Earnings release
Page 1
Exhibit 99.1 HMH Holding Inc. Announces Third Quarter 2026 Results HOUSTON, November 4, 2026 – HMH Holding Inc. (“HMH” or the “Company”) (NASDAQ: HMH) today announced financial and operational results for the third quarter of 2026. Third Quarter Highlights • Revenue of $171.1 million, down 21% compared to the third quarter of 2025 and substantially flat compared to the second quarter of 2026. • Net income attributable to HMH of $5.0 million, compared to net income of $16.2 million in the third quarter of 2025 and net income of $5.0 million in the second quarter of 2026. • Orders of $191 million, up 12% compared to the third quarter of 2025 and down 7% compared to the second quarter of 2026, resulting in book- to-bill of 1.12x. • Adjusted EBITDA of $38.2 million, down 3% compared to the third quarter of 2025 and up 13% compared to the second quarter of 2026. • Completed acquisition of Deepwater Riser Services for $14.5 million. Financial Summary HMH reported revenue for the third quarter of 2026 of $171.1 million, down 21% compared to the third quarter of 2025 and substantially flat compared to the second quarter of 2026. The year-over-year decrease was driven by lower volume across all three product lines, product, service and spare parts. Sequentially, higher service activity was offset by lower product and spare parts revenue. Adjusted EBITDA in the third quarter of 2026 was $38.2 million, down 3% compared to the third quarter of 2025 and up 13% compared to the second quarter of 2026. Adjusted EBITDA Margin was 22.3%, compared to 18.2% in the third quarter of 2025 and 19.8% in the second quarter of 2026. Orders for the quarter were $191 million, up 12% year-over-year and down 7% sequentially, resulting in book-to-bill of 1.12x. Year-over-year order growth was primarily driven by services. Quarter-over-quarter order decrease was due to decreases in product and spares orders. HMH Holding Inc.’s Chief Executive Officer, Eirik Bergsvik, stated: “Equipment order activity remained below our expectations in the third quarter as several larger equipment and upgrade opportunities shifted to later periods. Customer contract awards took longer than anticipated, narrowing execution windows for certain projects, while customers remained disciplined in their capital deployment. Importantly, we have not seen these opportunities disappear and continue to see a healthy pipeline across our installed base. Stronger service activity, favorable business mix, and disciplined cost execution provide resilience as we navigate this near-term variability and position the business for the next phase of market activity. “Looking ahead, we are taking deliberate actions to strengthen HMH’s competitive and financial position as these opportunities convert. We are maintaining critical equipment capabilities, investing in long-lead materials to improve delivery readiness and cost positioning, and expanding our aftermarket platform through the acquisition of Deepwater Riser Services. As part of this strategy, we are consolidating our U.S. Gulf riser operations in Houma, Louisiana, creating a more focused and efficient operating footprint while expanding our riser inspection, recertification, refurbishment, and storage capabilities. We remain confident in the underlying deepwater fundamentals and believe HMH is well positioned to benefit from the opportunities developing into 2027. Continued Middle East disruptions and rig reactivation delays remain near-term headwinds, but our focus remains firmly on disciplined execution, strengthening our market position and converting our opportunity pipeline into profitable growth.” Operational and Financial Results Revenue, Cost of Sales, and Gross Operating Margin Revenue for the third quarter of 2026 was $171.1 million, down 21% compared to the third quarter of 2025 and substantially flat compared to the second quarter of 2026. Product revenue decreased 69% year-over-year and 19% sequentially, reflecting both a lower order intake and backlog of equipment orders and delays in the Middle East due to the ongoing conflict in the region. Service revenue decreased 7% year-over-year due to lower contract services agreement activity partially offset by stronger digital technology and repair volume. Service revenue increased 9% sequentially driven by increased demand for repairs and field services. Spare parts revenue decreased 2% year-over-year and 6% sequentially. The year-over-year and sequential decreases reflect the pace of order intake and regional mix. Total cost of sales decreased by $44.5 million, or 28%, to $112.9 million in the third quarter of 2026, compared to $157.4 million in the third quarter of 2025. Cost of sales as a percentage of revenue decreased to 66% in the third quarter of 2026 compared to 72% in the
Page 2
