Slides
Page 1
PRECISION ENGINEERING STRATEGIC EXPANSION AND OPERATIONAL DELIVERY HUNTING PLC HALF YEAR REPORT FOR THE SIX MONTH ENDED 30 JUNE 2026
Page 2
1 PPT MASTER. FOOTER STYLE By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and agree to comply with the following restrictions . This document and the accompanying verbal presentation and webcast (together the “Presentation”) have been prepared by Hunting PLC (the “Company”) solely for the use to provide information to investors . The information in this Presentation does not comprise, constitute, or form part of an admission document, listing particulars or a prospectus relating to the Company or any subsidiary of the Company (together the “Group”), does not constitute an offer or invitation to purchase or acquire any securities of the Company, and should not be relied on in connection with a decision to purchase or acquire any such securities . This Presentation does not constitute a recommendation regarding any decision to sell or purchase securities in the Company . This Presentation is being supplied to you solely for your information and may not be reproduced in any form or further distributed or otherwise disclosed to any other person or published, in whole or in part, for any purpose without the Company’s consent . No reliance may be placed for any purpose whatsoever on the information contained in this Presentation . While the information in this Presentation has been prepared in good faith, no representation or warranty, express or implied, is or will be made by or on behalf of the Group, its shareholders, directors, officers, employees, agents, affiliates, representatives or advisers or any other person as to the accuracy or completeness of the information or opinions contained in this Presentation or any other written or oral information made available, and no such person accepts any obligation or responsibility to advise any person of changes in the information set forth herein after the date hereof . To the fullest extent permitted by law, no person accepts any liability whatsoever for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this Presentation or its contents or otherwise in connection with the subject matter of this Presentation . Recipients of this Presentation who are considering an acquisition of securities are reminded that any acquisition should be made solely based on the information contained in public announcements released by the Company via a Regulatory Information Service . This Presentation contains forward - looking statements, which relate, inter alia, to the Group’s strategy, plans and objectives . Forward - looking statements are sometimes identified by using terminology such as “believes”, “expects”, “may”, “will”, “could”, “should” “shall”, “intends”, “estimates”, “plans”, “predicts”, “continues” or “anticipates” or the negatives thereof, other variations thereon or comparable terminology . By its very nature, such forward - looking information requires the Group to make assumptions that may or may not materialise . Such forward - looking statements may be price sensitive and involve known and unknown risks, uncertainties and other important factors beyond the control of the Group that could cause the actual performance or achievements of the Group to be materially different from such forward - looking statements . Past performance of the Group cannot be relied upon as a guide to future performance . Accordingly, you should not rely on any forward - looking statements and, except as required by applicable law or regulation (including under the UK Market Abuse Regulation, the Listing Rules and the Disclosure Guidance and Transparency Rules), the Group accepts no obligation to publicly review or disseminate any updates or revisions to such forward - looking statements in light of new information, future events or otherwise . No statement in this Presentation is intended as a profit forecast or a profit estimate and no statement in this Presentation should be interpreted as to mean that earnings per share for the current or future financial periods would necessarily match or exceed historical published earnings per share . Any forward - looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge and information available to the directors of the Company on the date of this Presentation . Disclaimer
Page 3
H1 2026 highlights – capturing the structural growth opportunity 2 Continued momentum during the period Further optimisation of our portfolio Supportive market backdrop • Step - change in performance of Subsea Technologies operating segment. • Encouraging momentum across Perforating Systems product group. • Good progress with Organic Oil Recovery commercialisation. • $15m of cost reductions planned by end of 2027. • Completion of EMEA restructuring in September. • Combination of EMEA and Asia Pacific operating segments announced. • Multi - year growth in oil and gas investments projected across multiple product groups. • Increased focus on energy security and independence and AI - driven power demand. • Major operators placing heightened focus on reserve longevity. Strategic repositioning and proactive portfolio management continues to underpin Group earnings
Page 4
Market highlights Average WTI crude oil price $ 83 per bbl (H1 2025 – $67.5 per bbl) Global drilling capital $ 46.3 bn (H1 2025 – $45.8bn) Global average rig count 1,746 (H1 2025 – 1,796 ) Financial and market highlights – robust performance in a volatile macro environment 3 Financial highlights Revenue $ 497.0 m (H1 2025 – $528.6m) EBITDA $ 62.1 m (H1 2025 – $70.2m) Sales order book $ 386.5 m (H1 2025 – $451.5m) Free Cash Flow $ (27.8) m (H1 2025 – $66.2m) Interim Dividend Declared 7.0 c (H1 2025 – 6.2c) Share buyback completed $ 32.8 m (H1 2025 – nil) • Strong EBITDA contribution from Subsea driven by good contributions from all businesses. • H1 2026 EBITDA reflects absence of KOC orders delivered in H1 2025. • Sales within the Advanced Manufacturing product group lower due to contract timings and equipment capex cycle. • Working capital build supporting second half activity across all product groups. • Ongoing share buybacks and dividends driving increasing shareholder returns.
