Hunting PLC (LON:HTG), a global engineering group with a rich portfolio of precision-manufactured products, continues to showcase resilience and growth, despite facing variable market conditions in 2024. As the company’s financial year wraps up, it remains on track to meet its upgraded EBITDA guidance of $123–126 million, marking an impressive 22% year-on-year growth.
The company’s OCTG (Oil Country Tubular Goods) and Subsea product groups have been standout performers, driven by elevated order intakes. On the other hand, Hunting Titan/Perforating Systems faced challenges in the North American onshore markets. Reflecting on the mixed landscape, Research Analyst Toby Thorrington commented:
“Hunting’s OCTG and Subsea activities will show the largest absolute contributions to FY24 profitability and the most significant year-on-year uplifts, both being driven by elevated order intake. Advanced Manufacturing should also show good progress, albeit smaller in quantum.”
Financial Strength and Future Prospects
Hunting’s strong net cash position of $100–105 million at year-end, bolstered by successful shipment deliveries and cash collection schedules, places the company in a prime position to capitalise on merger and acquisition opportunities. Combined with $300 million in updated banking facilities, the company is well-equipped to advance its 2030 strategy, launched in September 2023.
Looking ahead to FY25, Equity Development anticipates EBITDA for wholly owned businesses to be in the range of $135–145 million, while the inclusion of joint ventures could push this figure higher. Key areas of interest include a flagged restructuring in the EMEA region, ongoing improvements in commodity prices, and robust group order book developments, which stood at $500 million by the close of FY24.
Hunting Plc Share Price Outlook
The past year saw Hunting’s share price end slightly lower, though it remains undervalued according to Equity Development’s assessment. The broker retains a fair value estimate of 397p per share. Commenting on the valuation, Thorrington noted:
“We believe that Hunting’s current share price is discounting levels of profitability significantly lower than the group is currently achieving.”
Final Thoughts
Hunting PLC’s commitment to innovation, operational excellence, and strategic growth remains steadfast. While challenges persist in specific markets, the company’s financial health and strong order pipeline provide confidence in its ability to achieve long-term growth. With FY24 results expected on 6 March 2025, stakeholders can anticipate further insights into the company’s performance and prospects.
