Hunting PLC

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

H1 2026 Trading Update

Hunting PLC (LSE: HTG), the precision engineering group, today publishes its H1 2026 Trading Update.

Highlights

Operational

·           Solid Group performance during the period, with EBITDA in line with guidance.

o  Subsea performance underpinned by continued contract momentum in Guyana, with $63.5 million of orders for the Group's titanium stress joint product line secured during the period.

o  Perforating Systems' results significantly ahead of management's expectations driven by strong demand for Hunting's unconventional well completion products internationally and market share gains across North America.

o  The Group's OCTG, Advanced Manufacturing and Other Manufacturing product groups all report lower activity in H1 2026 due to order phasing, with higher performance projected in H2 2026.

·          Good progress with commercialisation of the Organic Oil Recovery ("OOR") technology, with purchase orders received from a client in Pakistan, and positive well testing data in North America, Middle East and North Sea. Further progress expected to be reported in H2 2026.

·          Ongoing restructuring of EMEA operating segment with OCTG operations in Aberdeen now being transferred to the Badentoy operating site, with the Fordoun site to be closed by the end of the summer.

·          Period-end sales order book of c.$387 million, ahead of the 2025 year-end position of $358 million.

Financial

·          H1 2026 EBITDA of c.$62 million, consistent with the 40:60 phasing of full-year earnings guidance issued in March 2026.

·          H1 2026 EBITDA margin of c.12%, reflecting the continued rebalancing of the earnings profile of the Group towards higher growth segments of the global oil and gas market.

·          Working capital increased to c.$394 million at 30 June 2026, reflecting the operational ramp-up required to support higher anticipated activity levels in H2 2026.

·          Total cash and bank / (borrowings) of c.$(19) million at 30 June 2026, reflects raw material purchases in the period and includes the following items:

o  $10.1 million of dividend distributions;

o  $32.6 million of share buybacks (ongoing) - $6.0m of second buyback completed in H1;

o  $11.6 million from treasury share purchases; and

o  $8.8 million on settlement of UK import duty provision.

Outlook

·          Group well positioned to navigate near-term oil price and market volatility.

·          Robust outlook for increases in activity in Asia Pacific, the Americas and the Middle East driven by AI driven power demand, oil and gas security of supply, and changes to OPEC.

·          2026 full year EBITDA guidance of between $145-$155 million is maintained, with EBITDA margin guidance unchanged at c.13%-14%.

·        Projected year-end total cash and bank position is unchanged at c.$60-$65 million as working capital investments in H1 unwind.

·          $15 million p.a. of Group-wide cost savings on track for delivery between 2026 and 2027.

Jim Johnson, Chief Executive of Hunting, commented:

"Our H1 performance has seen continued strong momentum in our Subsea and Perforating Systems businesses supporting our unchanged full-year expectations as we continue the process of rebalancing our earnings profile towards the international unconventional, offshore and subsea segments of the global oil and gas market.

"Looking ahead, although the conflict in the Middle East and resultant oil price dynamics may create near-term volatility, the rigorous execution of our strategy means we will benefit from longer-term, multi-year oil and gas expansion plans, as well as an increased focus on energy security and independence and AI driven power demand.

"Our multiple product lines and global footprint provide the business with exceptional structural resilience and mean we are well positioned to continue to deliver growth and expand market share despite wider market uncertainty.

"Overall, Hunting remains well-placed to achieve strong, long-term growth and increased shareholder returns."

Trading Update

Improved sales order book and tender pipeline

The Group reports a period-end sales order book of c.$387 million, ahead of the 2025 year-end position of $358 million.

The Group's tender pipeline remains robust at c.$1.0 billion.

Encouraging performance across the businesses

During the period, the Group's Perforating Systems and Subsea product groups have traded ahead of expectations, with particularly strong demand for Hunting's unconventional well completion products being reported within both International and North America markets. The Subsea product group also saw strong demand for its couplings and valves and good progress on the Longtail and Hammerhead projects in Guyana.

The Group's OCTG, Advanced Manufacturing and Other Manufacturing product groups reported lower activity in H1 2026 due to order phasing, with recovery projected in H2 2026.

Overall, the outlook for all product groups remains encouraging, as both energy-related and non-oil and gas end-markets continue to provide reassuring indications of strong growth out to the end of the decade.

In respect of the Group's operating segments, the Hunting Titan operating segment traded ahead of expectations during the period, with the Subsea Technologies operating segment trading well, offsetting lower results being reported across the Group's other operating segments.

Organic Oil Recovery

Hunting now has more than 30 active clients who are either sampling or field testing the OOR technology. Clients including Buccaneer Energy, in the US, PDO in Oman and UEPL and OGDCL in Pakistan, have progressed to commercial deployment of the technology.

Testing continues on a number of North Sea fields, with discussions underway about the next steps, and further progress to be reported in H2 2026.

Hunting continues to expect the business unit to generate revenue of c.$10-$15 million in 2026, supported by customers moving from smaller sampling projects to full-field injection programmes as the year progresses. 

Management remains confident that it can grow into a $100 million per annum business by 2030.

2026 full year guidance

Full-year EBITDA guidance of c.$145-$155 million remains in line with market expectations. The year-end total cash and bank / (borrowings) position is expected to be c.$60-$65 million.

M&A activity

As part of the Hunting 2030 Strategy, management continues to assess several bolt-on acquisitions, with a targeted pipeline of transactions under review during the period. Subsea and intelligent well completion businesses remain a particular area of focus for the Group.

Chief Executive Search

Following the announcement on 1 June 2026, the Directors confirm that the Board has appointed an international search firm to assist in the appointment of a new Chief Executive. The process will consider internal and external candidates and will incorporate a global search given the international profile of Hunting's operations and personnel.

External Audit Tender

During H1 2026, the Company completed a competitive tender process for its external auditor overseen by its Audit and Risk Committee, which carefully evaluated the offering of each participant. This has resulted in a recommendation from the Audit and Risk Committee, which has now been endorsed by the Directors, that a resolution be put to shareholders for approval at the 2027 Annual General Meeting to appoint KPMG LLP as external auditor of the Company and its subsidiaries for the year ending 31 December 2027.

Deloitte LLP will continue in their current role and will undertake the audit for the year ending 31 December 2026. Deloitte LLP will cease to hold office as the external auditor of the Company at the conclusion of the Company's 2027 AGM, subject to approval by shareholders of the appointment of KPMG LLP.

2026 Half Year Results

Hunting PLC will announce its 2026 half year results on Friday 21 August 2026.

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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.