FORUM ENERGY TECHNOLOGIES, INC. (FET)
SIC breadcrumb: Manufacturing > Industrial And Commercial Machinery And Computer Equipment > SIC 3533 Oil & Gas Field Machinery & Equipment
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1401257. Latest filing source: 0001401257-26-000015.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 791,474,000 | USD | 2025 | 2026-02-27 |
| Net income | -9,660,000 | USD | 2025 | 2026-02-27 |
| Assets | 752,455,000 | USD | 2025 | 2026-02-27 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001401257.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 587,635,000 | 818,620,000 | 1,064,219,000 | 956,533,000 | 512,476,000 | 541,068,000 | 699,913,000 | 738,864,000 | 816,425,000 | 791,474,000 |
| Net income | -81,978,000 | -59,400,000 | -374,080,000 | -567,057,000 | -96,889,000 | -82,651,000 | 3,712,000 | -18,876,000 | -135,326,000 | -9,660,000 |
| Operating income | -128,952,000 | -141,595,000 | -396,998,000 | -536,146,000 | -231,623,000 | -44,493,000 | 17,326,000 | 20,716,000 | -86,767,000 | 30,145,000 |
| Gross profit | 99,735,000 | 188,788,000 | 256,372,000 | 244,852,000 | -11,021,000 | 123,341,000 | 188,526,000 | 204,153,000 | 255,033,000 | 219,036,000 |
| Diluted EPS | -0.90 | -0.60 | -3.44 | -103.01 | -17.37 | -14.65 | 0.62 | -1.85 | -11.00 | -0.81 |
| Operating cash flow | 64,742,000 | -40,033,000 | 2,407,000 | 104,144,000 | 3,883,000 | -15,775,000 | -17,054,000 | 8,183,000 | 92,191,000 | 70,402,000 |
| Capital expenditures | 16,828,000 | 26,709,000 | 24,043,000 | 15,102,000 | 2,246,000 | 2,399,000 | 7,492,000 | 7,944,000 | 8,145,000 | 6,015,000 |
| Share buybacks | 623,000 | 4,742,000 | 2,777,000 | 1,094,000 | 195,000 | 1,414,000 | 3,826,000 | 5,996,000 | 0.00 | 34,612,000 |
| Assets | 1,835,192,000 | 2,195,228,000 | 1,829,652,000 | 1,159,997,000 | 889,926,000 | 791,336,000 | 834,757,000 | 821,061,000 | 815,954,000 | 752,455,000 |
| Liabilities | 599,431,000 | 786,212,000 | 799,526,000 | 673,958,000 | 483,690,000 | 462,210,000 | 527,722,000 | 408,428,000 | 496,054,000 | 461,312,000 |
| Stockholders' equity | 1,235,202,000 | 1,409,016,000 | 1,030,126,000 | 486,039,000 | 406,236,000 | 329,126,000 | 307,035,000 | 412,633,000 | 319,900,000 | 291,143,000 |
| Cash and cash equivalents | 234,422,000 | 115,216,000 | 47,241,000 | 57,911,000 | 128,617,000 | 46,858,000 | 51,029,000 | 46,165,000 | 44,661,000 | 34,661,000 |
| Free cash flow | 47,914,000 | -66,742,000 | -21,636,000 | 89,042,000 | 1,637,000 | -18,174,000 | -24,546,000 | 239,000 | 84,046,000 | 64,387,000 |
Ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | -13.95% | -7.26% | -35.15% | -59.28% | -18.91% | -15.28% | 0.53% | -2.55% | -16.58% | -1.22% |
| Operating margin | -21.94% | -17.30% | -37.30% | -56.05% | -45.20% | -8.22% | 2.48% | 2.80% | -10.63% | 3.81% |
| Return on equity | -6.64% | -4.22% | -36.31% | -116.67% | -23.85% | -25.11% | 1.21% | -4.57% | -42.30% | -3.32% |
| Return on assets | -4.47% | -2.71% | -20.45% | -48.88% | -10.89% | -10.44% | 0.44% | -2.30% | -16.59% | -1.28% |
| Liabilities / equity | 0.49 | 0.56 | 0.78 | 1.39 | 1.19 | 1.40 | 1.72 | 0.99 | 1.55 | 1.58 |
| Current ratio | 5.29 | 3.65 | 3.23 | 3.38 | 3.92 | 2.54 | 2.44 | 2.59 | 2.46 | 2.17 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-01. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001401257.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | 1.15 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | 1.82 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | -0.34 | reported discrete quarter | ||
| 2023-Q2 | 2023-03-31 | -3,486,000 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 185,449,000 | -0.64 | reported discrete quarter | |
| 2023-Q3 | 2023-06-30 | -6,579,000 | reported discrete quarter | ||
| 2023-Q3 | 2023-09-30 | 179,253,000 | 0.77 | reported discrete quarter | |
| 2023-Q4 | 2023-12-31 | 185,205,000 | -16,780,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 202,392,000 | -10,315,000 | -0.85 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | -10,315,000 | reported discrete quarter | ||
| 2024-Q2 | 2024-06-30 | 205,209,000 | -0.54 | reported discrete quarter | |
| 2024-Q3 | 2024-06-30 | -6,696,000 | reported discrete quarter | ||
| 2024-Q3 | 2024-09-30 | 207,806,000 | -1.20 | reported discrete quarter | |
| 2024-Q4 | 2024-12-31 | 201,018,000 | -103,500,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 193,279,000 | 1,122,000 | 0.09 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 | 1,122,000 | reported discrete quarter | ||
| 2025-Q2 | 2025-06-30 | 199,764,000 | 0.61 | reported discrete quarter | |
| 2025-Q3 | 2025-06-30 | 7,700,000 | reported discrete quarter | ||
| 2025-Q3 | 2025-09-30 | 196,231,000 | -1.76 | reported discrete quarter | |
| 2025-Q4 | 2025-12-31 | 202,200,000 | 2,072,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 208,700,000 | 4,492,000 | 0.39 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001401257-26-000034.