third quarter of 2025. Gross margin increased to 34%, up 6% year-over-year and down 2% sequentially, driven by revenue mix, continued cost optimization efforts, and execution focus. Selling, General and Administrative Expenses Selling, general and administrative expenses were $33.9 million in the third quarter of 2026, compared to $31.4 million in the third quarter of 2025 and $60.4 million in the second quarter of 2026. The year-over-year increase is due to the recognition of stock-based compensation expense and transaction costs in the current period. The quarter-over-quarter decrease is primarily due to the recognition of stock-based compensation expense upon IPO in the prior quarter. Order Intake, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow Orders for the quarter were $191 million, up 12% compared to the third quarter of 2025 and down 7% compared to the second quarter of 2026. Orders exceeded revenue in the quarter, resulting in book-to-bill of 1.12x. Product order intake was $16 million, flat year-over-year and decreased 27% sequentially. The sequential decrease was driven primarily by lower pressure control equipment partially offset by higher topside equipment orders. Service order intake was $115 million, up 16% year-over-year and down 3% sequentially. The year-over-year increase was driven by strong repair and field service volume, while the sequential decrease was primarily due to lower digital technology orders following strong prior-quarter activity. Spare parts order intake was $60 million, up 7% year-over-year and down 8% sequentially. The year-over-year increase was driven by European demand offset by reduced Middle East demand. Sequentially, the decrease was driven by lower pressure control spares demand offset by higher topside spares demand. Net income attributable to HMH was $5.0 million in the quarter. Adjusted EBITDA in the quarter was $38.2 million, down 3% year-over-year and up 13% sequentially. The year-over-year decrease is attributable to lower product volume, in part due to the ongoing Middle East conflict, offset by higher services volume. The sequential increase in Adjusted EBITDA is driven by higher service volumes, continued execution on cost efficiencies, and lower variable compensation expense reflecting updated expectations for full-year performance. Adjusted EBITDA Margin was 22.3%, compared to 18.2% in the third quarter of 2025 and 19.8% in the second quarter of 2026. Likewise, the Adjusted EBITDA Margin favorability was due to revenue mix, cost efficiencies, and lower variable compensation expense. Cash flow used in operating activities was $6.2 million, and Free Cash Flow was negative at $11.6 million in the quarter. Capital expenditures and development costs during the quarter were $5.4 million, primarily supporting aftermarket capabilities, service reliability, and ongoing product development initiatives. HMH ended the quarter with $90.1 million of cash and cash equivalents and approximately $165 million of total liquidity, inclusive of the revolving credit facility. HMH has no long-term debt maturity until June 2028. For the nine months ended September 30, 2026, the revenue and Adjusted EBITDA impact of the Middle East conflict is roughly $17 million and $8 million, respectively. Conference Call Details The Company has scheduled a conference call on November 5, 2026, at 8:00 am Central Time to discuss its results for the third quarter of 2026. To access the conference call, participants may dial (800) 715-9871 for U.S. participants or (646) 307-1963 for international participants and use Conference ID: 2200998. Participants may listen to the call through a webcast link posted in the Investors section of HMH’s website. A replay of the conference call will be made available on the website following the conclusion of the live call. About HMH HMH is a leading provider of highly engineered, mission-critical equipment solutions, providing customers with a comprehensive portfolio of drilling equipment, services and systems utilized in oil and gas drilling operations, both offshore and onshore. HMH’s global reach, technical expertise and innovative product offerings, coupled with its integrated operations from manufacturing to aftermarket services, allow HMH to provide customers with first-class technology, engineering, and project management services through the entire asset lifecycle of the equipment it provides. In addition, HMH is growing its portfolio of products and services to adjacent industries, such as mining. The complexity and criticality of HMH’s installed equipment drive customers to choose HMH for their aftermarket support, particularly in the offshore environment, which is subject to extensive regulation. For more information, please visit HMH’s website at www.hmhw.com. Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow. We use Adjusted EBITDA and Adjusted EBITDA Margin as one of the indicators to evaluate and compare the results of our operations from period to period by removing the effect of our capital structure and certain non-recurring items. We define Adjusted EBITDA as net income before interest expense, net, income tax expense, depreciation and amortization, share-based compensation, IPO listing related cost and, when applicable, other items. Management does not consider these items to be indicative of our ongoing operating performance measure, and such items include, but are not limited to, restructuring and foreign exchange currency (gain) loss. We track Adjusted EBITDA on an absolute dollar basis and as a percentage of revenue, which we refer to as Adjusted EBITDA Margin. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We believe that Adjusted EBITDA is a supplemental measurement tool used by analysts and investors to evaluate overall operating performance, ability to pursue and service possible debt
Page 3
opportunities and possible future investment opportunities. In addition, we believe that Adjusted EBITDA Margin is a supplemental measurement tool used by analysts and investors to evaluate profitability of sales. Adjusted EBITDA does not represent funds available for our discretionary use and is not intended to represent or to be used as a substitute for net income, as measured in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The items excluded from Adjusted EBITDA and Adjusted EBITDA Margin, but included in the calculation of reported net income, are significant components of the consolidated statements of income and must be considered in performing a comprehensive assessment of overall financial performance. We believe that the disclosure of Adjusted EBITDA and Adjusted EBITDA Margin offers additional financial metrics that, when coupled with the GAAP results and the reconciliation to GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business. We use Free Cash Flow to evaluate our liquidity to provide flexibility and optionality to achieve our broader capital allocation strategy. We define Free Cash Flow as cash flow from operations minus purchases of property and equipment and development costs and excluding the impact of one time non- cash IPO related expenses. Management believes that Free Cash Flow is a meaningful indicator of liquidity that provides information to our management and investors about the amount of cash generated from operations, after purchases of property and equipment that can be used for investment in our business and for acquisitions as well as to strengthen our balance sheet. Free Cash Flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by (used in) operating activities. Free Cash Flow does not reflect our ability to meet future contractual commitments and may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure. These non-GAAP measures are reconciled to the most directly comparable GAAP measures in the accompanying tables and should not be considered as alternatives to GAAP results. Forward-Looking Statements The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements generally relate to expectations, beliefs, future events, future expected business, or our future financial or operating performance and prospects, and include statements regarding business plans, objectives and expected operating results. When used in this press release, words such as “may,” “could,” “should,” “will,” “plan,” “project,” “forecast,” “guidance,” “outlook,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in HMH’s filings with the Securities and Exchange Commission (the “SEC”), including the sections titled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in HMH’s final prospectus filed with the SEC on April 1, 2026 and subsequent Quarterly Reports on Form 10-Q. HMH undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release, except as required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts and the Investors section of HMH’s website. We may use these channels to distribute material information about HMH; therefore, we encourage investors, the media, business partners and others interested in HMH to review the information posted on HMH’s website. The information on HMH’s website is not part of, and is not incorporated into, this press release. Company Contact Katina Hargett Investor Relations HMH Holding Inc. +1 (281) 371-4985 investorrelations@hmhw.com
Page 4
