Hunting plc - Clear catalysts for further value accretion
Hunting has set out clear strategic goals over an extended time horizon. The company took tangible steps in 2025 towards their attainment, meeting guidance for the year at the same time. Subsea’s elevated potential is important for many reasons, and within this, the development of Organic Oil Recovery could be a significant value trigger. Sustained order book expansion can be a wider catalyst here also, and the current tender pipeline looks promising.FY25 EBITDA up 7% to US$135.7m, in line with guidance: In meeting headline metrics flagged in its pre-close statement, Hunting confirmed a year of progress in profitability, further strong cash generation and M&A investment. Divisional and Product Group market conditions varied but elevated OCTG activity in H1 and self-generated gains in Perforating Systems and JVs were sufficient to deliver y-o-y EBITDA improvement.
M&A spend together with increased shareholder distributions (dividends and share buybacks) reduced the company-defined year-end cash position to US$63m. Management guidance for expected FY26 EBITDA of between US$145m-155m (midpoint +9% y-o-y) is unchanged.
Our estimates are set conservatively in the context of medium/longer-term aspirations and as noted above we can see clear catalysts for further growth towards the group’s 2030 targets. For now, our increased fair value estimate of 502p/share is set near current price levels.
Hunting is a holding company. Co.'s segments are: Hunting Titan, which provides perforating products; U.S, which supplies connections, oil country tubular goods (OCTG), drilling tools, subsea equipment, and intervention tools, among others, for the U.S. and overseas markets; Canada, which manufactures connections and accessories for operators in Canada; Europe, which supplies OCTG and well intervention equipment to operators in the North Sea; Asia Pacific, which manufactures connections and OCTG supply; Middle East, Africa and Other, which sells intervention tools in the Middle East and Africa; and Exploration and Production, which comprises its exploration and production activities.
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