Hunting PLC (LSE:HTG) has lowered its full-year 2026 EBITDA guidance to between $128 million and $133 million, citing disruption to Middle East operations, slower activity in North America and supply chain delays affecting its advanced manufacturing businesses.
The London-listed precision engineering group reported year-to-date EBITDA of approximately $89 million, representing a margin of around 12%, as trading conditions varied across its five operating segments.
Hunting said the continuing conflict in the Middle East has disrupted oil country tubular goods (OCTG) tender activity, affected product deliveries and reduced demand in certain regional markets. The company also reported a decline in drilling activity in Saudi Arabia, affecting its Hunting Titan business.
Despite these conditions, the group’s Subsea Technologies operations continued to generate profits, while restructuring measures contributed to a return to quarterly profitability in its Europe, Middle East and Africa (EMEA) segment.
Hunting also reported an improvement in its net borrowing position during the third quarter, with net borrowings declining to approximately $11 million at 30 September 2026 from $19 million at the end of June.
Full-Year EBITDA Forecast Revised to $128–133 Million
Hunting now expects EBITDA of between $128 million and $133 million for the financial year ending 31 December 2026.
The revised outlook reflects changes in trading conditions during the third quarter and a deterioration in near-term demand across several markets during the opening weeks of the fourth quarter.
Management identified the continuing Middle East conflict as a principal factor affecting the group’s outlook.
Disruption to shipping routes and regional infrastructure has affected tender activity and product deliveries, while lower drilling activity in Saudi Arabia has reduced demand associated with the Jafurah unconventional gas development.
Hunting also expects slower fourth-quarter activity in North America, reflecting seasonal conditions, customer budget constraints and caution among operators.
In addition, third-party supply chain problems have delayed deliveries and order completion within its Electronics and Dearborn businesses.
The company did not disclose its previous EBITDA guidance in the latest announcement.
Year-to-Date EBITDA Reaches Approximately $89 Million
Hunting reported EBITDA of approximately $89 million for the first nine months of 2026, equivalent to an EBITDA margin of around 12%.
The result reflects contributions from the group’s operating segments and product lines, including Hunting Titan, North America, Subsea Technologies, EMEA and Asia Pacific.
Performance differed across the portfolio, with continued profitability in Subsea Technologies and improved year-to-date results in Hunting Titan’s North American operations.
These contributions were partly offset by weaker Middle East activity, delayed orders and slower trading improvements in certain manufacturing businesses.
The company expects the combined effects of these developments to continue influencing its financial performance during the final quarter.
Middle East Conflict Disrupts Tender Activity and Deliveries
Hunting reported that the prolonged conflict in the Middle East has affected trading across several product lines.
The company cited logistical difficulties, attacks on commercial shipping and disruption to regional infrastructure as factors restricting OCTG and other equipment tender activity.
Reduced drilling activity in Saudi Arabia has also affected demand for Hunting Titan products associated with the Jafurah unconventional development.
Management said the deterioration in regional trading conditions had continued into the fourth quarter.
Hunting expects the effects of these disruptions to remain evident in its full-year results.
The company indicated that activity could recover following an improvement in regional conditions, although the timing and extent of any recovery remain uncertain.
Hunting Titan Reports North American Growth Despite Slower Deliveries
Hunting Titan’s third-quarter performance was marginally below management’s expectations.
The business experienced slower deliveries to the Middle East, while activity in North America also moderated.
Hunting expects these conditions to continue through the remainder of 2026.
Nevertheless, the company anticipates year-on-year growth for Hunting Titan, reflecting increased activity in its domestic North American market during the first nine months and higher international sales.
Management remains cautious about fourth-quarter demand because of seasonal factors, customer spending constraints and reduced activity among some operators.
The slowdown in Saudi Arabian drilling activity has also affected Hunting Titan’s regional performance.
Advanced Manufacturing Recovery Delayed by Supply Chain Issues
Hunting reported that the anticipated improvement in its Electronics and Dearborn businesses has been slower than expected.
