Forum Energy: A Most Promising Turn of Events

by

It appears that Forum Energy Technologies, a provider of rather essential bits and bobs to the energy chaps, is having a positively ripping day on the market. Shares are, as one might say, doing the Charleston, propelled upwards by news of their fourth-quarter results. A most agreeable state of affairs, wouldn’t you agree? The numbers, delivered with a commendable lack of fuss, suggest a company that’s not merely afloat, but positively gaining headway.

As of late morning, the stock was up a cheerful 9.3%, a performance that suggests investors are rather smitten with the current outlook. One can scarcely blame them.

A Backlog of Such Proportions!

The quarterly report revealed revenue of $202 million, and earnings per share that rather neatly exceeded expectations. Analysts, those earnest but often misguided souls, had predicted $191 million and $0.36 respectively. Forum Energy, however, swept in with $0.41, proving that a bit of good old-fashioned efficiency never goes out of style.

Loading widget...

But the truly dazzling bit isn’t just the present performance, but the outlook for the future. The company anticipates revenue of between $800 and $880 million for 2026 – a substantial leap forward. Should they hit the midpoint, it represents a 6% increase, which, in these trying times, is a feat worthy of a small celebration. And the earnings before interest, taxes, depreciation, and amortization (EBITDA)? A projected $90 to $110 million, a 16% jump from the previous year’s $86 million. A most encouraging sign, don’t you think?

Underpinning all this optimism is a backlog of $312 million. A backlog, mind you, that’s grown by a staggering 46% since last year! It’s the largest backlog they’ve seen in eleven years – a veritable mountain of orders, if you will. One can only assume the chaps are working at a brisk pace.

A Dash of Forum Energy in Your Portfolio?

While the oil supermajors tend to hog the limelight, companies like Forum Energy, providing the vital cogs and wheels to the energy machine, are equally deserving of attention. They’re the unsung heroes, if you will, keeping the whole operation humming along. And with shares currently priced at a mere 10.4 times forward earnings, it seems a particularly opportune moment to investigate whether Forum Energy might be a suitable addition to one’s portfolio. A bit of judicious investment, one suspects, could yield rather pleasant results.

Read More

2026-02-20 20:32