Hunting PLC (LSE: HTG), the London-headquartered global precision engineering group, has issued its Q3 2026 Trading Update, reducing its full-year EBITDA guidance to a range of $128–$133 million. The downgrade reflects deteriorating trading conditions driven by the ongoing Middle East conflict, logistical disruption to OCTG and product line tenders, and slower-than-expected progress within its Electronics and Dearborn business units. Year-to-date EBITDA stood at approximately $89 million, representing an EBITDA margin of around 12%, as the Group navigates a more challenging short-term environment across several of its operating segments.

Key Points

  • Hunting PLC (LSE: HTG) is a global precision engineering group established in 1874, headquartered in London and listed on the London Stock Exchange.
  • The company has reduced its FY 2026 EBITDA guidance to $128–$133 million, citing Middle East conflict impacts, slowing Hunting Titan deliveries, and supply chain issues in Advanced Manufacturing.
  • Year-to-date EBITDA was approximately $89 million at an EBITDA margin of around 12%; net assets stood at approximately $876 million as at 30 September 2026.
  • Investors should watch the outcome of the Kuwait Oil Company re-tender, the CEO succession process, and Q4 activity levels across North America and the Middle East.

Middle East Conflict Weighs on Hunting Titan and Asia Pacific Segment Performance

The protracted conflict in the Middle East has materially affected Hunting's Q3 and early Q4 trading, with OCTG tender activity disrupted by logistical challenges and continued attacks on shipping and regional infrastructure. Rig activity in Saudi Arabia has declined, reducing volumes at the Jafurah unconventional development and weighing on Hunting Titan's results. The Asia Pacific operating segment, which had reported a small profit in H1, is now anticipated to deliver a broadly break-even result in H2, reflecting delays to the Kuwait Oil Company tender and reduced tendering activity across the broader Middle East and Asia Pacific region.

Kuwait Oil Company Re-Tender Published, with Shipments Expected from H2 2027

The large Kuwait Oil Company re-tender was published on 12 October 2026, with a decision anticipated before the year-end. Product shipments are due to commence in H2 2027, according to the announcement. Hunting states it remains well-placed to secure further orders under this re-tender, citing the strong relationship it has established with KOC over recent years. This development is significant for the Asia Pacific segment, which has been directly affected by the original tender delay, and investors may be watching the contract outcome closely as a potential catalyst for the segment's recovery in 2027.

Subsea Technologies Remains Profitable as EMEA Restructuring Delivers Cost Savings

Profitability across Subsea Technologies remained robust during the period, supported by commercial demand and disciplined operational execution. The Organic Oil Recovery technology attracted strong industry interest, with orders received for pilot testing and sampling work in South America, the North Sea, and the Middle East. Meanwhile, the EMEA operating segment returned to profitability in Q3 2026 following the closure of the Fordoun, Aberdeen site in September, though the segment is expected to report a small EBITDA loss for the full year due to Middle East headwinds. Management also confirmed a cost reduction plan, including the combination of the EMEA and Asia Pacific operating segments, remains ongoing.

Balance Sheet Strengthens and CEO Search Advances into Q4 Interview Stage

As at 30 September 2026, Hunting reported net assets of approximately $876 million, with total cash and bank borrowings improving to approximately $(11) million from $(19) million at the half-year point. The 2026 interim dividend of 7.0 cents per share is due to be paid on 30 October 2026, absorbing approximately $10 million. Full-year capital expenditure is anticipated at $35–$45 million, with the share buyback programme expected to absorb approximately $42 million. Separately, the Nomination Committee confirmed it is progressing a high-calibre pool of internal and external CEO candidates, with interviews planned during Q4 2026. The Group's next trading update is scheduled for 19 January 2027.