Page 5
Successful transformation to deliver higher quality earnings from Subsea 4 • Current portfolio rebalanced to Subsea and Middle East (through APAC market share growth). • Subsea now projected to comprise c.18 - 20% of Group revenue in 2026 and c.25% of Group EBITDA. • Advanced Manufacturing’s $112 million order book is being progressed, with uplift in earnings projected for H2, in line with guidance. • Organic Oil Recovery technology involved in multiple international sampling and test opportunities. • Asia Pacific continues to see large OCTG tender opportunities, as delivered by the success since 2019 with KOC, Vedanta, CNOOC and other important international clients. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Asia Pacific EMEA North America Hunting Titan Subsea Technologies 2025 2019 $960.0m $1,018.8m H12026 $497.0m Revenue
Page 6
Robust focus on higher cost reductions and stronger capital allocations 5 2025 2019 Operating sites 25 36 Distribution centres 2025 2019 14 19 Year - end employees (incl. head office) 2025 2019 2,246 2,956 c. 31 % decrease c. 26 % decrease c. 24 % decrease Dividends* Share buyback Treasury shares • Operational footprint streamlined to align with focus on offshore end - markets. • Headcount now aligned with Americas and Asia Pacific. • Dividend distributions accelerating. • $100m of share buybacks planned to 2028. • Treasury share purchases supporting LTIP vestings out to 2028. 13.0c 8.0c 2025 2019 33.9 cents $m $m 18.2 4.7 2025 2025 2019 * 3.0c paid in 2020 as an interim dividend in place of the proposed 2019 final dividend of 6.0c. c. 63 % increase c. 300 % increase 2019
Page 7
Long - term oil demand Oil and gas demand will remain strong past 2050 – gas seen as the transition fuel 6 Long - term gas demand Source: Wood MacKenzie 0 1000 2000 3000 4000 5000 6000 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2048 2050 2046 Oil retains a significant role in the energy mix, supported by transport demand in the near term and petrochemical feedstock needs over the longer term despite accelerating electrification. Scenario spread is ~3x by 2050 (~4,400 vs ~1,500 Mtoe). Policy pace, not peak demand, drives the outcome 0 1000 2000 3000 4000 5000 6000 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2048 2050 2046 Mtoe Mtoe Gas is the most resilient molecule, falling just 48% even under Net Zero, compared with oil's 68% drop Gas maintains a key role in the global energy mix through 2050. AI growth in North America and coal - to - gas switching in Asia drive medium - term gas demand; in the long term, the ability of gas to provide flexible generation supports its use as the energy transition accelerates. Base Case Scenario Net Zero Scenario Delayed Transition Scenario
Page 8
7 Single U.S. Data Centre Power Demand (MW) 18 19 22 24 25 28 31 33 37 42 46 51 0 10 20 30 40 50 60 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Electricity and power demand projections driving the ‘chase for electrons’ Source: LEK, Goldman Sachs Research, FactSet CapEx Estimates for AI Hyperscalers (1) (Billions of Dollars
Page 9