Item 2. Management’s discussion and analysis of financial condition and results of operations CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s control. All statements, other than statements of historical fact, included in this Quarterly Report on Form 10-Q regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Quarterly Report on Form 10-Q, the words “will,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. All forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. We disclaim any obligation to update or revise these statements unless required by law, and you should not place undue reliance on these forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this Quarterly Report on Form 10-Q are reasonable, forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from our plans, intentions or expectations. This may be the result of various factors, including, but not limited to, those factors discussed in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K filed with the SEC on February 27, 2026, and elsewhere in this Quarterly Report on Form 10-Q. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf. Overview FET optimizes customer operations by improving safety, increasing efficiency, and reducing environmental impact. Our highly engineered products include capital equipment and consumable products. FET’s customers include oil and natural gas operators, oilfield service companies, pipeline and refinery operators, defense contractors and renewable energy companies. Consumable products are used by our customers in drilling, well construction and completion activities and at processing centers and refineries. Our capital products are directed at drilling rig equipment for constructing new or upgrading existing rigs, subsea construction and development projects, pressure pumping equipment, the placement of production equipment on new producing wells, downstream capital projects and capital equipment for renewable energy projects. For the three months ended March 31, 2026, approximately 75% of our revenue was derived from consumable products and activity-based equipment, while the balance was primarily derived from capital products with a small amount from rental and other services. We expect that the world’s long-term energy demand will continue to rise for the foreseeable future. Hydrocarbons are expected to play a vital role in meeting the world’s long-term energy needs even as renewable energy sources grow in importance. As such, we are focused on developing products to help oil and gas operators lower expenses, increase production, and reduce their emissions while also deploying our technologies in renewable energy applications. The Company operates in the following two reportable segments: (1) Drilling and Completions and (2) Artificial Lift and Downhole. Refer to Note 9 Business Segments for the product lines making up each segment. 19 A summary of the products and services offered by each segment is as follows: •Drilling and Completions. This segment designs, manufactures and supplies products and solutions to the drilling, subsea, coiled tubing, well stimulation and intervention markets, including applications in the oil and natural gas, renewable energy, defense and communications industries. The products and solutions consist primarily of (i) capital equipment and consumable products used in the drilling process; (ii) capital equipment and aftermarket products including subsea remotely operated vehicles (“ROVs”) and trenchers, submarine rescue vehicles, specialty components and tooling, and technical services; (iii) capital equipment and consumable products sold to the pressure pumping market, including hydraulic fracturing pumps, cooling systems, and high-pressure flexible hoses and flow iron; (iv) wireline cable and pressure control equipment used in the well completion and intervention service markets; and (v) coiled tubing strings and pressure control equipment used in coiled tubing operations, as well as coiled line pipe and related services. •Artificial Lift and Downhole. This segment designs, manufactures and supplies products and solutions for the artificial lift, well construction, production and infrastructure markets. The products and solutions consist primarily of: (i) products designed to safeguard artificial lift equipment and downhole cables; (ii) well construction casing and cementing equipment; (iii) customized downhole technology solutions, providing sand and flow control products for heavy oil applications; (iv) engineered process systems, production equipment, as well as specialty separation equipment; and (v) a wide range of industrial valves focused on oil and natural gas as well as power generation, renewable energy and other general industrial applications. Market Conditions Generally, demand for our products and services is highly correlated with the global drilling rig count. Customer activity and their associated budgets are heavily influenced by forecasted energy prices and production targets. Demand for our capital products is driven by the utilization of service company equipment, which is a function of equipment capacity and durability in demanding environments. During the first quarter 2026, global oil and natural gas markets were heavily impacted by geopolitical developments and evolving supply dynamics, particularly in the Middle East. In March 2026, military actions involving the U.S., Israel and Iran introduced significant uncertainty into global energy markets. These developments caused concerns regarding the security of supply and became more elevated with military actions taken by Iran against the other Gulf states and efforts to control the Strait of Hormuz, a critical transit route for global crude and liquefied natural gas. As a result, energy markets experienced tightening supply conditions and increased volatility, driven by a combination of reduced export capacity, constrained shipping activity in the region and the incorporation of a risk premium into commodity pricing. These factors contributed to higher crude oil and natural gas prices during the quarter, as market participants reacted to both actual and potential disruptions in global supply. Global average active rig counts increased modestly compared to the fourth quarter of 2025 but were lower