Hunting (HTG) H2 2024 earnings summary

Executive summary

• Achieved strong operational and financial 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, and a record $231 million KOC contract.

• Subsea business grew 49% year-over-year, with notable contributions from Guyana, titanium stress joints, and a profitable Indian joint venture.

• Advanced manufacturing and non-oil and gas sales are a strategic focus, with $75.1 million in non-oil and gas revenue and $14.7 million in energy transition sales.

• Restructuring and cost-saving initiatives in underperforming divisions, including MEA and Titan, have generated $6–8 million in annual savings each, with further $10 million annual savings targeted from Q1 2026.

• Disposed of Rival joint venture, generating $13 million in receivables and reallocating capital to higher-margin areas.

Financial highlights

• Revenue increased 13% year-over-year to $1,048.9m, with EBITDA up 23% to $126.3m (margin 12%).

• Free cash flow exceeded $139.7 million, well above targets, driven by inventory reduction and working capital optimization.

• Cash balance at year-end exceeded $100 million, supporting a dividend increase to $0.115 per share.

• Gross profit margin improved to 26%, and EPS rose 55% year-over-year to 31.4c.

• Order book remains strong at $508.6 million, providing visibility for 2025.

Outlook and guidance

• 2025 EBITDA guidance set at $135–$145 million, with margins expected between 12–13%.

• Free cash flow conversion expected to normalize at 50%, with year-end cash projected at $135–$145 million.

• Anticipates replenishing order book through new tenders, with 90% of current orders to be invoiced in 2025.

• 2026 expected to be a bumper year, driven by cost restructures, LNG pipeline expansion, and M&A opportunities.

• Organic oil recovery sales for 2025 conservatively forecast at $10 million, with significant upside potential.