Cost Reduction Plan & Update to Capital Allocation
Summary by AI BETAClose X
|
For Immediate Release |
5 March 2026 |
Hunting PLC
("Hunting" or "the Company" or "the Group")
Cost Reduction Plan
and
Update to Capital Allocation Priorities
Hunting PLC (LSE: HTG), the global precision engineering group, today provides an update to its cost reduction plans, as part of the Group's Hunting 2030 Strategy, in addition to updating investors on its ongoing capital allocation priorities.
Highlights
· Cost reduction plan to be completed through to the end of 2027 will increase profitability and further streamline centralised costs with projected savings of c.$15 million, in addition to those already announced.
· Proposed second Share Buyback programme, totalling $40 million, to be executed over two years up until March 2028.
Cost Reduction
Since 2024, Hunting has continued to maximise profitability through the significant restructuring of its Hunting Titan and EMEA operating segments. Costs of c.$20 million have been eliminated to date and will be realised by June 2026, once the Group's Fordoun, Aberdeen, operating site is closed.
In addition to these programmes, the Group implemented regional shared-service business functions in Q4 2025 in Europe and North America. This is expected to result in further ongoing SG&A cost savings. Other operational and centralised cost savings are also being pursued and are expected to result in additional savings of c.$15 million per annum by 2028.
Proposed New $40 million Share Buy Back Programme
The Directors have continued to review their capital allocation priorities and pursue bolt-on acquisitions and other growth opportunities. The Directors today announce the intention to complete a further $40 million Share Buyback programme. The new Share Buyback programme is to be completed over a two-year period, with c.$20 million per annum being targeted for completion, and the Share Buyback will be subject to pre-agreed parameters. This quantum of repurchases broadly matches the proposed dividend distributions in this timescale, with the Directors targeting a balanced capital allocation and return to shareholders over the next two years.
Commenting on the restructuring and updated capital allocation, Jim Johnson, Chief Executive of Hunting said:
"Our business remains focused on maximising profitability and cash generation, alongside pursuing our Hunting 2030 Strategy to deliver top line revenue growth through our key products and technology offering.
"In addition, the proposed new $40 million Share Buyback programme reflects our confidence in our cash generation and increases our returns to shareholders, providing an ambition which now extends to 2028."
For further information please contact:
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Hunting PLC Jim Johnson, Chief Executive Bruce Ferguson, Finance Director
|
Tel: +44 (0) 20 7321 0123 |
|
Sodali & Co James White Tilly Abraham |
Tel: +44 (0) 78 5543 2699 |
or
lon.IR@hunting-intl.com
About Hunting PLC
Hunting is a global, precision engineering group that provides precision-manufactured equipment and premium services, which add value for our customers. Established in 1874, it is a listed public company, quoted on the London Stock Exchange in the Equity Shares in Commercial Companies ("ESCC") category. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has operations in China, India, Indonesia, Mexico, Saudi Arabia, Singapore, United Arab Emirates and the United States of America.
The Group reports in US dollars across five operating segments: Hunting Titan; North America; Subsea Technologies; Europe, Middle East and Africa ("EMEA"); and Asia Pacific.
The Group also reports revenue and EBITDA financial metrics based on five product groups: OCTG; Perforating Systems; Subsea; Advanced Manufacturing; and Other Manufacturing.
Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66
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