Hunting keeps 2026 guidance as Subsea and Perforating Systems drive growth

Hunting's first-half performance at a glance

Hunting has delivered first-half earnings in line with its planned full-year phasing, supported by strong performances from its Subsea and Perforating Systems product groups.

The precision engineering group reported H1 2026 EBITDA of approximately $62 million. EBITDA means earnings before interest, tax, depreciation and amortisation, and is commonly used to assess underlying operating performance. Management maintained full-year EBITDA guidance of $145 million to $155 million, alongside an expected margin of approximately 13% to 14%.

That leaves plenty of work for the second half, but Hunting has been clear since March that earnings would be weighted 40:60 between H1 and H2. In other words, the first-half result appears consistent with the plan rather than an indication of deteriorating trading. Key figure H1 2026 update EBITDA Approximately $62 million EBITDA margin Approximately 12% Sales order book Approximately $387 million Tender pipeline Approximately $1.0 billion Working capital Approximately $394 million Total cash and bank borrowings Approximately $(19) million Full-year EBITDA guidance $145 million to $155 million Full-year EBITDA margin guidance Approximately 13% to 14% Expected year-end cash position Approximately $60 million to $65 million

Subsea and Perforating Systems lead the way

The strongest parts of the update came from Subsea and Perforating Systems, which both traded ahead of expectations.

Subsea performance benefited from continued contract momentum in Guyana. Hunting secured $63.5 million of orders for its titanium stress joint product line during the period, while also reporting strong demand for couplings and valves. Progress on the Longtail and Hammerhead projects in Guyana was described as good. Perforating Systems performed significantly ahead of management's expectations. Demand was strong for Hunting's unconventional well completion products internationally, while the business also made market share gains across North America. This is important because Hunting is deliberately shifting its earnings towards international unconventional drilling, offshore and subsea markets. The approximately 12% first-half EBITDA margin reflects progress with that rebalancing, even though it remains below the full-year target range.

Hunting Titan, one of the group's operating segments, traded ahead of expectations. Subsea Technologies also traded well, helping to offset weaker results across the other operating segments.

Not every division had a strong half

The performance was uneven beneath the group-level result.

OCTG, Advanced Manufacturing and Other Manufacturing all experienced lower activity during H1 because of order phasing. OCTG refers to oil country tubular goods, including specialist pipes and related products used in oil and gas wells. Management expects these product groups to recover during H2. That expectation is central to the full-year outlook, given the stronger earnings required in the second half to reach guidance.

Order phasing is not necessarily the same as losing business, but investors will want evidence in the half-year results and subsequent updates that delayed activity is converting into revenue and earnings as anticipated. The group is also continuing to restructure its EMEA operations. Its Aberdeen OCTG activities are being transferred to the Badentoy site, while the Fordoun site is due to close by the end of the summer.

Hunting said its programme to deliver $15 million of annual group-wide cost savings remains on track, with the benefits expected across 2026 and 2027.

A larger order book offers some visibility

Hunting ended the period with an order book of approximately $387 million, compared with $358 million at the end of 2025. That is an increase of $29 million.

Its tender pipeline also remained robust at approximately $1.0 billion. A tender pipeline represents potential work for which Hunting is bidding or in commercial discussions, rather than secured revenue, so it should not be treated as guaranteed business. Even so, the combination of a growing order book and a substantial pipeline provides some reassurance at a time when oil prices and the wider market remain volatile.

Management highlighted expected activity growth in Asia Pacific, the Americas and the Middle East. It believes longer-term demand will be supported by energy security requirements, changes to OPEC and rising power demand linked to artificial intelligence.

Cash flow is the main point to watch

Working capital increased to approximately $394 million by 30 June 2026 as Hunting purchased materials and prepared for higher expected activity in H2.

The group's period-end position was approximately $19 million of net bank borrowings. Cash movements during the half included $10.1 million of dividend distributions, $32.6 million of share buybacks, $11.6 million of treasury share purchases and $8.8 million to settle a UK import duty provision. Hunting expects these first-half working capital investments to unwind and continues to forecast a year-end cash position of approximately $60 million to $65 million.

That would represent a substantial improvement from June. Delivery will depend on the anticipated second-half trading ramp-up translating into customer receipts and working capital being released as planned. The group is also assessing bolt-on acquisitions, particularly in subsea and intelligent well completion. These could strengthen Hunting's position in its preferred growth areas, although transaction values and funding requirements were not disclosed.

Organic Oil Recovery makes commercial progress

Hunting's Organic Oil Recovery technology, known as OOR, is moving beyond testing with some customers.

More than 30 clients are sampling or field testing the technology. Buccaneer Energy in the US, PDO in Oman, and UEPL and OGDCL in Pakistan have progressed to commercial deployment. Testing is also continuing on several North Sea fields. Hunting expects OOR to generate approximately $10 million to $15 million of revenue in 2026 as customers move from small sampling projects towards full-field injection programmes.

Management remains confident that OOR can become a $100 million-a-year business by 2030. That is an ambition rather than guidance for guaranteed revenue, but successful commercialisation could give Hunting an additional growth platform.

What does the update mean for investors?

The positive message is that Hunting's key growth businesses are performing well, the order book has increased and full-year guidance remains intact. Subsea contract wins and unexpectedly strong Perforating Systems demand provide tangible support for management's strategy. There are still execution risks. Several product groups need to recover in H2, the full-year earnings target is second-half weighted, and the forecast improvement in cash relies on working capital unwinding. Near-term oil price volatility and conflict in the Middle East add uncertainty. There is also a leadership transition underway. Following the 1 June 2026 announcement, Hunting has appointed an international search firm to find a new chief executive, considering both internal and external candidates. No appointment timetable was disclosed. Overall, this was a reassuring update rather than a flawless one. Hunting appears to be delivering where it most wants to grow, but the August half-year results and second-half order conversion will be important tests of whether guidance and cash expectations remain firmly on course.