Hunting trading as expected as it assesses US tariff impact

16th Apr 2025 11:02

(Sharecast News) - Hunting reported first-quarter trading in line with expectations on Wednesday, with EBITDA rising to $38.7m from $28.9m a year earlier.

The FTSE 250 company said its EBITDA margin improved to 14% from 12%, supported by solid performance across all product groups.

It noted a typical seasonal investment in working capital to fulfil committed orders, resulting in a net cash outflow during the quarter.

As of 31 March, Hunting had a net cash and bank position of $58m, down from $104.7m at year-end.

The outflow also reflected the maturity of prior-year working capital instruments and $3.4m spent by the employee benefit trust to purchase ordinary shares for future incentive awards.

In line with its 2030 strategy, Hunting completed the $17.5m acquisition of Organic Oil Recovery technology and disposed of its non-core interest in Rival Downhole Tools for $13.1m.

Management said it was actively evaluating further bolt-on acquisitions, with a focus on subsea and intelligent well completion technologies.

The restructuring of the EMEA segment was ongoing, and expected to deliver $10m in annualised cost savings.

Hunting added that it had assessed proposed US trade tariffs, and anticipated minimal impact across its global operations.

Most revenue and costs in North America and Hunting Titan are US-based, while other segments either did not serve the US or were exposed to non-tariffed markets.

Hunting said its order book stood at $439.3m at the end of March, down from $506.8m in the fourth quarter of 2024, as the group continued to work through large contracts for clients including Kuwait Oil Company and ExxonMobil.

Management estimated that 77% of the order book would convert to revenue in the current year, supporting its near-term outlook.

While crude oil prices had softened, with WTI trading around $61 per barrel as of mid-April, Hunting said it had not seen any adverse impact on customer behaviour.

The company said its strong balance sheet and ongoing working capital discipline provided resilience amid current market volatility.

A further update would be provided with the half-year results in July.

At 1017 BST, shares in Hunting were down 1.34% at 257p.

Reporting by Josh White for Sharecast.com.