Key Highlights

  • Hunting (LSE:HTG) is in focus on the FTSE 250 after its Q3 2026 trading update on 28 October flagged a deterioration in the short-term trading outlook in recent weeks.
  • Middle East hostilities have affected activity in the region, although the board believes there is significant upside once they cease.
  • The EMEA segment returned to profitability in Q3 after restructuring, including the closure of the Fordoun site near Aberdeen in September.
  • The order book stood at around $387 million at the end of June, up from $358 million at the end of 2025, with a tender pipeline of around $1 billion.
  • The search for a successor to Chief Executive Jim Johnson, who plans to retire by mid-2027, is progressing, and the next trading update is due on 19 January 2027.

Why Hunting (LSE:HTG) Is in Focus Today

Hunting (LSE:HTG), the global precision engineering group serving the energy industry, is in focus on 3 November 2026 as investors digest its third-quarter trading update. The company said results were affected in Q3 and into Q4, with a deterioration in the short-term trading outlook seen in recent weeks, as conflict in the Middle East disrupted activity in one of its most important growth regions.

The update has prompted debate among investors about how much of the weakness is temporary. Management struck a positive long-term tone, saying the directors believe there is significant upside within the Middle East once hostilities cease, and that Hunting's portfolio remains fully aligned with the industry's growth drivers. Energy security, independence and rising power Demand linked to artificial intelligence are among the themes management has highlighted.

Q3 2026 Trading Update

In its update, Hunting noted that its EMEA operating segment returned to profitability during the third quarter, as the completion of restructuring, including the closure of the Fordoun operating site near Aberdeen in September, began to deliver previously announced cost savings. The company is also reviewing selling, general and administrative costs as part of its broader cost reduction plan under the Hunting 2030 strategy.

The board said it was pleased with the strength of the candidate pipeline for the chief executive role and looks forward to concluding the selection process in due course. Jim Johnson has given notice of his intention to retire as a director by mid-2027.

First-Half 2026 Recap

In July, Hunting reported estimated first-half EBITDA of around $62 million, consistent with the 40:60 first-half to second-half Earnings split it guided to in March, with a Margin of about 12%. The shares rose around 5% on that update. The order book stood at around $387 million at the end of June, ahead of $358 million at the end of 2025, and peaked at around $428.8 million in mid-April.

The order book has been supported by the subsea business, including $63.5 million of orders for titanium stress joints tied to a new deepwater project in Guyana, and a $31 million order for a deepwater gas development in the Turkish Black Sea. Hunting Titan and Perforating Systems have traded well in parts of the year, although some product groups saw lower activity due to order phasing.

Business Overview

Hunting (LSE:HTG) manufactures and supplies precision equipment for the oil and gas industry, including oil country tubular goods (OCTG) and premium connections, perforating systems for well completions, subsea equipment such as titanium stress joints, and advanced Manufacturing for non-energy markets. It also has an Organic Oil Recovery technology Business that aims to improve production from existing wells. The company is restructuring its regions, combining EMEA and Asia Pacific into a single International segment from January 2027.

Diversification Beyond Oil and Gas

Hunting is building non-oil and gas Revenue through its Advanced Manufacturing businesses, which serve sectors such as aerospace, defence, medical and power generation. The non-energy order book stood at around $95.6 million at the end of March 2026. This Diversification is designed to reduce reliance on the oil price cycle over time.

Capital Allocation

Hunting has been returning Capital through a share buyback programme and paying dividends, while updating its capital allocation priorities alongside its cost reduction plan. Management has also continued to review Acquisition opportunities, particularly in subsea and well completions. Cash Flow and Balance Sheet strength will be important as the company navigates a weaker short-term outlook.

Key Risks

Risks include further disruption in the Middle East, lower oil and gas drilling activity, volatile oil prices, order timing, competition in OCTG and perforating systems, execution of restructuring and Leadership transition. Currency movements also affect reported results because Hunting reports in US dollars.

What Investors Are Watching Next

Investors will watch for clarity on full-year 2026 EBITDA after the softer short-term outlook, developments in the Middle East, new subsea and OCTG orders, progress on cost savings, and the appointment of a new chief executive. The next trading update on 19 January 2027 will provide full-year figures, followed by full-year results in early 2027.