Hunting PLC

Hunting reported first-half revenue of $497 million and EBITDA of $62.1 million, with EBITDA margin at 12%. EPS was $0.152 versus $0.196 previously, and gross profit was described as steady at 27%. Non-oil and gas revenue increased to $38 million year over year. Titan revenue increased 45% year over year, Subsea revenue increased 95% year over year, and Hunting said international Titan sales doubled. Full-year EBITDA guidance was trimmed to $138 million to $141 million from about $10 million higher previously, due to the KOC delay. EBITDA margin guidance is 12% to 13%, CapEx is expected at $40 million to $50 million in the second half, and free cash conversion remains at 50%.

Jim Johnson was upbeat and said the company’s strategy is working because it is diversified across basins, products, and geographies. He emphasized three themes: a turnaround at Titan, strong subsea growth, and disappointment around the canceled KOC tender, which he said will likely be a 2027 event. He framed the call as evidence of a broader secular upswing driven by energy security, offshore demand, reserve replacement needs, and AI-related power demand.

Bruce Ferguson focused on the half-year financial bridge and balance sheet. He cited $62.1 million of EBITDA, a 12% EBITDA margin, $497 million of revenue, $38 million of non-oil and gas revenue, and EPS of $0.152; he also noted first-half profit after tax of $24.8 million. He said working capital rose by $60 million to $293 million of receivables, which pressured cash flow in the period, but he expects that to unwind in the second half. Net borrowings were $19 million, leverage was described as low, the dividend was increased 13% to $0.07, share buybacks totaled GBP 33 million, and full-year EBITDA guidance was cut to $138 million to $141 million with CapEx at $40 million to $50 million in the second half.

Analysts pressed on Titan expansion, pricing, and capacity; management said a recent $16 million order from a new Gulf of America customer showed the product is gaining share, and Titan pricing has held up despite tungsten costs rising 500% year over year. Questions on KOC centered on competition and whether the delayed business would return in one or multiple contracts; management said the canceled opportunity was one large contract, they cannot predict the outcome, and competition will depend on mill availability and tender economics. On Subsea guidance, management said there is no reason to expect a second-half decline and pointed to a strong order book and improving margin profile. Analysts also asked about decommissioning and power generation; management highlighted Enpro in decommissioning and said Dearborn has been retooled with significant CapEx to serve Caterpillar and other power-generation demand.