Hunting plc (LON:HTG), a global leader in oilfield services and high-precision engineering, has delivered another solid quarter, with encouraging signs across its business units despite broader macroeconomic headwinds. In a new research note dated 23 October 2025, Canaccord Genuity has reiterated its BUY rating on the company with a maintained target price of 600p, pointing to undervaluation relative to peers and continued earnings growth potential.
The Q3 trading update showed strong operational performance with EBITDA reaching $100.5 million for the nine months to September—an increase of 15% year-on-year. This implies a robust $30.3 million contribution in Q3 alone, up 14% year-on-year, with margins holding steady at 13%. Analyst Alex Brooks highlighted the positive contributions from Hunting Titan, the North American OCTG (Oil Country Tubular Goods) unit, Subsea, and the Asia-Pacific region, noting that these areas were particularly strong performers.
In the words of Brooks: “Performance was good in the period for multiple units, notably Hunting Titan, the North American OCTG business, Subsea and Asia-Pacific. Restructuring has disrupted some of the EMEA businesses, which remain on track for the planned cost savings, and the US capex slowdown has affected the Electronics business.”
Canaccord Genuity also noted the company’s proactive capital management strategy. Hunting’s ongoing $30 million share buyback programme is well underway, with $16 million already executed. At the same time, the firm remains in a net cash position, expected to land at $40-45 million by year-end, factoring in buybacks and dividends. Brooks described this as “effectively an upgrade over the previous $60-65mn range before the buyback.”
Another vote of confidence is the recent extension of Hunting plc’s $200 million revolving credit facility to October 2029, ensuring ample liquidity for future growth. While no mergers or acquisitions are likely to close this year, Brooks notes that “the company remains in multiple bolt-on M&A processes.” Additionally, substantial tenders and projects in OCTG and the North Sea could translate into significant orders in 2026.
While the global oilfield services market remains subdued, Canaccord Genuity has modestly adjusted its 2025 and 2026 forecasts to the lower end of the previous range—now expecting $135 million EBITDA in 2025 and $170 million in 2026. Yet, the tone remains optimistic. Brooks added, “We continue to see a positive outlook with Hunting’s multiple self-help steps, including restructuring, the impact of FES and OOR on earnings, and continued good results in OCTG.”
Financial and Operational Highlights – Year to Date
- EBITDA (9M 2025): $100.5 million, +15% YoY
- Q3 EBITDA: $30.3 million, +14% YoY
- EBITDA margin: 13% (steady)
- Share buyback: $16 million completed, $30 million target
- Expected net cash year-end: $40-45 million
- 2025 EBITDA Guidance: $135 million (low end of previous range)
- RCF extended: $200 million facility extended to 2029
- EPS forecast (2025E): 0.38 USD (22% increase vs. 2024)
On a Final Note
Hunting plc continues to navigate a challenging global environment with resilience and discipline. Strategic restructuring, capital returns, and solid execution across key segments reflect a company well-positioned for future growth. Canaccord Genuity’s unchanged target price and reaffirmed BUY rating signal a vote of confidence in Hunting’s long-term potential and undervalued share price.
