Forum Energy Technologies Targets $1.6B Revenue by 2030 in Five-Year Growth Plan

Forum Energy Technologies is targeting revenue of up to $1.6 billion by 2030, with plans to double its market share in growth markets to 16%; management projects EBITDA could quadruple and free cash flow could triple under its higher-growth scenario.

The company has significantly improved its financial profile, with EBITDA margins rising from about 4% in 2021 to a projected 13% in 2026, while leverage fell to 1.1 times from 3.9 times in 2019.

Forum has also repurchased roughly 8% of its shares and completed five accretive acquisitions.

Growth initiatives include international expansion, high-pressure wireline products, and stationary power equipment for data centers, alongside continued gains in oilfield equipment market share.

Forum Energy Technologies NYSE: FET outlined a five-year growth strategy centered on market-share gains, international expansion, product innovation and capital allocation, while CEO Neal Lux said the company expects continued demand for equipment that improves energy-production efficiency.

Speaking at an investor presentation hosted by Three Part Advisors, Lux said Forum operates through two primary segments: artificial lift and downhole, which sells directly to energy producers, and drilling and completions, which sells to oilfield service companies.

Drilling and completions represents about 60% of company revenue, he said.

About half of Forum’s sales are generated in the United States and half internationally, according to Lux.

He said roughly 80% of revenue comes from activity-based consumables, including higher-value products that wear out and are replaced over periods of months, while the remainder comes from capital equipment designed to improve operational efficiency.

Lux said Forum’s revenue rose from about $540 million in 2021 to a 2026 guidance midpoint of approximately $890 million.

EBITDA increased from roughly $20 million in 2021 to a 2026 guidance midpoint of $120 million, while EBITDA margins expanded from about 4% to 13%, he said.

The CEO said the company has produced 10% compound annual revenue growth, compared with about 7% for the Russell 2000, and adjusted cash flow growth of approximately 46%, compared with zero growth for the index.

Lux attributed the gains to market-share growth, acquisitions, operating leverage and what he described as a capital-light business model.

He also cited annualized five-year stock performance of 16% for Forum compared with 6% for the Russell 2000, and one-year performance of 158% compared with 39% for the index.

Despite the share-price gains, Lux argued that Forum remains relatively undervalued against manufacturing peers.

He said the company generates about three times more free cash flow per share than those peers on an adjusted cash flow yield basis, while trading at roughly half of peer levels on enterprise value to EBITDA and price-to-sales measures.

He added that Forum’s financial leverage is about half that of its manufacturing comparables.

Forum began a share repurchase program at the end of 2024, Lux said.

Since then, the company has repurchased about 1 million shares, reducing its share count from 12.3 million to 11.3 million, or by about 8%.

The company has also focused on debt reduction, with its leverage ratio declining from 3.9 times at the end of 2019 to 1.1 times currently, according to Lux.

He said net debt has declined 67% and that Forum has completed five accretive acquisitions at multiples below its own valuation multiple.