Hunting (HTG) H1 2026 earnings summary

Executive summary

• H1 2026 delivered $497 million in revenue and $62.1 million EBITDA, reflecting strong execution in Subsea and Perforating Systems, despite a 6% year-over-year revenue decline due to the absence of large KOC orders.

• Strategic portfolio optimization included a $15 million cost reduction plan by 2027, EMEA restructuring, and combining EMEA and Asia Pacific segments.

• Non-oil and gas revenues increased, with Dearborn operation now focused up to 90% on aerospace, defense, and power generation.

• Continued focus on cost reductions, facility consolidation, and lean manufacturing, resulting in a 24% decrease in headcount since 2019.

• Market backdrop remains supportive, with multi-year growth in oil and gas investments and increased focus on energy security and AI-driven power demand.

Financial highlights

• Revenue for H1 2026 was $497 million, with EBITDA at $62.1 million and EBITDA margin of 12%.

• Gross profit steady at 27%; profit after tax at $24.8 million; EPS at $0.152, down from $0.196 year-over-year.

• Interim dividend increased 13% to 7.0 cents per share; $32.8 million spent on share buybacks.

• Working capital to revenue ratio increased to 37%, mainly due to higher receivables and inventory investments.

• Net borrowings at $19 million, with net debt at $51.4 million at June 2026, reflecting investment in inventory and working capital.

Outlook and guidance

• Order book at $386 million, with a tender pipeline just under $1 billion; $260 million of orders to be booked in 2026.

• EBITDA guidance trimmed to $138–$141 million for the year, reflecting KOC tender delays; EBITDA margin expected at 12–13%.

• CapEx forecasted at $40–$50 million for H2; free cash conversion targeted at 50%.

• Dividend distributions projected to rise at 13% per annum through the decade.

• Directors anticipate continued year-on-year growth into 2027, with a diversified portfolio supporting resilience.