Both operations form part of the group’s Advanced Manufacturing product group.
Third-party supply chain constraints have restricted deliveries and delayed the completion of customer orders.
These delays have affected the timing of revenue and earnings contributions from the businesses.
The company did not quantify the value of delayed orders or provide a revised timetable for their completion.
The slower recovery in Advanced Manufacturing was among the factors contributing to Hunting’s revised full-year EBITDA guidance.
Subsea Technologies Maintains Profitability
Hunting’s Subsea Technologies operations continued to report profitability during the third quarter.
The company attributed the performance to ongoing customer demand and operational management across its subsea businesses.
The division has remained an area of trading stability within the group’s wider portfolio.
Hunting also reported commercial interest in its Organic Oil Recovery technology.
During the quarter, the company received orders for pilot testing and sampling activities involving potential applications in South America, the North Sea and the Middle East.
These orders represent early-stage commercial and technical work rather than confirmed large-scale deployments.
Hunting did not disclose the financial value of the orders or provide revenue forecasts associated with the technology.
EMEA Segment Returns to Quarterly Profitability
Hunting’s EMEA operating segment returned to profitability during the third quarter of 2026.
The improvement followed restructuring measures, including the closure of the company’s Fordoun operating site in Aberdeen in September.
The company said the restructuring had begun to generate previously announced cost savings.
However, continued disruption in the Middle East is expected to affect the segment’s full-year performance.
Hunting now anticipates that EMEA will report a small EBITDA loss for 2026 despite returning to profitability during the third quarter.
The group is continuing to review operating costs and organisational arrangements as part of its wider restructuring programme.
Asia Pacific Performance Affected by Kuwait Tender Delays
Hunting reported lower year-to-date results in its Asia Pacific operating segment.
The performance reflects delays to the Kuwait Oil Company tender process and reduced OCTG tender activity across the Middle East.
The company said market volatility and regional disruption have slowed the award of new contracts.
Following a small profit in the first half, the Asia Pacific segment is now expected to report approximately break-even EBITDA for the second half of 2026.
The company continues to monitor tender activity and customer demand across the region.
Kuwait Oil Company Re-Tender Published in October
Hunting confirmed that Kuwait Oil Company published its delayed re-tender on 12 October 2026.
A decision is anticipated before the end of the year.
Under the expected timetable, product shipments associated with any awarded contracts would begin during the second half of 2027.
Hunting intends to participate in the tender process and is seeking additional orders based on its existing commercial relationship with Kuwait Oil Company.
However, the company has not announced any contract award arising from the new tender.
The timing, value and allocation of potential orders remain subject to the customer’s procurement process.
Net Borrowings Decline to Approximately $11 Million
Hunting reported a net borrowing position of approximately $11 million at 30 September 2026, compared with $19 million at 30 June.
The $8 million improvement reflected operating cash conversion and working capital management during the third quarter.
The group’s net assets stood at approximately $876 million at the end of September.
Working capital was approximately $399 million, broadly unchanged from the position reported at the half-year stage.
Hunting expects its year-end cash and bank borrowings position to be in the range of $40 million to $45 million, on a net borrowing basis.
This forecast reflects the company’s anticipated financial position following its planned expenditure and capital allocation activities during the final quarter.
Interim Dividend Scheduled for 30 October
Hunting confirmed that its 2026 interim dividend of 7.0 US cents per share will be paid on Friday, 30 October 2026.
The payment is expected to require approximately $10 million in cash.
The company also provided updated expectations for capital expenditure and shareholder returns.
Full-year capital expenditure is now forecast at approximately $35 million to $45 million, covering tangible and intangible investment.
In addition, Hunting expects its share buyback programme to require approximately $42 million during 2026.
These planned cash outflows form part of the group’s capital allocation programme alongside operating requirements and potential investment opportunities.
Cost Reduction and Portfolio Restructuring Continue
Hunting is continuing a restructuring programme intended to simplify its operating structure and reduce costs.
