FET

MKT CAP $922MP/E —DIV YIELD —FCF YIELD 6.35%REV TTM $806.9M −0.1%NET INCOME −$6.3MNET DEBT $116.2M52W 26.78 – 87.37SEC XBRL · TTM TO Invalid Date

How FET rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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Risks Related to our Business and Operations: • The success of our business largely depends on activity levels in the oil and natural gas industry, which can be affected by the volatility of oil and natural gas prices. • The markets in which we operate are highly competitive, including some companies that hold substantial market share and have substantially greater resources than we do, as well as a number of regional or local competitors for certain of our product lines.
We may not be able to compete successfully in this environment. • Given the uncertainty related to long-term commodity prices and associated customer demand, we may hold excess or obsolete inventory, and as a result, may experience a reduction in gross margins and financial results. • We may not realize revenue on our current backlog due to customer order reductions, cancellations or acceptance delays, which may negatively impact our financial results. • The industry in which we operate is undergoing continuing consolidation and may seek to invest in energy alternatives, which may impact our results of operations. • A greater focus on budgetary discipline and technological advances have caused a decline in customer spending that may remain at a low level despite an increase in commodity prices. • We may be unable to employ a sufficient number of skilled and qualified workers. • We rely on relationships with key suppliers to operate and maintain our business. • Our business depends upon our ability to obtain key raw materials and specialized equipment from suppliers.
Furthermore, we may be adversely affected by disputes regarding intellectual property rights. • We may incur liabilities, fines, penalties or additional costs, or we may be unable to sell to certain customers if we do not maintain safe operations. • Our return of capital to shareholders is within the discretion of our board of directors. • If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. • The impact and effects of public health crises, pandemics and epidemics could have a material adverse effect on our business, financial condition and results of operations. • Facility consolidations or expansions may subject us to risks of operating inefficiencies, construction delays and cost overruns. • Our acquisitions and dispositions may not result in anticipated benefits and may present risks not originally contemplated. • A natural disaster, catastrophe or other event could result in severe property damage, which could curtail our operations.
Risks Related to our Business and Operations: The success of our business largely depends on activity levels in the oil and natural gas industry, which can be affected by the volatility of oil and natural gas prices.
Such factors include: • domestic and foreign supply of and demand for oil and natural gas; • prices, and expectations about future prices, of oil and natural gas; • ability or willingness of the Organization of Petroleum Exporting Countries and other allied producing countries (“OPEC+”) and other major producers to set and maintain production limits; • cost of exploring for, developing, producing and delivering oil and natural gas; • levels of drilling and completions activity; • expected decline in rates of current and future production, or faster than anticipated declines in production; • discovery rates of new oil and natural gas reserves; • the occurrence or threat of epidemic or pandemic diseases and any government response to such occurrence or threat; • ability of our customers to access new markets or areas of production or to continue to access current markets, including as a result of trade restrictions; • weather conditions, including hurricanes and tornadoes, that can affect oil and natural gas operations; • natural disasters, catastrophes or other events resulting in severe property damage; • governmental regulations, including those instituted in connection with a response to climate change; • prohibitions, moratoriums or similar limitations on drilling or hydraulic fracturing activity resulting in a cessation or disruption of operations; • domestic and worldwide economic and political conditions, including inflationary pressures, further increases in interest rates and the cost of capital, a general economic slowdown or recession, political tensions and war (including future developments in Venezuela and in the ongoing Russia-Ukraine and Middle East conflicts); • financial stability of our customers and other industry participants; • political instability in oil and natural gas producing countries; • increased pressures to invest in sustainable energy sources, shareholder activism or activities by non-governmental organizations to restrict the exploration, development and production of oil and natural gas; • investors reducing, or ceasing to provide, funding to the oil and natural gas industry in response to initiatives to limit climate change; • conservation measures and technological advances affecting energy consumption; • price and availability of alternative energy resources and fuels; • uncertainty in capital and commodities markets, and the ability of oil and natural gas companies to raise equity capital and debt financing; and • merger and divestiture activity among oil and natural gas producers, drilling contractors and oilfield service companies.
We may not accurately predict what or how many products our customers will need in the future.
At certain times, we build capital equipment before receiving customer orders.
Our forecasts of customer demand are based on multiple assumptions, which can introduce errors into the estimates.
The industry in which we operate is undergoing continuing consolidation and may seek to invest in energy alternatives, which may impact our results of operations.
In addition, they may make future investments in non-traditional oil and gas markets.
Should we be unable to obtain the necessary raw materials or finished products timely or in the quantities required, resulting delays in the provision of products or services to customers could have a material adverse effect on our business.
For example, our Downhole product line was unable to source a sufficient amount of casing during the first half of 2025 to satisfy customer orders on a timely basis.
