Hunting (HTG) investor relations material

Executive summary

• Revenue increased 7% year-over-year to $528.6m, with EBITDA up 16% to $70.2m and EPS up 26%, reflecting strong operational execution, strategic acquisitions, and cost savings.

• Completed two strategic acquisitions—Flexible Engineered Solutions ($65m) and Organic Oil Recovery ($18m)—expanding product offerings and margin profile.

• Divested $13m in low-margin assets, implemented restructuring, and achieved significant cost savings, especially in EMEA.

• Free cash flow improved to $66.2m, supporting a $40m share buyback and increased dividends, with a 13% interim dividend growth to 6.2 cents per share.

• Secured $69m in new subsea orders and $46m in titanium stress joint orders, with a sales order book at $473m as of July 2025.

Financial highlights

• Revenue up 7% year-over-year to $528.6m, led by OCTG and subsea, with EBITDA margin at 13% and gross margin over 28% in key segments.

• Adjusted diluted EPS increased 26% to 19.6 cents; interim dividend up 13% to 6.2 cents.

• Free cash flow at $66.2m; net cash position at $44.7m as of June 2025.

• Working capital to revenue ratio improved to 34%, with inventory reduced to $262m.

• Return on capital employed rose to 10.5–11%, targeting 15% through accretive M&A and margin expansion.

Outlook and guidance

• Full-year EBITDA guidance maintained at $135m–$145m, with 12–13% margin and effective tax rate 25–30%.

• Capex expected at $35m–$40m; free cash flow targeted at 50%, with year-end cash expected at $65m–$75m pre-buyback.

• Tender pipeline exceeds $1bn, with new subsea and advanced manufacturing opportunities and large OCTG tenders expected in H2.

• Subsea market expected to rebound in 2026 and beyond, with over 300 trees projected and 40–50 FPSOs coming online globally.

• Continued focus on cost discipline, international growth, and energy transition opportunities, especially in geothermal and natural gas.