The measures include combining its EMEA and Asia Pacific operating segments.
The company is also pursuing the disposal of non-core businesses and reviewing selling, general and administrative expenses.
The closure of the Fordoun facility in Aberdeen during September formed part of the restructuring activity already completed.
Hunting said the measures are intended to improve operating efficiency and align resources with its business priorities.
The company did not disclose additional restructuring costs or quantify the total savings expected from the remaining initiatives.
Acquisition Opportunities Remain Under Review
Hunting continues to evaluate potential acquisitions as part of its business development strategy.
Management said its focus remains on subsea and well completion businesses.
The company did not identify specific acquisition targets or disclose the potential financial terms of any transactions.
No new acquisition agreement was announced in the trading update.
The group is assessing these opportunities alongside its ongoing restructuring programme and capital expenditure commitments.
CEO Comments on Market Conditions and Revised Guidance
Jim Johnson, Chief Executive Officer of Hunting, commented on the impact of the Middle East conflict and the group’s revised outlook.
“Whilst the long-term fundamentals of our end-markets remain robust, which includes ongoing strong trading results within our Subsea-focused businesses, the protracted and deepening nature of the conflict in the Middle East has impacted our overall results in Q3 and into Q4, with a deterioration in the short-term trading outlook seen in recent weeks.”
Johnson also addressed the effect of regional disruption on tender activity and drilling operations.
“The Directors believe that there is significant upside within the Middle East once hostilities cease. However, OCTG and other product line tender activity across the region remains challenged at present by logistical issues and continued attacks on shipping and regional infrastructure. Rig activity in Saudi Arabia has declined, reducing activity levels in the Jafurah unconventional development, affecting trading within Hunting Titan.”
Commenting on the financial outlook, Johnson said:
“These pressures, together with a slower than planned trading improvement within the Electronics and Dearborn business units due to third-party supply chain issues, have led to us reducing our FY 2026 guidance, with EBITDA now likely to be in the range of $128-$133 million.”
He added that the company remains focused on its restructuring programme and medium-term strategic objectives.
Search for New Chief Executive Progresses
Hunting also provided an update on its chief executive succession process.
The board’s Nomination Committee continued reviewing internal and external candidates during the third quarter.
Interviews are planned for the fourth quarter of 2026.
The selection process is focused on identifying a candidate with relevant strategic, operational and leadership experience.
The company did not provide a date for the appointment of a new chief executive.
Hunting said it expects to conclude the process following further evaluation of the candidates.
Outlook for the Remainder of FY2026
Hunting expects full-year EBITDA of between $128 million and $133 million, reflecting continued disruption in the Middle East and slower activity in other markets.
The company anticipates that Hunting Titan will deliver year-on-year growth, although fourth-quarter demand is expected to moderate.
Subsea Technologies continues to contribute to group profitability, while EMEA is expected to record a small full-year EBITDA loss and Asia Pacific is forecast to achieve approximately break-even EBITDA in the second half.
The group is also awaiting the outcome of the Kuwait Oil Company re-tender, with a decision expected before year-end.
Hunting expects year-end net borrowings of approximately $40 million to $45 million, while continuing its planned capital expenditure, dividend payments and share repurchases.
The company’s next scheduled trading update is Tuesday, 19 January 2027.
More About Hunting
Hunting PLC is a London-listed precision engineering company established in 1874.
The group manufactures equipment and provides services for the global energy industry, with activities spanning oil country tubular goods, perforating systems, subsea technologies and advanced manufacturing.
Hunting is headquartered in London and maintains a corporate office in Houston, Texas.
Its operations extend across the United Kingdom, United States, China, India, Indonesia, Mexico, Saudi Arabia, Singapore and the United Arab Emirates.
The company reports its financial performance through five operating segments: Hunting Titan, North America, Subsea Technologies, EMEA and Asia Pacific.
Its five product groups are OCTG, Perforating Systems, Subsea, Advanced Manufacturing and Other Manufacturing.
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