In addition, because many of our products are manufactured out of steel, we are particularly susceptible to fluctuations in steel prices, tariffs and other duties.
A deterioration in global economic conditions, including an economic slowdown or recession in the United States or in any other country that significantly affects the supply of or demand for oil or natural gas, inflation, geopolitical issues such as the continuing conflicts in Venezuela, Ukraine and the Middle East, the availability and cost of credit and supply chain disruptions, could adversely affect our financial condition and results of operations.
Geopolitical tensions or conflicts may further heighten the risk of cyber threats, and the use of artificial intelligence may make intrusion attempts look more legitimate.
In addition, some of our competitors are large national and multinational companies that are able to devote greater financial, technical, manufacturing and marketing resources to research and develop more or better systems, services and technologies than we are able to do.
Our return of capital to shareholders, including through the repurchases of outstanding shares of our common stock, is within the discretion of our board of directors, and there is no guarantee that we will return capital to shareholders, including through repurchases of our outstanding shares of common stock, in the future or at levels anticipated by our shareholders.
Although we currently plan to return capital to shareholders, the amount and timing of returns of capital to shareholders may vary from time to time.
The amount and timing of all returns of capital, including future purchases pursuant to our Repurchase Program (as defined below), if any, are subject to the discretion of our board of directors and will depend upon business conditions, results of operations, financial condition, terms of our debt agreements and other factors.
Our board of directors may, without advance notice, limit, suspend or terminate our Repurchase Program.
There can be no assurance that we will make repurchases of our shares of common stock in the future.
The repurchases could diminish our cash reserves, which may impact our ability to meet our working capital needs, satisfy our debt obligations, make capital expenditures, grow and pursue strategic opportunities and acquisitions.
In addition, any elimination of, or downward revision in, the repurchases could have an adverse effect on the market price of our common stock.
For example, in the past we have been impacted by idled facilities and operations due to hurricane damage.
These rules were rescinded by rule in December 2017.
The Trump Administration is expected to continue to strongly diverge from the prior Biden Administration’s positions including by promulgating new or amended regulations that are supportive of oil and natural gas development, including hydraulic fracturing activities.
In the absence of stringent federal restrictions, states and localities may increase attempts to pass such restrictions.
Our financial results could be adversely impacted by changes in regulation of oil and natural gas exploration and development activity in response to significant environmental incidents or climate change actions, among other drivers.
Environmental incidents, climate change actions, and changes in legal or regulatory priorities could result in drilling moratoria, and could result in increased federal, state, and international regulation of our and our customers’ operations that could negatively impact our earnings, prospects and the availability and cost of insurance coverage.
For example, in January 2021, former President Biden signed an executive order that, among other things, instructed the Secretary of the Interior to pause new oil and natural gas leases on public lands or in offshore waters pending completion of a comprehensive review and reconsideration of federal oil and natural gas permitting and leasing practices.
The Trump Administration has alternatively pursued new or amended laws, regulations, executive actions, and other initiatives intended to alter restrictions on oil and natural gas development and other activities.
With changing federal initiatives and approaches to oil and gas exploration regulations, and states may act to further regulate such activities, particularly in the absence of federal regulations or in light of regulatory uncertainty.
If restrictions or prohibitions become effective in the future, they could have an adverse impact on our business, financial condition, results of operations and cash flows.
Environmental regulations from federal, state, and local regulators are imposing increasingly stringent restrictions and limitations on activities that may impact the environment.
More recently, the Trump Administration has periodically imposed significantly increased tariffs on foreign imports into the U.S., particularly from China, which may have impacted and may again impact our cost of raw materials.
As of December 31, 2025, our subsidiary has a net liability of $0.3 million for the estimated indemnity cost associated with the resolution of its current open claims and future claims anticipated to be filed during the next five years.
For more information on the cost sharing agreements related to this risk, refer to Note 11 Commitments and Contingencies .
Congress has periodically considered adopting comprehensive legislation to reduce emissions of GHGs, and approximately half of the states have already taken legal measures to reduce emissions of GHGs, primarily through measures to promote the use of renewable energy and/or regional GHG cap-and-trade programs.
The EPA has attempted to regulate GHG emissions under the federal Clean Air Act (the “CAA”), though in recent years many such regulatory restrictions have been rolled back or are being reconsidered, leading to uncertainties in the federal regulatory landscape: • In December 2009, the EPA determined that emissions of carbon dioxide, methane and certain other GHGs endanger public health and the environment because emissions of such gases are, according to the EPA, contributing to warming of the Earth’s atmosphere and other climatic changes.
The so-called “endangerment finding” has formed the basis for subsequent EPA regulation and rule promulgation.

