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Jun 30, 2024
Forum Q2 2024 Earnings Report
Forum Energy Technologies reported second quarter revenue increased by 11% year-over-year, and raised full year free cash flow guidance.
Key Takeaways
Forum Energy Technologies reported Q2 2024 results with revenue of $205 million, an 11% year-over-year increase. The company's adjusted EBITDA increased by 48% year-over-year to $26 million. They raised the full year free cash flow guidance to $50 to $70 million.
Revenue reached $205 million, marking an 11% increase year-over-year.
Adjusted EBITDA was $26 million, a 48% increase year-over-year.
Operating cash flow and free cash flow were $23 million and $21 million, respectively.
Full year 2024 free cash flow guidance raised to $50 to $70 million.
Revenue by Segment
Forward Guidance
The company expects U.S. rig count to be down 15% for the year. Full year 2024 adjusted EBITDA guidance is now $100 to $110 million. They are raising their full year 2024 free cash flow guidance to between $50 and $70 million.
Positive Outlook
- Canadian and international market outlook remains in line with our expectations.
- International footprint should mitigate U.S. industry softness.
- Variperm acquisition should mitigate U.S. industry softness.
- Benefits from our “beat-the-market” strategy should mitigate this U.S. industry softness.
- Raising full year 2024 free cash flow guidance to between $50 and $70 million.
Challenges Ahead
- U.S. rig count and hydraulic fracturing activity trended down during the second quarter.
- U.S. rig count and hydraulic fracturing activity are expected to continue their decline in the second half.
- For the year, we now expect U.S. rig count to be down 15%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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