Research on Hunting PLC (HTG:LON) from Equity Development
The adverse share price response following Hunting’s H1 results announcement was disproportionate, in our view. The absence of a sizeable discrete order in the Middle East region has distracted from strong progress by Subsea and Perforating Systems in the period and the positive outlook across much of Hunting’s diverse subsector exposures. H1 26 results were in line with pre-close guidance. Subsea and Perforating Systems Product Groups advanced both revenues and EBITDA strongly, which substantially compensated for the effect of an elevated H1 25 OCTG comparator on financial performance, leaving group revenue and EBITDA down 6% and 12% y-o-y respectively and an overall EBITDA margin of 12.5%. A H2 weighting was well-flagged but the absence of an anticipated additional OCTG order in the Middle East led the company to revise its EBITDA range guidance from U$145m-155m previously to U$138m-141m for FY26E. Notwithstanding modestly reduced EBITDA estimates, we reiterate our long-held fair value estimate of 502p per share.
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