Hunting PLC (LSE:HTG) reported a steady start to 2026, delivering first-quarter EBITDA of $23.2 million with a margin of 10%, and maintaining its full-year EBITDA guidance in the range of $145 million to $155 million. The group expects earnings to be more heavily weighted toward the second half. Performance was led by stronger-than-expected results in North American perforating systems, while seasonal working capital movements and ongoing share buybacks reduced net cash to $8.3 million.
The company’s order book has expanded to approximately $428.8 million, driven by robust OCTG tender activity and significant subsea contract wins. These include $63.5 million in titanium stress joint orders tied to a project in Guyana. Hunting is also continuing to diversify, growing its advanced manufacturing offering for industrial and aerospace customers. Alongside this, management is pushing ahead with a $15 million cost reduction programme, which includes closing the Fordoun facility and consolidating its EMEA and Asia Pacific operations into a unified International division from 2027. The group is also exploring bolt-on acquisitions in subsea to enhance its long-term growth profile, despite geopolitical uncertainties in regions such as the Middle East.
From an investment perspective, the outlook is supported by stronger operating performance, a resilient balance sheet, and reaffirmed FY26 guidance, alongside a healthy pipeline of tenders and ongoing shareholder returns through buybacks and dividends. However, these positives are balanced by cash flow volatility—particularly the decline seen in 2025—limited near-term visibility beyond the current order book, and only moderate valuation appeal for a business exposed to cyclical end markets.
More about Hunting
Hunting PLC is a global engineering group specialising in precision manufacturing and services for the energy and industrial sectors. Headquartered in the UK and listed in London, with a corporate base in Houston, the company operates across North America, EMEA, Asia Pacific, and subsea markets. Its customer base spans oil and gas, power generation, aerospace, and defence industries.
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