PRECISION ENGINEERING
STRATEGIC EXPANSION AND
OPERATIONAL DELIVERY
Hunting PLC
Annual Report and Accounts 2025
At a Glance
We are Hunting
Hunting is a global precision
engineering group, which provides
quality-assured products and services
for the energy, aviation, defence,
medical, and power generation sectors.
Contents
2025 has seen the
delivery of key growth
objectives including the
completion of two
acquisitions and further
facility investment in the
Middle East.
Visit our 2025 online reporting
site to watch and read more:
huntingplc.com
Hear from Jim Johnson
Chief Executive
Strategic Report
At a Glance
IFC
Company Chair’s Statement
4
Hunting 2030 Strategy
6
Our Investment Proposition
11
Key Performance Indicators
12
Market Indicators
13
Business Model
14
Chief Executive’s Report
28
Product Group Review
32
Operating Segment Review
43
Group Financial Review
48
ESG and Sustainability
56
Task Force on Climate-related Financial
Disclosures (“TCFD”)
74
Risk Management and Internal Controls
87
Viability Statement and Going Concern
99
Section 172(1) Statement
101
Corporate Governance
Introduction to Corporate Governance
104
Board of Directors
106
Executive Committee
108
Corporate Governance Report
109
Nomination Committee Report
122
Ethics and Sustainability Committee Report
124
Remuneration Committee Report
127
– Remuneration at a Glance
131
– Annual Report on Remuneration
133
Audit and Risk Committee Report
144
Executive Committee Report
151
Internal Controls Committee Report
151
Directors’ Report
152
Financial Statements
Independent Auditor’s Report to
the Members of Hunting PLC
156
Consolidated Income Statement
168
Consolidated Statement of
Comprehensive Income
169
Consolidated Balance Sheet
170
Consolidated Statement of Changes in Equity
171
Consolidated Statement of Cash Flows
172
Notes to the Consolidated Financial Statements 173
Company Balance Sheet
227
Company Statement of Changes in Equity
228
Notes to the Company Financial Statements
229
Other Information
Non-GAAP Measures
236
Financial Record
244
Shareholder and Statutory Information
245
Glossary
247
Professional Advisers
251
Highlights 2025
Financial highlights
Non-financial highlights
Market highlights
Revenue
$
1,018.8
m
(2024 – $1,048.9m)
Internal manufacturing reject rate
0.20
%
(2024 – 0.31%)
Average WTI crude oil price
$
65
per bbl
(2024 – $76 per bbl)
EBITDA*
$
135.7
m
(2024 – $126.3m)
Scope 1 and 2 GHG emissions
tonnes CO
2
e
23,206
(2024 – 22,233)
Global drilling capital
investment
$
184.5
bn
(2024 – $191.4bn)
Profit before tax
$
65.5
m
(2024 – $(33.5)m loss)
Total recordable incident rate
0.75
(2024 – 0.93)
Global average rig count
1,775
(2024 – 1,899 restated)
*Non-GAAP Measure see NGM C on pages 237 to 238.
Revenue
$m
221.8
72.3
363.3
138.2
223.2
EBITDA*
$m
13.1
69.1
23.3
(7.0)
37.2
At a Glance
continued
Operating segments and our global locations
*Non-GAAP measure see NGM C on pages 237 and 238.
Operating segments
Hunting Titan
North America
Subsea Technologies
EMEA
Asia Pacific
Hunting global locations
Hunting Titan
North America
Subsea Technologies
EMEA
Asia Pacific
Joint Ventures and associates
Head Office
Operating sites
25
Distribution centres
14
Year-end employees
(including head office)
2,246
Hunting PLC
Annual Report and Accounts 2025
1
Strategic Report
Corporate Governance
Financial Statements
Other Information
At a Glance
continued
Perforating Systems
OCTG
Product groups
During 2025, Hunting delivered another
year of EBITDA growth, driven primarily
by our OCTG and Perforating Systems
product groups.
To deliver longer-term revenue growth,
the Company completed two strategic
acquisitions. Flexible Engineered Solutions
joined our Subsea platform, enhancing the
Group’s capabilities in the global FPSO
arena. In addition, we acquired the Organic
Oil Recovery business from its founding
shareholders, which will accelerate the
commercialisation of this innovative
technology. Hunting’s balanced product and
technology platform is applicable to most oil
and gas resources and extends across the
producing life of a typical oil and gas well
providing multiple sales opportunities.
Hunting’s Perforating Systems product offering
includes integrated gun systems, energetics
and instruments for the energy sector. The
Group’s perforating gun systems offer an
integrated well completion solution to clients,
which increases safety and efficiency. Hunting’s
energetics products improve firing accuracy
and efficiency. Complementing these products,
Hunting supplies instruments, detonation cord,
and other critical components, enabling us to
deliver the most comprehensive onshore
completion solutions available in the market.
Hunting’s Oil Country Tubular Goods (“OCTG”)
product offering includes premium connections,
accessories, and tubing. Our proprietary
connection technologies, which include
SEAL-LOCK™, WEDGE-LOCK™, and TEC-
LOCK™, are designed to meet the demands
of most oil and gas resource developments.
Hunting’s connection technology is also
applicable to the energy transition sector, serving
geothermal energy and carbon capture and
storage developments.
The Group provides an independent OCTG
supply chain to clients, sourcing through either
distributors in North America or steel mills in Asia
Pacific and India.
Reported through:
Hunting Titan
EMEA
Reported through:
Hunting Titan
North America
EMEA
Asia Pacific
READ MORE ON PAGES 32 AND 33
READ MORE ON PAGES 34 AND 35
Hunting PLC
Annual Report and Accounts 2025
2
Strategic Report
Corporate Governance
Financial Statements
Other Information
Revenue
$m
221.1
138.1
467.5
112.4
79.7
At a Glance
continued
Advanced Manufacturing
Subsea
Other Manufacturing
EBITDA*
$m
13.9
87.7
10.3
23.7
0.1
Hunting’s Advanced Manufacturing product
offering leads the Group’s non-oil and gas
revenue diversification initiatives, delivering
high performance electronics and precision
engineered products, which are utilised in both
energy-related and non-oil and gas applications.
Our Electronics business manufactures high
temperature/high pressure printed circuit boards
used in downhole measurement tools as well as
serving other sectors such as the medical
industry. Our precision engineering business,
Dearborn, manufactures downhole tool housings,
periscope tubes, nuclear, aerospace engine
shafts, power generation turbine shafts and
products used in commercial space applications.
Hunting’s Subsea product offering comprises
four sub-groups: hydraulic couplings and valves,
used within subsea tree systems; titanium and
steel stress joints, which are applied to floating
production, storage and offloading (“FPSOs”)
facilities; diverless connectors and turrets, also
applied to FPSOs; and flow access modules
and flow intervention systems used in modular
offshore field developments. A consistent
theme of all these products is enabling the
safer and quicker delivery of oil and gas for
our customers and, therefore, cash flow from
offshore developments.
In addition, Hunting’s subsea products also
support the late-life and decommissioning phase
of offshore assets, providing modular access
systems, intervention tooling and engineered
connector solutions that enable safer, more
efficient and cost-effective decommissioning
operations.
Hunting’s Other Manufacturing products
include well intervention and testing equipment,
which is either sold to, or rented by, customers.
The Group’s trenchless technologies business
serves the global telecommunications sector.
Other Manufacturing also includes our licensed
Organic Oil Recovery (“OOR”) product, which is
an enhanced oil recovery technology solution
that increases oil well productivity while reducing
hydrogen sulfide (H
2
S) levels in the reservoir.
Reported through:
Hunting Titan
North America
Reported through:
Subsea Technologies
Reported through:
North America
EMEA
READ MORE ON PAGES 36 AND 37
READ MORE ON PAGES 38 AND 39
READ MORE ON PAGES 40 AND 41
*Non-GAAP measure see NGM C on pages 237 and 238.
Product groups
Perforating Systems
OCTG
Advanced Manufacturing
Subsea
Other Manufacturing
Hunting PLC
Annual Report and Accounts 2025
3
Strategic Report
Corporate Governance
Financial Statements
Other Information
Company Chair’s Statement
2025 has been another year of
strong delivery by your Company,
as management completed two
acquisitions and one divestment, in
line with the Hunting 2030 Strategy.
In July we announced revised capital
allocation priorities and committed
to a share buyback. Our increased
dividend guidance and buybacks
mean Hunting will be returning to
shareholders c.$290m to 2030,
supporting our strong outlook for
the Group over this timeframe.
Introduction
The acquisition of Flexible Engineered Solutions
(“FES”) broadens our exposure to the global
FPSO and offshore market, given its leadership
in fluid transfer solutions and subsea equipment.
FES also allows the Company to further bundle
and cross-sell our subsea products in the global
offshore market through our global footprint
leveraging our international sales force and
expertise in the subsea arena.
The acquisition of the Organic Oil Recovery
“OOR” technology enables an acceleration in the
deployment of this novel solution to customers
throughout our global business. This technology
extends the life of wells and increases the
economic life of a producing field, while
simultaneously reducing maintenance costs.
With the disposal of our interest in Rival
Downhole Tools, Hunting has been able to
recycle capital into higher return investments,
including M&A, further supporting our drive for
stronger returns and performance.
Our growth ambitions remain unchanged but,
as the year progressed, it has become clear that
the offshore and subsea segments of the oil and
gas industry are poised for strong momentum
into the medium term as these developments
have continued to accelerate.
The Directors have been impressed by the
commitment and delivery by the senior
leadership team during the year, particularly as
the macroeconomic and geopolitical backdrop to
the global energy industry became more volatile,
and I would like to thank Jim Johnson, our Chief
Executive, for leading the Group through this
trading environment, delivering strong financial
results and higher shareholder returns.
