HMH Holding (HMH) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $171.3 million, down 14% year-over-year, mainly due to lower product and service volumes, partially offset by higher spare parts revenue.

• Adjusted EBITDA was $30.1 million (17.6% margin), flat year-over-year, reflecting disciplined cost execution and favorable product mix.

• Net income attributable to the company was $3.4 million, a 44% decrease year-over-year.

• Orders for the quarter were $218 million, up 10% year-over-year and 25% sequentially, resulting in a book-to-bill ratio of 1.3x.

• Completed IPO in April 2026, raising $197.8 million in net proceeds, with an additional $12.9 million from underwriters' option exercise, materially strengthening the balance sheet.

Financial highlights

• Service revenue declined 14% to $72 million; product revenue fell 41% to $32.5 million; spare parts revenue rose 11% to $66.5 million year-over-year.

• Operating income increased 20% to $19.2 million, despite lower revenue, due to cost optimization.

• Free cash flow was $4.6 million; CapEx and development costs were $2.7 million.

• Cash and cash equivalents at quarter-end were $101.3 million; total liquidity was $175 million.

• Cost of sales as a percentage of revenue improved to 68.1% from 71.5% year-over-year.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance is $157–$177 million, with performance weighted to the second half.

• Management expects increased activity and new awards in the second half of 2026, supported by higher oil prices and energy security focus.

• CapEx expected at 2% of revenue for 2026, or $15–18 million.

• Strong order rate continues into Q2, with book-to-bill expected above 1x.