Hunting (HTG) H2 2024 earnings summary

Executive summary

• Achieved strong financial and operational results in 2024, with revenue up 13% to $1,048.9m and EBITDA up 23% to $126.3m, driven by international offshore, subsea, and advanced manufacturing segments.

• Secured and executed a record $231 million KOC contract, boosting margins and validating international strategy.

• Advanced non-oil and gas initiatives, including energy transition and organic oil recovery, with $75.1m in non-oil and gas revenue, $14.7m in energy transition sales, $75 million in sales, and $60 million in new orders.

• Restructured underperforming divisions (Titan, EMEA), realizing substantial cost savings and improving efficiency through segment restructuring and asset disposals.

• Maintained strong liquidity and balance sheet, supporting future M&A and capital allocation flexibility.

Financial highlights

• Revenue increased 13% year-over-year to $1,048.9m, driven by offshore and subsea growth.

• EBITDA rose 23% to $126.3m (margin 12%); gross profit margin up to 26%; adjusted diluted EPS up 55% to 31.4c.

• Free cash flow exceeded $139.7m, well above targets; free cash flow conversion 111%.

• Declared dividend of $0.115 per share (+15%); net assets over $902.3m.

• Working capital cycle reduced from 215 to 109 days; inventory days reduced to 123 from 175; inventory down by $32 million.

Outlook and guidance

• 2025 EBITDA guidance: $135–$145 million; margin 12–13%; capex $35–$40 million; effective tax rate 25–28%.

• Free cash flow conversion expected to normalize at 50%; cash in bank projected at $135–$145 million.

• Strong order book of $500 million+, providing visibility for 2025 and beyond, with replenishment expected from robust tender pipeline.

• 2026 anticipated as a bumper year, driven by cost restructures, market recovery, and M&A opportunities.

• Targeting 15% EBITDA margin by 2026, with continued focus on high-margin segments and cost efficiencies.