than the prior‑year period, reflecting continued capital discipline, particularly in North America. U.S. land activity remained relatively stable sequentially, while international activity continued to represent a significant portion of global drilling operations. Offshore rig counts were relatively flat, supported by longer‑cycle international and deepwater projects. Also during the first quarter, the United States Supreme Court ruled that tariffs instituted under the International Emergency Economic Powers Act by the President of the United States were unconstitutional. Following this result, additional trade remedies under the Trade Expansion Act of 1962 were instituted. U.S. trade policy and global tariff responses have remained volatile and macroeconomic uncertainty across the industry remains. Looking forward, while higher commodity prices due to the aforementioned geopolitical developments and evolving trade policies may support incremental activity, we expect customers to maintain capital discipline, operational efficiency and a returns-focused approach. However, we believe that long‑term global energy demand, ongoing production declines in mature fields, and customer focus on efficiency, safety, and emissions reduction will continue to support demand for our products and technologies over the long term. 20 The table below shows average crude oil and natural gas prices for West Texas Intermediate (“WTI”), Brent and Henry Hub. Average crude oil and natural gas prices during the first quarter 2026 increased compared to the prior year with spot prices exceeding $100 per barrel near quarter end. The higher prices reflected tightening global supply due to the geopolitical uncertainty in Middle East. Three Months Ended March 31, December 31, March 31, 2026 2025 2025 Average global oil, $/bbl WTI $ 72.74 $ 59.62 $ 71.78 Brent $ 80.72 $ 63.65 $ 75.87 Average North American Natural Gas, $/Mcf Henry Hub $ 4.71 $ 3.73 $ 4.14 The table below shows the average number of active drilling rigs operating by geographic area and drilling for different purposes based on the weekly rig count information published by Baker Hughes Company. In the third quarter of 2025, Baker Hughes implemented a revised methodology for counting rigs, primarily affecting data pertaining to Saudi Arabia. Consequently, international rig counts reported for the prior period have been adjusted accordingly and may now vary from figures presented in previous disclosures. Three Months Ended March 31, December 31, March 31, 2026 2025 2025 Active Rigs by Location United States 548 548 588 Canada 201 186 216 International 1,083 1,065 1,096 Global Active Rigs 1,832 1,799 1,900 Land vs. Offshore Rigs Land 1,582 1,556 1,640 Offshore 250 243 260 Global Active Rigs 1,832 1,799 1,900 U.S. Commodity Target Oil 411 415 482 Gas 128 125 101 Unclassified 9 8 5 Total U.S. Active Rigs 548 548 588 U.S. Well Path Horizontal 481 478 525 Vertical 12 13 13 Directional 55 57 50 Total U.S. Active Rigs 548 548 588 21 The table below shows the amount of total inbound orders by segment: Three Months Ended March 31, December 31, March 31, (in thousands of dollars) 2026 2025 2025 Drilling and Completions $ 135,458 $ 106,407 $ 132,133 Artificial Lift and Downhole 85,710 80,790 68,555 Total Orders $ 221,168 $ 187,197 $ 200,688 22 Results of operations Three months ended March 31, 2026 compared with three months ended March 31, 2025 Three Months Ended March 31, Change (in thousands of dollars, except per share information) 2026 2025 $ % Revenue Drilling and Completions $ 126,739 $ 115,569 $ 11,170 9.7 % Artificial Lift and Downhole 82,098 77,796 4,302 5.5 % Eliminations (137) (86) (51) * Total revenue 208,700 193,279 15,421 8.0 % Segment operating income Drilling and Completions 8,909 9,379 (470) (5.0) % Operating margin % 7.0 % 8.1 % Artificial Lift and Downhole 11,584 7,297 4,287 58.8 % Operating margin % 14.1 % 9.4 % Corporate (9,510) (7,698) (1,812) (23.5) % Total segment operating income 10,983 8,978 2,005 22.3 % Operating margin % 5.3 % 4.6 % Transaction expenses 148 51 97 * Loss (gain) on disposal of assets and other (170) 123 (293) * Operating income 11,005 8,804 2,201 25.0 % Interest ex [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included under Item 8 of this Annual Report on Form 10-K. This discussion contains forward-looking statements based on our current expectations, estimates and projections about our operations and the industry in which we operate. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and uncertainties, including those described in “Risk Factors” and “Cautionary note regarding forward-looking statements” and elsewhere in this Annual Report on Form 10-K. We assume no obligation to update any of these forward-looking statements. Overview FET optimizes customer operations by improving safety, increasing efficiency, and reducing environmental impact. Our highly engineered products include capital equipment and consumable products. FET’s customers include oil and natural gas operators, oilfield service companies, pipeline and refinery operators, defense contractors and renewable energy companies. Consumable products are used by our customers in drilling, well construction and completion activities and at processing centers and refineries. Our capital products are directed at drilling rig equipment for constructing new or upgrading existing rigs, subsea construction and development projects, pressure pumping equipment, the placement of production equipment on new producing wells, downstream capital projects and capital equipment for renewable energy projects. In 2025, approximately 80% of our revenue was derived from consumable products and activity-based equipment, while the balance was primarily derived from capital products with a small amount from rental and other services. We expect that the world’s long-term energy demand will continue to rise for the foreseeable future. Hydrocarbons are expected to play a vital role in meeting the world’s long-term energy needs even as renewable energy sources grow in importance. As such, we are focused on developing products to help oil and gas operators lower expenses, increase production, and reduce their emissions while also deploying our technologies in renewable energy applications. FET operates in the