Hunting Forecast Revision
Hunting PLC Lowers 2026 Earnings Forecast Following Kuwait Oil Company Tender Delay
Key Points
Free cash flow swung to an outflow in H1, at $27.8 million, versus a $66.2 million inflow a year earlier, with net debt rising to $51.4 million and return on capital employed (RoCE) slipping to 9.1% from 10.5%.
The interim dividend was raised by 13% to 7.0 cents per share (payable October 30) with management reiterating a plan to grow dividends about 13% annually through to the end of the decade.
Kuwait Oil Company has verbally indicated it will re-run the OCTG tender, with an accelerated process expected in the third quarter of 2026 and results announced within about a month of issuance.
Hunting emphasised the portfolio transformation by highlighting strong Subsea margins and record international sales from Perforating Systems, underscoring earnings quality despite softer OCTG and Advanced Manufacturing performance.
Hunting PLC slashed its 2026 EBITDA outlook to $138-141 million after Kuwait Oil Company delayed a major contract tender due to Middle East instability Sharecast. The oilfield services company reported first-half revenue fell 6% to $497 million, with EBITDA dropping 12% to $62.1 million, as weakness in octagonal casing tubing (OCTG) and Advanced Manufacturing offset strength in Subsea and Perforating Systems Market Screener.
The KOC tender delay will cost Hunting roughly $10 million in full-year EBITDA, with Kuwait Oil Company expected to re-run the process in third-quarter 2026. Despite the setback, management raised the interim dividend 13% to 7 cents per share and pledged to grow dividends about 13% annually through 2030 Seeking Alpha.
Cash Flow Tightens as Net Debt Rises
Hunting's financial position weakened in the first half. Free cash flow swung to a $27.8 million outflow, compared to a $66.2 million inflow a year ago Market Screener. Net debt climbed to $51.4 million, and return on capital employed (RoCE) slipped to 9.1% from 10.5% in the same period last year.
Kuwait Tender Delay Pushes Earnings to Second Half
The OCTG tender setback fundamentally shifts Hunting's earnings profile for 2026. Kuwait Oil Company has verbally committed to re-running the tender in an accelerated process during third-quarter 2026, with results expected within about a month of issuance Seeking Alpha. The delay means the bulk of earnings will arrive in the second half of the year, later than originally planned.
Subsea and Perforating Systems Offset OCTG Weakness
Hunting's portfolio transformation is delivering results in specific divisions. Subsea posted strong margins, while Perforating Systems achieved record international sales Sharecast. These wins compensated for softer performance in OCTG and Advanced Manufacturing, showing the company's strategy is working despite near-term headwinds.
Middle East Recovery and Global Growth Expected
Management remains confident in medium-term growth prospects. The company anticipates Middle East tendering will rebound as stability returns. Rising activity in North America, South America, and West Africa — driven by energy-security investments — should offset regional weakness. Hunting signaled this confidence by maintaining its dividend growth pledge through 2030, betting on a recovery in its core markets.
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