and 26 more.

Gone since FY2024

Risks Related to our Business and Operations: • The success of our business largely depends on activity levels in the oil and natural gas industry, which can be affected by the amount and volatility of oil and natural gas prices. • The markets in which we operate are highly competitive, including some companies that hold substantial market share and have substantially greater resources than we do, as well as a number of regional or local competitors for certain of our product lines.
We may not be able to compete successfully in this environment. • Given the uncertainty related to long-term commodity prices and associated customer demand, we may hold excess or obsolete inventory, and as a result, may experience a reduction in gross margins and financial results. • We may not realize revenue on our current backlog due to customer order reductions, cancellations or acceptance delays, which may negatively impact our financial results. • The industry in which we operate is undergoing continuing consolidation and seeking opportunities to participate in the energy transition, which may impact our results of operations. • A greater focus on budgetary discipline and technological advances have caused a decline in customer spending that may remain at a low level despite an increase in commodity prices. • We may be unable to employ a sufficient number of skilled and qualified workers. • We rely on relationships with key suppliers to operate and maintain our business. • Our business depends upon our ability to obtain key raw materials and specialized equipment from suppliers.
Furthermore, we may be adversely affected by disputes regarding intellectual property rights. • We may incur liabilities, fines, penalties or additional costs, or we may be unable to sell to certain customers if we do not maintain safe operations. • If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. • The impact and effects of public health crises, pandemics and epidemics could have a material adverse effect on our business, financial condition and results of operations. • Facility consolidations or expansions may subject us to risks of operating inefficiencies, construction delays and cost overruns. • Our acquisitions and dispositions may not result in anticipated benefits and may present risks not originally contemplated. • A natural disaster, catastrophe or other event could result in severe property damage, which could curtail our operations.
Risks Related to our Business and Operations: The success of our business largely depends on activity levels in the oil and natural gas industry, which can be affected by the amount and volatility of oil and natural gas prices.
Such factors include: • domestic and foreign supply of and demand for oil and natural gas; • prices, and expectations about future prices, of oil and natural gas; • ability or willingness of the Organization of Petroleum Exporting Countries and other allied producing countries (“OPEC+”) and other major producers to set and maintain production limits; • cost of exploring for, developing, producing and delivering oil and natural gas; • levels of drilling and completions activity; • expected decline in rates of current and future production, or faster than anticipated declines in production; • discovery rates of new oil and natural gas reserves; • the occurrence or threat of epidemic or pandemic diseases and any government response to such occurrence or threat; • ability of our customers to access new markets or areas of production or to continue to access current markets, including as a result of trade restrictions; • weather conditions, including hurricanes and tornadoes, that can affect oil and natural gas operations; • natural disasters, catastrophes or other events resulting in severe property damage; • governmental regulations, including those instituted in connection with a response to climate change; • prohibitions, moratoriums or similar limitations on drilling or hydraulic fracturing activity resulting in a cessation or disruption of operations; • domestic and worldwide economic and political conditions, including inflationary pressures, further increases in interest rates and the cost of capital, a general economic slowdown or recession, political tensions and war (including future developments in the ongoing Russia-Ukraine conflict); • financial stability of our customers and other industry participants; • political instability in oil and natural gas producing countries; • increased pressures to invest in sustainable energy sources, shareholder activism or activities by non-governmental organizations to restrict the exploration, development and production of oil and natural gas; • investors reducing, or ceasing to provide, funding to the oil and natural gas industry in response to initiatives to limit climate change; • conservation measures and technological advances affecting energy consumption; • price and availability of alternative energy resources and fuels; • uncertainty in capital and commodities markets, and the ability of oil and natural gas companies to raise equity capital and debt financing; and • merger and divestiture activity among oil and natural gas producers, drilling contractors and oilfield service companies.
Although during 2023 and 2024, oil and gas prices and demand remained relatively steady, it is uncertain whether prices will maintain current levels, decline or increase.
We cannot accurately predict what or how many products our customers will need in the future.
At certain times, we have built capital equipment before receiving customer orders.
Our forecasts of customer demand are based on multiple assumptions, which have introduced errors into the estimates.
The industry in which we operate is undergoing continuing consolidation and seeking opportunities to participate in the energy transition, which may impact our results of operations.
In addition, they are making investments in non-traditional oil and gas markets as part of the energy transition.
Should our suppliers be unable to provide the necessary raw materials or finished products or otherwise fail to deliver such materials and products timely and in the quantities required, resulting delays in the provision of products or services to customers could have a material adverse effect on our business.
For example, our Coiled Tubing product line was unable to source a sufficient amount of steel during the third and fourth quarters of 2021 to satisfy customer orders on a timely basis.
