Forum Energy Technologies, Inc.

Good morning, ladies and gentlemen, and welcome to the Forum Energy Technologies second quarter 2026 earnings conference call. My name is Lateef, and I will be your coordinator for today's call. There is a process for answering the question and answer queue. To ask a question during the session, you will need to press star 11 on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. A link with instructions can be found on the company's investor relations website under the events section. At this time, all participants are in listen-only mode, and all lines have been placed on mute to prevent any background noise. This conference call is being recorded for replay purposes and will be available on the company's website. I will now turn the conference over to Rob Kukla, Director of Investor Relations. Please proceed, sir.

Thank you, Lateef. Good morning, everyone, and welcome to FET's second quarter 2026 earnings conference call. With me today are Neal Lux, our president and chief executive officer, and Lyle Williams, our chief financial officer. Yesterday, we issued our earnings release, which is available on our website. We are relying on federal safe harbor protections for forward-looking statements. Listeners, our cautions that are remarked today will contain information other than historical information. These remarks should be considered in the context of all factors that affect our business, including those disclosed in FET's Form 10-K and other SEC filings. Finally, management statements may include non-GAAP financial measures. For reconciliation of these measures, please refer to our earnings release and website. During today's call, all statements related to EBITDA refer to adjusted EBITDA, and net income refers to adjusted net income. and unless otherwise noted, all comparisons are second quarter 2026 to first quarter 2026. I will now turn the call over to Neal.

Thank you, Rob, and good morning, everyone. FET's financial results showcase incredible earnings power. During the quarter, we executed our strategy and demonstrated the leverage in our business model. We delivered sequential and year-over-year growth in revenue and profitability Expanding margins across the board. We generated free cash flow, strengthened the balance sheet, and returned capital to shareholders. Also, we continued to gain market share through product innovation, international expansion, and exceptional execution for our customers. And while oil prices moved higher during the quarter, our customers remained disciplined and focused on cash generation. In North America, stronger completions drove frac utilization, benefiting our wireline, coil tubing, and downhole products. We also saw strong demand in the Canadian oil sands, where technology and reliability remain important differentiators. Outside North America, regional activity was impacted by the Middle East conflict. However, Investment for offshore and unconventional developments remained robust. Customers continue to prioritize technologies that improve uptime, safety, efficiency, and production performance. These priorities align directly with FET strengths, leading to our international revenue growth. Going forward, we expect industry activity to remain broadly stable with modest improvement in selected areas during the second half of the year. More importantly, we expect FET to outperform through market share gains, new products, geographic expansion, and operating discipline. Looking out further, long-term fundamentals remain supportive for FET's 2030 growth vision. We expect oil and natural gas demand to rise with global GDP increased urbanization, expanding LNG exports, and AI-driven power consumption. On the supply side, our customers will need to add capacity and increase operating efficiency to offset steep production declines. In addition to traditional supply and demand drivers, the Middle East conflict has made reliable oil and gas supply a strategic initiative. We expect new investment decisions to be driven by the need for increased energy security and replenishment of inventory reserves. We project these fundamentals to expand FET's addressable markets by more than 50% over the next five years. This growth, combined with our targeted share gains, creates a clear path to doubling our revenue by 2030. With our operating leverage and capital life business model, we would expect revenue growth to drive significantly greater EBITDA and free cash flow. Capturing this opportunity, however, takes more than a favorable market. It requires a winning strategy and disciplined execution. Market share gains are a clear indication of successful execution. Since launching our Beat the Market strategy in 2022, We have increased revenue per global rig by 34%. We are winning through differentiated technology and commercial execution. Also, our global footprint allows us to export the technologies developed for U.S. unconventional basins to customers around the world. Our goal is to double share in targeted markets by 2030. We believe the steps we are taking today are putting us on the path to achieve that goal. Let me cover a few good examples. In the Middle East, field trials with one of the world's largest oil companies are progressing for SandGuard, our artificial lift protection solution. This product has been remarkably successful in the U.S. and has significant potential in the region. Another example is Venezuela. After receiving regulatory approval, we have delivered a significant number of coil tubing strings into the country. This success has expanded demand for other products, including pressure control and coiled line pipe. We are in the early stages for these opportunities, but expect long-term growth here. Our innovation pipeline continues to drive share gains. Following the substantial DuraLine order for Argentina announced last quarter, we are now seeing increased inquiries and proposal activity in the United States. Our technology significantly increases the efficiency and safety of frac operations. We are also seeing expanded demand for Unity, our software and control platform, for operating ROVs from shore. During the quarter, we received substantial aftermarket orders to upgrade ROVs built by FET as well as systems built by competitors. This is a substantial opportunity for our subsea product line. Finally, in our heat transfer product family, we achieved two critical milestones for long-term growth. After several years of product development, we received an order from a major service company for a high-temperature frack application. This product operates at 140 degrees Fahrenheit, ideally suited for harsh Middle East environments. And in power generation, our stationary cooling solution, which I first mentioned last quarter, has quickly progressed from commercial interest to an initial order. This solution complements our existing Powertron offering, where we also received a meaningful order this quarter. With these developments, we are taking great steps forward in the expansion of our data center and mobile power product portfolio. While these examples provided demonstrate progress towards our FET 2030 vision, We now expect full-year revenue between $870 and $910 million and EBITDA between $115 and $125 million. Compared to last year, revenue in EBITDA would increase 13% and 40% respectively, with incremental margins of 34%. This is incredible growth. Also, we now expect net income between $42 and $52 million and full-year free cash flow between $57 and $77 million. This improved outlook reflect the proactive changes we have made to the business, not simply a better market. Our priorities for the remainder of the year are clear. Convert backlog to sales, gain share, and generate cash. Now, to provide more detail on our second quarter results and near-term financial outlooks, I will turn the call over to Lyle.