Hunting confirms full-year outlook, sets long-term targets

Engineering firm Hunting unveiled its long-term targets on Wednesday, including reaching annual sales of $2bn by the end of the decade, as it reiterated its full-year guidance.

Hosting a capital markets day, Hunting - a specialist in oil and gas equipment - said it remained on track to meet both its 2023 and 2024 forecasts. The 149-year-old firm expects to post earnings before interest, tax, depreciation and amortisation in the range of $96m and $100m this year, with free cash flow between $30m and $60m.

Hunting noted that its oil country tubular goods (OCTG) business in North America was seeing "robust" growth, while trading in its shale business Hunting Titan had been "resilient" despite a decline in onshore rigs.

Longer term, Hunting said it was now targeting annual sales of around $1.3bn by 2025 and $2bn by 2030. EBITDA margins were expected to reach 15% by 2025, with "further progression" by the end of the decade. Free cash flow was forecast to top $1bn by 2030.

It also committed to an increasing dividend policy delivering 10%-plus annual growth alongside potential share buybacks.

Jim Johnson, chief executive, said: "Hunting’s product portfolio of industry-leading, IP-protected technology and manufacturing expertise, coupled with the strong market dynamics we can see unfolding, give us confidence to deliver on our ambitions.

"The evolution of the group’s strategy is underpinned by our established position as a global manufacturer of world-class precision engineered, high reliability products, trusted client relationships and the diversity of our product applications across multiple end markets."

He concluded: "Over the last few years, Hunting has delivered a consistent recovery, during which it optimised its operating footprint, grew sales and enhanced margins, all of which leaves the company well placed to deliver strong growth."

As at 0930 BST, shares in the London-listed firm were up 2% at 263.5p.