Hunting Plc · LSE:HTG
Hunting — Investor Presentation (2025)
37 slides from Hunting's investor presentation, May 19, 2025
Slide 1: Precision Engineering from Subsea to Space
PRECISION ENGINEERING FROM SUBSEA TO SPACE
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and agree to comply with the following restrictions. This document and the accompanying verbal presentation and webcast (together the “Presentation”) have been prepared by Hunt
Slide 3: Hunting PLC investment case
Hunting PLC’s investment case is based on technology and precision engineering core competencies, along with a deep knowledge of the global energy and advanced manufacturing industries. Our strategy and expertise will drive long-term growth, providing leverage to deliver our value proposition into n
Slide 4: Product groups: Perforating Systems, Subsea, OCTG, Advanced Manufacturing
Oil and gas Non-oil and gas PERFORATING SUBSEA OCTG ADVANCED ENERGY SYSTEMS MANUFACTURING TRANSITION • Market leading • High performance • Three key proprietary • Precision engineered • Key offering includes: perforating components products and solutions premium and semi-premium products for the oil
Slide 5: Hunting global locations and employees
as of 2024 year-end Operating sites 25 Operating sites 14 Year-end employees (including head office) 2,367 Hunting global locations 5
Slide 6: Over 400 patents and trademarks; strong R&D focus
Over 400 patents and trademarks across key technologies and geographies Strong R&D focus Competitive edge Market leadership * Countries with patent coverage 6
Slide 7: Blue chip customer base across multiple critical markets
Blue chip customer base across multiple critical markets 7
Slide 8: M&A and disposal history
Investment: Joint Venture with Jindal SAW Ltd (India) US$1.9m plus asset contribution Investment: Cumberland Additive Holdings LLC US$4.1m Acquisition: Investment: Partnership: Acquisition: RTI Energy Acquisition: Cumberland Additive 10-year Strategic Partnership Organic Oil Recovery Systems (Spring
Slide 9: Hunting's strategic pillars
Hunting’s strategic pillars Growth Strong returns Operational excellence ESG and sustainability • EBITDA margins of 15% or higher by the • Target of 15% ROCE. • Continue to introduce new • 2030 target to reduce scope 1 and 2 end of the decade. technologies. emissions to c.17k tonnes. • $2bn revenue
Slide 10: Revenue growth path to 2030
2,500 2,000 2,000 1,500 $m 1,000 725.8 500 0 2022 Perforating Systems OCTG Subsea Advanced Manufacturing Other M&A 2030 10
Slide 11: Progress against CMD objectives
Global growth Delivery of strong growth $14.7m of EBITDA margin 12% delivered in OCTG – in subsea / offshore revenue Energy Transition sales now 44% of Group revenue CMD OBJECTIVE CMD OBJECTIVE CMD OBJECTIVE CMD OBJECTIVE Increase global presence in OCTG and Long range sales target on track Capture
Slide 12: Capital allocation: investment, dividends, M&A, distributions
01 02 03 04 Invest in Dividends Value accretive Additional the business Progressive M&A Shareholder Capex and dividend policy Disciplined Distributions investment in approach to organic growth valuation Target of 1.0 – 1.25 x 10% growth per annum Target sectors include Surplus cash offers depreciati
Slide 13: OCTG performance
• $231m order from Kuwait Oil Company transformed performance in H2 2024 / H1 2025. • Strong results delivered in North America with market share gains in US and steady growth in Canada supporting results. • OCTG well completion packages into South America also contributing to material growth. • Ene
Slide 14: Subsea performance
• Record year of revenue and margin growth driven by Spring business into South America as orders are converted to sales. • Steady growth delivered from hydraulic valves and couplings. • Titanium and steel stress joints increasing in use on FPSOs, being recognised as best in class, resulting in lowe
Slide 15: Advanced Manufacturing performance
• Electronics and Dearborn businesses exploring diversification into new markets, leveraging its strong heritage in servicing the oil and gas industry. • Steady growth in energy sales, with switches also being manufactured for Perforating Systems. • Aviation, commercial space, defence, medical and p
Slide 16: Technology to drive operational efficiency
Technology to drive operational efficiency • New technology launched in year including Tandem perforating system for leading industry perforating accuracy. • International sales continue to accelerate, with growth in South America and Middle East. • Customer consolidation, lower natural gas prices,
Slide 17: Other manufacturing performance
• Steady growth from well intervention, well testing, trenchless and organic oil recovery delivered. • Disposal of E&P business in 2023. • Move of well testing business from the Netherlands ongoing. • New facility in Dubai, to be closer to customers, scheduled to be operational by Q3 2025. Source: C
Slide 18: Geothermal and Carbon Capture revenue