Market environment
During 2025, the macroeconomic and
geopolitical challenges and associated impact
to commodity prices were clearly evident with
WTI crude oil averaging $65 per barrel, which
represents a decline of 14% year-on-year.
However, we remain confident in our outlook
given our focus on the subsea and international
markets, as noted above.
To address these short-term challenges, the
Company continues to aggressively manage the
items within our control.
This has resulted in a major restructuring within
our EMEA operating segment and additional
cost reduction actions within other operating
segments of the Group, which have generated
improved margins.
To address a changing market, the Company
has invested in robust management development
that has enabled several leadership changes,
which has accelerated the margin improvements
reported through a combination of cost
reductions, technology initiatives, and customer
service.
Financial performance
Hunting delivered another year of robust financial
results resulting in increased profitability, ROCE,
and EPS.
The major factors generating these results were
the continued execution of the KOC project,
further growth in our OCTG business, and
margin improvement in our Perforating Systems
business through focused restructuring actions
and cost management.
EBITDA*
$
135.7
m
(2024 – $126.3m)
Dividend per share declared
13.0
cents
(2024 – 11.5 cents)
*Non-GAAP Measure see NGM C on pages 237 and 238.
Hunting PLC
Annual Report and Accounts 2025
4
Strategic Report
Corporate Governance
Financial Statements
Other Information
Revenue was down 3% from $1,048.9m in 2024
to $1,018.8m in 2025, predominantly due to the
timing of customer projects.
Due to a stronger product mix and cost
reductions, EBITDA was $135.7m, up 7%
year-on-year. Our adjusted profit before tax
was $79.7m compared to $75.6m in 2024, an
increase of 5%. Statutory profit before tax was
$65.5m in 2025 compared to a loss of $33.5m
in the prior year.
Free cash flow conversion was 71% in the year at
$96.6m. This compared to $139.7m in 2024 and
remains well above our stated target of 50%, as
outlined at our 2023 Capital Markets Day. This
achievement was a result of continued working
capital efficiency improvements combined with
our stronger earnings.
During the year, the Company demonstrated its
ability to use the strength of the balance sheet
and free cash flow results to fund the two
acquisitions and increase returns of capital to
shareholders.
Capital allocation
Capital allocation is a fundamental area of
Board oversight. During the year, the Company
announced a targeted annual dividend increase
to the end of the decade, a share buyback
programme of $40m that was extended to
$60m, two acquisitions, and one divestiture.
Based on our success in the year, the Directors
are declaring a Final Dividend of 6.8 cents
per share (2024 – 6.0 cents), which takes our
total dividend for the year to 13.0 cents per
share (2024 – 11.5 cents) or an increase of
13%. The Final Dividend is subject to approval
at the Company’s Annual General Meeting on
15 April 2026.
Based on the strength of the balance sheet,
the confidence in our business outlook, and
input from major shareholders, the Company
determined that these were the most appropriate
allocations of capital in order to achieve our
long-term objectives.
Board profile
On 3 March 2025, we welcomed Cathy Krajicek
as a new, independent, non-executive Director of
the Company. Cathy succeeds Annell Bay, who
retired after ten years of service to the Company,
and provides important customer perspectives
for our long-term growth strategy, given her
experience of the upstream exploration and
production segment of the industry.
Culture
As noted elsewhere in this report, Hunting
completed its third all-employee engagement
survey, which showed further progress in the
engagement of the workforce and the initiatives
implemented by management to increase
development of our employees.
On behalf of the Directors, I would like to thank
our employees who are our most important asset
and who will be instrumental in the continued
delivery of our growth objectives to the end of
the decade and beyond.
Stuart M. Brightman
Company Chair
5 March 2026
Total dividends payable to shareholders in
respect of the financial year
$
19.6
m
(2024 – $18.2m)
Total distributions to shareholders in
respect of the financial year
$
53.1
m
(2024 – $18.2m)
How the Board supports our
strategy – overseeing long-term
growth opportunities
Flexible Engineered Solutions
– acquired in June 2025 for $64.8m
The addition of FES to the Hunting Group
broadens our subsea offering and will leverage
our presence in the global FPSO market.
READ MORE ON PAGE 29
Organic Oil Recovery
– acquired in March 2025 for $18.2m
With the purchase of the OOR technology
Hunting can now accelerate the
commercialisation of this exciting
enhanced oil recovery solution.
READ MORE ON PAGE 29
Company Chair’s Statement
continued
Hunting PLC
Annual Report and Accounts 2025
5
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and
sustainability
READ MORE
ON PAGE 10
Strong returns
READ MORE
ON PAGE 8
Growth
READ MORE
ON PAGE 7
Operational
excellence
READ MORE
ON PAGE 9
Hunting has four defined strategic pillars
to deliver growth in the long term
Hunting 2030 Strategy
Hunting 2030 financial and
investment return targets
We are targeting c.$2.0bn
of annual revenue
Our operational growth strategy is supported by
strong market fundamentals and independent
market commentary that points to sustained
demand for oil and gas and committed industry
capital expenditures. The Group has set a 2030
revenue goal of c.$2.0bn p.a., with 75% sourced
from oil and gas and 25% from non-oil and gas
sectors, including the energy transition sector.
Deliver ROCE greater than 15%
The Group is focused on retaining a strong
balance sheet and maximising its return on capital
employed (“ROCE”) through careful management
of its working capital. Management is targeting
to deliver ROCE of greater than 15% by 2030.
Management is also aiming to outperform our
peers by targeting a working capital to
annualised revenue of c.35%.
Increase dividend distributions
by a minimum of 13% per annum
We are seeking to return c.$220m of cash
to shareholders, primarily through dividend
distributions, with the Board targeting a steady
increase of 13% annually to 2030. Details of the
increase can be found on page 8.
Deliver a more efficient business platform
To ensure that we operate efficiently, the Group
is focused on disposing of non-core and
underperforming investments and product lines,
thereby reducing our global operational footprint
and reducing fixed costs. By the end of 2026, the
Group will have realised c.$20m of cost savings
following the restructuring of the EMEA and
Hunting Titan operating segments.
Increase our EBITDA margin
to greater than 15%
Our focus is on delivering technology that attracts
high margins, maximising the output from our
current operating footprint, while minimising our
cost base, which are our key drivers to meet the
EBITDA margin target of greater than 15%
by 2030.
Generate c.$750m of cumulative
free cash flow
With increased revenue and margins, supported
by stringent management of our balance sheet,
we are targeting an EBITDA to free cash flow
conversion rate of 50% or greater and aim to
deliver c.$750m of cumulative free cash flow
through to the end of the decade. This target is
on a post capital expenditure basis.
Net leverage of less than 1.5x EBITDA
through the period
By maintaining a strong balance sheet, liquidity,
and a prudent approach to debt, a long-term net
leverage of 1.5x EBITDA is targeted.
Underpinned by our diversified portfolio
of businesses and targeted bolt-on
acquisitions
Risks to the strategic pillars of the 2030 Strategy
1
Increased competition and market consolidation
2
Geopolitical instability
3
Adverse movement in commodity prices
4
Information technology and cyber security
5
Our ability to achieve our strategic goals
6
Legal and compliance risk
7
Loss of key executives or staff and shortage
of key staff
8
Climate change and energy transition
9
Product quality and reliability
10
Work environment issues including health
and safety
Hunting PLC
Annual Report and Accounts 2025
6
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting 2030 Strategy
continued
Growth
Our aim is to continue to develop
our global presence and supply a
comprehensive range of products
used in oil and gas wellbores
and through expansion into
complementary non-oil and
gas sectors.
Our diversified portfolio of products,
which are offered in strategic global
locations, will enable us to produce
high levels of profitability and free
cash flow.
Our cash generation will facilitate
growth through investment
in our existing businesses and
through acquisition.
Related KPIs
Revenue; non-oil and gas revenue; EBITDA; adjusted
profit before tax; adjusted diluted earnings per share;
total shareholder return; and free cash flow.
SEE PAGES 12 AND 13
Related risks
1
2
3
5
7
8
9
SEE PAGES 91 TO 95
Retain focus on global oil and gas
opportunities, specifically growing our
subsea and offshore-focused businesses
Crude oil and natural gas are forecast to be two
critical primary energy sources for many decades
to come. As developed and emerging economies
seek growth and energy security, hydrocarbon
resources will remain part of the energy landscape
alongside other renewable and low carbon
energy sources. The Group will continue to
broaden its product offering and introduce critical
technologies through research and development
(“R&D”) and targeted mergers and acquisitions
(“M&A”). The offshore sector of the global energy
industry provides predictable and sustained
hydrocarbon production, which have increased in
importance for project developers in recent years.
Develop a global position in the renewables
and energy transition sector
The energy transition sector is an area of new
opportunity for Hunting, as global efforts to
decarbonise the energy supply chain accelerate.
The Group anticipates growth in supplying
products for geothermal as well as carbon
capture and storage projects, which require
high-performance technology and materials
that can deliver multi-decade benefits to the
energy industry. With the acquisition of Flexible
Engineered Solutions (“FES”), the Company is
deploying its proprietary connectors to penetrate
and build a presence in the floating offshore
wind sector.
Progress in high-value, non-oil
and gas industries
Given the cyclical nature of the oil and gas
industry, a key element of our strategy is to create
a more stable revenue and profit profile. This will
be delivered through organic and acquisitive
growth of non-oil and gas businesses.
