Q3 2025 Forum Energy Technologies Inc Earnings Call

October 31, 2025

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I will now turn the conference over to Rob <unk> Director of Investor Relations. Please proceed sir.

Thank you Daniel Good morning, everyone and welcome to <unk> third quarter 2025 earnings Conference call with me today are Neil <unk>, our President and Chief Executive Officer, and Lyle Williams, our Chief Financial Officer.

Speaker #1: 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.

Speaker #1: Please proceed, sir.

Yesterday, we issued our earnings release and it is available on our website.

Speaker #2: Thank you, Daniel. Good morning, everyone, and welcome to FET's third quarter, 2025 earnings conference call. With me today are Neal Lux, our President and Chief Executive Officer, and Lyle Williams, our Chief Financial Officer.

We are relying on federal Safe Harbor protections for forward looking statements listeners are cautioned that our remarks 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 <unk> Form 10-K, and other SEC.

Speaker #2: Yesterday, we issued our earnings release, and it is available on our website. We are relying on federal safe harbor protections for forward-looking statements. Listeners are cautioned that our remarks today will contain information other than historical information.

SEC filings.

Finally management's statements may include non-GAAP financial measures.

Speaker #2: 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.

For a 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 unless otherwise noted all comparisons are third quarter, 2025% to second quarter 2025, I will now turn the call over to Neil.

Speaker #2: Finally, management statements may include non-GAAP financial measures. For a 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.

Thank you, Rob and good morning, everyone.

Our team executed a another solid quarter, demonstrating what S. E. T is a great company and even better investment we extended our track record of outperformance delivered significant capital returns and we believe <unk> remains an incredible value while poised.

Speaker #2: And unless otherwise noted, all comparisons are third quarter 2025 to second quarter 2025. I will now turn the call over to Neal.

Speaker #3: Thank you, Rob. And good morning, everyone. Our team executed a another solid quarter. Demonstrating why FET is a great company and even better investment.

For long term growth.

Over the past three years, we have outpaced the Russell 2000 are small cap index and revenue and free cash flow growth.

Speaker #3: We extended our track record of outperformance delivered significant capital returns and we believe FET remains an incredible value while poised for long-term growth. Over the past three years, we have outpaced the Russell 2000, our small-cap index, in revenue and free cash flow growth.

And with our third quarter results. We continued this trend.

Our beat the market strategy, which centers on new product development and targeted commercial effort drove strong bookings and meaningful backlog growth.

Speaker #3: And with our third quarter results, we continued this trend. Our beat-the-market strategy, which centers on new product development and targeted commercial efforts, drove strong bookings and meaningful backlog growth.

During the quarter, we captured several offshore and International Awards.

This success increased our backlog by 21% its highest level since 2015.

Our commercial teams are generating market share gains.

Speaker #3: During the quarter, we captured several offshore and international awards. This success increased our backlog by 21%. Its highest level since 2015. Our commercial teams are generating market share gains.

They successfully pushed third quarter revenue to the top end of our guidance.

In addition, our operating teams are driving increased efficiency higher utilization and structural cost reductions.

This combination allowed us to exceed the top end of our EBITDA guidance.

Speaker #3: They successfully pushed third quarter revenue to the top end of our guidance. In addition, our operating teams are driving increased efficiency and higher utilization, and structural cost reductions.

Free cash flow performance is a another area of strength.

Year to date, we are up 21%.

And have achieved our ninth consecutive quarter of positive free cash flow.

Speaker #3: This combination allowed us to exceed the top end of our EBITDA guidance. FET's free cash flow performance is a another area of strength. Year to date, we are up 21% and have achieved our ninth consecutive quarter of positive free cash flow.

Over that period, our operations have generated almost $200 million in cash.

Looking ahead to the fourth quarter.

We anticipate another good quarter of free cash flow.

Therefore, we are once again, raising our full year guidance to between 70 and $80 million.

Speaker #3: Over that period, our operations have generated almost $200 million in cash. Looking ahead to the fourth quarter, we anticipate another good quarter of free cash flow.

This free cash flow performance.

Allows us to execute our capital return framework through further net debt reductions and share repurchases.

Speaker #3: Therefore, we are once again raising our full-year guidance to between 70 and 80 million dollars. This free cash flow performance allows us to execute our capital returns framework through further net debt reductions and share repurchases.

Last quarter, we discussed reducing net leverage to one three times by year end.

I am pleased to report we are now at that level, one quarter ahead of schedule.

Also in the third quarter, we repurchased 5% of our shares outstanding bringing the total for this year to 8% through September.

Speaker #3: Last quarter, we discussed reducing net leverage to 1.3 times by year-end. I am pleased to report we are now at that level, one quarter ahead of schedule.

We have seen a strong run in S E T stock performance.

Speaker #3: Also, in the third quarter, we repurchased 5% of our shares outstanding, bringing the total for this year to 8% through September. We have seen a strong run in FET's stock performance.

However, even after this remarkable game.

Our free cash flow yield is around 20%.

And share buybacks remain a compelling use of capital.

In addition, we believe that S E T share outlook remains incredibly attractive given our long term forecast.

Speaker #3: However, even after this remarkable gain, our free cash flow yield is around 20%. And share buybacks remain a compelling use of capital. In addition, we believe that FET's share outlook remains incredibly attractive, given our long-term forecasts.

The key driver there is our beat the market strategy.

By competing in targeted markets utilizing our competitive advantages developing differentiated technologies and leveraging our global footprint, we continue to grow profitable market share.

For the first nine months of 2025, our annualized revenue per rig is up 3% despite subdued market activity.

And since the strategies implementation in 2022, we have increased this metric by 20%.

Last quarter, we outlined a refinement to the strategy by aggregating our addressable markets into two broad categories leadership markets and growth markets.

For our new investors, let me quickly summarize our discussion from last quarter's call.

Our leadership markets. Our S. E. T solutions are fully adopted by the industry, where we have meaningful share strong competitive positions and broad geographic reach.

We estimate the size of our leadership market to be $1 5 billion.

With S E T maintaining a 36% share.

A few examples from our portfolio include global tubing quality wireline their perm and Perry Rovs.

S E. T derives about two thirds of its revenue from the leadership markets and we will continue to invest in product development to maintain and expand our position.

The growth markets are about twice the size of our leadership markets of roughly $3 billion.

Here, our products and solutions are differentiated proven and have fewer competitors.

However, they may be in the early stages of industry adoption. They may have a narrower customer base or they may be more geographically limited.

