Hunting PLC reported fiscal 2025 results that were broadly in line with the company s guidance, while unveiling another share repurchase plan and further cost-reduction initiatives as its backlog contracted.
The oilfield services group recorded EBITDA of $135.7 million for fiscal 2025, in line with its previously guided figure of roughly $135 million and market consensus of $135 million. Group revenue declined 3% year-over-year to $1,019 million.
Net profit for the year was $43 million, below consensus expectations of $48 million, with the shortfall attributed to impairments and higher tax expenses. The company finished the year with net cash of $28 million, consistent with its prior guidance.
Management disclosed that the company s order book stood at $358 million at year end. That level represented a 30% decline on a year-over-year basis to $358 million, and was marginally above guidance of approximately $350 million. The company also noted the order book was down 21% from $452 million at the first half of fiscal 2025. Hunting said 65% of the order book is expected to convert in 2026, and that the mix includes $121 million of subsea orders and $99 million of non-oil and gas work.
Despite the softer backlog, Hunting maintained its fiscal 2026 EBITDA guidance of $145 million to $155 million, with targeted margins of approximately 13% to 14%. The company expects capital expenditure in the range of $40 million to $50 million and anticipates free cash flow conversion at roughly 50% of EBITDA.
On shareholder returns, Hunting announced a second share buyback program totaling $40 million to be completed by March 2028. This follows an existing $60 million buyback that is scheduled to conclude in mid-March 2026.
The board declared a final dividend for fiscal 2025 of 6.8 cents per share, taking the full-year dividend to 13 cents per share, an increase of 13% from the prior year. The final dividend is due to be paid on May 8.
Divisional performance was mixed. Subsea EBITDA margins contracted to 17.0% from 20.4% in fiscal 2024. OCTG margins improved to 18.8% from 17.3%, while Perforating Systems margins increased markedly to 13.1% from 0.6%.
As part of its cost agenda, Hunting is targeting an additional $15 million in annual savings to be delivered by 2028 through operational efficiencies and centralized cost reductions. The company also said its tender pipeline remained broadly unchanged at approximately $1.0 billion, with identified opportunities across South America, the Middle East and Asia Pacific.
Key points
- EBITDA of $135.7 million met guidance and consensus; revenue fell 3% to $1,019 million - impacts the oilfield services and broader energy sector.
- Order book declined to $358 million - 30% year-over-year and 21% down from the first half of fiscal 2025 - a material indicator for near-term activity in subsea and non-oil and gas segments.
- Management kept fiscal 2026 EBITDA guidance at $145-$155 million, announced a $40 million buyback, and set a $15 million annual cost-savings target by 2028 - relevant to capital markets and shareholder returns.
Risks and uncertainties
- Reduced order book - a lower backlog may pressure future revenue and utilization across oilfield services and subsea operations.
- Declining subsea margins - a fall from 20.4% to 17.0% may indicate margin pressure in that division, affecting profitability in energy-related engineering services.
- Dependence on tender pipeline conversion - with the tender pipeline at approximately $1.0 billion, outcomes in regions named by the company (South America, the Middle East and Asia Pacific) will influence future contract wins and revenue.