Hunting reports higher margins, full-year earnings
By Josh White
Date: Thursday 05 Mar 2026
(Sharecast News) - Hunting reported higher earnings and margins for 2025 on Thursday despite a modest decline in revenue, as the precision engineering group benefited from improved operational performance and continued to expand shareholder returns under its long-term growth strategy.
The FTSE 250 company posted EBITDA of $135.7m for the year ended 31 December, up 7% from $126.3m in 2024, while the EBITDA margin improved to 13% from 12%.
Adjusted profit before tax rose to $79.7m from $75.6m, and adjusted diluted earnings per share increased 9% to 34.1 cents.
Revenue declined 3% to $1.02bn from $1.05bn a year earlier, reflecting softer activity in some energy markets, though the group reported continued diversification with non-oil and gas revenue rising 10% to $82.9m.
Statutory results improved significantly compared with the prior year, when earnings were impacted by a large impairment charge.
Operating profit reached $76.3m compared with a loss of $21.1m in 2024, while profit before tax was $65.5m compared with a loss of $33.5m.
Diluted earnings per share increased to 24.6 cents from a loss per share of 17.6 cents.
Chief executive Jim Johnson said the results reflected operational improvements and strategic investment.
"During the year, Hunting reaffirmed its commitment to disciplined capital allocation, strategic portfolio expansion and operational efficiency improvements.
"Our results reflect the strong performance of our teams around the world and I would like to thank them all for their hard work and dedication in what was a highly volatile and unpredictable market."
Gross margin improved to 27% during the year, while the group generated free cash flow of $96.6m, representing an EBITDA conversion of 71%.
Cash and bank balances stood at $62.9m after approximately $145m of net outflows related to acquisitions, share buybacks, treasury share purchases and dividends.
The company continued to invest in expanding its product portfolio, including the $64.8m acquisition of Flexible Engineering Solutions to strengthen its subsea offering and the $18.2m purchase of Organic Oil Recovery technology to accelerate commercialisation.
It also completed $231m of orders for Kuwait Oil Company, supporting strong performance in its OCTG product group, while the Perforating Systems business improved EBITDA to $13.9m from $1.4m in 2024.
Hunting also streamlined its portfolio, disposing of Rival Downhole Tools for $13.0m and opening a new facility in Dubai to support its Middle East operations.
Johnson said the group's strategy was focused on building a stronger and more diversified earnings base.
"Over the course of 2025, we strengthened our balance sheet, executed targeted acquisitions, exited lower-return segments, and broadened our geographic footprint, all while expanding our EBITDA margin and setting a clear path towards our stated 15% medium-term ambition under our Hunting 2030 Strategy."
The order book stood at $358.0m at the end of the year, including $120.7m of subsea projects and $98.6m linked to non-oil and gas opportunities.
Shareholder returns also increased, with total dividends for the year rising 13% to 13.0 cents per share from 11.5 cents in 2024.
The board proposed a final dividend of 6.8 cents per share, payable on 8 May to shareholders on the register on 10 April.
Hunting also launched a $40m share buyback in August 2025, which was later expanded to $60m and was expected to complete by mid-March.
The firm returned $53.1m to shareholders during 2025 through dividends and buybacks, compared with $18.2m in 2024.
Alongside its results, the group announced plans for a further $40m share repurchase programme to be executed over two years through to March 2028, targeting around $20m of buybacks annually.
Hunting also outlined additional cost reduction initiatives as part of its Hunting 2030 strategy, aiming to deliver about $15m of further annual savings by 2028 through operational efficiencies and lower centralised costs.
The savings would come on top of approximately $20m already eliminated through restructuring programmes across the Hunting Titan and EMEA operating segments.
Johnson said the group remained focused on profitability and cash generation.
"Our business remains focused on maximising profitability and cash generation, alongside pursuing our Hunting 2030 Strategy to deliver top line revenue growth through our key products and technology offering."
Looking ahead, Hunting said it expected further earnings growth in 2026 and maintained guidance for EBITDA of $145m to $155m, with EBITDA to free cash flow conversion of at least 50%.
Management said the group was actively converting a strong tender pipeline into new orders following completion of major contracts for Kuwait Oil Company and ExxonMobil.
While the company said it was monitoring geopolitical developments in the Middle East, it expected only limited exposure to the region in 2026 due to its increasing diversification and focus on offshore and subsea markets.
At 1204 GMT, shares in Hunting were up 4.89% at 536p.
Reporting by Josh White for Sharecast.com.
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