As a result, our aggregate market share here is relatively low around 8%.

This creates an exciting opportunity to increase revenue rapidly through wider industry adoption, new customer acquisition and expanded global utilization.

Let me provide a couple of examples and share some insights.

One example is coiled line pipe a product that saves operators time and money.

The market opportunity is immense and has very few direct competitors. However, broad customer adoption has been limited by our industry is conservative approach to new technology.

Recently, our team's relentless commercial efforts have added a number of key accounts.

Demand is expanding in the U S. The middle East and offshore.

Sequentially coiled line pipe revenue grew 28%.

However, broad customer adoption has been limited by our industry's conservative approach to new technology.

We expect this product to be a meaningful contributor to our long term growth.

Demand is expanding in the U S. The middle East and offshore.

Recently, our teams Relentless commercial efforts have added a number of key accounts.

The second example, I want to highlight is from our artificial lift product family.

Where demand is generally more stable because it is tied to existing production.

Sequentially coiled line pipe revenue grew 28%.

We expect this product to be a meaningful contributor to our long term growth.

Our technically differentiated products extend the life of downhole pumps, allowing more production at significantly lower costs.

The second example, I want to highlight is from our artificial lift product family.

Execution of this value proposition has made us the market leader in the United States.

Their demand is generally more stable because it is tied to existing production.

The exciting part for S. E. T is that the international market is more than four times larger than our home market.

Our technically differentiated products extend the life of downhole pumps, allowing more production at significantly lower costs.

We are making headway there as our revenue has grown 12% since last year.

Execution of this value proposition has made us the market leader in the United States.

By leveraging our global footprint to address these markets efficiently, we have a significant opportunity to grow revenue.

The exciting part for US is that the international market is more than four times larger than our home market.

These are two of many products that compete in the growth markets our goal over time.

We are making headway there as our revenue has grown 12% since last year.

Is to double our share from 8% to 16%.

By leveraging our global footprint to address these markets efficiently, we have a significant opportunity to grow revenue.

Which would increase <unk> revenue by $250 million in a flat market.

These are two of many products that compete in the growth markets our goal over time.

However, our base case is not a flat market.

We see the possibility of our addressable market expanding by 50% or more over the next five years here.

Is to double our share from 8% to 16%.

Which would increase <unk> revenue by $250 million in a flat market.

Here's how we get there.

The two main drivers of energy demand, our economic activity and demographics.

However.

Our base case is not a flat market we.

We see the possibility of our addressable market expanding by 50% or more over the next five years.

By 230 World GDP is forecasted to increase by nearly 30 trillion dollars.

And the global population is expected to increase by $400 million.

Here's how we get there.

The two main drivers of energy demand, our economic activity and demographics.

With this growth it is reasonable to forecast and oil demand increase of at least 5 million barrels per day in that period.

By 2030 World GDP is forecasted to increase by nearly 30 trillion.

And the global population is expected to increase by $400 million.

In addition.

Our industry will need to replace 30 million barrels of daily supply that will be lost to natural production declines.

With this growth it is reasonable to forecast and oil demand increase of at least 5 million barrels per day in that period.

Finally on top of that demand for natural gas is forecasted to grow rapidly to power AI data centers and supply LNG exports.

In addition, our industry will need to replace 30 million barrels of daily supply that will be lost to natural production declines.

With this outlook today supply will not come close to meeting this level of demand.

Finally on top of that demand for natural gas is forecasted to grow rapidly to power AI data centers and supply LNG exports.

We believe that mean significant investment is required.

To meet these challenges our customers need to be significantly more efficient, while adding a modest amount of new capacity.

With this outlook today supply will not come close to meeting this level of demand.

Under this scenario <unk>.

We believe that mean significant investment is required.

<unk> addressable markets would expand by more than 50%.

To meet these challenges our customers need to be significantly more efficient, while adding a modest amount of new capacity.

This expansion.

Combined with our targeted market share gains would organically double revenue in five years.

Under this scenario.

And with our strong operating leverage and capital light business model.

<unk> addressable markets would expand by more than 50%.

Our free cash flow would grow significantly.

This expansion combined with our targeted market share gains.

By 2030, this would give us meaningful firepower to execute strategic investments, including accretive acquisitions and additional shareholder returns.

But organically double revenue in five years.

And with our strong operating leverage and capital light business model, our free cash flow would grow significantly.

We call. This planned F 'twenty 30, and its execution is our north star.

By 2030, this would give us meaningful firepower to execute strategic investments, including accretive acquisitions and additional shareholder returns.

Now while we are excited about our long term vision. We also remain focused on executing today.

So to provide an update on our quarter with quarterly results and outlook I am now going to turn the call over to Lyle.

We call. This plan to 2030 and its execution is our north star.

Neil Good morning, everyone.

Now while we are excited about our long term vision. We also remain focused on executing today.

<unk> delivered revenue of $196 million approaching the top end of our guidance range is offshore and international revenue grew in the quarter.

So to provide an update on our quarter quarterly results and outlook I am now going to turn the call over to Lyle.

Revenue increases for our drilling and subsea product line drove offshore revenue to 22% of our total.

Thank you Neil good morning, everyone.

<unk> delivered revenue of $196 million approaching the top end of our guidance range is offshore and international revenue grew in the quarter.

And as Middle East and Canadian revenue each increased by over 10%.

International revenues surpassed U S sales.

U S rig count declined by 5% in the quarter and revenue for most of our product lines averaged a 5% decrease as well.

Revenue increases for our drilling and subsea product line drove offshore revenue to 22% of our total.

And as Middle East and Canadian revenue each increased by over 10%.

One product line, however was more impacted because their customers took a conservative position and pushed deliveries into the fourth quarter.

International revenues surpassed U S sales.

Overall this led U S revenue declined 10%.

U S rig count declined by 5% in the quarter and revenue for most of our product lines averaged a 5% decrease as well.

As Neal highlighted we had another great quarter of bookings our book to Bill was 122% showing the benefits of mpt's diverse product offering.

One product line, however was more impacted as their customers took a conservative position and pushed deliveries into the fourth quarter.

Both segments achieved greater than a 100% book to bills at 190, 129%.

Overall this led U S revenue declined 10%.

As Neal highlighted we had another great quarter of bookings our book to Bill was 122% showing the benefits of <unk> diverse product offering.

And 112% respectively.

Bookings strength for the drilling and completions segment was again led by subsea.