We currently sell into several non-oil and gas
end-markets, such as the aviation, commercial
space, defence, medical, nuclear and power
generation sectors, and will continue to leverage
our world-class precision engineering and
manufacturing know-how into these areas.
Highlights 2025
OCTG
Completed key OCTG and Subsea orders
for Kuwait Oil Company and ExxonMobil
Guyana as developments in the Middle
East and South America increase.
$
64.8
m
Acquired Flexible Engineered Solutions
(“FES”) for $64.8m to add new products
and revenue opportunities to our Subsea
platform. FES enhances Hunting’s presence
in the global FPSO market.
$
18.2
m
Acquired Organic Oil Recovery (“OOR”)
technology for $18.2m to accelerate
commercialisation and broaden global
reach of this enhanced oil recovery solution.
$
98.6
m
Built a $98.6m non-oil and gas order book,
to pivot our long-term end-markets to
aviation, defence and commercial space
sectors.
Hunting PLC
Annual Report and Accounts 2025
7
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting 2030 Strategy
continued
Strong returns
In the growth phase of the oil
and gas cycle, our business has
the capability to deliver strong
profitability, robust cash generation,
and solid returns on capital,
supporting higher shareholder
distributions. To reduce exposure
to oil and gas cyclicality, the Group
is expanding revenue in aviation,
commercial space, defence,
medical, and power generation
markets. We continue to seek
opportunities to reduce our fixed
cost base and improve efficiency.
The Group has also invested in
technologies supporting the energy
transition, including floating
offshore wind, geothermal, and
carbon capture projects.
Related KPIs
Revenue; non-oil and gas revenue; EBITDA; adjusted
profit before tax; adjusted diluted earnings per share;
dividend per share declared; total shareholder return;
free cash flow; working capital to annualised revenue
ratio; and return on average capital employed (“ROCE”).
SEE PAGES 12 AND 13
Related risks
1
2
3
5
8
9
SEE PAGES 91 TO 95
Increase EBITDA
The Group is targeting strong growth in EBITDA,
with an ambition of c.$300m p.a. by the end of
the decade. This target will be met through a
combination of organic growth and substantial
contributions from acquisitions to be secured in
the coming years.
Improve working capital efficiencies
Hunting has a targeted working capital to
annualised revenue ratio target of 35% or lower.
The primary levers for delivering this goal are
improvements in inventory management and
receivables, supported by the use of working
capital solutions and instruments designed to
shorten cash cycles on some of our more
capital-intensive contracts.
Deliver strong cash flow conversion
Generating and releasing cash from our capital
employed, driving increased balance sheet
efficiency will lead to Hunting meeting its stated
long-term objective of a 50% or greater EBITDA
to free cash flow conversion rate.
Increase shareholder returns
Capital growth and increased dividends remain
the primary methods of delivering returns to
our shareholders. A targeted annual dividend
increase of at least 13% through to the end of the
decade is a key commitment by the Directors as
part of the Hunting 2030 Strategy. The Company
will also deliver returns to shareholders through
share buyback programmes, where the Group’s
sustainable cash generation and strong balance
sheet allow.
13
%
Increase to total
dividends declared
to 13.0 cents
(2024 – 11.5 cents).
Total dividends
distributed in respect
of 2025 $19.6m
(2024 – $18.2m).
$
33.5
m
Purchased 7.2m Ordinary shares via
a share buyback programme, returning
$33.5m to shareholders. These shares
have been cancelled.
7
% increase
in EBITDA
Recorded EBITDA of $135.7m
(2024 – $126.3m), as OCTG and
Perforating Systems delivered
growth.
10
% ROCE
delivered
Equals a one percentage point
increase in 2025 compared to the
9% delivered in 2024.
Highlights 2025
Hunting PLC
Annual Report and Accounts 2025
8
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting 2030 Strategy
continued
Operational excellence
Our people are at the heart of
our business, and their health,
safety, and well-being remain our
highest priority.
We operate in competitive, cyclical
sectors that are both high-profile
and highly regulated. To be
successful, we must consistently
deliver reliable, quality-assured
products that meet the highest
industry standards and support
safer processes for our customers.
In addition, we strive to manage
working capital efficiently to ensure
the timely delivery of products to
our customers.
Related KPIs
Working capital to annualised revenue ratio; total
recordable incident rate; and internal manufacturing
reject rate.
SEE PAGES 12 AND 13
Related risks
4
5
6
7
9
10
SEE PAGES 91 TO 95
Maintain and improve our health
and safety performance
The safety of our employees remains a
key management priority, reflecting our
commitment to delivering a best-in-class
service for our clients and reinforcing
confidence in our operational standards.
Increase training and development
for our workforce
Training continues across the Group in many
areas, including HSE, quality assurance, IT and
cyber awareness, financial, and other important
operational policies covered within the Hunting
PLC Code of Conduct training programme.
Continue to deliver strong
quality-assured products
Our products operate in some of the harshest
environments, therefore delivering products
that consistently perform and which protect
our customers, suppliers, employees and the
environment remain a key area of focus.
Our facilities continue to secure key
manufacturing accreditations
Hunting remains committed to achieving and
maintaining critical ISO certifications, including
those for manufacturing excellence and
environmental management.
We aim for zero recordable incidents
and fatalities
Protecting our employees and contractors
who work at our facilities remains a key focus.
52,130
hours
Recorded HSE training in the year totalled
52,130 hours, on average 23 hours per
employee (2024 – 68,834 hours / 28 hours
per employee).
0.75
TRIR
Our total recordable incident rate
in the year was 0.75 (2024 – 0.93),
reflecting a broadly consistent
performance for health and safety,
and averaging 0.86 over the
past three years.
0.20
%
We improved our manufacturing reject rate
in the year through robust quality assurance
protocols. In 2024, our reject rate was
0.31%.
22.1
m parts
In the year, we manufactured 22.1m
parts (2024 – 15.6m), with only 0.0021%
(2024 – 0.0006%) of shipped parts returned.
Highlights 2025
Hunting PLC
Annual Report and Accounts 2025
9
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting 2030 Strategy
continued
ESG and sustainability
We are committed to acting with
high standards of integrity and
creating positive, long-lasting
relationships with our customers,
suppliers, employees, and the wider
communities in which we operate.
We are also focused on managing
and reducing our carbon footprint
and impact on the environment.
Related KPIs
Total recordable incident rate; internal manufacturing
reject rate; total scope 1, 2 and 3 emissions; CO
2
intensity factor; total purchased electricity; and
renewable energy purchased.
SEE PAGES 12 AND 13
Related risks
5
6
7
8
10
SEE PAGES 91 TO 95
Our employees are our most important
asset, and we aim to keep our voluntary
turnover rate low
Hunting strives to keep our employee attrition
rates low as it reduces the risk of injury, it reduces
costs associated with hiring and training new
employees, ensures that productivity remains
high, and a stronger company culture prevails.
Our focus on training supports efficiency
improvements and helps ensure a safe and
engaged workforce.
We continue to seek ways of reducing
our carbon footprint and encourage our
suppliers and customers to do the same
Hunting is committed to improving its carbon
and climate reporting to provide investors and
stakeholders with a clear understanding of
our environmental impact. We are targeting
a reduction in our scope 1 and 2 greenhouse
gas emissions by 50% from our 2019 baseline
year and to purchase 50% of our energy from
renewable sources by the end of the decade.
We are enhancing our carbon and climate
reporting to enable our stakeholders to
understand Hunting’s impact on the
environment
Hunting now reports scope 1, 2 and 3 emissions,
which will enable further development of a Net
Zero plan. Assurance procedures over our 2024
scope 1 and 2 data were completed in the year.
We are committed to ethical ways
of doing business, which includes
transparent dealings and having a zero
tolerance to modern slavery
Hunting’s culture encourages the highest levels
of ethical behaviour and to this end has strong
anti-bribery and corruption, modern slavery
and sanctions policies.
11.4
%
In the year, our voluntary turnover rate
was 11.4% (2024 – 10.3%), and the average
tenure of our employees is nine years
(2024 – nine years), which helps us mitigate
HSE risk.
22.8
kg/$k
Our CO
2
e intensity factor was 22.8kg/$k
of revenue (2024 – 21.2kg/$k of revenue).
4.16
Satisfaction rating out of 5.00
from employee engagement
survey compared to 4.07 in 2023.
474,894
tonnes
Our total scope 1, 2 and 3 GHG emissions
were 474,894 tonnes (2024 – 557,068 tonnes)
following collection of a full data set from all
operating segments.
Highlights 2025
Hunting PLC
Annual Report and Accounts 2025
10
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting 2030 Strategy
continued
Investment proposition
Hunting PLC’s investment case is
based on technology, precision
engineering core competencies,
and a deep knowledge of the global
energy and precision manufacturing
industries.
Our strategy and expertise will drive
long-term growth, providing leverage
to deliver our value proposition into
new sectors.
Our core competencies
Our strategic differentiators
position us competitively
Our sectors of focus
are resilient
Our financial returns
are gaining momentum
Leadership in:
• Systems design and precision
engineering;
• Bespoke manufacturing; and
• Metallurgy and materials.
Investing in our people to provide:
• Innovation and a competitive edge,
protected through patents and
trademarks;
• Engineering and technical leadership
to attract blue-chip customers from
multiple end-markets; and
• A premium service culture.
Global operating presence
in key locations and exposure to
high-growth markets with proven
control over:
• Quality assurance;
• Health and safety; and
• Carbon emissions.
Strong, experienced management
team to:
• Pursue growth across complex
and competitive sectors;
• Diversify revenue to ensure long-term
resilience;
• Navigate through market cycles; and
• Ensure M&A targets are aligned with
our long-term strategy.
