HMH Holding Inc. Class A Common Stock

Q2 revenue was $171 million. Adjusted EBITDA was $34 million, up 3% year over year, and adjusted EBITDA margin expanded to 20% (19.8% in the CFO remarks). Orders were $205 million, up 19% year over year, with a 1.2x book-to-bill. Spares revenue was $61 million, up 17% year over year; aftermarket services revenue was $89 million, down 4% year over year; product revenue was $21 million, down 66% year over year. Free cash flow was positive at $22 million, excluding one-time IPO cash payments. For 2026, management reiterated adjusted EBITDA guidance of $157 million to $177 million and said CapEx excluding development costs is expected to be 2% of revenue.

Eirik Bergsvik emphasized that the business is benefiting from a constructive offshore market, with longer-duration awards, improving floater utilization, and rising backlog visibility across the installed base. He said many of the rigs winning work are equipped with HMH technology, which should support aftermarket, digital upgrades, and automation opportunities. His tone was confident and upbeat, but he also acknowledged near-term choppiness in product orders and repairs tied to customer timing and geopolitical uncertainty.

Tom McGee highlighted that orders grew 19% year over year despite slower-than-expected customer decision-making, and he called the softness in product and repair spending largely a timing issue rather than a demand change. He said the quarter included $22.8 million of IPO expenses and $5 million of restructuring, while free cash flow was positive at $22 million. He also noted $120 million of cash and cash equivalents, about $195 million of total liquidity including the revolver, no long-term debt maturity until June 2028, and CapEx of $5.2 million. Management sees second-half revenue improving, full-year adjusted EBITDA staying in the $157 million to $177 million range, and CapEx excluding development costs at 2% of revenue.

Analysts focused on HMH’s 2027 visibility, the path to closing the remaining gap in floater rig-year forecasting, and whether the current order strength is sustainable. Management said the 80% visibility into projected 2027 floater rig years is better than the comparable point last year and that contract announcements are narrowing downside uncertainty. On delayed spending, Tom McGee said about a $10 million Middle East headwind in the quarter was tied to installation and commissioning delays, that the revenue is recoverable, and that some new orders may slip further as customers wait longer before spending on upgrades and reactivations.