following two reportable segments: (1) Drilling and Completions and (2) Artificial Lift and Downhole. Refer to Note 15 Business Segments for the product lines making up each segment. A summary of the products and services offered by each segment is as follows: •Drilling and Completions. This segment designs, manufactures and supplies products and solutions to the drilling, subsea, coiled tubing, well stimulation and intervention markets, including applications in the oil and natural gas, renewable energy, defense and communications industries. The products and solutions consist primarily of (i) capital equipment and consumable products used in the drilling process; (ii) capital equipment and aftermarket products including subsea ROVs and trenchers, submarine rescue vehicles, specialty components and tooling, and technical services; (iii) capital equipment and consumable products sold to the pressure pumping market, including hydraulic fracturing pumps, cooling systems, and high-pressure flexible hoses and flow iron; (iv) wireline cable and pressure control equipment used in the well completion and intervention service markets; and (v) coiled tubing strings and pressure control equipment used in coiled tubing operations, as well as coiled line pipe and related services. •Artificial Lift and Downhole. This segment designs, manufactures and supplies products and solutions for the artificial lift, well construction, production and infrastructure markets. The products and solutions consist primarily of: (i) products designed to safeguard artificial lift equipment and downhole cables; (ii) well construction casing and cementing equipment; (iii) customized downhole technology solutions, providing sand and flow control products for heavy oil applications; (iv) engineered process systems, production equipment, as well as specialty separation equipment; and (v) a wide range of industrial valves focused on oil and natural gas as well as power generation, renewable energy and other general industrial applications. 35 Table of Contents Market Conditions Generally, demand for our products and services is directly related to our customers’ drilling and completions activity, and their capital expenditure budgets. Their activity and the associated budgets are heavily influenced by forecasted energy prices and production targets. Demand for our capital products is driven by the utilization of service company equipment. Utilization is a function of equipment capacity and durability in demanding environments. During 2025, global oil and natural gas markets were heavily impacted by shifting supply dynamics and geopolitical developments. Additionally, U.S. trade policy and global tariff responses created significant macroeconomic uncertainty across the industry. In the future, volatile macroeconomic conditions, including changing tariffs imposed by U.S. or foreign governments, could disrupt world energy markets and international supply chains. Although near-term events may present challenges, we expect that global population growth and oil and gas production declines will continue to support long-term energy demand, which may outpace global supply. The table below shows average crude oil and natural gas prices for West Texas Intermediate (“WTI”), Brent, and Henry Hub. Average oil prices declined over the course of the year, with Brent crude averaging approximately $63 per barrel in December after declining throughout the second half of the year. This downward trend was driven by global crude oil supply exceeding demand, a result of both sluggish global economic growth and the accelerated unwinding of OPEC+ production cuts. In contrast, average natural gas prices strengthened during 2025, supported by strong demand, tightening supply and geopolitical uncertainty. 2025 2024 Average global oil, $/bbl WTI $ 65.39 $ 76.45 Brent $ 69.14 $ 80.52 Average North American Natural Gas, $/Mcf Henry Hub $ 3.52 $ 2.19 36 Table of Contents The table below shows the average number of active drilling rigs operating by geographic area and drilling for different purposes based on the weekly rig count information published by Baker Hughes Company. Our revenues, over the long-term, are highly correlated to the global drilling rig count, which decreased 6.7% in 2025 compared to average global rig count in 2024. The decrease was mainly driven by lower average oil prices, enhanced drilling efficiencies, and sustained capital discipline among exploration and production companies. In the third quarter of 2025, Baker Hughes implemented a revised methodology for counting rigs, primarily affecting data pertaining to Saudi Arabia. Consequently, international rig counts reported for the prior period have been adjusted accordingly and may now vary from figures presented in previous disclosures. 2025 2024 Active Rigs by Location United States 561 599 Canada 177 187 International 1,080 1,162 Global Active Rigs 1,818 1,948 Land vs. Offshore Rigs Land 1,566 1,647 Offshore 252 301 Global Active Rigs 1,818 1,948 U.S. Commodity Target Oil 443 491 Gas 113 105 Other 5 3 Total U.S. Active Rigs 561 599 U.S. Well Path Horizontal 498 536 Vertical 13 15 Directional 50 48 Total U.S. Active Rigs 561 599 The table below shows the amount of total inbound orders by segment for the years ended December 31, 2025 and 2024: (in thousands of dollars) 2025 2024 Orders: Drilling and Completions $ 567,805 $ 459,214 Artificial Lift and Downhole 323,200 321,049 Total Orders $ 891,005 $ 780,263 37 Table of Contents Results of operations Year ended December 31, Change (in thousands of dollars, except per share information) 2025 2024 $ % Revenue Drilling and Completions $ 477,191 $ 470,767 $ 6,424 1.4 % Artificial Lift and Downhole 314,785 345,680 (30,895) (8.9) % Eliminations (502) (22) (480) * Total revenue $ 791,474 $ 816,425 $ (24,951) (3.1) % Cost of sales Drilling and Completions $ 375,633 $ 348,878 $ 26,755 7.7 % Artificial Lift and Downhole 197,307 212,536 (15,229) (7.2) % Eliminations (502) (22) (480) * Total cost of sales $ 572,438 $ 561,392 $ 11,046 2.0 % Gross profit Drilling and Completions $ 101,558 $ 121,889 $ (20,331) (16.7) % Artificial Lift and Downhole 117,478 133,144 (15,666) (11.8) % Total gross profit $ 219,036 $ 255,033 $ (35,997) (14.1) % Selling, general and administrative expenses