Hunting (HTG) Trading Update summary

Financial performance and trading update

• Achieved 2024 EBITDA of $123–$126 million, up over 20% year-on-year, with a margin of approximately 12%.

• Year-end cash and bank/borrowings reached $100–$105 million, exceeding prior guidance, and sales order book surpassed $500 million, excluding the short-cycle Titan business.

• Revenue growth and margin improvements were driven by robust OCTG and Subsea business performance, especially in North America and offshore markets.

• Cash conversion rate for 2024 exceeded 110% due to inventory reduction, with a 2025 target of 50%.

• Dividend increases and disciplined capital allocation remain a focus, supported by a strong balance sheet and ongoing cash generation.

Strategic priorities and business development

• Focused on expanding both oil and gas (notably Subsea) and non-oil and gas sectors, including aerospace, defense, and technology.

• 2025 is targeted as a key year for bolt-on M&A, with several opportunities under consideration and $400 million in total liquidity.

• Continued investment in technology and IP, with new product launches such as the H-4 perforating system and TEC-LOCK connections.

• Joint ventures and partnerships, such as with Jindal in India and CRA Tubulars, are driving international growth and energy transition initiatives.

• Advanced manufacturing and additive manufacturing investments are broadening the business beyond oil and gas.

Cost management and restructuring

• Announced a $10 million cost reduction initiative focused on North Sea/EMEA assets, with most savings expected in 2025.

• Restructuring aligns the business with current market size following the end of legacy commitments.

• Staff in the UK totals 150, with no current plans for a US listing as a result of restructuring.

• Ongoing review of sales, general, and administration costs.

• Capital investment for 2024 totaled approximately $32 million.