Hunting PLC slashed its 2026 EBITDA guidance by about $10 million after Kuwait Oil Company (KOC) delayed a key tender process, the company reported on Thursday.
The oilfield services provider now expects 2026 EBITDA in the range of $138 million to $141 million, down from prior projections. The revision reflects the deferral of a previously issued OCTG (Oil Country Tubular Goods) tender, originally launched in April, which Hunting had expected to secure for the year ahead. The tender delay is projected to trim 2026 EBITDA by roughly $10 million, with a similar impact expected on 2027 consensus estimates of $165 million.
First-half results showed a 6% year-over-year decline in revenue to $497 million, while EBITDA fell 12% to $62.1 million. Adjusted profit before tax dropped to $34.5 million from $43.7 million, and adjusted diluted EPS decreased to 15.2 cents from 19.6 cents. Free cash flow swung to an outflow of $27.8 million, compared with an inflow of $66.2 million in the same period last year. Net debt rose to $51.4 million, reversing a net cash position of $44.7 million a year earlier.
CEO Jim Johnson cited Middle East instability as a factor in delayed tendering activity, though he expects regional recovery once stability returns. Despite broader weakness in OCTG and Advanced Manufacturing, Hunting reported growth in Perforating Systems and Subsea Technologies. Perforating Systems achieved record international sales, while Subsea Technologies posted strong margins.
The company declared an interim dividend of 7.0 cents per share, up 13% from 6.2 cents a year ago, and reaffirmed its long-term dividend growth target of 13% annually through 2030. Hunting projected a year-end cash position of $50 million to $60 million for 2026, reflecting the tender delay’s impact on near-term liquidity.
