking at how Forum Energy Technologies, Inc. (FET) manages its relationships with its customers as of late 2025. It's all about securing long-term value from the energy sector.

Dedicated account management for blue-chip oil and gas producers is key, especially given the structure of their business across two main areas. The Drilling and Completions segment brought in $117 million in revenue for the third quarter of 2025, while the Artificial Lift and Downhole segment generated $79 million in the same period. The company serves the oil, natural gas, industrial, and renewable energy industries globally.

The service-oriented model for aftermarket parts and technical support complements their product sales. Forum Energy Technologies, Inc. designs, manufactures, and distributes products, and also engages in aftermarket parts supply and services that go with their offering. This is supported by a strong order book; the book-to-bill ratio hit 122% in Q3 2025, indicating strong demand against current output.

For long-term contracts for large capital equipment and subsea projects, the backlog tells the story. Orders in Q3 2025 reached $240 million, representing the highest backlog in over ten years. Specifically, Subsea bookings saw a surge of nearly 60% in the first quarter of 2025, showing commitment to larger, longer-cycle projects.

The approach for direct sales and engineering consultations for customized solutions is evident in their product focus. The Drilling and Completions segment saw strong orders for ROVs (Remotely Operated Vehicles), drilling capital equipment, and wireline cables. The company's trailing 12-month revenue as of September 30, 2025, stood at $790M.

The investor relations focused on capital returns and free cash flow is a major communication point. Management increased the full-year 2025 free cash flow guidance to between $70 million and $80 million. Year-to-date through September 2025, the company repurchased 8% of its outstanding shares. They expect to achieve a net leverage ratio of 1.3 times by year-end. Honestly, that focus on cash generation is defintely how they are managing shareholder expectations.

Here's a quick look at some key operational and financial metrics that frame these customer relationships:

The relationship strategy is also reflected in their segment activity:

• Drilling and Completions Q3 Revenue: $117 million
• Artificial Lift and Downhole Q3 Revenue: $79 million
• Q3 Orders: $240 million
• Shares Repurchased Year-to-Date (through Sept): 8% of outstanding shares
• Q3 Share Repurchases: $15 million (635 thousand shares)

Forum Energy Technologies, Inc. (FET) - Canvas Business Model: Channels

You're looking at how Forum Energy Technologies, Inc. (FET) gets its products and services to the customer base, which spans oil, natural gas, industrial, and renewable energy sectors. It's a global setup, which makes sense given their Q3 2025 revenue of $196 million.

Direct sales force targeting major international and US energy companies

FET uses its direct sales teams to engage the biggest players in the energy space. This channel is critical, especially as international revenue surpassed U.S. sales in the third quarter of 2025. To give you some context on the domestic market challenges, the U.S. rig count actually declined by 5% during that same quarter.

Global distribution network for product delivery and service support

The company relies on a broad distribution network to move products globally. This network supports their strong order intake, evidenced by a Q3 2025 book-to-bill ratio of 122%, leading to a backlog of $240 million at the end of that quarter. The global footprint is key to capturing international demand, which drove a 21% increase in backlog from offshore and international markets.

Here's a snapshot of where some of those distribution and sales points are located:

Company-owned service centers for maintenance and repair

Service and aftermarket parts supply are integrated into the channel strategy. You can see this physical presence in specific locations dedicated to service and support across their product lines, which include Drilling and Completions and Artificial Lift and Downhole.

• Grande Prairie, AB: Global Tubing Service Center, coiledtubing@f-e-t.com
• Edmonton, AB: Service & New Product Development
• Broussard, LA: Sales, Manufacturing, Distribution

Investor Relations website for financial communication and transparency

For financial stakeholders, the Investor Relations website, accessible at ir.f-e-t.com, is the primary hub. This channel facilitates transparency by hosting webcasts for earnings calls, such as the one for Q3 2025 on October 31, 2025. The company also uses this platform to communicate capital allocation actions, like the Q3 2025 share repurchase of 635 thousand shares for $15 million.

Offshore revenue channel, accounting for 22% of Q3 2025 total revenue

The offshore segment is a significant revenue driver. For the third quarter of 2025, this channel contributed 22% of the total revenue. That translates to approximately $43.12 million in revenue for the quarter, based on the reported total revenue of $196 million. Revenue from the Drilling and Completions segment was flat at $117 million, while the Artificial Lift and Downhole segment brought in $79 million.

Forum Energy Technologies, Inc. (FET) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Forum Energy Technologies, Inc. (FET) as of late 2025, which is clearly segmented across the energy value chain and geographies.

Global oil and natural gas exploration and production (E&P) companies form a primary customer group, served through two main operational segments. The Artificial Lift and Downhole segment, which engineers, manufactures, and supplies products for well construction, artificial lift, and oil and natural gas processing, generated $79 million in revenue in the third quarter of 2025. The Drilling and Completions segment, which provides consumable products and capital equipment for drilling, subsea, coiled tubing, wireline, and stimulation markets, brought in $117 million in revenue for the same period.

The customer base is also defined by the specific energy sectors served, which include industrial and renewable energy industries alongside oil and gas. Strong demand for subsea products, such as remotely operated vehicles (ROVs) and launch and recovery systems, was noted in the Drilling and Completions segment.

