Hunting PLC (LON:HTG), the global precision engineering group, has announced its Q3 2026 Trading Update and outlook for the rest of the year.
Jim Johnson, Chief Executive Officer of Hunting, commented:
“Whilst the long-term fundamentals of our end-markets remain robust, which includes ongoing strong trading results within our Subsea-focused businesses, the protracted and deepening nature of the conflict in the Middle East has impacted our overall results in Q3 and into Q4, with a deterioration in the short-term trading outlook seen in recent weeks.
“The Directors believe that there is significant upside within the Middle East once hostilities cease. However, OCTG and other product line tender activity across the region remains challenged at present by logistical issues and continued attacks on shipping and regional infrastructure. Rig activity in Saudi Arabia has declined, reducing activity levels in the Jafurah unconventional development, affecting trading within Hunting Titan.
“In North America, Hunting Titan’s performance in this key market has improved significantly in the year-to-date; however, we remain cautious about Q4 activity given seasonal factors, client budget issues and caution among operators as we progress through the current quarter.
“These pressures, together with a slower than planned trading improvement within the Electronics and Dearborn business units due to third-party supply chain issues, have led to us reducing our FY 2026 guidance, with EBITDA now likely to be in the range of $128-$133 million.
“The large Kuwait Oil Company (“KOC”) re-tender was published on 12 October 2026. A decision is anticipated before the year-end, with product shipments due to commence in H2 2027. Hunting remains well-placed to secure further orders as part of this re-tender process, building on the strong relationship we have established with KOC over recent years.
“The Group’s cost reduction plan and restructuring continues with a number of initiatives to streamline the portfolio ongoing, including the combination of the EMEA and Asia Pacific operating segments, the disposal of non-core businesses in addition to the review of SG&A costs.
“More broadly, Hunting’s portfolio remains fully aligned with the industry’s growth drivers and we remain confident of delivering on our strategic ambitions over the medium term.
Q3 Trading Update
Year-to-date EBITDA was c.$89 million reflecting the results from the operating segments/product lines of the Group, with an EBITDA margin of c.12%.
Hunting Titan’s performance in Q3 was marginally behind its projected outturn. Since the start of the current trading quarter, the operating segment has experienced a notable slowing in deliveries to the Middle East and some slowdown in North America, which will likely extend to the end of the year. Nevertheless, robust year-on-year growth will be delivered, reflecting the overall increase in the domestic North American market in the year-to-date, supported by accelerating international sales.
The North America operating segment also anticipates a slowdown in OCTG activity across the region in Q4. The trading improvement within the Electronics and Dearborn business units, which comprise our Advanced Manufacturing product group, has been slower than anticipated as third-party supply chain issues have reduced deliveries and delayed the completion of orders.
Profitability across Subsea Technologies remains robust, supported by ongoing commercial demand and disciplined operational execution across all our platforms. The Organic Oil Recovery technology continues to attract strong industry interest, with encouraging progress being made in South America, the North Sea and the Middle East during the period, including the receipt of a number of orders for pilot testing and sampling work.
The EMEA operating segment returned to profitability during Q3 2026 as the completion of the restructuring, including the closure of the Fordoun, Aberdeen operating site in September, began to deliver the previously announced cost savings. However, due to the Middle East situation noted above, the segment will likely report a small EBITDA loss for the year as whole.
The Asia Pacific operating segment has delivered a lower year-to-date result, reflecting the previously announced delay to the KOC tender and reduced tender activity across the Middle East region amid ongoing market volatility. The Kuwait re-tender has now been published, as noted above, with results likely to be known towards the end of the year. However, more broadly, OCTG tendering across the Asia Pacific and Middle East regions has slowed, which means that the Asia Pacific operating segment will likely report a break even result in H2 following the small profit reported in H1.
Balance Sheet and Capital Allocation
On 30 September 2026, total cash and bank / (borrowings) was c.$(11) million compared with $(19) million on 30 June 2026, reflecting strong underlying operational cash conversion and effective working capital management during the quarter. The Group’s balance sheet remains strong, with net assets of c.$876 million on 30 September 2026. Working capital was c.$399 million, broadly unchanged on the half year point.
The 2026 interim dividend of 7.0 cents per share will be paid on Friday 30 October 2026, which will absorb c.$10 million. Capital expenditure for the full year is now anticipated to be c.$35-$45 million, comprising tangible and intangible expenditure. In addition, the Share Buy Back programme is anticipated to absorb c.$42 million for the full year.
Management continues to evaluate several acquisition opportunities, with the focus remaining on subsea and well completion targets.
Outlook
The ongoing conflict in the Middle East and some slowing of activity across other markets mean that the Group’s anticipated EBITDA outturn is now likely to be in the range of $128-$133 million for the full year. Year-end cash and bank / (borrowings) is likely to be in the range of $40-$45 million.
Update on CEO search process
The Nomination Committee actively advanced its search process during the period, progressing a high-calibre pool of both internal and external candidates with interviews planned in Q4 2026. The evaluation process remains focused on identifying a leader with the strategic vision, operational expertise and cultural fit required to drive the Group’s next phase of growth. The Board is pleased with the strength of the candidate pipeline and looks forward to concluding the selection process in due course.
Date of next Trading Update
The Group’s next Trading Update is scheduled for Tuesday 19 January 2027.