In addition, because many of our products are manufactured out of steel, we are particularly susceptible to fluctuations in steel prices and tariffs.
A deterioration in global economic conditions, including an economic slowdown or recession in the United States or in any other country that significantly affects the supply of or demand for oil or natural gas, inflation, geopolitical issues such as the continuing conflict between Russia and Ukraine, the availability and cost of credit and supply chain disruptions, could adversely affect our financial condition and results of operations.
We anticipate that such code testing requirements will become more common in our contracts.
Geopolitical tensions or conflicts may further heighten the risk of cyber threats.
In addition, some of our competitors are large national and multinational companies that we believe are able to devote greater financial, technical, manufacturing and marketing resources to research and develop more or better systems, services and technologies than we are able to do.
For example, in the third quarter 2017, we were impacted by idled facilities and operations directly related to Hurricane Harvey’s widespread damage in Texas and Louisiana.
These rules were rescinded by rule in December 2017; however, in January 2018, California and a coalition of environmental groups filed a lawsuit in the Northern District of California to challenge the BLM’s rescission of the rules.
The Northern District of California upheld the rescission in 2020, but this decision was then appealed to the Ninth Circuit Court of Appeals.
These challenges remain ongoing and future implementation of the BLM rules is uncertain at this time.
Our financial results could be adversely impacted by changes in regulation of oil and natural gas exploration and development activity in response to significant environmental incidents or climate change actions.
Environmental incidents such as the Macondo well incident could result in drilling moratoria, and could result in increased federal, state, and international regulation of our and our customers’ operations that could negatively impact our earnings, prospects and the availability and cost of insurance coverage.
In January 2021, President Biden signed an executive order that, among other things, instructed the Secretary of the Interior to pause new oil and natural gas leases on public lands or in offshore waters pending completion of a comprehensive review and reconsideration of federal oil and natural gas permitting and leasing practices.
The full impact of these federal actions remains unclear, and if other restrictions or prohibitions become effective in the future, they could have an adverse impact on our business, financial condition, results of operations and cash flows.
Further, there exists the potential that the Trump Administration pursues new or amended laws, regulations, executive actions, or other initiatives that may alter restrictions on hydraulic fracturing activities and states may act to further regulate such activities in the absence of federal regulations or in light of regulatory uncertainty.
The trend in environmental regulation has been to impose increasingly stringent restrictions and limitations on activities that may impact the environment.
More recently, the Trump Administration has proposed significantly increased tariffs on foreign imports into the U.S., particularly from China, which may impact our cost of raw materials.
As of December 31, 2024, our subsidiary has a net liability of $0.3 million for the estimated indemnity cost associated with the resolution of its current open claims and future claims anticipated to be filed during the next five years.
For more information on the cost sharing agreements related to this risk, refer to Note 12 Commitments and Contingencies .
Congress has considered adopting comprehensive legislation to reduce emissions of GHGs, and approximately half of the states have already taken legal measures to reduce emissions of GHGs, primarily through measures to promote the use of renewable energy and/or regional GHG cap-and-trade programs.
The EPA has attempted to regulate GHG emissions under the federal Clean Air Act: • In December 2009, the EPA determined that emissions of carbon dioxide, methane and certain other GHGs endanger public health and the environment because emissions of such gases are, according to the EPA, contributing to warming of the Earth’s atmosphere and other climatic changes.
In October 2015, the EPA finalized the Clean Power Plan (“CPP”), which tried to impose additional obligations on the power generation sector to reduce GHG emissions.
In April 2024, the EPA published rules to regulate greenhouse gas emissions from fossil fuel-fired power plants (Clean Power Plan 2.0), which faced immediate criticism and challenges. • In August 2020, the EPA rescinded methane and volatile organic compound emissions standards for new and modified oil and gas transmission and storage infrastructure previously promulgated in 2016, as well as methane limits for new and modified oil and gas production and processing equipment.
The White House has also taken actions targeting emissions of GHGs.
In August 2022, President Biden signed into law the Inflation Reduction Act, which contains tax inducements and other provisions that incentivize investment, development, and deployment of alternative energy sources and technologies, which could increase operating costs within the oil and gas industry and accelerate the transition away from fossil fuels.
Although the Biden Administration officially reentered the U.S. into the Paris Agreement in February 2021, the Trump Administration signed an executive order withdrawing the U.S. from the agreement in January 2025.
While it is not possible at this time to predict how any such actions may impact our business, such actions could reduce activity from federal, state, and local legislative bodies and administrative agencies and the number of GHG laws, regulations, and other binding commitments.
Members of the investment community have recently increased their focus on sustainability practices, including practices related to GHGs and climate change, in the oil and natural gas industry.

and 13 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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