Diversified portfolio:
• Hunting has a diversified portfolio
of market-leading technologies,
products and services that address
many areas of the energy and non-oil
and gas supply chain. The Group
holds a global portfolio of patents and
trademarks across key technologies
and geographies.
Efficiency:
• Our precision-engineered products
are highly reliable and assist in higher
safety protocols and more efficient
procedures for our customers,
wherever they are deployed.
Commercial agility:
• Hunting can leverage its world-class
engineering and manufacturing
capabilities into the energy transition
sector and into high-quality non-oil
and gas markets and industries
through its global presence. Our
commercial agility helps us to remain
a technology leader, often
with a compelling market share.
Our ESG and sustainability
principles:
• Hunting has an established culture
based on its highly skilled and trained
workforce, resulting in strong
quality-assured products and a
robust HSE record. Our ESG
principles help us drive growth,
increase efficiencies and safety for
our workforce and our customers,
and lowers carbon emissions through
operational effectiveness and
technological innovation.
Oil and gas:
• The global energy industry,
particularly oil and gas, is a long-term
driver of economic growth. This is
likely to be the case for many years
to come.
Energy transition:
• Energy transition opportunities are
complementary to our core oil and
gas markets, and is a further area of
long-term growth for the Group.
Other non-oil and gas:
• Aviation, commercial space, defence,
medical, and power generation
sectors have long-term growth
prospects. These are resilient markets
that support economic prosperity
and use our precision engineering
expertise, which will reduce cyclicality
in our earnings.
Strong growth profile:
• Hunting has increased its revenue,
profits and cash flows in recent
years despite continuing uncertainty
in markets.
Improved margins:
• Stronger pricing, focused cost
management and higher facility
utilisation levels have enhanced
operating margins and earnings.
Improved earnings:
• Increased earnings have led to higher
shareholder and capital returns in the
form of share buybacks, dividend
distributions and capital growth.
Cash generation:
• Consistently turning profit into free
cash flow.
Strong balance sheet:
• Improving balance sheet efficiency;
• Financial stability; and
• Revolving credit facility and term loan
provide liquidity.
Progressive financial returns:
• Revenue and profit growth;
• Fixed cost reduction strategy, delivering
a more efficient business platform;
• Increasing EBITDA to free cash flow
conversion;
• Share buyback programme; and
• Dividend growth.
Hunting PLC
Annual Report and Accounts 2025
11
Strategic Report
Corporate Governance
Financial Statements
Other Information
Key Performance Indicators
Financial
Revenue
$m
1,018.8
2025
2024
1,048.9
2023
929.1
Revenue is earned from products and services sold
to customers from the Group’s principal activities
(see notes 2 and 3).
Dividend per share declared*
cents
13.0
2025
2024
11.5
2023
10.0
The amount in cents returned to Ordinary shareholders
in relation to the financial year (see NGM Q).
Sales order book*
$m
358.0
2025
2024
508.6
2023
565.2
The sales order book comprises the value of all
customer orders booked and expected to be
recognised as revenue in future periods (see NGM T).
Total cash and bank/(borrowings)*
$m
62.9
2025
2024
104.7
2023
(0.8)
Total cash and bank/(borrowings) comprises cash at
bank and in hand, short-term deposits and money
market funds less bank overdrafts and bank
borrowings (see NGM K).
Free cash flow*
$m
96.6
2025
2024
139.7
2023
(0.5)
All cash flows before transactions with shareholders
and acquisitions, either subsidiaries or assets
(see NGM P).
Adjusted diluted earnings per share*
cents
34.1
2025
2024
31.4
2023
20.3
Adjusted earnings attributable to Ordinary
shareholders, divided by the weighted average number
of Ordinary shares in issue during the year adjusted for
all potentially dilutive Ordinary shares (NGM B).
Non-oil and gas revenue
$m
82.9
2025
2024
75.1
2023
75.9
Revenue earned from products and services sold to
customers in non-oil and gas sectors (see note 2).
EBITDA*
$m
135.7
2025
2024
126.3
2023
102.4
Adjusted results before interest, tax, depreciation,
impairment and amortisation (see NGM C), and
includes the Group’s share of associates’ and joint
ventures results for the year.
Adjusted profit before tax*
$m
79.7
2025
2024
75.6
2023
50.0
Profit before tax excluding adjusting items (see NGM B).
Working capital to annualised revenue ratio*
%
33
2025
2024
29
2023
46
Working capital as a percentage of annualised revenue
(see NGM E).
Total shareholder return*
%
32
2025
2024
0
2023
(9)
Total shareholder return is a measure of the
Company’s performance over time. It factors in
share price appreciation and dividends paid to show
the total return to the shareholder expressed as an
annualised percentage.
Return on average capital employed*
%
10
2025
2024
9
2023
6
Adjusted profit before interest and tax, for the previous
12 months, as a percentage of average gross capital
employed (see NGM S).
* Non-GAAP measure (“NGM”) see pages 236 to 243.
Hunting PLC
Annual Report and Accounts 2025
12
Strategic Report
Corporate Governance
Financial Statements
Other Information
Market Indicators
Key Performance Indicators
continued
Non-financial
Global onshore capital investment
$bn
129.5
2025
2024
136.2
2023
141.2
The estimated onshore/land-based drilling and
production expenditures of the industry. Reported
by Spears & Associates in their Drilling & Production
Outlook – December 2025.
Global offshore capital investment
$bn
55.0
2025
2024
55.2
2023
57.6
The estimated offshore drilling and production
expenditures of the industry as reported by
Spears & Associates in their Drilling & Production
Outlook – December 2025.
Global onshore average rig count
#
1,553
2025
2024
1,640
2023
1,560
The average onshore global rig count during the year
as reported by Baker Hughes Inc. Reported by Spears
& Associates in their Drilling & Production Outlook –
December 2025.
Average WTI crude oil price
$ per barrel
65
2025
2024
76
2023
78
The average price recorded in the year for West Texas
Intermediary crude oil.
Global offshore average rig count
#
223
2025
2024
259
2023
205
The average offshore global rig count during the year
as reported by Baker Hughes Inc. Reported by Spears
& Associates in their Drilling & Production Outlook –
December 2025.
Average Henry Hub natural gas price
$ per mmBtu
3.62
2025
2024
2.41
2023
2.66
The average price recorded in the year for Henry Hub
natural gas.
Total recordable incident rate (OSHA method)
#
0.75
2025
2024
0.93
2023
0.91
The US Occupational Safety and Health Administration
(“OSHA”) incident rate is calculated by multiplying
the number of recordable incidents by 200,000 and
then dividing that number for the number of labour
hours worked.
Internal manufacturing reject rate
%
0.20
2025
2024
0.31
2023
0.20
Percentage of parts rejected during the manufacturing
process.
CO
2
e intensity factor
kg/$k of revenue
22.8
2025
2024
21.2
2023
24.3
CO
2
e intensity factor is defined as kilogrammes CO
2
of scope 1 and 2 greenhouse gas emissions, divided
by $’000 of revenue.
Total purchased electricity
GWh
48.2
2025
2024
50.2
2023
49.4
The Group’s total electricity purchased during the year.
Renewable electricity purchased
GWh
12.6
2025
2024
10.5
2023
11.4
The Group’s electricity purchased from renewable
or sustainable sources during the year.
Total scope 1 and 2 emissions
tonnes CO
2
e
23,206
2025
2024
22,233
2023
22,599
Scope 1 and 2 greenhouse gas emissions in tonnes,
reported in line with the Greenhouse Gas Protocol,
published by the World Resources Institute.
Hunting PLC
Annual Report and Accounts 2025
13
Strategic Report
Corporate Governance
Financial Statements
Other Information
What we do
Hunting is a global engineering
group that provides precision
manufactured equipment and
premium services, which create
sustainable value for our
customers.
We are focused on high-value
end-markets that recognise
and value our manufacturing
capabilities.
Our
markets
Our pillars
for value
creation
Delivering
value for our
stakeholders*
Shareholders
and lenders
Employees
Customers
and suppliers
Environment
and climate
Government
and communities
Proprietary
technology
Strategic locations
Quality-assured
products
Training
Critical
supply chains
Blue-chip
customers
and suppliers
Expertise in
materials
and engineering
Responsible
and sustainable
practices
Energy –
oil and gas
Energy –
transition
technologies
Non-oil
and gas
*Monitoring is through our chosen
KPIs (see pages 12 and 13)
and achievement of the
Hunting 2030 Strategy
(see pages 6 to 10).
Business Model
Hunting PLC
Annual Report and Accounts 2025
14
Strategic Report
Corporate Governance
Financial Statements
Other Information
Scenarios for oil demand: 2015 to 2050
Source: Wood MacKenzie
Base Case Scenario
Net Zero Scenario
Country Pledges Scenario
Delayed Transition Scenario
2015
2025
2020
2030
2040
2035
2045
2050
120
100
80
60
20
40
0
millions of bopd
Business Model
continued
Our markets
Energy – oil and gas
Our core market remains the oil and gas sector
within the global energy industry. For decades,
affordable and secure energy has underpinned
economic growth, supported by a constantly
evolving technological and geographic landscape.
Global crude oil demand is approximately 100m
barrels per day, and, as illustrated in the adjacent
chart, is expected to remain robust for decades
to come. Hunting’s products and services are
designed to support this enduring global
requirement.
The oil and gas industry is highly complex,
well-regulated, and technologically demanding,
requiring solutions that enable the safe and
responsible extraction of hydrocarbons. Hunting
addresses these needs by supplying high-
performance, engineered technologies to a
diverse customer base, including integrated
energy groups, international service companies,
and national and independent operators.