Reserve life of majors now an increasingly important theme 8 Source: Wood MacKenzie Data based on current portfolios and reserve bases and excludes uncompleted M&A 0 1 2 3 4 5 6 2025 2027 2029 2031 2033 2035 2037 2039 2025 2027 2029 2031 2033 2035 2037 2039 2025 2027 2029 2031 2033 2035 2037 2039 2025 2027 2029 2031 2033 2035 2037 2039 2025 2027 2029 2031 2033 2035 2037 2039 2025 2027 2029 2031 2033 2035 2037 2039 2025 2027 2029 2031 2033 2035 2037 2039 2025 2027 2029 2031 2033 2035 2037 2039 2025 2027 2029 2031 2033 2035 2037 2039 2025 2027 2029 2031 2033 2035 2037 2039 Unconventionals LNG Conventionals Deepwater - 52% - 55% - 61% - 36% - 30% - 48% - 10% - 20% 0% - 35% Oil & gas production by resource theme ( mmboe /d) 2025 pro./2040 prod. Ratio: < - 25% 0 to - 25% >0%
Page 10
9 PRECISION ENGINEERING STRATEGIC EXPANSION AND OPERATIONAL DELIVERY FINANCE REPORT
Page 11
Robust performance alongside strong capital allocation policy 10 • EBITDA of $62.1m and EBITDA margin of 12%. • Non - oil and gas revenue $38.0m. • Adjusted diluted earnings per share down from 19.6 cents to 15.2 cents. • Sales order book normalised at $386.5m providing visibility for 2026 and beyond. • Dividend of 7.0 cents for H1 2026, up 13% from 6.2 cents. • Return on average capital employed 9.1% (YE 2025 – 10.5%). • Working capital to revenue ratio of 37%. 10 Financial Overview
Page 12
Core business reflects H2 weighting and absence of KOC order 11 H1 2026 H1 2025 $m Margin $m Margin Revenue from oil and gas 459.0 490.9 ) Revenue from non - oil and gas 38.0 37.7 ) Further uplift projected for H2 Revenue 497.0 528.6 ) Lower revenue reflects absence of KOC orders within OCTG Gross profit 136.2 27% 146.9 ) 28% Mainly driven by higher Perforating Systems sales mix EBITDA 62.1 12% 70.2 ) 13% Good contribution from Subsea and Perforating Systems Adjusted operating profit 40.0 8% 49.3 ) 9% Adjusted profit before tax 34.5 43.7 ) Adjusted tax charge (9.7) (9.8) Adjusted profit for the year 24.8 33.9 ) Adjusted diluted earnings per share 15.2c 19.6c Year - on - year issued share capital 8% lower Interim dividend per share proposed 7.0c 6.2c Continued commitment to 13% p.a. growth *Results for the period, as reported under IFRS, adjusted for certain items as determined by management . Adjusted Group Income Statement*
Page 13
Strong results from Hunting Titan and Subsea Technologies operating segments 12 H1 2026 H1 2025 Revenue $m EBITDA $m Revenue $m EBITDA $m Hunting Titan 152.9 ) 12.3 ) 105.5 ) 5.9 ) North America 169.9 ) 27.9 ) 189.0 ) 31.8 ) Subsea Technologies 115.6 ) 23.6 ) 59.0 ) 7.7 ) EMEA 33.8 ) (3.5) 39.4 ) (3.3) Asia Pacific 49.9 ) 1.8 ) 155.6 ) 28.1 ) Inter - segment elimination (25.1) - (19.9) ) - ) 497.0 ) 62.1 ) 528.6 70.2 Segmental results • US land and international unconventionals driving Titan’s sales growth. • North America reports lower sales due to Electronics and smaller international connections royalties. • Subsea, including FES, momentum strong in Spring and Stafford businesses. • EMEA reports lower OCTG revenue following closure of Netherlands, partially offset by strong increases to well testing and we ll intervention sales. • Asia Pacific lower on absence of KOC orders in period. • Inter - segment sales higher driven by switch sales from North America to Hunting Titan.