Drilling and Completions $ 88,723 $ 104,123 $ (15,400) (14.8) % Artificial Lift and Downhole 76,304 84,250 (7,946) (9.4) % Corporate 34,878 30,952 3,926 12.7 % Total selling, general and administrative expenses $ 199,905 $ 219,325 $ (19,420) (8.9) % Segment operating income (loss) Drilling and Completions $ 12,835 $ 17,766 $ (4,931) (27.8) % Operating margin % 2.7 % 3.8 % Artificial Lift and Downhole 41,174 48,894 (7,720) (15.8) % Operating margin % 13.1 % 14.1 % Corporate (34,878) (30,952) (3,926) (12.7) % Total segment operating income $ 19,131 $ 35,708 $ (16,577) (46.4) % Operating margin % 2.4 % 4.4 % Transaction expenses 546 7,728 (7,182) * Impairment of intangible assets — 119,123 (119,123) * Gain on sale-leaseback transactions (11,182) (4,860) (6,322) * Loss (gain) on disposal of assets and other (378) 484 (862) * Operating income (loss) 30,145 (86,767) 116,912 134.7 % Interest expense 18,312 31,490 (13,178) (41.8) % Loss on extinguishment of debt — 2,854 (2,854) * Foreign exchange losses (gains) and other, net (4,754) 7,315 (12,069) * Total other expense 13,558 41,659 (28,101) * Income (loss) before income taxes 16,587 (128,426) 145,013 112.9 % Income tax expense 26,247 6,900 19,347 * Net loss $ (9,660) $ (135,326) $ 125,666 92.9 % Weighted average shares outstanding Basic 11,883 12,299 Diluted 11,883 12,299 Loss per share Basic $ (0.81) $ (11.00) Diluted $ (0.81) $ (11.00) * not meaningful 38 Table of Contents Revenues Our revenue for the year ended December 31, 2025 was $791.5 million, a decrease of $25.0 million, or 3.1%, compared to the year ended December 31, 2024. For the year ended December 31, 2025, our Drilling and Completions segment and Artificial Lift and Downhole segment comprised of 60.3% and 39.8% of our total revenues, respectively, compared to 57.7% and 42.3%, respectively, for the year ended December 31, 2024. The overall decrease in revenue was primarily related to challenging market conditions, including a notable reduction in global drilling and completions activity, as well as tariff impacts in our Valve Solutions product line. These pressures were partially offset by higher revenue recognized from ROVs projects and increased coiled line pipe sales. The changes in revenues by operating segment consisted of the following: Drilling and Completions segment — Revenue was $477.2 million for the year ended December 31, 2025, an increase of $6.4 million, or 1.4%, compared to the year ended December 31, 2024. This increase was driven by higher revenue recognized from ROVs projects and increased coiled line pipe sales due to growing U.S. demand and a large offshore project. These favorable factors were partially offset by lower global drilling and completions activity. Artificial Lift and Downhole segment — Revenue was $314.8 million for the year ended December 31, 2025, a decrease of $30.9 million, or 8.9%, compared to the year ended December 31, 2024. The decline in revenue was driven by lower sand control sales and tariff-related impacts on valve products sales volumes. These decreases were partially offset by higher casing equipment sales. Segment operating income (loss) and segment operating margin percentage Segment operating income for the year ended December 31, 2025 was $19.1 million compared to $35.7 million for the year ended December 31, 2024. For the year ended December 31, 2025, segment operating margin percentage was 2.4% compared to 4.4% for the year ended December 31, 2024. Segment operating margin percentage is calculated by dividing segment operating income (loss) by revenues for the period. The change in operating income (loss) and operating margin percentage for each segment is explained as follows: Drilling and Completions segment — Segment operating income was $12.8 million, or 2.7%, for the year ended December 31, 2025 compared to $17.8 million, or 3.8%, for the year ended December 31, 2024. The $4.9 million decrease in segment operating results was primarily due to inventory write-downs, asset impairments and other costs, net of recoveries, of $20.2 million related to the Company’s strategic decision to consolidate facilities and discontinue certain products. This decrease was partially offset by a reduction in amortization expense following intangible asset impairments recognized in the fourth quarter of 2024. Artificial Lift and Downhole segment — Segment operating income was $41.2 million, or 13.1%, for the year ended December 31, 2025 compared to $48.9 million, or 14.1%, for the year ended December 31, 2024. The $7.7 million decrease in segment operating results was primarily driven by lower market activity and unfavorable customer and product mix. Corporate — Selling, general and administrative expenses for Corporate were $34.9 million for the year ended December 31, 2025, a $3.9 million increase compared to the year ended December 31, 2024. This increase was primarily related to higher performance-based incentive compensation costs and one-time professional fees. Other items not included in segment operating income (loss) Several items are not included in segment operating income (loss), but are included in the total operating income (loss). These items include Transaction expenses, Impairment of intangible assets, Gain on sale-leaseback transactions and Loss (gain) on disposal of assets and other. For further information related to Impairment of intangible assets, see Note 6 Goodwill and Intangible Assets. For further information related to Gain on sale-leaseback transactions, see Notes 5 Property and Equipment and 8 Leases. Other income and expense Other income and expense includes interest expense, foreign exchange gains (losses) and other, and loss on extinguishment of debt. We incurred $18.3 million of interest expense during the year ended December 31, 2025, a decrease of $13.2 million compared to the year ended December 31, 2024 due to the decreased borrowings. See Note 7 Debt for further details related to debt. The foreign exchange gains and losses are primarily the result of movements in the British pound, Euro and Canadian dollar relative to the U.S. dollar. These movements in exchange rates create foreign exchange gains or losses when applied to monetary assets or liabilities denominated in currencies other than the location’s functional currency, primarily U.S. dollar denominated cash, trade account receivables and net intercompany receivable balances for our entities using a functional currency other than the U.S. dollar. 