Forum Energy Technologies (NYSE:FET) executives outlined a strategy centered on market-share gains, product innovation and international expansion during the Water Tower Research Virtual Insights Conference, as the company targets significant revenue, EBITDA and free-cash-flow growth through 2030.
Chief Executive Officer Neal Lux said the company’s “beat the market” strategy is designed to outperform when industry activity rises and to decline less than the market during downturns. Forum manufactures products and technology for upstream oil and gas customers, with approximately 80% of its revenue tied to activity-based, recurring demand, he said.
“The primary driver of our growth has been new product development and geographic expansion,” Lux said, adding that pricing has made a relatively small contribution. He said Forum increased revenue by about 11% during the first half of the year while the global rig count was broadly flat, and that revenue per rig has increased about 34% since the company adopted its strategy in 2022.
Leadership and Growth Markets
Forum divides its portfolio between leadership markets and growth markets. Leadership markets represented roughly two-thirds of 2025 revenue, according to Lux, with the company estimating it holds an aggregate 36% share in those markets. Examples include coiled tubing, cased-hole wireline for hydraulic fracturing applications, subsea remotely operated vehicles and sand and flow-control products for thermal oil sands.
Lux said Forum aims to sustain its position in leadership markets through innovation, aftermarket penetration and geographic expansion. He also cited increased service intensity in oil and gas development as a demand driver, noting that longer well laterals require more coiled tubing and wireline. The company expects its markets to grow at about a 9% rate over the next five years, he said.
Growth-market products accounted for about one-third of 2025 revenue, and Forum estimates it has about 8% market share in those areas. Lux said opportunities include expanding the international adoption of products that protect downhole pumps, pursuing defense-related subsea applications such as rescue submarines, and supplying cooling systems for power generation supporting data centers.
He said Forum’s Global Heat Transfer unit received its first stationary cooling-system order for a data-center application in the second quarter. The company estimates that 5,000 to 6,000 gas reciprocating engines could be deployed for such applications over the next several years, each requiring cooling equipment. Lux characterized the initial booking as small and said Forum remains early in developing the market, but added that the potential market could represent hundreds of millions of dollars.
International Expansion Opportunities
Lux identified international growth as a major component of Forum’s plan. He said international revenue per rig is approximately $300,000 to $350,000, compared with roughly $700,000 in the U.S. Closing that gap would increase company revenue by 50%, he said.
The company plans to export technologies developed in U.S. unconventional basins to international customers seeking similar efficiencies. Lux highlighted opportunities in the Middle East, Argentina, Canada, North Africa and Asia. Products cited for international deployment included DuraLine manifolds, greaseless wireline cable, quench-and-temper coiled tubing and downhole products.
Forum also sees potential in Venezuela following years of underinvestment in the country’s oil sector. Lux said the company received regulatory approval earlier in the year and has already delivered coiled-tubing strings into the country. He said the deliveries have generated interest in pressure-control products and coiled line pipe, while broader drilling, completions and production-infrastructure offerings could also be applicable.
Chief Financial Officer Lyle Williams called Venezuela a “favorable surprise” during the year. While he did not describe it as incremental to Forum’s long-term plan, he said activity involving customers including ExxonMobil, Chevron and Continental could provide an opportunity to accelerate progress toward the company’s targets.
2030 Financial Framework
Williams said Forum’s 2030 framework assumes the company can gain 8 percentage points of share in its growth markets. In a flat-market scenario, that could bring revenue to nearly $1 billion by 2030. In the company’s base case, which assumes market growth supported by greater service intensity, revenue could reach $1.6 billion, or roughly double from 2025 levels.
The company expects incremental EBITDA margins of 25% to 35%, supported by gross margins of about 30%, higher-value new products and operating leverage from its manufacturing footprint. Williams said Forum’s capital-light model means it can convert 60% to 70% of incremental EBITDA into cash flow.
- In the growth scenario, Forum projects revenue could double by 2030.
- Adjusted EBITDA could quadruple over the period.
- Free cash flow could triple, according to the company’s framework.
Lux said Forum raised its midpoint adjusted EBITDA guidance to $120 million, compared with $86 million last year. He added that management has focused capital allocation on share repurchases, debt reduction and disciplined acquisitions, while continuing to pursue growth through product development and international expansion.
About Forum Energy Technologies (NYSE:FET)
Forum Energy Technologies, Inc is a Houston-based oilfield services and equipment company that designs, manufactures and distributes products used in the exploration, development, production and transportation of oil and natural gas. Its offerings support drilling, well construction, completion, production and intervention activities, as well as subsea operations.
The company’s product portfolio includes drilling and completion equipment, downhole tools, artificial-lift and production products, pressure-control equipment, subsea remotely operated vehicle systems, and equipment used for pipeline and infrastructure inspection.
