Hunting (HTG) H2 2025 earnings summary

Executive summary

• EBITDA rose 7% to $135.7 million with margin at 13%, supported by strong cash generation and strategic acquisitions, despite a slight revenue decline to $1,018.8 million.

• Strategic acquisitions of Flexible Engineering Solutions ($64.8m) and Organic Oil Recovery ($18.2m) expanded global reach and technology offerings.

• Non-oil and gas revenue increased 10% to $82.9 million, supporting diversification.

• $53.1 million returned to shareholders via dividends and buybacks, with expanded share buyback programs.

• Order book normalized at $358.0 million, providing visibility for 2026 and beyond.

Financial highlights

• EBITDA rose to $135.7 million, with margin improving to 13% and a target of 15% in sight.

• Adjusted diluted EPS increased 9% to 34.1 cents; dividend per share up 13% to 13.0 cents.

• Revenue was $1,018.8 million, down from $1,048.9 million in 2024; gross margin improved to 27%.

• Free cash flow reached $96.6 million, with conversion at 71%; working capital to sales ratio improved to 33%.

• Net assets at $855.3 million; net cash position of $28.1 million at year-end.

Outlook and guidance

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

• CapEx expected at $40–$50 million, focused on automation and capacity expansion.

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

• Order book expected to rebound in Q2 2026, driven by subsea and OCTG tenders; tender pipeline exceeds $1 billion.

• Minimal exposure to Middle East risks; long-term growth trajectory remains intact.