Hunting Plc first-half results fall short; launches $40 mln buyback

Hunting Plc reported first-half revenue of $529 million and EBITDA of $70.2 million, both slightly below analyst expectations, yet maintained its full-year 2025 EBITDA guidance of $135-145 million. The company announced a $40 million share buyback program, signaling management confidence despite the H1 miss and a reduced order book post-major Kuwait contract deliveries. While the order book decreased to $452 million, the tender pipeline remains robust at over $1.1 billion, with analysts like RBC Europe maintaining an 'outperform' rating, noting the stock trades below its first-half 2025 book value.

Analysis

Hunting Plc reported first-half 2025 results that missed analyst consensus, with revenue of $529 million versus an expected $545 million and EBITDA of $70.2 million against a forecast of $72.6 million. Despite this miss, the company reaffirmed its full-year EBITDA guidance of $135 million to $145 million, signaling strong management confidence in a second-half operational acceleration, which is expected to be supported by the recent acquisition of FES. This confidence is further underscored by the announcement of a new $40 million share buyback program. While the order book decreased to $452 million from $509 million at year-end 2024 due to the delivery of large Kuwaiti contracts, the company highlighted a robust tender pipeline exceeding $1.1 billion. Analyst commentary from RBC Europe remains positive, maintaining an "outperform" rating and a 440 pence price target, noting that the shares at 313 pence are trading approximately 5% below their first-half 2025 book value.

Key Decisions for Investors

• Investors may view the combination of reaffirmed full-year guidance, a new $40 million share buyback, and a stock price below book value as a compelling long opportunity, despite the first-half earnings miss.
• The primary risk to monitor is the conversion rate of the $1.1 billion tender pipeline, as replenishing the $452 million order book is critical to meeting the strong second-half performance implied by the company's guidance.
• Given the conflicting signals of a backward-looking earnings miss versus forward-looking management confidence, it may be prudent to await confirmation of pipeline conversion and margin strength in subsequent quarterly reports before building a full position.