With strong quoting activity, we highlighted last quarter led to new orders for Rovs and pushed the book to bill ratio over 200%.

Both segments achieved greater than a 100% book to bills at 190, 129%.

And 112% respectively.

In addition drilling bookings increased by 45% as the team secured capital equipment orders for Newbuild land drilling rigs in the Middle East also orders grew 24% and our stimulation and intervention product line with strong demand for many of our products.

Bookings strength for the drilling and completions segment was again led by subsea.

The strong quoting activity, we highlighted last quarter led to new orders for Rovs and pushed the book to bill ratio over 200%.

In addition drilling bookings increased by 45% as the team secured capital equipment orders for Newbuild land drilling rigs in the middle East.

In the artificial lift and downhole segment.

A large Canadian customer ordered sand control products in support of an extended drilling program.

Also orders grew 24% and our stimulation and intervention product line with strong demand for many of our products.

Valves had its largest bookings in almost two years and our process technologies product family achieved its second highest bookings quarter over the same timeframe.

In the artificial lift and downhole segment, a large Canadian customer ordered sand control products in support of an extended drilling program.

Our large backlog and higher revenue combined with healthy incremental margins helped us exceed our EBITDA expectations.

<unk> had its largest bookings in almost two years and our process technologies product family achieved its second highest bookings quarter over the same timeframe.

Consolidated EBITDA was $23 million up 13% and above the top end of our guidance margins improved by 150 basis points to nearly 12% due to favorable product mix ongoing cost reductions and tariff tariff mitigation efforts.

Our large backlog and higher revenue.

Bind with healthy incremental margins helped us exceed our EBITDA expectations.

Solidago EBITDA was $23 million up 13% and above the top end of our guidance margins improved by 150 basis points to nearly 12% due to favorable product mix ongoing cost reductions and tariff tariff mitigation efforts.

Now, let me provide a bit more color on our segment results.

Drilling and completions segment revenue was flat for the quarter momentum continued for coiled line pipe as sales increased 28% with market share gains and revenue recognition on our middle East project.

Now, let me provide a bit more color on our segment results.

The subsea product line was up 5% with revenue recognized recognized for <unk> projects.

Drilling and completions segment revenue was flat for the quarter.

Momentum continued for coiled line pipe as sales increased 28% with market share gains and revenue recognition on the middle East project.

And strong sales of wireline products and heat transfer units drove an increase in our stimulation and intervention product line offsetting these increases were lower sales for consumable items tied to softer market activity.

The subsea product line was up 5% with revenue recognized recognized for <unk> projects.

Despite flat segment revenue EBITDA was up 3% driven by product mix and benefits from cost savings initiatives.

Our artificial lift and downhole segment revenue decreased 4%.

Lower downhole casing hardware and processing equipment technology revenue was partially offset by increased sales volumes for valve and sand control products.

Despite flat segment revenue EBITDA was up 3% driven by product mix and benefits from cost savings initiatives.

Similar to the drilling and completion segment EBITDA increased 2% despite lower revenue.

Our artificial lift and downhole segment revenue decreased 4%.

Lower downhole casing hardware and processing equipment technology revenue was partially offset by increased sales volumes for valve and sand control products.

Variable product mix and cost savings drove the increase with margins improving 130 basis points.

In the third quarter increased tariffs on steel imports and targeted tariffs on imports from India surprised the markets.

Similar to the drilling and completion segment EBITDA increased 2% despite lower revenue.

Variable product mix and cost savings drove the increase with margins improving 130 basis points.

Our teams evaluated pricing adjustments to counteract these policies.

In addition to our strategy of passing a long tariffs through pricing, we continue to leverage our global footprint to avoid tariffs altogether.

In the third quarter increased tariffs on steel imports and targeted tariffs on imports from India surprised the markets.

For example, early in the fourth quarter, we leveraged our Saudi Arabia manufacturing facility to assemble and ship heat transfer units to our Latin American customer.

Our teams evaluated pricing adjustments to counteract these policies.

In addition to our strategy of passing a long tariffs through pricing, we continue to leverage our global footprint to avoid tariffs altogether.

This successful supply chain adjustment protects the competitiveness of these products in the global market.

For example, early in the fourth quarter, we leveraged our Saudi Arabia manufacturing facility to assemble and ship heat transfer units to our Latin American customer.

While our teams effectively mitigated negative tariff impacts this quarter.

Tariff rate volatility continues to be a challenge for our operations.

This successful supply chain adjustment protects the competitiveness of these products in the global market.

To further counter tariff costs and in support of our solid operating results, we accelerated progress toward our $10 million structural cost reduction goal.

While our teams effectively mitigated negative tariff impacts this quarter.

Tariff rate volatility continues to be a challenge for our operations.

As of the end of the third quarter, we are close to achieving that original goal. Additionally in the third quarter. We made the strategic decision to consolidate four of our manufacturing plants into two.

To further counter tariff costs and in support of our solid operating results, we accelerated progress toward our $10 million structural cost reduction goal.

Combining facilities allows us to reduce overhead costs improved direct labor and asset utilization and enhance the efficiency of our operations.

To achieve these consolidation benefits, we are discontinuing a few low volume low margin products.

Combining facilities allows us to reduce overhead costs improved direct labor and asset utilization and enhance the efficiency of our operations.

Our results include 21 million of noncash inventory and other asset impairments and $1 million of cash charges for severance and relocation costs.

To achieve these consolidation benefits, we are discontinuing a few low volume low margin products.

By the second quarter of 2026, we expect these facility consolidations to contribute over 5 million of additional annualized cost savings, taking our total structural savings to approximately $15 million.

Our results include 21 million of noncash inventory and other asset impairments and $1 million of cash charges for severance and relocation costs.

50% more than our original goal.

These efforts have supported our EBITDA this year and will provide additional tailwind going into 2026.

Shifting to cash flow and shareholder returns I am pleased to report that our $28 million of free cash flow, a 23% increase enabled meaningful shareholder returns.

These efforts have supported our EBITDA this year and we will provide additional tailwind going into 2026.

Consolidated free cash flow benefited from increased EBITDA reductions in net working capital and a sale leaseback transaction.

Shifting to cash flow and shareholder returns I am pleased to report that our $28 million of free cash flow, a 23% increase enabled meaningful shareholder returns.

Our success in these areas enables us to confidently raise our full year 2025 guidance.

To between 70 and $80 million.

Consolidated free cash flow benefited from increased EBITDA reductions in net working capital and a sale leaseback transaction or.

