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FET's Strong Backlog and Strategy Execution Drive Long-Term Growth
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Key Takeaways
Forum Energy enters 2026 with a $312M backlog, up 46% from 2024-end, the highest in 11 years.
FET posted a 113% book-to-bill ratio, signaling rising demand and future revenue potential.
The "Beat the Market" strategy drives market share gains, higher revenue per rig and diversification.
Forum Energy Technologies, Inc. (FET - Free Report) is primarily involved in providing highly engineered products to support the operations of oil and natural gas and renewable companies. As a global manufacturing firm, FET offers products that are used in drilling, well construction and completion, as well as the construction of new rigs and subsea projects. As a result, demand for the company’s product offerings is heavily reliant on the drilling activity of oil and gas companies.
In recent years, there has been a slowdown in drilling activities in North America as upstream players have been cautious with their capital expenditures to maximize shareholder returns. Despite these developments, Forum Energy has secured the highest year-end backlog in 11 years in 2025. The company is entering 2026 with a backlog of $312 million, up 46% from year-end 2024. Its full-year book-to-bill ratio stands at 113%. The book-to-bill ratio compares orders received (booked) to the orders shipped/delivered (billed). The impressive book-to-bill ratio indicates growing demand for the company’s products, which can generate strong revenues in the future.
The company has highlighted that its expansion and growth are tied to its “Beat the Market” strategy, which focuses on developing differentiated product offerings and expanding its total addressable market. This strategy has enabled the company to increase its revenue per rig, gain market share and expand its customer base. The company’s strong backlog, its diversified global footprint and the continued focus on innovation are expected to provide revenue visibility and drive long-term growth.
Peer Companies of FET
National Energy Services Reunited (NESR - Free Report) and NOV Inc. (NOV - Free Report) are two companies within the same sub-industry, carrying a Zacks Rank #1 (Strong Buy) and a Zacks Rank #3 (Hold), respectively.
NESR shares have soared 156.5% in the past year and it reported fourth-quarter earnings of 32 cents per share, beating the Zacks Consensus Estimate. The company is one of the largest oilfield service providers in the Middle East and North Africa (MENA) region. While drilling activity has softened in the United States, NESR is poised to witness growth across Latin America, in countries like Guyana and Brazil, and in the MENA region. The company is focused on securing a robust backlog and building a solid project pipeline that boosts revenue visibility.
NOV is a leading provider of oil and gas equipment and services. The company is involved in the design, manufacture and sale of comprehensive systems, components, products and equipment that are used in oil and gas production. Its Energy Equipment segment has posted four consecutive years of revenue growth, largely driven by a shift toward a higher-quality, production-oriented backlog (e.g., FPSO modules, subsea pipe). This high-quality backlog supports revenue visibility and margin stability due to its less cyclical nature.
FET’s Price Performance, Valuation & Estimates
Shares of FET have soared 177.5% over the past year compared with the industry’s 40.2% growth of composite stocks.
Image Source: Zacks Investment Research
From a valuation standpoint, FET trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.20X. This is below the broader industry average of 9.27X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for FET’s 2026 earnings has witnessed downward revisions over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
FET's Strong Backlog and Strategy Execution Drive Long-Term Growth
Key Takeaways
Forum Energy Technologies, Inc. (FET - Free Report) is primarily involved in providing highly engineered products to support the operations of oil and natural gas and renewable companies. As a global manufacturing firm, FET offers products that are used in drilling, well construction and completion, as well as the construction of new rigs and subsea projects. As a result, demand for the company’s product offerings is heavily reliant on the drilling activity of oil and gas companies.
In recent years, there has been a slowdown in drilling activities in North America as upstream players have been cautious with their capital expenditures to maximize shareholder returns. Despite these developments, Forum Energy has secured the highest year-end backlog in 11 years in 2025. The company is entering 2026 with a backlog of $312 million, up 46% from year-end 2024. Its full-year book-to-bill ratio stands at 113%. The book-to-bill ratio compares orders received (booked) to the orders shipped/delivered (billed). The impressive book-to-bill ratio indicates growing demand for the company’s products, which can generate strong revenues in the future.
The company has highlighted that its expansion and growth are tied to its “Beat the Market” strategy, which focuses on developing differentiated product offerings and expanding its total addressable market. This strategy has enabled the company to increase its revenue per rig, gain market share and expand its customer base. The company’s strong backlog, its diversified global footprint and the continued focus on innovation are expected to provide revenue visibility and drive long-term growth.
Peer Companies of FET
National Energy Services Reunited (NESR - Free Report) and NOV Inc. (NOV - Free Report) are two companies within the same sub-industry, carrying a Zacks Rank #1 (Strong Buy) and a Zacks Rank #3 (Hold), respectively.
NESR shares have soared 156.5% in the past year and it reported fourth-quarter earnings of 32 cents per share, beating the Zacks Consensus Estimate. The company is one of the largest oilfield service providers in the Middle East and North Africa (MENA) region. While drilling activity has softened in the United States, NESR is poised to witness growth across Latin America, in countries like Guyana and Brazil, and in the MENA region. The company is focused on securing a robust backlog and building a solid project pipeline that boosts revenue visibility.
NOV is a leading provider of oil and gas equipment and services. The company is involved in the design, manufacture and sale of comprehensive systems, components, products and equipment that are used in oil and gas production. Its Energy Equipment segment has posted four consecutive years of revenue growth, largely driven by a shift toward a higher-quality, production-oriented backlog (e.g., FPSO modules, subsea pipe). This high-quality backlog supports revenue visibility and margin stability due to its less cyclical nature.
FET’s Price Performance, Valuation & Estimates
Shares of FET have soared 177.5% over the past year compared with the industry’s 40.2% growth of composite stocks.
Image Source: Zacks Investment Research
From a valuation standpoint, FET trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.20X. This is below the broader industry average of 9.27X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for FET’s 2026 earnings has witnessed downward revisions over the past 30 days.
Image Source: Zacks Investment Research
FET currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.