Shares in engineering group Hunting (LON:HTG) were thumped after the company trimmed its earnings outlook due to a delayed tender. The stock price initially fell 20% as the firm said FY26 and FY27 EBITDA would be slightly below previous guidance.
Hunting trims outlook on tender delay
Hunting had previously highlighted the potential for near-term volatility in Middle East orders due to the ongoing and evolving conflict. In related news, Kuwait Oil Company announced it would re-run an OCTG (oil country tubular goods) tender issued in April.
An accelerated tender will now be re-issued during Q3 2026, with the result announced within a month of issuance. However, any new contracts awarded won’t be recognised until 2027.
Hunting has a strong relationship with KOC and argues it is well-placed to secure further orders from KOC and other customers across the Middle East and Asia Pacific. However, the delay means FY26 and FY27 EBITDA will slightly below previous guidance and the consensus.
It’s easy to draw comparisons between today’s thumping for Hunting and yesterday’s similar battering for Ashtead Technology (LON:AT.). However, in Hunting’s case it’s one tender in the Middle East which has been delayed, not multiple projects there, in the US and Europe.
Aside from the OCTG business, Subsea Technologies is enjoying strong order momentum and better trading conditions. Together with the contribution from FES, acquired in 2025, the business is seeing a ‘step change’ in performance according to Hunting.
Perforating Systems has also shown a ‘material’ improvement thanks to strong international demand and market share gains in the US. Meanwhile, the Organic Oil Recovery business has already produced positive well test results in East Texas for AIM-listed Buccaneer Energy (LON:BUCE) and is signing up more customers.
Also, the firm supplies other industries like aerospace, medical, transport and power generation including renewables, not just oil and gas. Therefore, theres a lot to like about Hunting, which by the way raised its interim dividend and is continuing with its $40 million buyback. As usual, investors should let the dust settle, but the stock is firmly on our watch list.