Also with this continued free cash flow strength, we accelerated our share buyback program.

Our success in these areas enables us to confidently raise our full year 2025 guidance.

In the third quarter, we repurchased 635000 shares for $15 million.

To between 70 and $80 million.

Bringing the full year total to 966000 shares or 8% of the shares outstanding.

Also with this continued free cash flow strength, we accelerated our share buyback program.

Our expected fourth quarter free cash flow supports continued execution of our capital return framework and we have already begun additional buybacks.

In the third quarter, we repurchased 635000 shares for $15 million.

Bringing the full year total to 966000 shares or 8% of the shares outstanding.

While executing our third quarter repurchases, we reduced net debt by $12 million.

Our expected fourth quarter free cash flow supports continued execution of our capital return framework and we have already begun additional buybacks.

Or nearly 10% to $114 million.

<unk> and our net leverage ratio of one three times.

Our liquidity position remains solid we ended the quarter with $32 million of cash on hand, and $86 million of availability under our revolving credit facility with total liquidity of $118 million.

While executing our third quarter repurchases, we reduced net debt by $12 million or nearly 10% to $114 million.

<unk> and our net leverage ratio of one three times.

Before turning to our financial guidance, let me provide a little more detail on our income tax expense and corporate items for modeling purposes.

Our liquidity position remains solid we ended the quarter with $32 million of cash on hand, and $86 million of availability under our revolving credit facility with total liquidity of $118 million.

In the quarter, we increased the valuation allowance reserves, we hold for the U K and recorded $5 million of additional income tax expense.

Before turning to our financial guidance, let me provide a little more detail on our income tax expense and corporate items for modeling purposes.

Net of this charge income tax in the quarter was roughly $5 million slightly below the second quarter.

In the quarter, we increased the valuation allowance reserves, we hold for the UK and recorded $5 million of additional income tax expense.

As our sourcing strategies shift income across jurisdictions, we expect our effective tax rate to shift as well for example for the fourth quarter, we expect income tax expense of $2 million to $3 million.

Net of this charge income tax in the quarter was roughly 5 million slightly below the second quarter.

For the fourth quarter, we estimate corporate costs, and depreciation and amortization expense of around 8 million, each and interest expense of $5 million.

Now turning to the market and our financial guidance for the remainder of the year.

We are forecasting a gradual decline in activity through the fourth quarter. However at current commodity prices are elevated backlog continued market share gains and further cost savings should help keep our results relatively steady with the third quarter.

For the fourth quarter, we estimate corporate costs, and depreciation and amortization expense of around 8 million, each and interest expense of $5 million.

Now turning to the market and our financial guidance for the remainder of the year. We are forecasting a gradual decline in activity through the fourth quarter. However at current commodity prices are elevated backlog continued market share gains and further cost savings should help keep our result.

Therefore for the fourth quarter, we forecast revenue of 180 to 200 million and EBITDA of $19 million to $23 million.

And for the full year revenue of $770 million to $790 million and EBITDA of $83 million to $87 million.

<unk> relatively steady with the third quarter.

Therefore for the fourth quarter, we forecast revenue of 180 to 200 million and EBITDA of $19 million to $23 million.

Let me turn the call back to Neil for closing remarks Neil.

Thank you Lyle.

To conclude I want to first reiterate how proud I am of the team's execution.

And for the full year revenue of $770 million to $790 million and EBITDA of $83 million to $87 million.

They delivered strong safety results.

<unk> revenue EBITDA and free cash flow.

Let me turn the call back to Neil for closing remarks Neil.

Their efforts and performance are also positioning <unk> to finish the year with momentum.

Thank you Lyle.

To conclude I want to first reiterate how proud I am of the team's execution.

Looking ahead to 2026.

They delivered strong safety results.

We've begun initial discussions with our customers about their plans for the year.

<unk> revenue EBITDA and free cash flow.

It is too early to call a bottom in activity. However, with our strong backlog planned market share gains and structural cost saving efforts, we are well positioned for 2026.

Their efforts and performance are also positioning <unk> to finish the year with momentum.

Looking ahead to 2026.

We've begun initial discussions with our customers about their plans for the year.

More importantly, we must continue to focus on our long term vision with.

It is too early to call a bottom in activity. However, with our strong backlog planned market share gains and structural cost saving efforts, we are well positioned for 2026.

With our beat the market strategy, we are striving to double revenue.

The next five years have the potential to be truly special for <unk> and its investors.

More importantly, we must continue to focus on our long term vision with.

That is F 2030.

Thank you for joining us today, Daniel please take the first question.

With our beat the market strategy, we are striving to double revenue.

As a reminder to ask a question. Please press star one on your telephone.

The next five years have the potential to be truly special for <unk> and its investors.

For your name to be announced.

To withdraw your question. Please press star one one again, please standby, while we compile the Q&A roster.

That is F 2030.

Thank you for joining us today, Daniel please take the first question.

Okay.

Our first question comes from Joshua Jayne with Daniel Energy Partners. Your line is open.

As a reminder to ask a question. Please press star one on your telephone.

Wait for your name to be announced.

To withdraw your question. Please press star one one again, please standby, while we compile the Q&A roster.

Joshua Please check your mute button.

Okay.

Our first question comes from Joshua Jayne with Daniel Energy Partners. Your line is open.

Again, Joshua your line is open please check your mute.

Joshua Please check your mute button.

Our next question comes from.

Daniel Pickering with Pickering Energy partners. Your line is open.

Good morning, guys can you hear me.

Again, Joshua your line is open please check your mute.

Dan Thanks, Dan.

Great.

Checking to make sure the system is working here.

Couple of questions I mean bookings, obviously quite strong.

Our next question comes from.

Daniel Pickering with Pickering Energy partners. Your line is open.

[noise], Neil or low can you talk a little bit about.

Good morning, guys can you hear me.

Yeah.

I'm just wondering have you changed year incentive system for your sales guys are you tackling things in a different way I mean bookings have obviously accelerated on the world looks a little bit worse, and so you're you're doing something right I'm just wondering if theres a redesign of the way you're attacking things or if it's.

Dan Thanks, Dan.

Great.

Can I make sure the system is working here.

Couple of questions I mean bookings, obviously quite strong.

Neil or low can you talk a little bit about.

I'm just wondering have you changed year incentive system for your sales guys are you tackling things in a different way I mean bookings have obviously accelerated.

All the efforts finally resulted in a bunch of orders.