HMH Holding Inc. Comparative Condensed Consolidated Statements of Income (Unaudited) Third Quarter2026 Third Quarter2025 Second Quarter2026 (in thousands) Revenue Service revenue $ 97,128 $ 104,838 $ 89,072 Product revenue 16,705 53,954 20,027 Spare parts revenue 57,202 58,186 61,163 Related party revenue 45 193 560 Total revenue 171,080 217,171 170,822 Operating expenses Cost of services sold 63,733 71,737 58,766 Cost of goods sold – products 19,905 52,441 16,527 Cost of goods sold – spare parts 29,288 33,227 34,231 Total cost of sales 112,926 157,405 109,524 Selling, general and administrative expenses 33,928 31,361 60,354 Research and development expenses 222 98 771 Restructuring and other expenses 2,174 104 5,004 Total operating expenses 149,250 188,968 175,653 Operating income (loss) 21,830 28,203 (4,831) Foreign currency gain (loss), net (113) 74 (591) Other non-operating income (loss), net (441) 229 (158) Interest income (expense), net (3,759) (8,334) (3,945) Income (loss) before income taxes 17,517 20,172 (9,525) Income tax (expense) benefit (7,176) (4,343) 4,506 Net income (loss) 10,341 15,829 (5,019) Less: Net income (loss) attributable to non-controlling interests 5,358 (357) (9,995) Net income attributable to HMH Holding Inc. $ 4,983 $ 16,186 $ 4,976
Page 5
HMH Holding Inc. Comparative Condensed Consolidated Balance Sheets (Unaudited) September 30,2026 December 31,2025 (in thousands) Assets Current assets Cash and cash equivalents $ 90,073 $ 96,585 Other current assets 586,300 532,625 Property, plant and equipment, net 195,372 200,818 Other assets 527,667 527,676 Total assets $ 1,399,412 $ 1,357,704 Liabilities and equity Total current liabilities 238,051 223,639 Long-term debt, net 196,727 195,636 Long-term debt, net—related party — 143,732 Other long-term liabilities 106,259 94,245 Total liabilities 541,037 657,252 Total equity 858,375 700,452 Total liabilities and shareholders’ equity $ 1,399,412 $ 1,357,704
Page 6
HMH Holding Inc. Comparative Condensed Consolidated Statements of Cash Flows (Unaudited) Third Quarter2026 Third Quarter2025 Second Quarter2026 (in thousands) Cash flows from operating activities Net income (loss) $ 10,341 $ 15,829 $ (5,019) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 10,640 10,884 11,066 Share-based compensation expense 2,343 — 22,775 Amortization of borrowing costs 364 461 409 Restructuring and other expenses 203 — — Deferred tax expense (benefit) 2,319 (991) (8,643) Payment-in-kind interest — 2,660 65 Provision for bad debt expense 423 13,157 184 Provision for inventory write-down 619 3,582 1,609 Net cash provided by (used in) operating activities before changes in operating assets and liabilities 27,252 45,582 22,446 Changes in operating assets and liabilities (33,441) (9,082) (4,577) Net cash provided by (used in) operating activities (6,189) 36,500 17,869 Cash flows from investing activities Purchase of property, plant and equipment (1,727) (1,746) (1,166) Development costs (3,678) (3,326) (4,082) Acquisition of business, net of cash (14,499) — — Net cash provided by (used in) investing activities (19,904) (5,072) (5,248) Cash flows from financing activities Issuance of common stock in initial public offering (IPO), net of underwriting discount — — 210,670 Purchase of HMH B.V. voting shares from Principal Stockholders — — (39,480) Redemption under exchange agreement with Principal Stockholders — — (12,894) Deferred IPO costs paid (417) — (10,380) Repayment of long-term debt, net—related party — — (137,099) Proceeds from issuance of revolving credit facilities — 25,702 — Repayment of revolving credit facilities (745) (38,000) — Purchase of treasury shares (2,198) — (4,888) Net cash provided by (used in) financing activities (3,360) (12,298) 5,929 Effect of foreign exchange rate on cash and cash equivalents (179) (935) (142) Net increase (decrease) in cash and cash equivalents (29,632) 18,195 18,408 Cash and cash equivalents beginning of period 119,705 38,413 101,297 Cash and cash equivalents end of period $ 90,073 $ 56,608 $ 119,705
Page 7
HMH Holding Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin Third Quarter2026 Third Quarter2025 Second Quarter2026 (in thousands) Net income (loss) $ 10,341 $ 15,829 $ (5,019) Add: Interest expense, net 3,759 8,334 3,945 Income tax expense 7,176 4,343 (4,506) Depreciation and amortization 10,640 10,884 11,066 Share-based compensation 2,343 — 22,775 Restructuring and other expenses 2,174 104 5,004 Foreign currency (gain) loss, net 113 (74) 591 IPO listing and acquisition related costs 1,640 — — Adjusted EBITDA $ 38,186 $ 39,420 $ 33,856 Net income (loss) as a % of revenue 6.0 % 7.3 % (2.9)% Adjusted EBITDA Margin (a) 22.3 % 18.2 % 19.8 % (a). Calculated as a percentage of total revenue. HMH Holding Inc. Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow ThirdQuarter2026 ThirdQuarter2025 SecondQuarter2026 (in thousands) Net cash provided by (used in) operating activities $ (6,189)$ 36,500 $ 17,869 Add: Purchases of property and equipment (1,727) (1,746) (1,166) Development costs (3,678) (3,326) (4,082) Non-cash IPO related settlement — — 9,541 Free Cash Flow $ (11,594)$ 31,428 $ 22,162