To meet daily global demand, the industry relies
on advanced equipment and technology.
Hunting’s major product groups, summarised
on pages 32 to 41, span from onshore well
completion solutions produced by our Perforating
Systems product group (Hunting Titan operating
segment) to deepwater development equipment
manufactured by our Subsea Technologies
operating segment. A key indicator for Hunting’s
markets is annual capital expenditure by industry
stakeholders. In 2025, global investment in crude
oil and natural gas production was approximately
$184.5bn (2024 – $191.4bn), and this level
of spending is expected to remain resilient as
the world continues to depend on traditional
energy sources.
Energy – transition technologies
As Western economies accelerate efforts
to manage their respective carbon footprints,
new opportunities are emerging for Hunting.
Geothermal energy is gaining traction as a cleaner
source of heat and power. Hunting anticipates
growth for its OCTG product group in this sector,
where our premium connections and strategic
supply capabilities deliver critical solutions to
clients. Following the acquisition of FES, Hunting
will leverage its proprietary connectors to build a
presence in the floating offshore wind market.
Looking further ahead, carbon capture, utilisation
and storage (“CCUS”) is developing as a key
technology to reduce atmospheric carbon.
CCUS projects require advanced materials and
engineered solutions to ensure long-term
operational integrity, areas where Hunting’s
capabilities are well positioned to add value.
Non-oil and gas
Beyond energy, Hunting has a long-standing
presence in the aviation and defence sectors,
supported by key accreditations within our
Advanced Manufacturing businesses. These
credentials enable participation in government
contracts, including naval and air force
programmes, where we supply components
such as engine shafts for military aircraft and
periscope tubes for submarines.
In recent years, Hunting has expanded into
the commercial space sector, leveraging our
precision engineering expertise to manufacture
critical components. We also produce turbine
shafts for the power generation industry and
continue to develop accessories for the medical
sector. In 2025, Hunting secured orders for
components for the nuclear industry, a primary
energy source experiencing renewed interest
due to rising electricity demand and the
industry’s low-carbon profile.
Hunting PLC
Annual Report and Accounts 2025
15
Strategic Report
Corporate Governance
Financial Statements
Other Information
01
We develop proprietary
technology
The development of new technology and
products is a key element of our business
model and strategy.
This intellectual property and know-how are
introduced to our blue-chip customers as the
drive for more efficient and safer delivery of
oil and gas continues.
In 2025, the Group held 408 patents
and trademarks.
02
We manufacture close to where
our clients need us
Hunting has a global operating presence
in strategic locations to ensure that we are
close to where our customers are drilling and
developing many different resource types.
Our established operating footprint ensures
that we can support our customers in the oil
and gas industry as well as the emerging
energy transition and industrial sectors.
At 31 December 2025, we manufactured in
nine countries (2024 – 11), from 25 operating
sites (2024 – 25) and supplied through
14 distribution centres (2024 – 14).
03
We leverage our brand and reputation
through strong quality assured products
The Hunting brand is supported by its strong
reputation for quality assurance. These
credentials drive customer loyalty and form
the basis of most industry tenders, which
support our success in increasing our market
share in key product lines and multiple
end-markets.
During 2025, the Group manufactured
22.1m parts (2024 – 15.6m) with an
internal manufacturing reject rate of 0.20%
(2024 – 0.31%). The reject rate for goods
shipped was 0.0021% in the year
(2024 – 0.0006%).
These metrics demonstrate the impressive
quality and reliability of our products. This
performance strengthens Hunting’s standing
in its end-markets.
04
We train our employees and
keep them safe
Our health and safety protocols have been
developed to keep our employees safe, with
our safety performance measured using an
industry-wide performance indicator, which
is monitored closely.
In 2025, the Group had 19 recordable
incidents (2024 – 25) leading to a total
recordable incident rate of 0.75 (2024 – 0.93)
compared to the industry standard of 4.0.
The Group recorded one contractor fatality
(2024 – nil) in the year, in China.
Business Model
continued
Our pillars for value creation
Related risks
1
3
4
5
6
7
8
9
10
Related risks
1
2
5
6
7
Related risks
1
4
5
6
7
9
10
Related risks
4
5
6
7
10
Risks to our pillars for value creation
1
Increased competition and market consolidation
2
Geopolitical instability
3
Adverse movement in commodity prices
4
Information technology and cyber security
5
Our ability to achieve our strategic goals
6
Legal and compliance risk
7
Loss of key executives or staff and shortage
of key staff
8
Climate change and energy transition
9
Product quality and reliability
10
Work environment issues including health
and safety
Hunting PLC
Annual Report and Accounts 2025
16
Strategic Report
Corporate Governance
Financial Statements
Other Information
05
We provide critical supply
channels
Our products are manufactured using critical
raw materials, which enable them to perform
in highly challenging environments. We work
hard to provide competitive supply channels
to ensure that our products reach their
destination without disruption and without
compromising on quality. The Group has an
agile OCTG supply chain in Asia Pacific,
working with a number of Chinese steel mills
to ensure the supply of competitive OCTG to
which our premium connections are applied.
The Group has several strategic partnerships,
including our joint venture partner Jindal SAW
in India, which produces OCTG pipe and
tubulars, to which Hunting’s premium
connections are applied, for the local Indian
energy market. The Group also has strategic
supply chain partners to support the
accelerating energy transition sector, including
the ten-year alliance with Jiuli.
06
We target blue-chip customers
and suppliers
Hunting is a trusted supplier to some of the
world’s leading energy companies, including
integrated energy companies, national oil
companies, international services groups,
independent oil and gas producers, as well as
leading engineering companies who operate in
the global aviation, commercial space, defence,
medical, and power generation sectors.
We target clients and end-markets which
value strongly assured products and services,
and which demand high-performance
technology and products.
We have developed long-standing
relationships with our customers through our
market-leading reputation for HSE, quality
assurance and reliability, differentiated
technology, availability and delivery, and
customer service and support.
07
We leverage our expertise
in material science and engineering
Hunting’s workforce comprises highly skilled
engineers and machinists who lead the
development and manufacture of our
high-performance technology and products.
Our expertise in mechanical and materials
engineering and metallurgy ensures that
our products will perform in high-pressure,
high-temperature environments.
We can leverage this expertise into energy
transition markets as well as high-value,
non-oil and gas markets, such as aviation,
commercial space, defence, medical,
and nuclear, to further increase our
diversification opportunities.
08
We operate in a responsible
and sustainable way
Hunting’s responsible and sustainable
approach to its global operations includes the
monitoring of waste and emissions to ensure
we have a minimal impact on the environment.
We have recycled for many years and, more
recently, have been monitoring our carbon
footprint, with initiatives being introduced to
reduce our climate impact.
The Group announced revised carbon
intensity targets in March 2025 as part of the
Board’s drive to improve our carbon reduction
credentials and to assist in the preparation
of a Net Zero transition plan.
Business Model
continued
Related risks
1
2
5
7
9
Related risks
1
3
4
5
9
10
Related risks
1
4
5
7
10
Related risks
4
6
7
8
9
10
Risks to our pillars for value creation
1
Increased competition and market consolidation
2
Geopolitical instability
3
Adverse movement in commodity prices
4
Information technology and cyber security
5
Our ability to achieve our strategic goals
6
Legal and compliance risk
7
Loss of key executives or staff and shortage
of key staff
8
Climate change and energy transition
9
Product quality and reliability
10
Work environment issues including health
and safety
Hunting PLC
Annual Report and Accounts 2025
17
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Model
continued
Delivering value for
our stakeholders
The Group’s stakeholders enable
the delivery of Hunting’s business
model and strategy. Engaging with
stakeholders is a cornerstone of our
culture and has become increasingly
important in recent years.
We maintain regular, meaningful
dialogue to understand and respond
to the needs of our shareholders,
lenders, customers, suppliers, and
workforce. This ongoing engagement
ensures alignment and strengthens
the relationships that underpin our
long-term success.
Shareholders
and lenders
Employees
Customers
and suppliers
Environment
and climate
Governments
and communities
Our shareholders and
lenders provide equity
and loan capital to the
Group. The Directors
regularly engage with
shareholders and lenders
to discuss performance,
strategy, capital allocation,
governance, and other
matters. This feedback
is used to refine our
strategic plans.
Our employees are one of
the Group’s most valuable
assets, driving the delivery
of our strategic objectives.
We are committed to
diversity, continuous
training and development,
while maintaining the
highest Health and Safety
standards. The Board
engages with management
and employees through
site visits and structured
programmes, reinforcing
our commitment to a
strong, inclusive culture.
Our customers and
suppliers are central to the
Group’s success. Ongoing
dialogue informs our
product development and
sharpens our technical and
product offering, ensuring
we meet evolving market
and customer needs. We
remain focused on
delivering a secure and
reliable supply chain,
reinforcing trust and
long-term partnerships.
The Group is committed
to strong environmental
stewardship. Our operating
principles are focused on
containing and reducing
our carbon footprint,
maximising recycling,
reducing waste streams
and improving our climate
change commitments.
The Group maintains
active engagement
with local regulators,
tax authorities, and
governments. We also
support communities
through a wide range
of initiatives, including
fundraising events and
charitable donations.
Each region develops its
own programmes to reflect
local needs and cultural
practices, reinforcing our
commitment to responsible
and inclusive operations.
13.0
cents
2025 dividend per
share declared
9
years
Average employee tenure
408
Patents and trademarks
26
%
Electricity from
renewable resources
$
62
k
Charitable donations
Hunting PLC
Annual Report and Accounts 2025
18
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Model
continued
Shareholders
Hunting’s shareholders are a key source of
capital, enabling the Group to invest in growth
and deliver long-term value. Their support
underpins our ability to execute strategy,
innovate, and maintain financial resilience.
