Oct 30, 2026 earnings call — Raised 2026 outlook and closed Premier TorqueRings deal
Management raised full-year 2026 revenue guidance to between $900 million and $920 million.
Revenue $0.2B (est $0.2B) · EPS $1.51 (est $1.22) · Next-quarter revenue outlook $0.2B–$0.3B
Key quotes
"Our strategy is straightforward. Compete in targeted markets. Use competitive advantages, innovate continuously, and leverage our global footprint."
"The introduction of this product expands our addressable market by approximately $200 million."
"Total guaranteed consideration of $33 million, or about 4x EBITDA consisted of $16 million of common stock, $12 million of cash, and $5 million of deferred cash consideration."
Analyst Q&A 7
TorqueRings Q4 contribution and product uses
Q (Jeff Robertson · Water Tower): He asked what customer conversations support their 2027 outlook. He also asked how Premier TorqueRings contributes to Q4 and whether the technology extends to other FET markets.
A: Management said TorqueRings fits well with their downhole product line and shared customers, enabling cross-selling and international expansion. They noted the acquisition closed mid-Q3 and will add revenue over coming quarters, with an expected small sequential contribution in Q4.
"So sequentially, probably think another million dollars or so of contribution from torque rings." — David Lyle Williams Jr. (CFO)
Debt level and capital priorities
Q (Sidoti): He asked where management is comfortable on debt and how they will prioritize cash between buybacks, debt repayment, and acquisitions. He also asked if they have a target return for acquisitions.
A: They said they are comfortable with current debt levels and will consider acquisitions and share buybacks strategically while remaining disciplined. Management said they reduced net debt recently and view further debt reduction as creating dry powder for strategic investments; their acquisition criteria focus on differentiated products with limited competition and similar 5-year growth outlooks.
"we feel like we are we are comfortable with our debt levels now." — Neal Lux (CEO)
Free cash flow, backlog, and subsea trends
Q (Gautam Suri · Singular): He asked how free cash flow conversion should change as growth picks up and how much working capital the next $100 million of revenue might need. He also asked where backlog stands now and how quickly it converts to revenue.
A: They said the business is capital light and needs little CapEx, and incremental EBITDA margins on revenue should be between 25% to 35%. They added that 65 to 75 or 60 to 70% of every incremental dollar of EBITDA would be free cash flow, and that backlog generally converts in less than a year with some subsea exceptions.
"the outline we have given there, which is incremental EBITDA margins on revenue should be between 25% to 35%." — David Lyle Williams Jr. (CFO)
Role of international growth to 2030
Q (Jim Rollyson · Raymond James): He asked whether international and offshore will be the bigger relative share of growth as they pursue the 2030 targets.
A: They said international will be a larger part of growth and gave examples of U.S. technologies with low international share and big markets abroad. Management highlighted a product where the international market is about 4x larger and they have room to grow share by exporting successful U.S. solutions.
"That market is about 4x larger, and our share is really low." — Neal Lux (CEO)
Middle East operations, Venezuela risk, M&A process
Q (Dan Pickering · Pickering Energy Partners): He asked what FET is doing in the Middle East, whether they ship or provide services, and if near-term operations look stable. He also asked how they handle payment and country risk in Venezuela and about their BD/M&A process and velocity.
A: They said they have local manufacturing, distribution, and sales offices in Saudi and the UAE and mostly ship products (new and aftermarket) into those markets. For Venezuela they are cautious: they generally ship to a U.S. company and receive U.S. dollars, sometimes use LCs for big projects, and they do not plan to hold assets in country; they also said a company-wide BD team works with product lines to identify acquisition targets.
"we are generally shipping to a US company and receiving US dollars." — Neal Lux (CEO)
Lower 48 equipment and data centers
Q (Joshua Jayne · Daniel Energy Partners): He asked if the industry underinvested in Lower 48 equipment and whether that creates a shortfall if activity rises in 2027. He also asked whether regulatory noise has delayed data center projects and to explain the data center opportunity for FET.
A: They said U.S. operators have been resourceful and they would not yet call it a coiled spring, but higher utilization increases consumables demand and may drive upgrades of key capital items like the f r 21 iron roughneck and radiators. On data centers they said they play in the shorter cycle: RFQs that passed regulatory hurdles are actionable, and their more modular coolers prioritize uptime and lower total cost of ownership for 24/7 use.
"If you need to have maintenance or you need to have an issue, you know, you cannot have a cooler down." — Neal Lux (CEO)
2030 progress, bond call, and deal sizes
Q (Eric): He asked if the company is ahead or behind schedule on the 2030 plan and for comments on the 2029 bond (callable in 2027) and whether they plan to refinance or call it. He also asked about typical acquisition EBITDA sizes they are pursuing.
A: They said they feel good about progress, built the plan bottoms-up, and would give themselves a positive grade while staying focused on execution. Management noted the $100 million bond matures in 2029 with a first call date about May 2027; they reported net debt at end of Q3 was $97 million, have a well-funded revolver, and said they can pursue both bolt-on and larger acquisitions given balance-sheet flexibility.
"The first call date for us would be about May 2027." — David Lyle Williams Jr. (CFO)