39 Table of Contents Taxes We recorded tax expense of $26.2 million for the year ended December 31, 2025 compared to a tax expense of $6.9 million for the year ended December 31, 2024. The estimated annual effective tax rates for the years ended December 31, 2025 and 2024 were impacted by losses in jurisdictions where the recording of a tax benefit is not available. Furthermore, the tax expense or benefit recorded can vary from period to period depending on the Company’s relative mix of earnings and losses by jurisdiction. Liquidity and capital resources Sources and uses of liquidity Our internal sources of liquidity are cash on hand and cash flows from operations, while our primary external sources include trade credit, the Credit Facility and the 2029 Bonds. Our primary uses of capital have been for inventory, sales on credit to our customers, maintenance and growth capital expenditures, repurchases of stock, debt repayments and acquisitions. We continually monitor other potential capital sources, including equity and debt financing, to meet our investment and target liquidity requirements. Our future success and growth will be highly dependent on our ability to generate positive operating cash flow and access outside sources of capital. As of December 31, 2025, we had $37.3 million of borrowings under our Credit Facility and $100.0 million outstanding principal amount of 2029 Bonds. See Note 7 Debt for further details related to the terms for our debt agreements and Note 16 Subsequent Events for further details on amendments to our Credit Facility subsequent to December 31, 2025. As of December 31, 2025, we had cash and cash equivalents of $34.7 million and $72.5 million of availability under our Credit Facility. We anticipate that our future working capital requirements for our operations will fluctuate directionally with revenues. Furthermore, availability under the Credit Facility will fluctuate directionally based on the level of our eligible accounts receivable and inventory subject to applicable sublimits. In addition, we expect total 2026 capital expenditures to be approximately $10.0 million, primarily for replacement of end of life machinery and equipment. We expect our available cash on-hand, cash generated by operations, and estimated availability under the Credit Facility to be adequate to fund current operations for at least the next 12 months and for the foreseeable future. In addition, based on existing market conditions and our expected liquidity needs, among other factors, we may use a portion of our cash flows from operations, proceeds from divestitures, securities offerings or other eligible capital to reduce outstanding debt or repurchase shares of our common stock under our repurchase program. Our Board of Directors approved programs for the repurchase of outstanding shares of our common stock. From the inception of the programs in November 2021 through December 31, 2025, we repurchased approximately 1.7 million shares of our common stock for aggregate consideration of $41.9 million. We repurchased approximately 1.4 million shares of our common stock for aggregate consideration of $34.3 million during 2025. Our cash flows for the years ended December 31, 2025 and 2024 are presented below (in thousands): Year ended December 31, (in thousands of dollars) 2025 2024 Net cash provided by operating activities $ 70,402 $ 92,191 Net cash provided by (used in) investing activities 9,566 (137,526) Net cash provided by (used in) financing activities (91,566) 45,242 Effect of exchange rate changes on cash 1,598 (1,411) Net decrease in cash, cash equivalents and restricted cash $ (10,000) $ (1,504) Net cash provided by operating activities Net cash provided by operating activities was $70.4 million for the year ended December 31, 2025 compared to net cash provided by operating activities of $92.2 million for the year ended December 31, 2024. During the year ended December 31, 2025, net working capital provided cash of $17.8 million, compared to net working capital cash provided of $57.6 million for the year ended December 31, 2024. This decline in operating cash flow was offset by 40 Table of Contents the increase in net income adjusted for non-cash items which provided $52.6 million of cash for the year ended December 31, 2025 compared to $34.6 million for the year ended December 31, 2024. Net cash provided by (used in) investing activities Net cash provided by investing activities was $9.6 million for the year ended December 31, 2025, mainly related to $14.6 million proceeds from sale-leaseback transactions, partially offset by capital expenditures of $6.0 million. Net cash used in investing activities was $137.5 million for the year ended December 31, 2024, mainly related to the Variperm Acquisition of $150.4 million and capital expenditures of $8.1 million, partially offset by $20.3 million of proceeds from sale-leaseback transactions. Net cash provided by (used in) financing activities Net cash used in financing activities was $91.6 million for the year ended December 31, 2025 and included $53.1 million of net repayments of our Credit Facility and repurchases of common stock of $34.6 million. Net cash provided by financing activities was $45.2 million for the year ended December 31, 2024 and included $54.9 million of net proceeds from debt mainly due to the Variperm acquisition, partially offset by $8.5 million of paid financing costs. Off-balance sheet arrangements As of December 31, 2025, we had no off-balance sheet instruments or financial arrangements, other than letters of credit entered into in the ordinary course of business. For additional information, refer to Note 11 Commitments and Contingencies. Critical accounting policies and estimates The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. In preparing our consolidated financial statements, we make judgments, estimates and assumptions affecting the amounts reported. We base our estimates on factors including historical experience and various assumptions that we believe are reasonable under the circumstances. These factors form the basis for making estimates