Hunting PLC (LON:HTG), the global precision engineering group, has provided an update to its cost reduction plans, as part of the Group’s Hunting 2030 Strategy, in addition to updating investors on its ongoing capital allocation priorities.
Highlights
· Cost reduction plan to be completed through to the end of 2027 will increase profitability and further streamline centralised costs with projected savings of c.$15 million, in addition to those already announced.
· Proposed second Share Buyback programme, totalling $40 million, to be executed over two years up until March 2028.
Cost Reduction
Since 2024, Hunting has continued to maximise profitability through the significant restructuring of its Hunting Titan and EMEA operating segments. Costs of c.$20 million have been eliminated to date and will be realised by June 2026, once the Group’s Fordoun, Aberdeen, operating site is closed.
In addition to these programmes, the Group implemented regional shared-service business functions in Q4 2025 in Europe and North America. This is expected to result in further ongoing SG&A cost savings. Other operational and centralised cost savings are also being pursued and are expected to result in additional savings of c.$15 million per annum by 2028.
Proposed New $40 million Share Buy Back Programme
The Directors have continued to review their capital allocation priorities and pursue bolt-on acquisitions and other growth opportunities. The Directors today announce the intention to complete a further $40 million Share Buyback programme. The new Share Buyback programme is to be completed over a two-year period, with c.$20 million per annum being targeted for completion, and the Share Buyback will be subject to pre-agreed parameters. This quantum of repurchases broadly matches the proposed dividend distributions in this timescale, with the Directors targeting a balanced capital allocation and return to shareholders over the next two years.
Commenting on the restructuring and updated capital allocation, Jim Johnson, Chief Executive of Hunting said:
“Our business remains focused on maximising profitability and cash generation, alongside pursuing our Hunting 2030 Strategy to deliver top line revenue growth through our key products and technology offering.
“In addition, the proposed new $40 million Share Buyback programme reflects our confidence in our cash generation and increases our returns to shareholders, providing an ambition which now extends to 2028.”