The Group is a listed public company, with
one class of Ordinary shares quoted on the
London Stock Exchange in the Equity Shares
Commercial Companies category.
At 31 December 2025, the total number
of Ordinary shares in issue was 157.7m
(2024 – 164.9m), with 1,203 (2024 – 1,237)
shareholders on the register.
Shareholder returns are measured through
Total Shareholder Return (“TSR”), which is
a key performance metric for the Group and
forms a large portion of executive long-term
remuneration. TSR is assessed against
demanding vesting targets and benchmarked
against industry peers. In 2025, Hunting PLC’s
Ordinary shares achieved a TSR of 32% on
an annualised basis. (For the definition of TSR,
see page 250).
The Board sets the Company’s dividend policy,
declaring dividends in US Dollars and paying in
Sterling. In July 2025, we announced a revised
dividend ambition as part of a broader review
of Hunting’s capital allocation policy as noted on
the right.
During the year, the Company initiated a share
buyback programme. As at 31 December 2025,
7,219,478 Ordinary shares had been purchased
for cancellation at a cost of $33.5m before costs,
reducing the issued share capital accordingly.
In December 2025, the Company announced
an extension to the original $40 million buyback
programme by up to a further $20 million.
Total shareholder return (1-year)
32
%
Dividend per share declared
13.0
cents
Share Buyback
$
33.5
m
Board engagement and
decision making – shareholders
At each Board meeting Directors receive
a report from the Investor Relations function
on the Company’s share register, which
is supported by briefings from the Chief
Executive, Finance Director, and Company
Secretary on recent shareholder interactions
and key themes discussed.
Throughout the year, the Board engaged
closely with leading institutional investors
on performance, remuneration, and capital
allocation. In July 2025, the Directors
announced a revised capital allocation
framework, including a commitment to
increase annual dividend distributions by
at least 13% per annum through to 2030.
The revised capital allocation also introduced
a $40m share buyback programme, which
commenced in August. Following further
consultation with major shareholders, the
share buyback programme was extended by
a further $20m in December 2025.
Dividend proposals are reviewed by the Audit
and Risk Committee as part of its regular
programme of work, with recommendations
made to the Board following a review of the
Group’s financial performance for the relevant
reporting period. Dividends are announced
alongside Group results and are typically paid
in May and October.
For 2025, the Directors are proposing a Final
Dividend of 6.8 cents per share, subject to
shareholder approval at the 2026 AGM.
Shareholders and lenders
Hunting PLC
Annual Report and Accounts 2025
19
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Model
continued
Shareholder engagement
We maintain regular and transparent
engagement with our shareholders through
a structured annual calendar managed by our
Investor Relations team.
The Chief Executive and Finance Director meet
institutional investors following the publication of
half-year and full-year results and throughout the
year. These meetings include participation in
investor conferences across the UK, Europe, and
the US, one-to-one sessions with existing and
potential shareholders, and engagement with
private and retail investors through platforms
such as Investor Meets Company.
Lenders
In 2024, the Group entered into a new funding
arrangement for its committed borrowing
facilities to finance the ongoing working capital
requirements of the existing business and to
support Hunting’s stated organic and inorganic
growth strategy. The facilities are provided by a
four-bank syndicate consisting of Wells Fargo,
HSBC, First Abu Dhabi Bank, and Emirates NBD.
The funding arrangements comprised a $200m
revolving credit facility (“RCF”) and a $100m
term loan.
The $200m RCF was arranged with an initial
tenor of four years, expiring on 16 October 2028.
During the year, the Company exercised its
option to extend the contracted maturity date
by an additional 12-month term, such that
the $200m RCF is now due to expire on
16 October 2029.
The $100m term loan was arranged with a
three-year tenor and, pursuant to the conditions
of the facility agreement, was fully drawn on
signing of the facilities. Under the terms of the
loan agreement, after the initial 12-month period
from the date of signing, the term loan begins to
amortise, with eight quarterly repayments of
$9.4m to be made and a final $25.0m repayment
in September 2027. The first quarterly payment
of $9.4m was made in September 2025, with a
second payment made in December 2025.
A conventional earnings-based covenant regime
is attached to the facilities and includes a
leverage test (being the ratio of total net debt to
adjusted EBITDA not exceeding 3.0:1) and an
interest cover test (being the ratio of consolidated
EBITDA to consolidated net finance charges not
being less than 4.0:1).
The Company holds a hybrid AGM in April each
year, which enables investors to attend in-person
or engage online through a webcast.
Further, the Company Chair and Senior
Independent Director meet investors annually
to discuss governance, succession planning,
remuneration, capital allocation, and other
matters. These meetings are designed for open
dialogue without a fixed agenda, fostering
constructive engagement.
Key topics discussed during the year included
progress against the Hunting 2030 Strategy;
capital allocation priorities; including dividends;
share buybacks; M&A opportunities; and broader
strategic developments.
Combined with the $62.9m of total cash and
bank/(borrowings) recorded at the year-end,
the Group now has $405.2m of liquidity
available to pursue growth opportunities,
including bolt-on acquisitions.
Board engagement and decision
making – lenders
The Directors are briefed at each Board
meeting by the Finance Director on the
Group’s financial position and the relationship
with members of the bank lending group.
Meetings between the Company and the
lending group were held throughout the year
following the full-year and half-year results
announcements.
Hunting PLC
Annual Report and Accounts 2025
20
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Model
continued
Hunting’s reputation, which has been built over
many years, is underpinned by the dedication
of its highly skilled employees, who are central
to delivering the Group’s strategic objectives.
At 31 December 2025, the Group had 2,246
employees (2024 – 2,367) across its global
operations.
The Group is committed to training and
developing all employees, which includes Health
and Safety training, professional development,
and general career development initiatives.
To retain our staff, our employees are fairly
remunerated with a competitive base salary.
Given the competitive landscape of our industry,
our base levels of pay are well above minimum
wage thresholds.
Employees are offered benefits on joining
the Group, including healthcare cover, post-
retirement benefits and, in certain instances
when Group outperformance in terms of
operational or financial targets has been
delivered, participation in discretionary annual
bonus arrangements.
Our reputation as a responsible employer is
reflected in an average employee tenure of nine
years (2024 – nine years) and a voluntary turnover
rate of 11.4% (2024 – 10.3%). These metrics
demonstrate our commitment to fostering
long-term, mutually beneficial relationships with
our workforce.
Hunting takes diligent steps to achieve full
compliance with all relevant regional laws
covering employment and minimum
wage legislation.
Our ethics policies promote equal employment
opportunities, enabling us to draw from the
widest talent pool and attract the best people.
The Board, through the Ethics and Sustainability
Committee, monitors Group culture and
adherence to our published Hunting PLC Code
of Conduct (“Code of Conduct”). Day-to-day
responsibility for employee matters rests with
local management, ensuring responsiveness to
local needs while maintaining compliance with
the Group’s ethical employment and human
rights standards as set out in the Code of
Conduct (www.huntingplc.com).
Year-end employees
2,246
(2024 – 2,367)
Training
The Group requires all employees to complete
a comprehensive Code of Conduct training
programme, covering Hunting’s ethical
standards, compliance requirements, and key
policies. Both the Code of Conduct and the
training course were updated during the year
to reflect evolving best practices.
Health and Safety remains a priority, supported
by an embedded training programme and
a structured onboarding process for new
employees. In addition, the Group provides
extensive IT and cyber-security training to all staff,
ensuring awareness and resilience against
emerging digital risks.
Health and Safety
The Group is committed to maintaining the
highest standards of safety for employees,
contractors, and all stakeholders. Safety is
embedded in our culture, supported by rigorous
Health and Safety practices and a continuous
drive for best practice.
We target zero fatalities and zero recordable
incidents across all operations. Each business
develops tailored Health and Safety policies
aligned with local regulatory requirements and
the Group’s overarching commitment to putting
safety first.
During the year, the Group regretfully recorded
a fatality involving a contractor, the first such
incident in many decades. The Board oversaw a
comprehensive root cause analysis, conducted
by the Global Director of QAHSE, and
management implemented remedial actions
immediately to strengthen safety controls and
prevent recurrence. The Board received detailed
reports and assurance that all identified risks
were addressed, reaffirming our commitment to
the highest standards of Health and Safety.
Health and Safety performance is monitored
closely, with reports presented to the Board
quarterly and in-depth reviews conducted by
the Ethics and Sustainability Committee twice
a year.
Further details on compliance with the Sustainability
Accounting Standards Board (“SASB”) reporting framework
can be found on pages 72 and 73, and additional health and
safety reporting is provided on pages 60 to 62.
Employees
Hunting PLC
Annual Report and Accounts 2025
21
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Model
continued
Equal opportunities, diversity and inclusion
The Group recognises that a diverse workforce
drives high performance, fosters innovation, and
strengthens organisational effectiveness. We are
committed to creating an inclusive workplace
where all individuals are valued and respected.
Hunting believes that promoting and developing
diversity is everyone’s responsibility and we seek
to increase the diversity of our workforce through
recruitment, training, and development.
Hunting does not treat applications from less
able persons any differently from those of
able-bodied persons and gives full and fair
consideration to such applications.
Our policies aim to promote equality, eliminate
discrimination, and build strong relationships
among employees from diverse backgrounds.
Hunting is committed to providing a safe working
environment where staff are treated with respect
and ensuring that our employees enjoy prejudice-
free decision-making.