Yeah, Dan we've.

We've looked at our markets or our sales process. This has been an ongoing.

It looks a little bit worse, and so you're you're doing something right Im just wondering if theres a redesign of the way you're attacking things or if it's just all the efforts finally resulted in a bunch of orders.

It's something we've been working on for for many years and I think we're starting to really see see the fruits of that.

It goes back to our beat the market strategy looking at the markets, where we're playing in and really having the right products and then having the teams go after so I do want to say the subsea bookings, which had been really strong that is a that is part of a.

Yes, Dan.

We've looked at our markets our sales process. This has been an ongoing.

It's something we've been working on for for many years and I think we're starting to really see the fruits of that.

The structural.

It goes back to our beat the market strategy looking at the markets, we're playing in and really having the right products and then having the teams go after so I do want to say the subsea bookings, which had been really strong that is a that is part of the structural.

Part of the cycle that we're a part of and so that's been good but our teams really are.

You know are aligned with that would be the market strategy and are focused on and generating sales.

Okay, and as we look at that backlog.

Part of the cycle that we're a part of and so that's been good but our teams really are.

You are showing strong margins because of the reasons you talked about while but how do we think about margins in the backlog better than better than what we print in 2025. The same are you seeing any improvement in margins on the new orders.

You know are aligned with that beat the market strategy and are focused on generating sales.

Okay, and as we look at that backlog.

So great great great questions in there I think had.

Youre showing strong margins because of the reasons you talked about while but how do we think about margins in the backlog better than better than what we print in 2025. The same are you seeing any improvement in margins on the new orders.

One of the biggest factors that we need to look ahead to is going to be mix in our bookings. So you mentioned sub C has been a big driver of those backlogs and traditionally for US contribution margin from subsea is a little bit lower than our average on the basis of the volume of pass through items that we have offered so.

Okay, great great great questions in there I think.

One of the biggest factors that we need to look ahead to is going to be mix in our bookings. So you mentioned subsea has been a big driver of those backlogs and traditionally for US contribution margin from subsea is a little bit lower than our average on the basis of the volume of pass through items that we have business so technology.

Technology is good but theres more pass through there so that would put a little bit of downward pressure of mix with the subsidy would be at a higher piece of our revenue next year.

That being said, we the team has done a great job. This year with these cost savings initiatives that we've seen a lot of that cost this year, but there's more to come that will benefit us going into 2026.

Is good but theres more pass through there so that would put a little bit of downward pressure of mix with subsea being a higher piece of our revenue next year.

Okay.

Second question would be the discussion around the facility consolidation.

That being said we.

The team has done a great job this year with these cost savings initiatives that we've seen a lot of that cost this year, but there's more to come that will benefit us going into 2026.

Kind of a big picture question, you're obviously talking about you know.

Targeting substantial revenue growth.

If we if we're going to have fewer facilities. How do you think about the revenue generating potential of your manufacturing base. So if we're going to run.

Okay.

Second question would be the discussion around the facility consolidation.

$800 million in revenues this year.

Kind of a big picture question, you're obviously talking about.

What can your manufacturing capacity do is it a billion is at the $1 two is at 900.

Targeting substantial revenue growth.

If we if we're going to have fewer facilities I mean, how do you think about the revenue generating potential of your manufacturing base. So if we're going to run.

How much utilization are we really looking at now versus the future.

Yeah. So I think we still have a substantial roofline and footprint Dan that we can add add people add material to grow revenue.

$800 million in revenues this year.

What can your manufacturing capacity do is it a billion is at $1 two is at 900.

I think over the last few years, we've talked about having the capacity to increase our revenue 50%.

How much utilization are we really looking at now versus the future.

That still remains in place today, so with the even with the consolidations, we still have plenty of space to.

Yeah. So I think we still have a substantial roofline and footprint Dan that we can add at people add material to grow revenue.

To expand.

And put proposed product through so I'm not that worried about about that that growth with these consolidations I think it is going to make us much more efficient in the near term and.

I think over the last few years, we've talked about having the capacity to increase our revenue 50%.

That still remains in place today, so even with the consolidations, we still have plenty of space to.

I think there is benefits on the cost side, but also benefits for the customer right, we're going to be a better deliveries and a b on time and just having that right right structure in place. So we're looking forward to it I think it's the right decision to make and the timing here allowed us to do it in a position for 2026.

To expand.

And put proposed product through so not that worried about about that that growth with these consolidations I think it's going to make us much more efficient in the near term and.

I think there is benefits on the cost side, but also benefits for the customer right, we're going to better deliveries beyond time, and just having that right right structure in place. So we're looking forward to it I think it's the right decision to make and the timing here.

Final question.

While given the.

The constraints that you have on share repurchase and leverage levels et cetera.

What's our capacity to repurchase shares over.

Allowed us to do it in a position for 2026.

Over the next couple of quarters, given where the balance sheet is today.

Final question.

So great Great question, there, Dan and maybe just to remind everyone of the context there.

Lyle given the.

The constraints that you have on share repurchase and leverage levels et cetera.

We're sure purchase capability is really limited by two factors one of them being our net leverage of one five times and we're below that level now so we're in good shape. The other being the amount of free cash flow we generated in the last fiscal year. So that's really our cap that puts about $36 million worth of.

What's our capacity to repurchase shares over.

Over the next couple of quarters, given where the balance sheet is today.

So great Great question, there, Dan and maybe just to remind everyone of the context there.

We're sure purchase capability is really limited by two factors one of them being our net leverage of one five times and we're below that level now so we're in good shape. The other being the amount of free cash flow we generated in the last fiscal year. So thats really our cap that puts about $36 million worth of.

Total buyback capacity and we will look at what we've repurchased through the end of the third quarter, that's about $21 million worth of repurchases that would leave us.

Other $15 million or so of capacity that we could use here in the third quarter I'm, sorry in the fourth quarter and.

Total buyback capacity and we will look at what we've repurchased through the end of the third quarter, that's about $21 million worth of repurchases that would leave us.

And as mentioned on the call we've done some of that already in the month of October So we've got quite a bit of dry powder left.

And the ability to buy back shares.

Other $15 million or so of capacity that we could use here in the third quarter I'm, sorry in the fourth quarter and.

And what does.

How does that look in 2006, and then does that reset or is it $15 million until we get to the end of 'twenty six.

And as mentioned on the call. We've done some of that already are in the month of October So we've got quite a bit of dry powder left.