Page 14
Robust balance sheet with working capital higher to driver performance in H2 13 30 June 2026 $m 31 December 2025 $m Property, plant and equipment 253.8 250.9 Right - of - use assets 26.5 28.9 Goodwill and other intangible assets 160.5 165.7 Associates and joint ventures 12.5 12.7 Assets held for sale 1.5 1.5 Working capital 391.3 335.9 Build to drive H2 performance Taxation 73.0 74.3 Provisions (7.2) (16.6) Import duty liability settled Other net assets 2.6 3.9 Total cash and bank / (borrowings) (19.0) 62.9 Lease liabilities (28.5) (30.9) Other borrowings (3.9) (3.9) Net (debt) / cash (51.4) 28.1 Net assets 863.1 885.3 ROCE 9.1% 10.5% Group Balance Sheet 29% 33 % 37 % FY 2024 FY 2025 H1 2026 Working capital to revenue - %
Page 15
Working capital reflects projected step - up in H2 2026 activity 14 30 June 2026 $m 31 December 2025 $m Inventories - Hunting Titan 99.0 99.0 ) - North America 85.8 81.8 ) - Other segments 54.7 56.7 ) Net inventories 239.5 237.5 ) Receivables 293.5 238.3 ) Payables (141.7) (139.9) Total 391.3 335.9 ) Working capital to annualised revenue ratio 37% 33% Inventory days 115 days 118 days Receivables days 89 days 78 days Payables days 46 days 41 days Advances from customers 10.0 12.7 Payments on account to suppliers 9.8 4.8 Working capital
Page 16
Cash flows reflects H1 investment ahead of anticipated higher activity in H2 2026 15 H1 2026 $m H1 2025 $m EBITDA 62.1 ) 70.2 ) 2025 included KOC order contribution Add: share - based payments 7.1 ) 7.3 ) 69.2 ) 77.5 ) Working capital movements (58.0) 25.8 ) Inventory purchases for H2 2026 secured orders Tangible and intangible asset capital investments (16.4) (19.7) Lease payments (4.2) (4.2) Net interest and bank fees paid (3.6) (4.7) Net tax paid (14.0) (6.1) $8.7m import tax liability, one off payment Restructuring costs paid in period (0.7) (1.4) Other (0.1) (1.0) Free cash flow (27.8) 66.2 ) Net transactions with associates and joint ventures 0.1 ) 11.2 ) Disposal of Rival in 2025 for $12.0m Acquisitions including costs (0.5) (81.7) FES and OOR acquisition in H1 2025 Share buyback (32.7) - Share buyback programme commenced August 2025 Dividends paid to equity shareholders (10.1) (9.5) Final dividend 2025: 6.8c; 2024: 6.0c Net purchase of treasury shares (11.5) (17.6) Other non - cash movements (0.1) - Net cash outflow (82.6) (31.4) Foreign exchange 0.7 6.0 ) Movement in total cash and bank / (borrowings) (81.9) (25.4) Group cash flow
Page 17
128.4 27.5 112.0 93.5 25.1 OCTG Perforating Systems Advanced Manufacturing Subsea Other 16 Order book by product group Source: Company • Tender pipeline remains at c.$1.0bn including OCTG, Subsea and Advanced Manufacturing. • Order book upside driven by Middle East OCTG opportunities, albeit with some delays to tenders due to ongoing conflict. • Subsea orders for Guyana received, supporting regional success. • Non - oil and gas opportunities continuing to build. • OOR momentum building. OCTG, Subsea and Advanced Manufacturing supporting future sales profile
Page 18
17 2026 Guidance EBITDA $ 138 m - $ 141 m EBITDA margin c. 12 % - 13 % Effective tax rate 24 % - 27 % Capex $ 40 m - $ 50 m Free cash flow conversion (post - capex) c. 50 % Adjusted following delay to KOC order Higher proportion of Perforating Systems in the profit mix
Page 19
18 PPT MASTER. FOOTER STYLE PRECISION ENGINEERING STRATEGIC EXPANSION AND OPERATIONAL DELIVERY OUR STRATEGIC GROWTH PATH
Page 20
End - market and regional diversification driving resilient growth profile 19 North America onshore (OCTG and Perforating Systems) International unconventional growth (Perforating Systems) Deep water acceleration (OCTG and Subsea) Power and non - oil and gas (Advanced Manufacturing) Enhanced recovery (Other Manufacturing)
Page 21
Strong market outlook for international unconventionals 20 Source: Wood MacKenzie
Page 22
