HMH Holding (HMH) Q2 2026 earnings summary

Executive summary

• Orders reached $205 million in Q2 2026, up 19% year-over-year, with a book-to-bill ratio of 1.2x, driven by strong demand in digital technology and services.

• Revenue was $170.8 million, down 16% year-over-year and flat sequentially, reflecting lower product sales but higher aftermarket and spare parts revenue.

• Adjusted EBITDA was $33.9 million, up 3% year-over-year and 13% sequentially, with margin improvement to 19.8%.

• Free Cash Flow was $22.2 million, up 190% year-over-year, and cash flow from operations was $17.9 million.

• Completed IPO in April 2026, raising $197.8 million plus $12.9 million from over-allotment, used for debt repayment and working capital.

Financial highlights

• Orders up 19% year-over-year to $205 million; revenue declined 16% year-over-year to $170.8 million.

• Adjusted EBITDA margin improved to 19.8%, up 370 basis points year-over-year.

• Gross margin rose to 36%, up 10 percentage points year-over-year, due to cost optimization and favorable mix.

• Free cash flow for the quarter was $22.2 million; cash and liquidity at quarter-end were $119.7 million and $195 million, respectively.

• Net loss for Q2 2026 was $5.0 million, impacted by a one-time $22 million IPO-related stock-based compensation expense.

Outlook and guidance

• Management expects stronger revenue and activity in the second half of 2026, with full-year adjusted EBITDA guidance of $157–$177 million unchanged.

• CapEx (excluding development costs) projected at 2% of revenue for 2026, reflecting an asset-light model.

• Backlog visibility for 2027 floater rig years improved to 80% from 65% last year.

• Long-term offshore and energy investment outlook remains constructive despite macroeconomic and geopolitical uncertainties.