Great. Thanks, Dan It does reset every year, so the 2000 and towards 2026 number would be roughly call. It half of our 2025 free cash flow number is as we just said we've raised that volume again, so we will have a long.

And the ability to buy back shares.

And what does.

How does that look in 2000, and then does that reset or is it $15 million until we get to the end of 2006.

Going into 2026.

So call it kind of $40 million ish or something like that.

Great. Thanks, Dan It does reset every year, so the 2000 and towards 2026 number would be roughly call. It half of our 2025 free cash flow number as we just said we've raised that volume again, so we will have a longer.

Yes.

Okay, great. Thank you very much.

Thanks, Dan.

Thank you. Our next question comes from Joshua Jayne with Daniel Energy Partners. Your line is open.

Going into 2026.

Okay.

That kind of $40 million ish or something like that.

Hi.

Yes.

Hello, Yes, Hey, Josh.

Okay, great. Thank you very much.

Thanks, Dan.

Okay.

Thank you. Our next question comes from Joshua Jayne with Daniel Energy Partners. Your line is open.

I don't know what happens I'm, sorry about that.

First question for me just given the diversified nature of your business could you speak to where we are where you think we are in the cycle in each geography, and I'll sort of break them down into U S land international and offshore.

Okay.

Hello, Yes, Hey, Josh.

And based on where you think we are in each of those geographies sort of how does that.

Okay, I don't know what happened so sorry about that.

First question for me just given the diversified nature of your business could you speak to where you think we are in the cycle in each geography, and I'll sort of break them down into U S land international and offshore.

How about.

Spending moving forward in the next 12 months to 24 months allocating resources and capital maybe this is the first question.

Yes, I think.

Just based on where you think we are in each of those geographies sort of how does that.

We're always looking for at our markets individually, rather you know I hate to do categorize it by geography necessarily so.

About.

Going back to our beat the market strategy, we have our leadership markets and our growth markets.

The spending moving forward in the next 12 months to 24 months allocating resources and capital maybe just as the first question.

Think there's opportunities in each regardless of the geography I think we've mentioned a few examples on the call where we do see ability to grow quickly as to take successful products that we've had in the United States and in export those are around the world.

Yes, I think.

We're always looking for at our markets individually, rather I hate to do categorize it by geography necessarily so go.

Back to our beat the market strategy, we have our leadership markets and our growth markets.

There is opportunities in each regardless of the geography I think we've mentioned a few examples on the call where we do see ability to grow quickly as to take successful products that we've had in the United States and export those around the world.

Example, we mentioned artificial lift we've also seen that in in our stimulation and intervention product line, where we shipped our products to shale development in Argentina, and the Middle East again, we're well positioned in each each region. So.

I think we close with some comments that I think it's still too early to call. The bottom, we're talking with our customers, but it <unk>.

Example, we mentioned artificial lift we've also seen that in our.

<unk> intervention product line, where we shipped our products to shale development in Argentina, and the Middle East again, we're well positioned.

Looking ahead to next year.

We feel pretty good with the backlog we have with the plans we have in place to to have some <unk> to have a good year and really set ourselves up for the longer term again, the five year to five year vision for US is to is the double double our revenue organically.

Each each region so.

I think we close with some comments that I think it's still too early to call a bottom we are talking with our customers, but it.

Looking ahead to next year.

We feel pretty good with the backlog we have with the plans we have in place to have some to have a good year and really set ourselves up for the longer term again, the five year to five year vision for US is to is the double double our revenue organically.

And when would you I think you mentioned coiled line pipe on the call. So that was a product for example, I think grew 28% quarter over quarter.

When I hear about growth like that is that a business that you think heading into 2026 could could roughly double as an example.

And when would.

I think I think over time for sure in 2026 that I think that'd be a pretty good a pretty big leap.

I think you mentioned coiled line pipe on the call. So that was a product for example, I think grew 28% quarter over quarter. When I hear about growth like that is that a business that you think heading into 2026 could could roughly double as an example.

It goes back to awards and timing, but our you know our goal for our growth products the growth markets. So we have yes as in five years, we want you to double if we can do it sooner great.

I think I think over time for sure.

26 that I think that'd be a pretty good a pretty big leap.

And I think <unk> had some great wins the.

It goes back to awards and timing, but our our goal for our growth products for growth markets that we have yes as in five years, we want you to double if we can do it sooner.

The team has done well.

But I hate to tell them they get a double double within one year, but I think they have the opportunity to have some nice growth for sure.

And then last question, maybe just to give you the floor on as you can.

And I think <unk> had some great wins.

Constantly introducing new products to the market I mean is there anything else.

The team has done well.

But I hate to tell them they get a double double within one year, but I think they have the opportunity to have some nice growth for sure.

Just when we think about on the new product side heading into 'twenty, six thats, especially excited about that.

I mean, it really help e&ps become more efficient what are the what are the things that you're thinking about introducing in 2006 that could really drive some of this.

And then last question, maybe just to give you the floor on as you you're constantly introducing new products to the market I mean is there anything else.

Growth that youre seeing sort of even if the market doesn't improve much going forward, maybe talk about some of those products. Yes, we have a really good pipeline now of new product development, we're pushing through.

Just when we think about on the new product side heading into 'twenty, six Thats fair, especially excited about that.

<unk> help e&ps become more efficient what are the what are the things that you're thinking about introducing in 2006 that could really drive some of this.

Exciting area for US is again in the artificial lift to take the success, we've had with protecting downhole ESP pumps and expand that to other other artificial lift applications like like Rod lift. So we've got good progress there. Another one is our R for subsea either as a unit.

Growth youre seeing sort of even if the market doesn't improve much going forward, maybe talk about some of those products.

Yes.

A really good pipeline now of new product development, we're pushing through.

Exciting area for US is again, an artificial lift to take the success, we've had with protecting downhole ESP pumps and expand that to other other artificial lift applications like like rod lift.

<unk> operating system for for Rovs.

We've introduced that in 2025 Ah we're.

We're expanding delivery again with a lot of the new bookings, we've had with our with Rovs and subsea we have the unity system on there. So that's exciting and then.

We've got good progress there another one is our for subsea as our unity operating system for Rovs.

On the on the power side, we provide our key heat transfer unit four for many of the.

We've we've introduced that in 2025.

We're expanding delivery again with a lot of the new bookings we've had with <unk>.

Mobile power mobile power units that are being deployed are both both in the U S and hopefully internationally here shortly.

With Rovs and subsea we had the unity system on there so that's exciting.

