HMH Holding (HMH) investor relations material

Executive summary

• Q3 revenue was $171.1M, down 21.2% YoY; Adjusted EBITDA was $38.186M, down 3% YoY, with a 22.3% margin.

• Orders were $191M, up 12% YoY, with 1.12x book-to-bill; equipment order timing and rig reactivation delays weighed on results and cash flow.

Financial highlights

• Q3 revenue was $171.1M versus $217.2M; operating income was $21.8M versus $28.2M, and net income was $10.3M versus $15.8M.

• Adjusted EBITDA was $38.186M, down 3% YoY and up 13% QoQ; favorable mix, cost efficiencies and lower variable compensation supported the 22.3% margin.

• Operating cash flow was negative $6.189M and free cash flow negative $11.594M; equipment timing and advance procurement pressured working capital and cash conversion.

• Q3 product revenue of $16.7M left the segment unable to absorb its global cost base, creating a $5M-$6M quarterly bottom-line headwind.

Outlook and guidance

• FY2026 Adjusted EBITDA guidance is $135M-$140M; excluding the estimated Middle East impact, guidance would be $147M-$152M. Q4 Adjusted EBITDA is expected flat to slightly below Q3.

• FY2026 CapEx is expected at 2% of revenue; full-year volume is expected below prior expectations before a strong upward shift in 2027.

• 2027 key floater activity is expected to rise 10%-25% YoY, with ~85% of base-case activity supported by firm backlog or contractual options.

• Remaining performance obligations were $434.0M at September 30, with substantially all expected to be recognized over the next 12 months.