REG - Hunting PLC - Q3 2025 Trading Update

HuntingAnnouncement

23/10/2025 07:00

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RNS Number : 4461E  Hunting PLC  23 October 2025

 For Immediate Release  23 October 2025

 

 

Hunting PLC

 

("Hunting" or "the Company" or "the Group")

 

Q3 2025 Trading Update

 

Hunting PLC (LSE: HTG), the global precision engineering group, today
announces its Q3 2025 Trading Update.

 

Q3 Summary

 

·       Group EBITDA of c.$100.5 million in the year to 30 September
2025 - up 15% year-on-year.

·       Group EBITDA margin of c.13% recorded.

·       c.$416.4 million sales order book at 30 September 2025.

·      Hunting Titan is trading in line with expectations and well
ahead of the same period in 2024 as improvements to financial performance are
delivered.

·      North America operating segment performing marginally ahead of
expectations, driven by robust demand for TEC-LOCK™ semi-premium
connections.

·    Subsea reports trading in line with expectations in the
year-to-date, with a robust market outlook to 2028. Integration of Flexible
Engineered Solutions ("FES") progressing well, with cross selling
opportunities being captured.

·      EMEA restructuring continuing, with management on track to
deliver annualised cost savings of c.$11 million by June 2026. The
restructuring has disrupted trading to certain businesses within the region,
leading to the Group's anticipated full year outturn noted below.

·       Asia Pacific also trading in line with expectations.

·      Organic Oil Recovery ("OOR") business scaling up following
technology acquisition, with two treatments in the North Sea underway in the
quarter for a major operator.

·       Balance Sheet remains strong with net assets of c.$907 million.

 

Cash and Liquidity

 

·      Total cash and bank / (borrowings) of c.$47.1 million at
quarter-end, reflecting investment in inventory, and the impact of the share
buyback.

·    Total liquidity(1) of c.$336.5 million as of 30 September 2025
available to the Group to pursue acquisition focused growth.

·    The Directors continue to examine a range of bolt-on acquisition
opportunities across all the Group's key product groups.

·     During the period, the Group exercised its option to extend the
maturity of the $200m RCF by 12 months to October 2029.

 

Outlook and 2025 Outturn

 

·    2025 EBITDA outturn is expected to be at the lower end of the
Company's published guidance range of $135-$145 million, representing strong
year-on-year growth compared to 2024.

·       c.$30 million / 75% of share buyback to be completed by
year-end.

·      Year-end cash and bank / (borrowings) anticipated to be c.$40-$45
million, which includes projected cash to be absorbed from the share buyback,
in addition to the impact of working capital instruments utilised by the
Group.

 

Jim Johnson, Chief Executive of Hunting, commented:

 

"The encouraging performance at the half year has continued into the third
quarter with Hunting delivering a 15% year-on-year increase in its
year-to-date EBITDA thanks to trading within the OCTG product group.

 

"The integration of FES has continued in the quarter with strong cross selling
opportunities being identified, above those anticipated at the time of
acquisition.

 

"Our balance sheet remains strong, coupled with a robust year-end cash
projection and Hunting retains c.$336.5 million of liquidity available to
pursue growth opportunities, while also balancing these with increased
shareholder returns. Management is also continuing to review high quality
acquisition opportunities, with a focus on subsea and well completions."

 

Q3 Trading Update

 

Hunting's trading performance during Q3 2025 was, overall, in-line with
management's expectations across most operating segments and product groups.

 

The Hunting Titan operating segment reports stronger profitability compared to
the prior year, as management focus on improved production efficiencies, while
also capitalising on market activity in South America and the Middle East.
Trading within the North America operating segment has been marginally ahead
of expectations, due to strong OCTG sales in the period, offsetting some
softness within the Advanced Manufacturing product group. The Subsea
Technologies operating segment delivered better results throughout the quarter
as orders for ExxonMobil Guyana and TPAO in the Black Sea were progressed.
Management now expects FES to contribute c.$3 million to the Group's EBITDA
result for 2025. Multiple cross selling opportunities have been identified
since acquisition, which are being developed by management, as the integration
continues. The restructuring within the EMEA operating segment continues, with
the facilities being closed in the Netherlands and Norway in the period,
coupled with the opening of the Group's larger facility in Dubai, UAE. This
led to some disruption to trading during the quarter. The Group's Asia Pacific
operating segment has continued to trade in line with expectations.

 

Year-to-date EBITDA of c.$100.5 million reflects an in-line trading result
across all the Group's product groups and operating segments. Group EBITDA
margin of c.13% has been achieved in the year-to-date.

 

On 30 September 2025, total cash and bank / (borrowings) was c.$47.1 million.

 

Under the Company's share buyback programme, which began on 28 August 2025,
3,510,198 Ordinary shares have been purchased for cancellation, absorbing
c.$15.6 million to 21 October 2025 before costs.

 

The Group's balance sheet remains strong, with net assets on 30 September 2025
of c.$907 million. Working capital is marginally higher since the Half Year at
c.$366.5 million, reflecting raw materials purchases made in the quarter for
committed orders. Management anticipates that working capital will reduce by
c.$25 million by the year-end.

 

The 2025 interim dividend of 6.2 cents per share will be paid on Friday 31
October 2025, which will absorb c.$9.6 million.

 

Capital expenditure for the full year is now anticipated to be c.$35-$40
million, comprising tangible and intangible expenditure.

 

The Group continues to report a strong tender pipeline across most product
groups. New, large tenders are being assessed by management for the Group's
OCTG product group. Management has a positive outlook for Subsea orders, as
new tenders are anticipated to be issued during 2026.

 

Management continues to evaluate several acquisition opportunities, with the
focus remaining on subsea and well completion targets.

 

Outlook and 2025 Outturn

 

The Directors remain vigilant and continue to monitor the macro-environment
closely for increased signs of volatility. Trading remains steady across most
product groups, with the expected outturn for the year at the lower end of the
Company's guidance range of $135-$145 million. Year-end cash and bank /
(borrowings) is likely to be in the range of $40-$45 million, assuming that
the share buyback continues at the current rate of market purchases.

 

Date of Next Trading Update

 

The Group's next Trading Update is scheduled for Tuesday 13 January 2026.

 

Notes:

 

1.    Total liquidity is comprised of Hunting's $200 million revolving
credit facility which remains undrawn; uncommitted facilities of $89.4 million
and total cash and bank / borrowings of $47.1 million.

 

For further information please contact:

 

 Hunting PLC                        Tel: +44 (0) 20 7321 0123

 Jim Johnson, Chief Executive

 Bruce Ferguson, Finance Director

 Sodali & Co                        Tel: +44 (0) 77 4840 4399

 James White

 Pete Lambie

 Tilly Abraham

 

or

 

lon.IR@hunting-intl.com

 

About Hunting PLC

 

Hunting is a global, precision engineering group that provides
precision-manufactured equipment and premium services, which add value for our
customers. Established in 1874, it is a listed public company, quoted on the
London Stock Exchange in the Equity Shares in Commercial Companies ("ESCC")
category. The Company maintains a corporate office in Houston and is
headquartered in London. As well as the United Kingdom, the Company has
operations in China, India, Indonesia, Mexico, Saudi Arabia, Singapore, United
Arab Emirates and the United States of America.

 

The Group reports in US dollars across five operating segments: Hunting Titan;
North America; Subsea Technologies; Europe, Middle East and Africa ("EMEA")
and Asia Pacific.

 

The Group also reports revenue and EBITDA financial metrics based on five
product groups: OCTG, Perforating Systems, Subsea, Advanced Manufacturing and
Other Manufacturing.

 

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66

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