And then on the.

On the power side.

Thanks, I'll turn it back.

We provide a key heat transfer unit four for many of the.

Thanks, Josh.

Thank you. Our next question comes from Jeff Robertson with water Tower Research. Your line is open.

The mobile power mobile power units that are being deployed.

Both both in the U S and hopefully internationally here shortly.

Thank you good morning.

Neil why don't you.

If we think about the growth markets, you talked about coiled line pipe and some of the.

Yeah.

Thanks, I'll turn it back.

Thanks, Josh.

Down hole pump products <unk> supplies does there's a period of lower oil prices increased adoption of some of those technologies by customers or is it more just industry trends as people as companies or countries around the world move toward more unconventional resource development.

Thank you. Our next question comes from Jeff Robertson with water Tower Research. Your line is open.

Thank you good morning, Neil.

Good morning.

If we think about the gross markets you talked about coiled line pipe and some of the.

Downhole pump products that <unk> supplies.

Yes, I think the in a tighter tighter market.

So there's a period of lower oil prices increase adoption of some of those technologies by customers or is it more just industry trends.

With.

Challenge, let's called more challenging oil price.

Products like that where we can save operators time and money.

As people as companies or countries around the world move toward more unconventional resource development.

You you get a you get a very solid looks I think that's that's open door and then by having a door open it's allowed us to to really show off related technical capability.

Yes, I think the.

In a tighter tighter market.

With.

Let's call it more challenging oil price.

Products like that where we can save operators time and money.

I think a good a good.

Ex expectation again with lower oil prices as service companies are going to have to be more efficient as well and do more with less and increase their there the service intensity and again, that's where we see our consumable products.

You get a you get a very solid looks I think that's that's open door and then by having that door open it's allowed us to to really show off really the technical capability.

I think a good a good.

Rigs may not be going up a lot theyre going to be working harder and longer and the same with frac crews and I think we're gonna see more more consumable usage that way.

Ex expectation again with lower oil prices.

Service companies are going to have to be more efficient.

As well and do more with less and increase their the service intensity and again, that's where we see our consumable products.

Do you have.

Can you just remind me what the capacity at Dayton.

While rigs may not be going up a lot theyre going to be working harder and longer and the same with frac crews and I think we're going to see more more consumable usage that way.

Facility is and when you talk about growing share in coiled tubing coiled line pipe how much you can accommodate before you would have to consider any kind of capital investment.

Do you have.

We've never really had that that capacity.

Can you just remind me what the capacity at your Dayton.

Outline, but I can tell you from having been there since the building was constructed.

Pipe facility is and when you talk about growing share in coiled tubing coiled line pipe how much you can accommodate before you would have to consider any kind of capital investment.

We could we could pull it put a lot more pipe through that through that facility.

Again, it's going to go into extra shifts.

We've never really had that that capacity.

Utilizing mills, both mills more efficient efficiently so I see the bottleneck for growth there.

Outline, but I can tell you from having been there since the building was constructed.

Our commercial teams and getting the bookings so once they get the bookings I think we have a good runway to push more revenue through that facility.

We could pull it put a lot more pipe through that through that facility.

Again, it's going to go into extra shifts.

And then as you think about the 2030 goals does the growth in <unk>.

Rising mills, both mills more efficiently so.

Uh huh.

I see the bottleneck for growth there.

Goal to double revenue and gross markets does that just is it just traditional oil and gas or do you see opportunities.

Our commercial teams and getting the bookings so once we get the bookings I think we have a good run rate to push more revenue through that facility.

For any of your product lines or the flexibility to make any acquisitions that could expose.

And then as you think about the 2030 goals does the growth in <unk>.

Can you do any kind of an adjacent markets.

Is the.

Yeah, I think oil and gas would be a big part of that.

Goal to double revenue and gross markets does that just is it just traditional oil and gas or do you see opportunities.

The other the other adjacent market would be would be defense.

We talked about our a rescue submarine booking we see a good let's call it opportunity pipeline there to add on we're also.

For any of your product lines or the flexibility to make any acquisitions that could expose.

So any kind of an adjacent markets.

Yes, I think oil and gas will be a big part of that.

Selling our remote operated vehicles too to defense.

Other adjacent market would be would be defense.

Contracted it's really too.

We talked about our <unk>.

The navies around the world. So I think that's another opportunity so I think oil and gas organic as well as defense and and our teams are always looking for new markets that you know that we can expand our addressable one. So you know part of our goal right is to double our revenue in the markets. We participate if we can identify.

Rescue submarine booking we see a good let's call it opportunity pipeline there to add on we're also.

Selling our remote operated vehicles too to defense.

Contract or is it really too.

The navies around the world. So I think that's another opportunity so I think oil and gas organic as well as defense and and our teams are always looking for new markets that that we can expand our addressable one so part of our goal right is to double our revenue in the markets. We participate if we can identify.

<unk> new ones that are adjacent where we have a differentiated offering where customers value.

The products and solutions that we deliver that'd be another way to expand our addressable markets and we are constantly looking for that.

Thank you.

<unk> new ones that are adjacent where we have a differentiated offering where customers value.

Thanks, Jeff.

Thank you as a reminder to ask a question. Please press star one on your telephone again star one one to ask a question.

The products and solutions that we deliver.

That'd be another way to expand our addressable markets and we are constantly looking for that.

Yeah.

Our next question comes from Steve <unk> with Sidoti Your line is open.

Thank you.

Thanks, Jeff.

Thank you as a reminder to ask a question. Please press star one on your telephone again, then a star.

Good morning, Neal I appreciate all the detail on the call.

You introduce sort of how youre thinking about 2026, I think it's fair to ask.

One one to ask a question.

Yeah.

Our next question comes from Steve <unk> with Sidoti.

Given the sort of consensus developing around the potential for sub 50 <unk> in the first part of the year, how well you're positioned for that and how you can offset what that could do on pressure at least on U S consumables.

Line is open.

Good morning, Neal I appreciate all the detail on the call.

You introduce sort of how youre thinking about 2026, I think it's fair to ask.

Yeah again in the call. We said it was probably a little too early to talk about 2026, if we do get a low oil price.

Given the sort of consensus developing around the potential for sub 50 <unk> in the first part of the year.

How well youre positioned for that and how you can offset what that could do on pressure at least on U S consumables.

The things that we're looking at is.

Does production in the U S rollover and as.

Yes.

Yeah again in the <unk>.