Hunting is also committed to building a working
environment in which all individuals can make the
best use of their skills, free from discrimination,
victimisation, harassment and/or bullying, and
in which all appointments are based on merit.
Hunting has an embedded culture of equal
opportunities for all employees and prospective
employees regardless of race, ethnic origin,
nationality, age, trade union activities, sex, marital
status, part-time status, sexual orientation,
religion, belief or disability.
Employee engagement survey
In 2025, Hunting conducted its third all-employee
engagement survey using the Gallup Q12
methodology. The survey assessed key aspects
of engagement and satisfaction, including the
question: “On a five-point scale, how satisfied are
you with your organisation as a place to work?”
The score for this question was 4.16 out of 5.00,
a 0.09 increase from our 2023 result of 4.07.
The average score across all 12 core questions
was 3.97, representing a 0.09 improvement from
2023. This compares favourably to the Gallup
global benchmark of approximately 3.60,
reflecting Hunting’s strong performance in
employee engagement relative to industry norms.
Additional feedback highlighted areas for
improvement, which management is actively
addressing to further strengthen employee
experience and engagement.
Gallup Q12 employee engagement results –
average score out of 5
3.97
2025
2023
3.88
2019
3.78
For further details on the employee engagement survey
results, see page 71.
Hunting’s policies promote the gender and
ethnicity suggestions made in the Hampton
Alexander Review and the Parker Review, and
these are taken into consideration as the Board is
refreshed, along with the requirements published
by the Financial Conduct Authority, noted on
page 112.
For further reporting on diversity and inclusion, see page 70.
Human rights
We are committed to respecting and upholding
the human rights of all our employees. As part
of the Code of Conduct training, a module on
human rights is included.
For further reporting on our approach to human rights,
see page 62.
Modern slavery
Our Modern Slavery statement can be found
on our website (www.huntingplc.com).
For further reporting on our approach to Modern Slavery,
see page 63.
Whistleblowing
The Board of Hunting has established
procedures whereby employees can raise
concerns, in confidence, by contacting the
Company Chair or Senior Independent Director.
The Group also uses an independent
whistleblowing service operated by SafeCall.
Contact information for both these lines of
reporting is published on staff noticeboards
across the Group’s facilities and within the
Group’s magazine, the “Hunting Review”,
which is published twice yearly and is available
to all employees.
Board engagement and decision making
– employees
Through the Ethics and Sustainability
Committee, the Board has formalised the
reporting of Human Resources and QAHSE
matters, with the Group’s Chief HR Officer
and Global Director of QAHSE providing
reports at each meeting.
These senior managers are also members
of the Executive Committee.
The Directors organised an employee
engagement event at the Group’s OCTG
facilities in Singapore and China in June 2025,
where employees were able to ask questions
to the Board.
Paula Harris, the designated non-executive
Director for employee engagement also took
these opportunities to talk to the management
and workforce.
All reports to the Group’s SafeCall service
are taken seriously, with care being taken to
retain confidentiality and anonymity of all
callers. Each report is investigated thoroughly,
with the Board receiving briefings from Keith
Lough, the Company’s Senior Independent
Director. During the year, the Group received
two reports to the SafeCall service
(2024 – three).
For further reporting on our approach to business ethics,
see pages 61 and 63.
Hunting PLC
Annual Report and Accounts 2025
22
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Model
continued
Our customers
As a key participant in the oil and gas equipment
supply chain, Hunting’s broad portfolio of
products and services enables the Group to
cover a large proportion of the needs of the
global energy industry, including onshore and
offshore drilling projects and conventional and
unconventional resource development, supported
by selected high-value services to help our
customers achieve their strategic objectives.
Across all our businesses, a common theme is
our ability to add value. We do this by delivering
advanced, high-technology solutions that reduce
operational costs, solve technical challenges, and
enable projects to be completed more efficiently
and safely, without compromising on quality.
Hunting maintains proactive engagement
with customers to understand their evolving
requirements and to collaborate on technology
developments that enhance safety and lower
production costs. This customer-focused
approach ensures we remain a trusted partner
in helping customers meet their long-term goals.
Customer engagement
Customer engagement is central to
understanding the short- to medium-term needs
of our clients and shaping our strategy.
This dialogue informs our product development
and service programmes, ensuring we deliver
solutions that meet evolving requirements.
In 2025, the Group launched a number of new
products developed in close collaboration
with customers, addressing in-field technical
challenges and strengthening long-term
partnerships.
Hunting also engages with customers to
understand their future needs in order to obtain
the necessary qualifications and certifications
to enable participation in bids and tenders.
A notable example of this engagement was
the completion of two major orders for KOC
totalling $231m, following more than five years of
collaboration to certify our suppliers’ steel pipe
and Hunting’s proprietary connections for
participation in relevant tenders.
We maintain active dialogue with customers
through regular visits to our facilities, where clients
review production capabilities, explore new
technologies, and collaborate on future projects.
Customer contact reports, prepared by our
sales teams, capture feedback on performance,
satisfaction, and areas for improvement.
Independent third-party surveys further validate
customer perception and satisfaction.
Our customer-facing sales teams are supported
by engineering, quality assurance, Health and
Safety, and environmental specialists ensuring
operational excellence and compliance in
global tenders.
During the year, Hunting participated in several
international trade shows, including ADIPEC in
Abu Dhabi, providing opportunities to engage
with existing and potential customers.
Anti-bribery and corruption (“ABC”)
The Group has processes and procedures in
place to monitor and assess the risk of bribery
and corruption occurring.
Hunting’s Code of Conduct training course
includes detailed modules on ABC compliance
and risk assessment procedures.
Twice a year, each major business unit
completes a risk assessment process, detailing
management’s views on its risk profile against
16 key ABC considerations, and the mitigating
controls in place for each of these risks.
As part of the Internal Audit function’s work
programme, it reviews the bribery and corruption
registers of each business unit in addition to gifts,
entertainment and expenses reports.
Customer-related ethics and governance
Hunting’s strong customer relationships are
reinforced by our commitment to ethical conduct
and transparency in all business dealings.
We provide all major customers with our Code
of Conduct, which sets out our principles for
integrity and openness.
Due diligence is carried out on all new customers
to ensure compliance with international trade
and sanctions legislation. Where appropriate,
we request end-user declarations to confirm
that Hunting’s products do not breach trading
restrictions or sanctions requirements.
In addition, the Group maintains strict
entertainment and hospitality approval policies,
supporting our pledge to uphold the highest
ethical standards.
Customers and suppliers
Hunting PLC
Annual Report and Accounts 2025
23
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Model
continued
Our suppliers
The Group’s ability to deliver highly trusted and
innovative products for our customers depends
on a resilient and well-managed supply chain.
To ensure continuity and reliability, critical
materials are never sourced from a single
supplier, providing assurance that Hunting
can consistently meet customer needs.
We regularly review long lead-time material supplies
to maintain competitive market pricing and work
closely with a diverse network of suppliers through
ongoing two-way dialogue on quality expectations.
The Company complies with the UK Reporting
on Payment Practices and Performance
(Amendment) Regulations 2024. Under these
regulations, qualifying UK companies within the
Group are required to publish information on their
payment terms and practices on a six-monthly
basis. The Company remains committed to
paying suppliers in accordance with agreed
payment terms and to engaging promptly where
any disputes arise, in order to minimise potential
disruption to the supply chain.
Supplier-related ethics and governance
As with the Group’s customer base, Hunting
completes due diligence on its supplier base
and communicates its ethics policies and
expectations to its major suppliers through its
Supplier Code of Conduct, which was updated
to reflect evolving best practices following the
update to the Code of Conduct during the year.
Our supply chain managers frequently visit supplier
facilities to assess procedures, including quality
assurance, health and safety performance, and
employment practices.
For new suppliers, particularly those providing
key components, first article inspection
procedures are implemented before orders are
placed to confirm compliance with quality and
delivery standards.
Board engagement and decision making
– customers and suppliers
In parallel with the commercial dialogue and
engagement undertaken by our leadership
teams with our customers, the Board of
Hunting, in support of its statutory stakeholder
duty, has approved the development of the
Group’s strategy by reviewing and approving
capital investment projects that directly
support future customer needs. The Board
approved these capital investments, either as
part of the approval of the Strategic Plan or
Annual Budget process.
Board approvals are also required for
contracts over a certain monetary value, such
as with the KOC orders completed in the year.
In each case, the Board was satisfied that
there was good alignment between the
final capital allocation and the Board’s
consideration of customer matters.
The Board, through the work of the Ethics
and Sustainability Committee, reviews the
Group’s supply chain risk profile and reviews
engagement reports on the Group’s dialogue
with suppliers. This leads to discussion and
challenge by the Directors.
During the year, the Chief Executive and
Finance Director attended ADIPEC, which
enabled them to interact with both major
customers and suppliers.
For further reporting on our approach to business ethics,
see pages 61 and 63.
Hunting PLC
Annual Report and Accounts 2025
24
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Model
continued
Carbon and climate matters are important areas
of the Board’s discussions, which has led to the
introduction of strong governance and reporting
initiatives in recent years that will support
Hunting’s commitment to these issues for the
long term. In March 2025, Hunting announced a
new carbon intensity factor ambition whereby the
Company will now target a factor of 20kg of
CO
2
e/$k of revenue or less by 2030 (based on
Hunting’s scope 1 and 2 emissions only).
The Directors are mindful that all commitments
made by the Group should remain proportionate
to the size and profile of our operations, but also
to protect our earnings and shareholder returns,
which form the basis of our investment case.
