Hunting H1 Earnings Call Highlights

• Titan perforating revenue surged 45% year-over-year to $83 million in Q2, with international sales up 50%, despite tungsten input costs rising 500%
• KOC tender cancellations worth $300+ million pushed expected work into 2027, reducing full-year EBITDA guidance by approximately $10 million to $138-$141 million range
• Order book stands at $386 million with $260 million expected to book in 2026, while tender pipeline totals just under $1 billion; net borrowings remain low at $19 million

Hunting H1 Earnings Summary

Financial Performance

Hunting (LON: HTG) reported first-half 2026 revenue of $497 million with EBITDA of $62.1 million, representing a 12% margin. The company posted profit after tax of $24.8 million and proposed a 13% dividend increase to $0.07 per share.

Business Segment Highlights

Titan Perforating revenue surged 45% year-over-year, with international sales up approximately 50%, driven by activity in the U.S., Argentina, and Middle East. Second-quarter Titan sales reached $83 million despite tungsten input costs rising 500%.

Subsea revenue jumped 95% year-over-year, with $50 million attributed to the Flexible Engineered Solutions acquisition. This segment became Hunting's highest-margin business, supported by demand in Guyana and offshore markets. The company secured a $16 million order for titanium stress joints from a Gulf of America customer.

Kuwait Disruption Impacts Guidance

Kuwait Oil Company (KOC) canceled tenders worth over $300 million due to Middle East conflicts and Strait of Hormuz transport challenges, pushing work into 2027. Hunting reduced full-year EBITDA guidance by approximately $10 million to $138-$141 million (12-13% margin), down from previous expectations. The company maintains a long-term 15% margin target.

Financial Position

The order book stood at $386 million, with $260 million expected to convert in 2026. Working capital increased $60 million to $293 million, primarily from receivables. Net borrowings totaled $19 million, with capital expenditures forecast at $40-$50 million for 2026.

Market Outlook

Management identified growth opportunities in international unconventional development (Argentina, Saudi Arabia), power generation linked to AI data centers, and geothermal applications. The company maintains a tender pipeline just under $1 billion.