Hunting PLC Reports Strong H1 2025 Results with Revenue Growth and Strategic Acquisitions

Hunting PLC’s H1 2025: Revenue up, cash flowing, and a bigger focus on subsea and recovery tech

Hunting has delivered a solid first half in line with expectations, with revenue and adjusted profits moving up, cash generation much stronger, and a bigger dividend and buyback to boot. The standout driver was the completion of the large Kuwait Oil Company order, while strategic acquisitions aim to lift the medium-term profit profile.

There are a few caveats – the order book has stepped down as big projects roll off, and statutory (IFRS) profit dipped due to adjusting items – but guidance is reiterated and the balance sheet looks robust.

Headline numbers investors should clock

Metric	H1 2025	H1 2024
Revenue	$528.6m	$493.8m
EBITDA (earnings before interest, tax, depreciation and amortisation)	$70.2m	$60.3m
EBITDA margin	13%	12%
Adjusted profit before tax	$43.7m	$36.2m
Adjusted diluted EPS	19.6c	15.5c
Operating profit (IFRS)	$36.2m	$40.1m
Profit before tax (IFRS)	$30.6m	$36.2m
Diluted EPS (IFRS)	12.1c	15.5c
Free cash flow	$66.2m	$2.8m
Sales order book	$451.5m	$699.5m
Net cash / (debt)	$44.7m	$(41.4)m
ROCE	10.5%	7.5%
Interim dividend	6.2c	5.5c

Note the split between adjusted and IFRS results. Adjusted metrics exclude one-off items. Hunting recorded $13.1m of adjusting items in H1 2025, which helps explain why statutory profit is lower year-on-year despite stronger trading underneath.

What drove the improvement – and what eased back

OCTG – oil country tubular goods, essentially pipes and premium connections used in drilling – led the charge, supported by improved Perforating Systems. Subsea, Advanced Manufacturing and Other Manufacturing were weaker due to contract timing and revenue recognition. In short, mix and timing mattered.

The big operational win was the “faultless” completion of the $231 million Kuwait Oil Company order in May, with strong margins on the last four shipments. That clearly helped revenue, EBITDA and cash conversion.

Subsea momentum: $69m of new orders and marquee names

• $46m of titanium stress joint orders secured for the Gulf of Mexico and the Black Sea, including a new client win with BP and additional work for TPAO.
• $23m of bespoke Enpro orders in the North Sea.
• Completion of Uaru and Yellowtail titanium stress joint orders for ExxonMobil Guyana in June, with Whiptail work continuing.

These are attractive, higher-margin deepwater and ultra-deepwater niches. However, with large projects, orders land in chunks – hence the order book stepping down to $451.5m after big deliveries.

Strategy update: acquisitions, divestments and a geographic reshuffle

Two acquisitions to lift medium-term profit and cash flow

• Flexible Engineered Solutions (FES) acquired for $64.8m in June. FES brings proprietary fluid transfer technologies for FPSOs and subsea infrastructure – a strong fit with Hunting’s Subsea platform and cross-selling potential.
• Organic Oil Recovery (OOR) technology bought for $18.2m in March. This gives Hunting full IP ownership and broader commercialisation rights, including the Americas. It follows up to $60m of previously secured orders for North Sea deployment over five years, with a maiden treatment delivered in July 2025.

Both deals target higher-margin, IP-rich areas where Hunting can bundle products and scale globally. Management sees these as medium-term revenue and cash flow enhancers.

Portfolio pruning and cost actions

• Rival Downhole Tools 23% stake sold for $13.0m. The $1.0m escrow was received in July.
• Restructuring in Europe expanded – Fordoun, UK operations to wind down by June 2026 with capabilities moving to Badentoy; Netherlands and Norway sites closing; EMEA headcount to be reduced by 33% by mid-2026 to restore profitability.
• New 45,000 sq. ft. facility in Dubai, UAE commissioning in H2 2025, with $6m invested to date, centralising well testing and well intervention manufacturing and supporting sales for OOR, Perforating Systems and OCTG.

The direction of travel is clear – reduce European cost, shift resources towards the Middle East and subsea growth hubs, and recycle capital into higher-return areas.

Cash, dividend and buyback: shareholder returns step up

Cash generation was strong. Operating cash inflow was $90.8m and free cash flow reached $66.2m, a big jump from $2.8m in H1 2024. Period-end total cash and bank/(borrowings) stood at $79.3m after spending $80.0m on acquisitions, and net cash was $44.7m.

• Interim dividend of 6.2 cents, up 13% year-on-year.
• Policy lifted – annual dividend distributions to grow by 13% per annum, up from 10%.
• Share buyback of up to $40m commences today, to be executed in three tranches and conclude during 2026. Repurchased shares will be cancelled.

Cash was also used for $17.6m net purchases of treasury shares in the period and $9.5m of dividend payments, alongside the acquisitions.

Outlook: guidance intact, pipeline heavy, but macro choppy

Management reiterates full year EBITDA guidance of $135-$145m, backed by a strong balance sheet and net cash. The tender pipeline remains above $1bn, with new OCTG and Subsea opportunities being pursued. Non-oil and gas revenue ticked up to $37.7m, with Advanced Manufacturing winning orders, including from Pratt & Whitney.

That said, the backdrop is not tranquil. The statement flags OPEC+ actions, some client project deferrals, and geopolitical volatility. Offsetting this, Hunting notes strengthening gas-related drilling in several North American basins and longer lateral wells driving higher OCTG volumes. Large OCTG tenders are likely across the Middle East in H2, while Subsea growth in South America and West Africa continues to offer opportunities.

My take: quality progress, with a watchlist on order intake and EMEA restructuring

What looks positive

• Operational delivery – Kuwait order executed with strong margins, and subsea wins with BP, TPAO and ExxonMobil Guyana reinforce capability.
• Financial momentum – revenue and adjusted profits up, EBITDA margin up to 13%, ROCE at 10.5%, and free cash flow of $66.2m.
• Balance sheet – swing to $44.7m net cash gives optionality.
• Capital returns – a higher interim dividend, a policy stepping up to 13% growth p.a., and a new $40m buyback.
• Strategic positioning – FES and OOR add IP-rich, higher-margin lanes in FPSO/subsea and enhanced oil recovery, respectively.

What to keep an eye on

• Order book rebuild – now $451.5m after major deliveries. The timing and scale of H2 Middle East OCTG tenders and further subsea awards matter.
• Statutory vs adjusted gap – $13.1m of adjusting items weighed on IFRS results. Track the bridge through the year.
• EMEA restructuring execution – site closures and a 33% headcount reduction target are significant. Savings and transition risk need monitoring.
• Working capital discipline – ratio at 34% improved year-on-year, but higher than H2 2024’s 29%.
• OOR commercialisation – orders of up to $60m over five years are encouraging. Watch for conversion pace and the new Dubai lab ramp-up.

Useful links and how to follow up

• Group Results Narrative (PDF)
• Financial Statements and Notes (PDF)
• H1 2025 Analyst Webcast

Bottom line: a confident half, good cash, and a cleaner strategic focus on subsea and recovery tech. If Hunting converts the tender pipeline and lands the expected Middle East OCTG tenders, the second half could compound nicely – but I would keep a close eye on order intake cadence and the EMEA restructuring milestones.