Forum Energy Technologies, Inc
Forum Energy Technologies, Inc. designs and manufactures highly engineered equipment and consumables used across oil and natural gas drilling, well construction, completion, and production workflows. The company also serves subsea, pipeline, refinery, defense, and renewable energy applications, with a business mix tilted toward consumable and activity-based products rather than large-ticket capital equipment.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueDrilling, well construction, completion, production and processing consumables used repeatedly in field operations.
Larger-ticket equipment for drilling rigs, pressure pumping, subsea projects, downstream projects and renewable energy applications.
Refurbishment, recertification, repair and related services for flow and pressure control equipment.
Customers
FET sells mainly to oil and natural gas operators, oilfield service companies, drilling contractors, pipeline and refinery operators, and equipment OEMs. It also serves defense contractors and renewable energy customers where its engineered products and control systems can be adapted to adjacent applications. Demand is driven by drilling activity, well intervention intensity, fleet utilization, and customer spending on maintenance and replacement equipment.
Buy consumables, downhole tools and capital equipment to drill, complete and produce wells more safely and efficiently.
Buy pressure control, flow equipment, wireline cables and intervention tools used in field service operations.
Buy high-pressure pumps, manifolds, hoses and recertified equipment for stimulation and flowback work.
Buy rig equipment, components and direct-supply products for new builds, upgrades and fleet maintenance.
Buy specialized capital equipment, software and engineered systems for downstream, defense and energy-transition uses.
Strategy
FET’s strategy is to improve customer safety, efficiency and environmental performance through engineered products that reduce operating costs and emissions. It is also broadening beyond traditional oil and gas into renewable energy and other adjacent markets, while keeping a heavy focus on consumables and recurring activity-based demand. The company is using aftermarket services, software and specialized technologies to deepen customer relationships and offset cyclicality in drilling activity.
This mix is less lumpy than large capital projects and better aligned with recurring field activity.
Diversification can offset oilfield cyclicality and support long-term demand as energy markets evolve.
Refurbishment and recertification create recurring revenue and strengthen installed-base relationships.
Geography
FET is headquartered in Houston and operates as a global manufacturer, with revenue tied to North American and international drilling activity. The company explicitly positions inventory in strategic locations in North America for service-intensive products, while its customer base and rig exposure extend across international markets. Its business is therefore sensitive to regional rig counts, commodity prices, and the pace of spending in both mature and emerging basins.
Risks
The company is highly exposed to oil and gas activity levels, so lower commodity prices or reduced rig counts can quickly weaken demand for its products. It also faces competitive pressure, customer consolidation, inventory obsolescence risk, and execution risk if backlog is delayed or canceled. Because it sells into cyclical end markets and relies on specialized suppliers and skilled labor, supply chain, staffing and cybersecurity issues can also affect margins and operations.
- Oil and natural gas activity volatilityImpact: HighLikelihood: High
Demand for consumables and capital equipment depends on drilling, completion and production spending.
Exposure: Lower commodity prices and rig counts can reduce orders across most product lines.
- Customer consolidation and pricing pressureImpact: HighLikelihood: High
Fewer, larger customers can negotiate harder on price and reduce spending.
Exposure: Oilfield service companies and operators in consolidated markets.
- Backlog conversion riskImpact: MediumLikelihood: High
Customer cancellations, reductions or acceptance delays can prevent expected revenue recognition.
Exposure: Capital equipment and project-based orders.
- Inventory obsolescenceImpact: MediumLikelihood: Medium
Cyclical demand and technology shifts can leave excess stock or slow-moving parts.
Exposure - Cybersecurity and IT disruptionImpact: MediumLikelihood: Low
Operations depend on outsourced and cloud-based systems that remain vulnerable to attacks or outages.
Exposure
Accounting
Judgemental itemsThe company tests goodwill annually and uses discounted cash flow and market multiples, which are sensitive to assumptions.
Impact: A weaker outlook or higher discount rate could trigger impairment charges.
Cyclical demand can create excess or slow-moving inventory that must be written down.
Impact: Can reduce gross margin and operating income.
Capital equipment, refurbishment and service work may recognize revenue at different points in time.
Impact: Affects quarterly revenue timing and backlog conversion.
Operations outside the U.S. require judgment on uncertain tax positions and local tax laws.
Impact: Can affect tax expense and effective tax rate.
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Last updated: 24/09/2026