I'm sure you've read and you kind of look around the industry. It appears that most operators are trying to hold production at least flat year over year, and so I think that would be a higher level of production and maybe where we're modeling you know going into that but you know.

Call. We said it was probably a little too early to talk about 2026, if we do get a low oil price one of the things that we're looking at is does production in the U S rollover and.

Overall I think it's.

We're going to stay close to our customers.

We think even in a in a sub sub.

If prices go below where they are today and it was getting into the fifties.

There is going to have to be more efficiency, and so where we're going to put ourselves as we're gonna be the enabler of that efficiency and so we're well positioned for that and that's part of our strategy.

Maybe where we're modeling going into that but.

Overall I think it's.

We're going to stay close to our customers.

We think even in a in a sub.

Okay.

If prices go below where they are today and it was getting into the <unk>.

When we think about.

This multi year high on backlog timing of conversion I know a lot of this is percentage of completion, how much of that backlog is multi year and how much of that do you think you work through.

There is going to have to be more efficiency, and so where we're going to put ourselves as we're going to be the enabler of that efficiency and so we're well positioned for that.

And that's part of our strategy.

Okay.

Over the next five quarters.

When we think about.

This multi year high on backlog timing of conversion I know a lot of this is percentage of completion, how much of that backlog is multiyear and how much of that do you think you work through.

Yes.

Really good question and typically when we think about our backlog over time that backlog is going to typically run out in two or three quarters.

I think now with a bigger backlog build that we have in subsea first we're going to see that run all the way into 2027. So the the rescue submarine we announced last quarter. For example, we will recognize a decent amount of revenue on that in 2026, but we won't deliver that until late 2027. So we'll have revenue.

Over the next five quarters.

Yes, Steve that's a really good question and typically when we think about our backlog over time that backlog is going to typically run out in two or three quarters.

Running all the way through there, but the bulk of our backlog probably believes out in 2026 with with some subsea last thing all the way into 'twenty seven.

Perfect that's helpful.

The uptick on both valves and sand control products.

We're running all the way through there, but the bulk of our backlog probably believes out in 2026 with with some subsea last thing all the way into 'twenty seven.

The sequential improvement I know, there's two different dynamics going in there can you walk through what youre seeing on the valve side I know there was there was.

Perfect Thats helpful.

Some destocking going on related to tariffs. So we've seen that easing now are we getting through the Destocking and then on the sand control products, what you're seeing in Canada.

The uptick on both valves and sand control products.

The sequential improvement I know, there's two different dynamics going in there can you walk through what youre seeing on the valve side I know there was there was.

See the valves I think you hit the nail on the head we've talked for the last two quarters about what we call the buyer's strike as buyers with the uncertainty and what tariffs we're going to do basically pulled depend on ordering pattern. So we have seen some needed increases there for our distribution customers who have needed to.

Some destocking going on related to tariffs. So we've seen that easing now or are we getting through the destocking and then on the sand control products, what you're seeing in Canada.

See the valves I think you hit the nail on the head we talked for the last two quarters about what we called a buyers' strike as buyers with the uncertainty and what tariffs we're going to do basically pull depend on ordering patterns. So we have seen some needed increases there for our distribution customers who have needed to.

To restock some shelves.

My comments about.

Tariff rate volatility continue to be there and despite the recent news about maybe lowering tariffs on Chinese imports, where that would most effect valves.

Definitely see that volatility continue so we're keeping our eyes closed on the valves business, but it was nice to see the.

To restock some shelves.

Comments about.

Tariff rate volatility continue to be there and despite the recent news about maybe lowering tariffs on Chinese imports, where that would most effect valves.

The increase there.

And then Steve I think in Canada, I believe is maybe our first or second quarter call. We thought the back half would be stronger based on some of the customer discussions. We've had so I think that that's really been part of the the activity or the growth in Canada as we've had that.

Definitely see that volatility continue so we're keeping our eyes closed on the <unk> business, but it was nice to see the.

The increase there.

And then Steve I think in Canada, I believe is maybe our first our second quarter call. We thought the back half would be stronger based on some of the customer discussions. We've had so I think that that's really been part of the activity or the growth in Canada as we've had that.

And our teams have been really successful on.

Maintaining and getting key bookings up there as well.

And if I could get one more in because I heard you mentioned, maybe once or even twice the potential in the road.

Serving the rod lift market, how do you serve that market before would that be.

And our teams have been really successful on the maintain.

A new addressable market.

Maintaining and getting key bookings up there as well.

The debt that's a that's a really new market. We've had you know let's call. It some sales into that market, Steve So its not completely from from scratch. So were already into it but we're where we're doubling down our efforts and expanding with our with our products. We have that we've talked about in earlier calls we are.

And if I could get one more in because I heard you mentioned, maybe once or even twice the potential.

Serving the rod lift market, how do you serve that market before would that be.

A new addressable market.

The debt.

Really new market, we've had let's call it some sales into that market, Steve So its not completely from from scratch so were already into it but where we're doubling down our efforts and expanding with our with our products. We have that we've talked about in earlier calls we have a really neat pizza.

Really neat piece of technology really neat product called pumps savr plus it's.

It's a it helps really in a very similar way that we have for ESP is it prevents a rod pumps from from getting destroyed through.

Breaking down excuse me through our sand and gas management. So are we.

Right now it really neat product called pumps savr plus.

We think that product has a lot of legs, we've we've refined it.

It helps really in very similar way that we have for ESP. It prevents rod pumps from from getting destroyed through.

And we're working really closely with both operators and rod lift pump companies to really get that product out in the market.

Breaking down excuse me through sand and gas management so.

Yeah.

Great.

Thanks, everyone.

Thank you.

We think that product has a lot of legs, we've we've refined it.

Thank you I'm showing no further questions at this time I would now like to turn it back to <unk> for closing remarks.

And we're working really closely with both operators and rod lift pump companies to really get that product out in the market.

Thank you Daniel and thank you for your support and participation on today's call. We are we look forward to our next call in February to discuss <unk> fourth quarter and full year 2025 results.

Yes.

Great. Thanks, everyone.

Thank you.

Thank you I'm showing no further questions at this time I would now like to turn it back to Neil <unk> for closing remarks.

Thank you Daniel and thank you for your support and participation on today's call. We look forward to our next call in February to discuss <unk> fourth quarter and full year 2025 results.

This concludes today's conference call.

Thank you for participating you may now disconnect.

This concludes today's conference call. Thank.

Thank you for participating you may now disconnect.

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