Forum Energy Technologies (FET) achieved third-quarter 2023 revenue of $147 million from the drilling and completion segment, representing a 6% increase compared to the previous quarter and a 25% increase year-over-year. This segment supplies consumables and capital equipment to drilling, subsea, pipeline, wireline, and intervention markets.
Revenue Growth in Product Lines
Drilling revenue increased to $39.2 million from $35.5 million in the previous quarter, and pipeline revenue rose to $34.2 million from $31.8 million. Subsea revenue reached $34.7 million, up from $33.5 million in the previous quarter and $23.6 million a year ago. Revenue from the intervention and intervention segment was reported at $39.1 million. Together, these four product lines account for 62% of the company's total revenue.
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Financial Performance and Future Forecasts
Adjusted EBITDA for the drilling segment reached $21 million, reflecting a 28% increase due to cost management and improved productivity. This increase raised the EBITDA margin to 14.3% from 11.9%. Additionally, orders reached $142 million, bringing the book-to-bill ratio to 97%.
In the artificial lift and subsea segment, revenue increased to $90 million with a 3% growth driven by high demand for flow control products and valve products. Adjusted EBITDA remained steady at around $21 million. FET also acquired Premiere Torque Rings during the quarter, which, according to Neal Lux, President and CEO, added distinctive technology and a reputable brand.
Overall, the company's revenue increased by 5% to $237 million compared to the previous quarter, and orders reached $244 million, indicating a 103% book-to-bill ratio. The average number of global rigs during the quarter was 1,901, up from 1,759 rigs in the previous quarter.
Given strong demand and improved industrial activity, FET raised its revenue forecast for 2026 to $900 to $920 million. It also projected adjusted EBITDA of $123 to $129 million, representing a 15% and 46% increase, respectively, compared to 2025. The forecast for the fourth quarter is revenue between $230 to $250 million and adjusted EBITDA between $33 to $39 million.
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