Quarterly Performance
For the quarter ended Dec. 31, 2025, the Houston-based company reported revenue of $202.2 million, surpassing the Zacks Consensus Estimate of $192.4 million. This represents a marginal increase from the $201.0 million reported in the same period a year ago.
Net income for the quarter was $2.1 million, or $0.17 per diluted share. On an adjusted basis, excluding foreign tax settlements, asset impairments, and restructuring costs, the company earned $0.41 per share. This figure beat the consensus estimate of $0.36 per share. Adjusted EBITDA for the fourth quarter stood at $23 million, with an adjusted EBITDA margin of 11.4%.
Operational growth was led by the Drilling and Completions segment, which saw revenue rise 8% sequentially to $127 million. Management attributed the growth to robust demand for capital equipment in international markets and subsea remotely operated vehicles (ROVs). Conversely, the Artificial Lift and Downhole segment reported revenue of $75 million, a 4% decline, though margins remained stable due to a favorable product mix.
Full-Year Context and Orders
For the full year 2025, Forum Energy reported total revenue of $791.5 million, a slight decrease from $816.4 million in 2024. However, the company significantly narrowed its annual net loss to $9.7 million, compared to a loss of $135.3 million in the previous year.
The company secured total orders of $891 million in 2025, resulting in a book-to-bill ratio of 113%. It ended the year with a record backlog of $312 million, a 46% increase year-over-year. Approximately 12% of this backlog consists of new products commercialized within the last three years.
Forum Energy also focused on capital returns and balance sheet strengthening. During 2025, the company repurchased 1.4 million shares, or 11% of its outstanding stock, for approximately $35 million. It also reduced net debt by 28% and extended the maturity of its senior secured credit facility to February 2031.
2026 Outlook
Management issued guidance for the full year 2026, forecasting revenue between $800 million and $880 million. Adjusted EBITDA is expected to range from $90 million to $110 million, representing a 16% increase at the midpoint. Free cash flow is projected at $55 million to $75 million.
There were no analyst upgrades, downgrades, or price-target changes reported on Friday. The stock currently maintains a consensus “Moderate Buy” rating. Earlier in the first quarter, Zacks Investment Research upgraded the stock to a “Strong Buy,” while other firms like Weiss Ratings and Wall Street Zen have maintained “Sell” and “Hold” ratings, respectively.
Macroeconomic and Sector Context
The positive momentum for Forum Energy comes as the broader energy services sector benefits from rising global energy demand and increased U.S. LNG export capacity.
The performance of the energy technology firm diverges from the broader equity markets, where software and Software-as-a-Service (SaaS) stocks have faced significant macro pressure. High interest rates and cautious enterprise spending have weighed on tech valuations recently, leading investors to rotate capital into industrial and energy-linked equities that demonstrate strong free cash flow and tangible order growth.
