FORUM ENERGY TECHNOLOGIES, INC.FET
FORUM ENERGY TECHNOLOGIES, INC. Leases Disclosure
Leases
Our lease portfolio primarily consists of operating leases for certain manufacturing facilities, warehouses, service facilities, office spaces, equipment and vehicles. The following table summarizes the supplemental consolidated balance sheet information related to leases as of December 31, 2025 and 2024 (in thousands):
| December 31, | ||||||||||||||||||||
| Classification | 2025 | 2024 | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Operating lease assets | Operating lease assets | $ | 80,733 | $ | 70,389 | |||||||||||||||
| Finance lease assets | 4,676 | 3,579 | ||||||||||||||||||
| Total lease assets | $ | 85,409 | $ | 73,968 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Current | ||||||||||||||||||||
| Operating | $ | 11,785 | $ | 11,056 | ||||||||||||||||
| Finance | 1,407 | 1,866 | ||||||||||||||||||
| Noncurrent | ||||||||||||||||||||
| Operating | Operating lease liabilities | 83,957 | 73,145 | |||||||||||||||||
| Finance | 2,601 | 1,507 | ||||||||||||||||||
| Total lease liabilities | $ | 99,750 | $ | 87,574 | ||||||||||||||||
During 2025, we recognized $1.6 million of operating lease assets impairment related to the Company’s strategic decision to consolidate facilities and discontinue certain products.
The following table summarizes the components of lease expenses (in thousands):
| Year ended December 31, | ||||||||||||||||||||
| Lease Cost | Classification | 2025 | 2024 | |||||||||||||||||
| Operating lease cost | Cost of sales and Selling, general and administrative expenses | $ | 19,349 | $ | 16,622 | |||||||||||||||
| Finance lease cost | ||||||||||||||||||||
| Amortization of leased assets | Selling, general and administrative expenses | 1,566 | 1,720 | |||||||||||||||||
| Interest on lease liabilities | Interest expense | 241 | 269 | |||||||||||||||||
| Sublease income | Cost of sales and Selling, general and administrative expenses | (884) | (875) | |||||||||||||||||
| Net lease cost | $ | 20,272 | $ | 17,736 | ||||||||||||||||
The maturities of lease liabilities as of December 31, 2025 are as follows (in thousands):
| Operating Leases | Finance Leases | Total | ||||||||||||||||||
| 2026 | $ | 18,206 | $ | 1,641 | 19,847 | |||||||||||||||
| 2027 | 17,723 | 1,041 | 18,764 | |||||||||||||||||
| 2028 | 14,144 | 588 | 14,732 | |||||||||||||||||
| 2029 | 12,872 | 522 | 13,394 | |||||||||||||||||
| 2030 | 10,455 | 487 | 10,942 | |||||||||||||||||
| Thereafter | 60,777 | 317 | 61,094 | |||||||||||||||||
| Total lease payments | 134,177 | 4,596 | 138,773 | |||||||||||||||||
| Less: present value discount | (38,435) | (588) | (39,023) | |||||||||||||||||
| Present value of lease liabilities | $ | 95,742 | $ | 4,008 | $ | 99,750 | ||||||||||||||
The following table summarizes the weighted-average remaining term and weighted average discount rates related to leases as of December 31, 2025 and 2024:
| Year ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Weighted-average remaining lease term (years) | ||||||||||||||
| Operating leases | 9.4 | 8.8 | ||||||||||||
| Financing leases | 3.7 | 1.9 | ||||||||||||
| Weighted-average discount rate | ||||||||||||||
| Operating leases | 6.99 | % | 6.85 | % | ||||||||||
| Financing leases | 7.31 | % | 7.51 | % | ||||||||||
The following table summarizes the supplemental cash flow information related to leases for the years ended December 31, 2025 and 2024 (in thousands):
| Year ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
| Operating cash flows from operating leases | $ | 17,813 | $ | 15,904 | ||||||||||
| Operating cash flows from finance leases | 241 | 269 | ||||||||||||
| Financing cash flows from finance leases | 2,032 | 1,725 | ||||||||||||
Sale-leaseback transactions
In June 2025, the Company sold and leased back land and buildings for net proceeds of $8.8 million, of which $0.8 million is receivable with a due date of June 2027. The initial annual rent for the assets is $0.7 million with initial term of 15 years, subject to annual increase. The transactions met the requirements of sale-leaseback accounting. The related assets were removed from property and equipment and the appropriate operating lease assets and liabilities of approximately $7.6 million were recorded in the consolidated balance sheets.
In August 2025, the Company sold and leased back land and buildings for net proceeds of $6.5 million. The initial annual rent for the assets is $0.6 million with initial term of 18 years, subject to annual increase. The transactions met the requirements of sale-leaseback accounting. The related assets were removed from property and equipment and the appropriate operating lease assets and liabilities of approximately $7.2 million were recorded in the consolidated balance sheets.
In November 2024, the Company sold and leased back land and buildings for net proceeds of $20.3 million. The initial annual rent for the assets is $1.7 million with initial term of 15 years, subject to annual increase. The transactions met the requirements of sale-leaseback accounting. The related assets were removed from property and equipment and the appropriate operating lease assets and liabilities of approximately $19.1 million were recorded in the consolidated balance sheets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 4, 2022 | |
| 2020 | Mar 2, 2021 | |
| 2019 | Feb 25, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.