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HOUSTON - Forum Energy Technologies, Inc. (NYSE:FET), a $235 million market cap energy equipment provider with annual revenues exceeding $800 million, has secured a contract to supply a submarine rescue vehicle system to the Indonesian Navy, the company announced in a press release Thursday. According to InvestingPro analysis, the company’s stock is currently trading below its Fair Value, suggesting potential upside opportunity.
The contract includes a new LR600 model submarine rescue vehicle (SRV), a launch and recovery system, and a decompression system. The piloted rescue submersible will operate at depths up to 605 meters and can carry 20 people.
According to the company, the system will be fully integrated with a hyperbaric rescue facility and equipped with state-of-the-art sensors and sonar that provide automatic depth, heading, and piloting capabilities to locate and assist distressed submarines.
"With 50 years of experience, FET has pioneered the development of manned and unmanned submersibles," said Neal Lux, President and Chief Executive Officer of Forum Energy Technologies. The company’s strong market position is reflected in its financial health, with InvestingPro data showing a "GOOD" overall financial health score and a solid current ratio of 2.46.
The SRV will be manufactured at the company’s facility in Kirkbymoorside, Yorkshire, England, while the launch and recovery system will be built at FET’s Bryan, Texas location. Sea trials for the system are planned for 2028.
Forum Energy Technologies, headquartered in Houston, provides equipment and services to various industries including oil, natural gas, industrial, and renewable energy sectors. The company has previously supplied defense equipment to countries across Europe and Asia.
The financial terms of the contract were not disclosed in the press release. The stock has shown strong momentum with a 19% gain year-to-date, and investors seeking detailed analysis can access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other US stocks with expert insights and actionable intelligence.
In other recent news, Forum Energy Technologies reported a strong financial performance for the first quarter of 2025, with revenues reaching $193 million and EBITDA at $20 million. Orders increased by 6% to $211 million, resulting in a book-to-bill ratio of 104%. The company also launched a $10 million annualized cost reduction program to enhance operational efficiency. Forum Energy Technologies anticipates no debt maturities until 2028, providing a stable financial outlook. Additionally, the company projects its full-year EBITDA to be around $85 million, with free cash flow between $40 million and $60 million. The company is focusing on expanding its operations in the Eastern Hemisphere and South America, despite potential declines in global drilling activity. In governance news, Forum Energy Technologies appointed Michael McShane as the new non-executive Chairman of its Board of Directors, succeeding C. Christopher Gaut, who is retiring. McShane has been with the board since 2010 and his long-standing experience is expected to provide continuity as the company navigates the evolving energy sector landscape.
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