Geothermal and Carbon Capture revenue - $14.7m • 0.7 • 2.0 4.9 Geothermal - Asia Pacific 7.1 Geothermal - Europe Geothermal - US Carbon Capture - US Source: Company 18 18
Slide 19: Organic oil recovery contracts
• $60 million of contracts secured for licensed OOR technology in August 2024 for deployment in North Sea over the next five years. • Good gross margins attached to technology and revenue. • Pilot testing continuing in Europe, US and Southeast Asia, with multiple blue-chip clients. Upcoming markets
Slide 20: North America operations
• Core manufacturing centre for the Group, servicing onshore US basins, Gulf of Mexico, Canada and USA South America. • Supplies broadest range of products including OCTG, Connections, Perforating Systems, Electronics and Precision MWD tools. • Highly profitable third party OCTG threading business m
Slide 21: Europe and Middle East operations
• TEK-HUB provides access to high technology as demonstrated by organic oil recovery business. UK • Optionality on North Sea activity. • Access to African markets. • Maintain presence in key European market. NORWAY UAE • Transferring Well Testing business to Dubai. & • Growing Saudi Arabia business,
Slide 22: Asia Pacific and India operations
• Key manufacturing site to support domestic and international activity. CHINA • Key OCTG mill partners who are supporting international strategy. • Solid domestic market. SINGAPORE • OCTG threading and manufacturing in high & efficiency facility. BATAM • Market access into Asia and Middle East. • J
Slide 23: Strong revenue growth
Strong revenue growth Revenue by Product - $m +17% -9% +49% +13% +12% OCTG Perforating Systems Subsea Advanced Manufacturing Other Manufacturing Source: Company 23
Slide 24: Order book by product group and activity
Order book by product group - $508.6m Order book by operational activity - $508.6m 88.5 420.1 Oil and gas Non-oil and gas Source: Company 24
Slide 25: Earnings and profitability growth in the year
Earnings and profitability growth in the year *Results for the year, as reported under IFRS, adjusted for certain items as determined by management. 25
Slide 26: Product groups and operating segments 2024 performance
Product groups and operating segments 2024 performance Hunting North Subsea Asia External EBITDA Titan America Technologies Pacific Revenue EBITDA Margin $m $m OCTG 27 199.8 0 27.5 233.7 463.7 80.2 17% Perforating Systems 211.1 0 oO 11.6 oO 222.7 1.4 1% Advanced Manufacturing 67 120.2 0 0 0 126.9 11
Slide 27: 2025 guidance
EBITDA PRECISION ENGINEERING $ 135m - $145m FROM SUBSEA EBITDA margin TO SPACE 2025 GUIDANCE c. 12% - 13% Effective tax rate 25% - 28% Capex $ 35m - $40m Free cash flow conversion (post capex) c. 50% Total cash and bank / (borrowings) $ 135m - $145m 27
Slide 28: Board of directors
Stuart M. Brightman Jim Johnson Bruce Ferguson Margaret Amos Non-executive Company Chair Chief Executive Finance Director Non-executive Director Chair of Nomination Committee Chair of Ethics and Sustainability Committee Carol Chesney Paula Harris Cathy Krajicek Keith Lough Non-executive Director Non
Slide 29: ESG highlights and Scope 1 and 2 GHG data
The environment People and society Responsible products Governance Safety remains a priority The 2023 employee Continued focus on Board Scope 76% accountability for ESG Zero engagement survey of our facilities are Ethics and 1 and 2 fatalities recorded an compliant with ISO 9001:2015, Sustainability
Slide 30: Key ESG metrics
Skilled employees driving quality and HSE Continued improvement in key ESG metrics driving client loyalty Manufacturing reject rate Renewable energy purchased 60% 0.35% 0.31% 0.30% 50% 50% 0.25% 40% 0.20% 0.20% 30% 0.15% 0.13% 20% 23% 0.10% 20% 21% 10% 16% 0.05% 12% 4% 0.00% 0% 2022 2023 2024 2019 2
Slide 31: Summary
• 2024 another strong year of growth in revenue and profits. • Hunting 2030 Strategy on track, given the milestones achieved in the year. • Strong liquidity including c.$60 million of cash balances provides significant resources for acquisitions. • 2025 guidance indicates a further year of good grow
Slide 32: Appendices
PRECISION ENGINEERING FROM SUBSEA TO SPACE APPENDICES
Slide 33: Company targets and CMD targets
Source: Company CMD target * Restated to include the import tax provision and associated tax impact. 33
Slide 34: Working capital
Working capital Inventories - Hunting Titan - North America - Other segments Net inventories Receivables Payables Total Working capital to annualised revenue Inventory days Receivables days Payables days Advances from customers Payments on account to suppliers 2024 $m 107.8 140.5 98.7 107.8 96.8 80.
Slide 35: Strong cash flow generation
Strong cash flow generation 35
Slide 36: Statutory Income Statement
Statutory Income Statement * Results for 2023 have been restated to include import tax provision and the Group’s share of associates’ and joint venture’s results in operating (loss) profit. 36
Slide 37: Contact
www.huntingplc.com Gg https://www.linkedin.com/company/hunting-energy-services/ HUNTING https://www.youtube.com/@HuntingPLC