FY26E EBITDA trimmed by 6% to revised guidance

While below earlier expectations, Hunting still looks to be ending FY26 on a firm trading note overall. Beyond FY26, our estimates are unchanged at this stage, other than the knock-on effect of lower end FY26 net cash guidance. The outcome of the large KOC re-tender is still anticipated before the year end and this is likely to be a key sentiment driver.

Hunting’s Q3 trading update points to EBITDA of c.US$89m for the first nine months of FY26, with a c.12% margin. Year-on-year, this equates to lower revenue and EBITDA of c.3% and c.11% respectively, substantially due to stronger H1 25 OCTG deliveries.

Subsea Technologies is trading robustly as expected and the nascent Organic Oil Recovery (OOR) business is continuing to develop encouragingly across several geographies. However, both Hunting Titan and North American operations now anticipate a slowing in delivery rates to the year end. In the former case, ongoing Middle East disruption has impacted higher-margin export volume.

Management remains positive on the company’s outlook and our unchanged 502p per share fair value remains comfortably above the current share price.