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Dec 31, 2022
Forum Q4 2022 Earnings Report
Reported a net loss for the quarter, but adjusted EBITDA was within formal guidance range.
Key Takeaways
Forum Energy Technologies reported Q4 2022 revenue of $191 million, an increase from the previous quarter. The company experienced a net loss of $13 million, or $2.22 per diluted share, but adjusted EBITDA was $17 million, within the guidance range. Strong bookings were secured at $215 million, and backlog reached its highest level since Q4 2018.
Revenue increased to $191 million, a $9 million increase from the third quarter 2022.
Orders received were $215 million, with a book-to-bill ratio of 113%.
Net loss was $13 million, or $2.22 per diluted share.
Adjusted EBITDA of $17 million was within formal guidance range.
Forward Guidance
The company anticipates modest U.S. rig count growth during 2023, but equipment utilization and service intensity are expected to remain at extremely high levels. Offshore and international market activity growth, particularly in the Middle East and Latin America, should accelerate in 2023 and serve as the engine that sustains a multi-year investment cycle. The EBITDA guidance range for 2023 is $80 to $100 million.
Positive Outlook
- Ongoing global supply and demand imbalances for commodities are creating long-term opportunities for energy investment.
- Equipment utilization and service intensity are expected to remain at extremely high levels.
- Offshore and international market activity growth should accelerate in 2023.
- Growth in the Middle East and Latin America, should accelerate in 2023 and serve as the engine that sustains a multi-year investment cycle.
- EBITDA guidance range for 2023 is $80 to $100 million.
Challenges Ahead
- Anticipate modest U.S. rig count growth during 2023.
- Incremental profitability was negatively impacted by elevated project costs in the Subsea Technologies and Coiled Tubing product lines.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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