Within the well service component of the business, customers utilizing coiled tubing and well stimulation services are key. For instance, the Drilling and Completions segment saw strong orders for coiled line pipe and stimulation-related capital equipment. Furthermore, a large Canadian customer placed orders for sand control products to support an extended drilling program in Q3 2025.

Geographically, international customers represent a significant portion of the business. In the third quarter of 2025, international revenue surpassed U.S. sales, and the company generated strong bookings in the offshore and international markets, leading to a 21% increase in backlog. Offshore revenue specifically accounted for 22% of the total $196 million revenue reported in Q3 2025.

Heavy oil producers needing specialized sand and flow control are served through the Artificial Lift and Downhole segment, where higher revenue from valve and sand control products partially offset lower sales in other areas during Q3 2025. This segment also saw higher demand for sand control products in Q2 2025.

Forum Energy Technologies, Inc. views its market opportunity through leadership and growth lenses, which directly relates to customer adoption levels:

• The size of their leadership markets, where FET solutions are fully adopted, is estimated at $1.5 billion.
• Forum Energy Technologies maintains a 36% share within these leadership markets.
• Growth markets are estimated to be roughly $3 billion.
• Aggregate market share in these growth markets is relatively low, around 8%.

Here's a quick look at the latest reported segment revenue performance for the third quarter of 2025:

Forum Energy Technologies, Inc. (FET) - Canvas Business Model: Cost Structure

The Cost Structure for Forum Energy Technologies, Inc. (FET) is heavily influenced by the physical nature of its business, involving significant spending on production and maintaining a worldwide service footprint.

Significant Cost of Goods Sold (COGS) due to manufacturing and materials is a primary driver. For the third quarter of 2025, the Cost of revenue was reported at $155.99 million against total revenue of $196 million. This indicates that the direct costs associated with manufacturing and materials consume the majority of the top-line revenue.

Operating expenses tied to global distribution and service infrastructure form the next major cost category. Selling and administrative expenses, which cover these overheads, were reported at $50.45 million for the third quarter of 2025. This reflects the cost of supporting a global manufacturing and service network.

The company has also incurred substantial one-time costs related to strategic adjustments. Specifically, the third quarter of 2025 included $22 million in asset impairments and restructuring costs. This charge is a direct reflection of costs associated with facility consolidation actions taken during the quarter.

To counter ongoing cost pressures, Forum Energy Technologies, Inc. has implemented efficiency drives. The company announced it accelerated cost savings efforts in the quarter, extending its annualized target by 50% to $15 million. This initiative is expected to provide a tailwind in 2026.

Financing costs are also a component, driven by the company's debt load. Following capital returns, Forum Energy Technologies, Inc. reduced its net debt to $114 million by the end of the third quarter of 2025. While the specific interest expense for Q3 2025 isn't detailed in the same report, the net non-operating interest income expense was reported as $-4.37 million in a recent period, showing the impact of financing on the overall cost base.

Here is a snapshot of key cost-related financial data from the third quarter of 2025:

The cost structure is being actively managed through several levers:

• Facility consolidation actions resulting in noncash impairments of $21 million.
• Acceleration of cost savings efforts to an annualized target of $15 million.
• Focus on product mix to improve segment adjusted EBITDA, such as the 13% sequential increase in overall Adjusted EBITDA to $23 million.
• Managing working capital, as evidenced by generating $28 million in free cash flow for the quarter.

Forum Energy Technologies, Inc. (FET) - Canvas Business Model: Revenue Streams

You're looking at how Forum Energy Technologies, Inc. (FET) brings in money, which is really about selling specialized equipment and the things that keep it running. This is a mix of big project sales and the steady income from keeping existing equipment operational.

The revenue streams are clearly segmented by the company's operational divisions. For the third quarter of 2025, the Sales of Drilling and Completions (D&C) equipment and consumables brought in $117 million. Also in that quarter, Sales of Artificial Lift and Downhole (AL&D) products and services contributed $79 million. These two segments form the core of their top-line revenue.

The Aftermarket parts and service revenue is definitely a defintely stable source, which is crucial when capital equipment sales can swing with oil prices. To give you a sense of the consumable/recurring nature, for the nine months ending September 30, 2025, consumables accounted for approximately 80% of total revenue. That's a big chunk of recurring business.

Looking ahead, the company has set its Full-year 2025 revenue guidance between $770 million and $790 million. Plus, they are guiding for strong Free cash flow generation, expected to be between $70 million to $80 million for the full year 2025.

Here's a quick look at the key figures driving this revenue picture:

You can break down the revenue streams into these primary buckets:

• Sales of Drilling and Completions (D&C) equipment and consumables (Q3 2025: $117 million)
• Sales of Artificial Lift and Downhole (AL&D) products and services (Q3 2025: $79 million)
• Aftermarket parts and service revenue, a defintely stable source (Consumables were approx. 80% of 9-month 2025 revenue)
• Full-year 2025 revenue guidance is between $770 million and $790 million
• Free cash flow generation, guided to $70 million to $80 million for full year 2025