OCTG and Perforating Systems – leading North America revenue momentum 21 • OCTG and Perforating Systems continue to lead Group’s offering in the important market of North America (US and Canada). • New products to be introduced to continue Hunting’s technology leadership. • Market share gains recorded within Perforating Systems product group as customers focus on technology, reliability and consistent performance. • New technology introduced to maintain market leadership: H - 5 Perforating System introduced in Q2 2026. OCTG Premium connection technology SEAL - LOCK TM and Wedge - Lock TM PERFORATING SYSTEMS H - 5 Perforating System
Page 23
Domestic US, South America and Middle East building momentum 22 Established High growth High potential 78% 12% 6% 3% North America EMEA South America Asia Pacific Hunting Titan - $m revenue by destination of International sales $ 32 m
Page 24
OCTG and multiple Subsea products driving Group international / offshore revenue 23 South America West Africa OCTG Subsea – Couplings (Stafford) Subsea – Stress Joints (Spring) Subsea – Connectors (FES) Subsea – ENPRO Indexed production growth by resource theme Pivot to high growth offshore/deepwater sub - sectors paying off 0.8 0.9 1.0 1.1 1.2 1.3 1.4 2025 2026 2027 2028 2029 2030 2031 2032 2033 Growth Indexed to 2025 Conventional onshore Conventional shelf Deepwater LNG Tight oil Unconventional gas Others LNG (+35%) and deepwater (+31%) are the fastest growing themes to the early 2030s, outpacing every other resource type Conventional onshore and self assets are expected to decline by ~6% by 2035, while growth shifts toward the most technically challenging, high reward resource. Source: Wood MacKenzie
Page 25
Dearborn supported by robust aviation and power generation orders 24 $52.4m $27.3m $5.0m $2.7m $0.6m $4.0m Aviation PowerGen Nuclear Space Naval O & G / Other Dearborn Order book – c.$92m Blue chip client base
Page 26
Enhanced oil recovery technologies becoming a key area of focus 25 The pace of Norway’s production decline depends heavily on how much recovery rates improves Long - term oil demand Long - term gas demand Source: Wood MacKenzie 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2000200320062009201220152018202120242027203020332036203920422045204820512054205720602063 Oil production (mmbd) Reserves (onstream fields, current plans) Best in class (P90) upside reserves Top-quartile (P75) upside reserves Median (P50) upside reserves Extra recovery techniques being used and expanded across Norwegian fields include water and gas injection, low - pressure production (best - performing for gas recovery); horizontal drilling, fracture stimulation, and subsea compression plus more targeted interventions like WAG (water - alternating - gas) injection 0 20 40 60 80 100 120 140 2000200320062009201220152018202120242027203020332036203920422045204820512054205720602063 Gas production (bcm) Reserves (onstream fields, current plans) Best in class (P90) upside reserves Top-quartile (P75) upside reserves Median (P50) upside reserves
Page 27
Organic Oil Recovery commercialisation accelerating into steps 3 and 4 26 Step 1 Step 2 Step 3 Step 4 Field screening of reservoir characteristics Ecology validation In - situ reservoir validation Full - field expansion
Page 28
Summary – strong macro fundamentals into the long term 27 • Good results delivered in H1 2026 driven by Perforating Systems and Subsea – other products to contribute more strongly to H2 results. • 2026 EBITDA guidance range of $138 - 141 million, slightly below the current range . • Cash generation and shareholder returns continue to be a strong focus for management. • Strong tender pipeline and award visibility will assist in the ongoing delivery of our 2030 targets. • Hunting portfolio balanced and aligned with highest growth sectors of the market out to 2050. • Market backdrop is the most supportive in +8 years. • Directors remain positive on the outlook for both the wider industry and the Group, with Hunting’s portfolio well - positioned for strong short - to medium - term growth. Portfolio momentum – growth opportunities on all fronts 27