about the carrying values of assets and liabilities that are not readily apparent from other sources. Certain accounting policies involve judgments and uncertainties to such an extent that there is a reasonable likelihood that materially different amounts could have been reported under different conditions, or if different assumptions had been used. We evaluate our estimates and assumptions on a regular basis. Actual results may differ from these estimates and assumptions used in preparation of our consolidated financial statements. In order to provide a better understanding of how we make judgments, and develop estimates and assumptions about future events, we have described our most critical accounting policies and estimates used in preparation of our consolidated financial statements below. Revenue recognition Revenue is recognized in accordance with Accounting Standards Codification Topic (“ASC”) 606, when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For the year ended December 31, 2025, approximately 79% of our revenue was recognized from goods transferred to customers at a point in time while 21% of our revenue was recognized from goods transferred to customers over time. Although terms of our contracts may vary considerably, the 21% of revenues recognized over time relate to certain contracts in our Subsea, Production Equipment and Downhole product lines which are typically based on a fixed amount for the entire contract. Recognition over time for these contracts is supported by our assessment of the products supplied as having no alternative use to us and by clauses in the contracts that provide us with an enforceable right to payment for performance completed to date. For performance obligations satisfied over time, we measure progress toward completion using either an input method or an output method, depending on which method best depicts the transfer of control of goods or services to the customer. The selection of the method requires judgment and is based on the nature of the goods or services promised and the terms of the contract. For certain contracts, we use an input method and measure progress using the cost‑to‑cost method because it best depicts the transfer of assets to the customer, which occurs as costs are incurred on the contract. The amount of revenue recognized is calculated based on the ratio of costs incurred to date compared to total estimated costs which requires management to calculate reasonably dependable estimates of total contract costs. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated 41 Table of Contents revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period. We recognize revenue and cost of sales each period based upon the advancement of the work-in-progress unless the stage of completion is insufficient to enable a reasonably certain forecast of profit to be established. In such cases, no profit is recognized during the period. For other contracts, we use an output method to measure progress toward completion where such measures provide a more faithful depiction of performance. Under the output method, revenue is recognized based on direct measurements of value transferred to the customer, such as milestones achieved, units delivered, or other deliverables transferred relative to the remaining goods or services to be provided under the contract. Accounting estimates during the course of projects may change. The effect of such a change, which can be upward as well as downward, is accounted for in the period of change, and the cumulative income recognized to date is adjusted to reflect the latest estimates. These revisions to estimates are accounted for on a prospective basis. Contracts are sometimes modified to account for changes in product specifications or requirements. Most of our contract modifications are for goods and services that are not distinct from the existing contract. As such, these modifications are accounted for as if they were part of the existing contract, and therefore, the effect of the modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis. Inventories Inventories, consisting of finished goods and materials and supplies held for resale, are carried at the lower of cost or net realizable value. We evaluate our inventories based on an analysis of stocking levels, historical sales levels and future sales forecasts, to determine obsolete, slow-moving and excess inventory. While we have policies for calculating and recording reserves against inventory carrying values, we exercise judgment in establishing and applying these policies. As of December 31, 2025 and 2024, our inventory reserve balances were $23.0 million and $35.7 million, respectively. For the years ended December 31, 2025 and 2024, we recognized inventory write downs totaling $19.7 million and $2.7 million, respectively. These charges are all included in “Cost of sales” in the consolidated statements of comprehensive loss. See Note 4 Inventories for further information related to these charges. Business combinations We account for business combinations using the acquisition method of accounting, and accordingly, the assets and liabilities of the acquired business are recorded at their fair values at the date of acquisition. Goodwill acquired in connection with business combinations represents the excess of consideration over the fair value of net assets acquired. Certain assumptions and estimates are employed in evaluating the fair value of assets acquired and liabilities assumed. These estimates may be affected by factors such as changing market conditions, technological advances in the oil and natural gas industry or changes in regulations governing that industry. The most significant assumptions requiring judgment involve identifying and estimating the fair value of intangible assets and the associated useful lives for establishing amortization periods. To finalize purchase accounting for significant acquisitions, we utilize the services of independent valuation specialists to assist in the determination of the fair value of acquired intangible assets. Goodwill An assessment for impairment is performed annually or when there is an indication an impairment may have occurred. Goodwill is reviewed for impairment by comparing the carrying value of the reporting unit’s net