Hunting (HTG) H2 2025 earnings summary

Executive summary

• EBITDA rose 7% to $135.7 million with margin at 13%, driven by higher-margin product lines, operational efficiencies, and despite a 3% revenue decline to $1,018.8 million.

• Completed strategic acquisitions of Flexible Engineering Solutions ($64.8m) and Organic Oil Recovery ($18.2m), enhancing diversification and subsea technology offerings.

• Significant restructuring in Europe and Hunting Titan, including facility closures and relocation to Dubai, delivering $11 million in annualized savings and improving cost base.

• Maintained robust cash generation ($63–$96.6 million) after acquisitions, dividend increases, and share buybacks, with $62.9 million cash at year-end.

• Order book normalized at $358 million, with a strong tender pipeline exceeding $1 billion, especially in subsea and OCTG, providing visibility for 2026 and beyond.

Financial highlights

• EBITDA reached $135.7 million, up 7% year-over-year, with margin at 13%.

• Adjusted diluted EPS increased 9% to $0.341.

• Net profit after tax was $58 million; statutory profit before tax was $65.5 million.

• Total dividend declared at $0.13 per share, up 13% per annum from 2025 onwards.

• Free cash flow generation was strong, with $63–$96.6 million cash on the balance sheet at year-end.

Outlook and guidance

• 2026 EBITDA guidance: $145–$155 million, with margin of 13%–14% and FCF conversion targeted at 50%+.

• Anticipate a back-end-loaded year, with major order conversions and revenue recognition in H2 2026.

• CapEx expected to rise to $40–$50 million, focusing on automation and capacity expansion.

• Effective tax rate projected at 25%–28%.

• Dividend growth ambition revised to 13% per annum through 2030.