Hunting (HTG) H1 2025 earnings summary

Executive summary

• Revenue increased 7% year-over-year to $528.6m, with EBITDA up 16% to $70.2m and a 13% margin, reflecting strong operational execution and strategic progress.

• Completed two key acquisitions: Flexible Engineered Solutions (FES) and Organic Oil Recovery (OOR), totaling $80–83m, to enhance profit, cash flow, and market reach.

• Subsea and OCTG segments delivered robust performance, with record margins, significant contract completions, and a strong order book at $473m as of July 2025.

• Strategic restructuring in EMEA, including facility closures, cost reductions, and divestment of non-core businesses, is underway to improve profitability, targeting $11m in annualized savings.

• Interim dividend increased 13% to 6.2 cents per share, with a $40m share buyback program launched and increased dividend growth target to 13% per annum.

Financial highlights

• Revenue up 7% year-over-year to $528.6m, led by OCTG and Subsea orders.

• EBITDA rose 16% to $70.2m, with margins progressing toward the 15% target and current margin at 13%.

• Adjusted diluted EPS increased 26% to 19.66 cents; free cash flow improved to $66.2m.

• Gross profit margin up to 28%, with segmental improvements in perforating systems and international business.

• ROCE improved to 10.5% from 7.5% in H1 2024.

Outlook and guidance

• Full-year EBITDA guidance maintained at $135–$145m, with 12–13% EBITDA margin and capex $35–$40m.

• Free cash flow targeted at 50% or better; year-end cash expected at $65–$75m pre-buyback.

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

• Directors remain comfortable with current guidance despite market volatility and project deferrals.

• Subsea market expected to recover in 2026 and beyond, with over 300 trees projected annually.