assets, including allocated goodwill, to the estimated fair value of the reporting unit. We determine the fair value of the reporting unit using a combination of a discounted cash flows approach and a guideline public company method. We selected these valuation approaches because we believe they, combined with our best judgment regarding underlying assumptions and estimates, provides the best estimate of fair value for the reporting unit. Determining the fair value of a reporting unit requires the use of estimates and assumptions. Such estimates and assumptions include revenue growth rates, future operating margins, the weighted average cost of capital, a terminal growth value, and future market conditions, among others. We believe that the estimates and assumptions used in our impairment assessments are reasonable. If the reporting unit’s carrying value is greater than its calculated fair value, we recognize a goodwill impairment charge for the amount by which the carrying value of goodwill exceeds its fair value. We determined our Downhole product line consists of a single reporting unit and, accordingly, goodwill acquired from the Variperm acquisition was allocated to that reporting unit. 42 Table of Contents At October 1, 2025, we performed our annual impairment test and concluded that there had been no impairment because the estimated fair value exceeded its carrying value by approximately 40%. There are significant inherent uncertainties and management judgment in estimating the fair value of the reporting unit. While we believe we have made reasonable estimates and assumptions to estimate the fair value of the reporting unit, it is possible that a material change could occur. Long-lived assets As of December 31, 2025, our long-lived assets included property and equipment, definite lived intangibles, and operating lease right of use assets with balances of $51.9 million, $93.6 million and $80.7 million, respectively. Key estimates related to long-lived assets include useful lives and recoverability of carrying values and changes in such estimates could have a significant impact on financial results. We review long-lived assets with definite lives for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. In 2024, an impairment loss of $119.1 million was recorded on intangible assets within the Coiled Tubing product line. Refer to Note 6 Goodwill and Intangible Assets for further discussion. In 2025, we recognized $1.2 million and $1.6 million of property and equipment impairment and operating lease right of use assets impairment, respectively, related to the Company’s strategic decision to consolidate facilities and discontinue certain products. Refer to Note 5 Property and Equipment and Note 8 Leases for further discussion. No impairments to property and equipment or operating lease right of use assets were recorded in 2024. Income taxes We follow the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are determined based upon temporary differences between the carrying amounts and tax bases of our assets and liabilities at the balance sheet date, and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing temporary differences, projected future taxable income, tax-planning and recent operating results. Any changes in our judgment as to the realizability of our deferred tax assets are recorded as an adjustment to the deferred tax asset valuation allowance in the period the change occurs. For the year ended December 31, 2025, we recognized tax expense for valuation allowances totaling $4.3 million related to the net increase in our valuation allowance provided against our deferred tax assets to write down our deferred tax assets in these jurisdictions to what is more likely than not realizable. We increased our valuation allowance related to our U.S. deferred tax assets by $1.5 million along with a $2.8 million net increase to certain non-U.S. deferred tax assets in the United Kingdom, Singapore and Canada. See Note 9 Income Taxes for further information related to these charges. The accounting guidance for income taxes requires that we recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. If a tax position meets the “more likely than not” recognition criteria, the accounting guidance requires the tax position be measured at the largest amount of benefit greater than 50% likely of being realized upon ultimate settlement. If management determines that likelihood of sustaining the realization of the tax benefit is less than or equal to 50%, then the tax benefit is not recognized in the consolidated financial statements. We have operations in countries other than the U.S. Consequently, we are subject to the jurisdiction of a number of taxing authorities. The final determination of tax liabilities involves the interpretation of local tax laws, tax treaties, and related authorities in each jurisdiction. Changes in the operating environment, including changes in tax law or interpretation of tax law and currency repatriation controls, could impact the determination of our tax liabilities for a given tax year. Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”), which we adopt as of the specified effective date. Refer to Note 2 Summary of Significant Accounting Policies for information related to recent accounting pronouncements. 43 Table of Contents Cautionary note regarding forward-looking statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s control. All statements, other than statements of historical fact, included in this Annual Report on Form 10-K regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Annual Report on Form 10-K, the words “will,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. All forward-looking statements speak only as of the date of this Annual Report on Form 10-K. We disclaim any obligation to update or revise these statements unless required by law, and you should not place undue reliance on these forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this Annual Report on Form 10-K are reasonable, forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from our plans, intentions or expectations. This may be the result of various factors, including, but not limited to, those factors discussed in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Annual Report on Form 10-K.