Research on Hunting PLC (HTG:LON) from Equity Development
The AGM update commentary is reassuring. Based on order book development, increased activity levels and improved mix, EBITDA progress for the year is anticipated consistent with previous guidance. Hunting appears to be on track for delivery of its 2030 targets and gathering momentum over the remainder of 2026 would serve to support this view. Management noted that trading was in line with expectations in Q1 26 with all product groups performing as anticipated. Reflecting order book development and business mix, Q1 26 EBITDA came in at U$23.2m, with a 10% EBITDA margin. Orders on hand have rebounded to U$429m (from U$358m at the end of December) including c. U$68m new Subsea business announced on 7 April. Related inventory build, together with an estimated U$27m share buybacks, resulted in a c. U$54m net cash outflow in Q1. Our Hunting estimates and fair value / share of 502p are unchanged. We see sustained order book growth and further positive Subsea business development as possible triggers for upside in valuation calculations.