Hunting (LON:HTG) outlined an expanded push into offshore and subsea markets as executives reviewed 2025 performance, shared preliminary year-end trading results, and detailed how recent acquisitions are intended to help meet the group’s 2030 strategy targets.
Subsea positioned as a key growth driver
Management said Hunting’s 2030 plan includes a target to grow subsea revenue to $470 million. The company has not raised its overall 2030 targets, but executives said the expected mix has shifted as long-term projections in the Titan perforating business have weakened and “hopes and dreams” for carbon capture have faded. Subsea, they said, is expected to “fill the hole” while delivering “excellent margins.”
Preliminary 2025 trading update: record quarter and cash generation
Finance Director Bruce Ferguson reported provisional year-end results, describing a “good, solid performance” that included a record fourth quarter. He said the company delivered $35 million in the fourth quarter and posted a record month in December, supported by strong trading across product lines and the benefit of restructurings in EMEA and Titan.
Ferguson said roughly $20 million of cost reductions began to flow through, improving Titan’s operating margins and narrowing losses in EMEA, which he said produced a small profit in December. He also highlighted cash generation, citing $60 million of cash with a fourth-quarter inflow driven largely by working capital improvements, including inventory down 20% year over year.
Looking ahead, Ferguson pointed to “a lot of uncertainty going into 2026,” but guided to $145 million to $155 million (as presented) and said the company aims to lift EBITDA margins toward 15% and beyond. Other items he cited included an effective tax rate of 25% to 28%, higher capex tied to Asia Pacific and a China facility, and free cash flow conversion of 50%.
Subsea technologies portfolio and market backdrop
Managing Director of Subsea Technologies Dane Tipton said Hunting has shifted from being a “Tier Two sub-component supplier into a life-of-field technology partner,” supported by acquisitions and a broader portfolio across the subsea well lifecycle.
Tipton pointed to several market tailwinds, including exploration success in places such as Guyana and the Black Sea, accelerated development timelines, and the evolution of the EPCI model (engineering, procurement, construction, installation) amid a shrinking operator workforce since COVID. He also cited a growing interest in enhanced oil recovery (EOR).
Tipton discussed subsea market indicators, describing a pullback in 2025 tied to “fear of the unknown” as tariffs emerged, followed by a rebound including $14.3 billion of offshore EPC awards in the fourth quarter. He said subsea tree awards are expected to increase 82% from 2025 to 2026, and highlighted growth in FPSO-related investment from 2025 to 2030. He also noted 42 FPSOs are currently on order and gave an example that the last three FPSO transactions in Guyana were worth $45 million to $70 million each.
Tipton said subsea revenue rose from over $40 million in 2019 to finishing 2025 at $138 million, and he expects subsea to “land right around $200 million” with a full-year contribution from Organic Oil Recovery (OOR) and Flexible Engineered Solutions (FES). He said the subsea tender pipeline includes 58 active projects in 2026 worth about $300 million, and that the pipeline through 2030 is “a ten-figure number.”
On margins, Ferguson said a subsea EBITDA margin range of 18% to 22% is “on the conservative side,” citing contributions from acquisitions and OOR.
FES acquisition: connectors, fluid transfer systems, and wind exposure
General Manager Mark Stokes described FES, based in North East England, as a specialist in fluid transfer solutions used in FPSOs and complex subsea distribution systems. He said FES operates with a “very low-cost business model,” low inventory, and strong cash conversion funded through customer milestone payments.
Stokes said FES’s diverless bend stiffener connectors (DBSCs) are a patented design and that the company is the world’s number one supplier, with over 700 units deployed globally without in-field failures. He said DBSCs reduce FPSO connection time from around 12 hours to roughly 10 minutes, and added that the design is increasingly being written into client specifications.
He also discussed a contract for diverless unified support tubes (TSUDL), saying FES supplied 15 units on the P-80 contract, which he said exceeded $20 million. Stokes added that FES has supplied pilot projects in floating offshore wind and has engaged with cable manufacturers, including discussions with Prysmian on the Greenvolt project, where he said one project could require “100-plus connectors.”
On integration, Stokes said it is “on plan” and that Hunting’s broader sales reach should shift FES from “waiting for the phone to ring” toward more proactive commercial engagement.
Organic Oil Recovery: targets and commercialization plans
OOR Product Leader Chris Venski said Hunting had access to the technology through a partnership since 2018, but concluded it needed to own the IP to invest and scale. He said the company plans to grow OOR to $100 million per annum by 2030.
Venski described OOR as a microbial-enhanced oil recovery approach that activates microbes already in the reservoir using tailored, biodegradable nutrients. He said the IP is focused on accelerating a naturally occurring process that may take thousands of years into a period of about seven days. He framed OOR as a lower-cost alternative to traditional tertiary recovery methods, emphasizing that OOR can be applied via existing water injection systems and delivered through batch treatments without permanent topside modifications.
For an average offshore field size of around 350 million barrels of oil originally in place, Venski said OOR could deliver 10% to 15% incremental recovery—around 30 million to 50 million barrels—which he said could translate to about $3 billion of incremental value for the customer. He also said OOR can reduce water cut, improve economics, and deliver a side benefit of reducing H2S, potentially lowering customer spending on mitigation chemicals.
Venski said OOR revenue to Hunting on a field of that scale could be around $20 million to $25 million per annum, and described the model as recurring, with injections typically occurring three to four times per year. He said adoption has increased since the acquisition, citing work added in recent months including 11 reservoirs in Brazil and 16 reservoirs in California, plus activity in Texas. He also said the company completed its first U.S. injection since acquiring the technology after first speaking to the customer less than six months earlier.
On success rates, Venski said that by the time projects reach targeted waterflood implementation, the chance of success is “well over 98%,” while at the pilot test stage it is around 75%. He said OOR’s applicability is screened based on criteria including temperature and salinity, and that most fields within the operating envelope have the microbes required.
On capital needs, Ferguson said required spending is “very little,” describing lab work and equipment investments as “a few hundred thousand dollars.”
In closing remarks, Johnson said management sees “lots of upside” from subsea, expects continued M&A activity focused on subsea markets, and reiterated that Hunting aims to prioritize patented technology and margin-accretive products rather than commodity businesses.
About Hunting (LON:HTG)
Hunting is a global precision engineering group, which provides quality-assured products and services for the energy, aviation, commercial space, defence, medical, and power generation sectors.
Our strong focus on quality assured products, supported by rigorous health and safety procedures, ensures we assist in the delivery of energy safely and it is also the basis of our standing in this critical, global industry.
Our intellectual property portfolio enables the Hunting Group to maintain a leading technology edge, so that energy projects are delivered quicker and at lower cost with minimal impact on the environment.
Our people are our most important asset.
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