Hunting PLC Boosts Margins Amid Revenue Dip, Eyes Subsea Expansion
Event summary
- EBITDA up 7% to $135.7m despite 3% revenue decline to $1.02bn
- Non-oil and gas revenue grew 10% to $82.9m
- $64.8m acquisition of Flexible Engineering Solutions to expand subsea capabilities
- $231m orders completed for Kuwait Oil Company (KOC)
- Second $40m share buyback program proposed for 2026-2028
The big picture
Hunting PLC is strategically repositioning itself through targeted acquisitions and operational streamlining to reduce exposure to volatile oil and gas markets. The company's focus on subsea technologies and non-oil and gas revenue streams reflects broader industry trends toward diversification and resilience in the face of macroeconomic uncertainty. With a robust order book and disciplined capital allocation, Hunting aims to deliver consistent earnings growth despite regional geopolitical risks.
What we're watching
- Subsea Expansion
- How Hunting's $64.8m acquisition of Flexible Engineering Solutions will position it in the growing subsea market, particularly with projected increases in subsea tree awards and FPSO builds.
- Diversification Strategy
- Whether Hunting can sustain its 10% growth in non-oil and gas revenue as it pivots toward aviation and space markets through its Advanced Manufacturing group.
- Capital Allocation
- The pace at which Hunting will execute its second $40m share buyback program while maintaining its 13% annual dividend increase commitment through 2030.
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