In 2025, the Group collected a full scope 1, 2
and 3 carbon emissions data set, encompassing
all five operating segments. The Group also
continues to migrate its primary and secondary
energy sources to lower carbon sources, with the
Group targeting the purchase of 50% of its
electricity requirements from renewable sources
by 2030.
Group climate policy and commitment
to the Paris Accords
The Board has committed to the principles
published in the 2015 Paris Agreement, which
aims to limit the increase in global temperatures.
The Group’s Climate Policy can be found at
www.huntingplc.com.
Annual greenhouse gas emissions
To monitor the impact of Hunting’s operations
on the environment, and in compliance with
UK Company Law, the Group collates
greenhouse gas (“GHG”) data in accordance
with the principles of the Kyoto Protocol and the
methodologies published by the World Resources
Institute. Hunting is committed to addressing
environmental issues and embedding a low
carbon culture within our Company. New facilities,
such as the Dubai facility commissioned in the
year, take into account environmental impact
considerations, including protection from extreme
weather events, such as windstorms and
flooding. The Company discloses the breakdown
of its GHG emissions to enable stakeholders to
understand the overall mix of emissions and the
likely areas of emissions reduction, as the Group
continues to evolve its initiatives to contain and
reduce its carbon footprint.
The Company has a process to independently
assure its scope 1 and 2 data, with a view
to assuring its scope 3 data ahead of setting
science-based targets in the near future.
The Group submits its GHG data to the
Carbon Disclosure Project, which is available
at www.cdp.net.
Board engagement and decision making
– environment
The Board continued to oversee the
development of carbon and climate initiatives
in the year. Through the work of the Ethics
and Sustainability Committee, the Group
monitors all emissions and climate-related
disclosures, including compliance with the
Company’s TCFD and SASB reporting, and
has agreed a roadmap to enhance the
Group’s external reporting of this area.
Tonnes CO
2
e
2025*
2024
2019
(baseline year)
Scope 1
Fuel consumption, including natural gas
3,366
2,046
4,128
Vehicle fuel consumption
1,788
1,584
2,972
Air-conditioning
988
n/a
n/a
Total scope 1
6,142
3,630
7,100
Scope 2
Electricity consumption
17,064
18,603
28,774
Total scope 1 and 2
23,206
22,233
35,874
Scope 3
Scope 3
451,688
534,835
n/a
Total scope 1, 2 and 3
474,894
557,068
n/a
Intensity Factor #
2025
2024
2019
(baseline year)
Scope 1 and 2 emissions – tonnes
23,206
22,233
35,874
Revenue – $m
1,018.8
1,048.9
960.0
Intensity factor
22.8
21.2
26.8
*
2025 scope 3 emissions were extrapolated using data from all five of Hunting’s operating segments, and pro-rated from data which was for
the nine months to 30 September 2025.
The data reported and the carbon dioxide conversion factors used to report the Group’s carbon footprint are based on those published by the
UK government and the International Energy Agency. For further information on Hunting’s climate, ESG and wider sustainability efforts, please
see pages 56 to 86.
Environment and climate
Hunting PLC
Annual Report and Accounts 2025
25
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Model
continued
Governments
Hunting’s global footprint spans nine countries,
requiring close interaction with local regulators,
governments, and tax authorities to maintain
strong business standing. Hunting seeks to
ensure full compliance with all applicable laws
and regulations in the countries in which we
are located.
As a UK-listed public company, our primary
regulator is the Financial Conduct Authority
(“FCA”). The relationship with the FCA is actively
managed with support from our brokers and
legal advisers whenever relevant matters arise.
Each business unit must establish and
enforce effective compliance procedures and
maintain strong relationships with local tax
and legal authorities.
Recognising the sensitivity of government
interactions and the associated bribery risks,
the Group enforces robust internal procedures,
including identifying government-owned
customers and suppliers. All external-facing
employees receive training on our anti-bribery
and corruption policies to ensure compliance
and that we uphold the highest ethical standards.
Tax strategy
Hunting operates in a global environment
and is committed to acting with integrity,
transparency, and paying the right amount of
tax at the right time. Our tax strategy is to fully
comply with all applicable tax laws, regulations,
and disclosure requirements in every jurisdiction
where we operate.
Where areas of significant complexity, uncertainty,
or materiality arise, Hunting engages reputable
professional firms to ensure compliance and
uphold best practice. We maintain honest, timely,
and respectful relationships with tax authorities,
working collaboratively to resolve any disputes.
Hunting has a zero-tolerance approach to tax
evasion and the facilitation of tax evasion. This
commitment is reinforced through mandatory
Code of Conduct training, which includes modules
designed to help employees understand risks
and procedures related to tax compliance.
Governments and communities
Board engagement and decision making
– governments
The Group’s tax governance is managed
as follows:
•
The Board reviews Hunting’s tax strategy
and policies on an ongoing basis, with
regular updates on the tax position
provided at each Board meeting by either
the Finance Director or Group Head of Tax;
•
As part of the work of the Audit and Risk
Committee, tax matters are also monitored.
Further details can be found in the Audit
and Risk Committee Report on pages 144
to 150;
•
Day-to-day matters are delegated to
Hunting’s Group Head of Tax and a small
team of in-house tax professionals who
hold a combination of accounting and tax
qualifications;
•
The local financial controllers, supported by
their finance and operational teams, are
responsible for managing their operational
taxes in line with local laws and regulations
alongside the Group’s tax governance and
tax policies. They are supported by the
Group’s central tax team and local advisers,
as required;
•
An annual review of our tax policies form
part of our internal Group Manual review
procedures; and
•
Ongoing monitoring of tax legislation that
will impact us, including engaging specialist
advisers when appropriate.
Hunting PLC
Annual Report and Accounts 2025
26
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Model
continued
Communities
The Board encourages community-focused
initiatives, with the Executive Committee
responsible for identifying local activities and
projects to support. This delegation allows
regional cultural practices to be considered.
A number of the Group’s businesses undertake
intern programmes whereby students at local
colleges and universities work within the
Company.
Local community sponsorships or charitable
donations are encouraged, following approval by
a member of the Board or Executive Committee.
Most businesses within the Group host “Open
House” days at facilities to allow customers,
suppliers, employees’ families, and other
members of the local community to visit our
operations.
Community initiatives are regularly reported in the
Group’s magazine, the “Hunting Review”, which
profiles the Group’s operations, employees, and
community work.
For further reporting on community engagement,
see page 70.
Charitable donations and community
sponsorships
$
62
k
(2024 – $70k)
Board engagement and decision making
– communities
The Board has a policy whereby unclaimed
dividends returned to the Company from
its registrar are donated to UK charities,
with a small committee, led by the Finance
Director, agreeing the beneficiaries of the
charitable donations.
Hunting PLC
Annual Report and Accounts 2025
27
Strategic Report
Corporate Governance
Financial Statements
Other Information
Chief Executive’s Report
2025 was a further year of progress
in Hunting’s financial performance,
despite extreme macroeconomic
volatility being reported. Management
delivered a 7% increase in EBITDA, a
one percentage point improvement to
ROCE, and delivered Free Cash Flow
of $96.6m, which represents an
EBITDA conversion of 71%.
The Group delivered on further strategic
milestones in the year in line with our Hunting
2030 ambitions. We completed two acquisitions
totalling $83.0m, which enhances our medium-
to long-term revenue profile. Management
continued to drive cost out of the Company,
with restructuring underway within our EMEA
and Hunting Titan operating segments. Finally,
our financial performance, including strong cash
flows, enabled the Board to revise its capital
allocation priorities, which led to an increase of
13% in the total dividends declared to 13.0 cents
per share as well as commence a $40m share
buyback programme in August, which was
extended in December to $60m.
As we note in our outlook statement, 2026
should see a continuation of the growth which
the Company has delivered over the past few
years, as energy demand continues unabated,
with the demand for high technology driving
the oil and gas industry to be more efficient,
while also exploring and finding new reserves.
Our performance is delivered by our strong,
experienced, committed workforce and it is
these employees who I now thank for the hard
work in what has been a challenging year, for
delivering the growth and shareholder returns
that the Directors are delighted to report.
We look forward to the future with confidence.
Strategic delivery
The strategic highpoints in the year include the
successful completion of the acquisition of
Flexible Engineered Solutions (“FES”) and
the Organic Oil Recovery (“OOR”) technology
purchased from their respective founding
shareholders. More detail on these transactions
is provided on the following page.
At our Capital Markets Day (“CMD”) in 2023
we published our acquisition priorities, which
included adding subsea and offshore businesses
and high technology production enhancement
solutions to our portfolio. FES and OOR meet
these criteria. However, both also add strong
medium- to long-term revenue growth potential
to the Group. The Board is pleased with these
transactions as they align with the broader trend
of the industry to develop more stable production
sources, being offshore projects, while
maximising recovery from existing oil and gas
wells. Both acquisitions were fully integrated into
the Group during the second half of the year.
The Directors are also focused on maximising
profitability and returns from the rest of our
portfolio and, in the year, we commenced the
restructuring of the EMEA operating segment.
We are targeting annualised savings of $11m or
more as we rationalise our European operational
footprint. We opened a new facility in Dubai and
closed three facilities in the year, with a fourth
facility closing in June 2026. I would like to thank
our remaining employees for their support during
this time of disruption and change.
The Hunting Titan operating segment focused on
improving its results in the year, in part through
further restructuring and cost elimination,
including selling, distribution and administration
costs, but also by focusing on higher quality
sales, which generated more profitable results.
The US onshore completions market remains a
highly competitive environment in which to
operate; however, with our international exposure
in regions such as the Middle East and South
America, the segment is positioned for further
improvements to its financial performance in the
year ahead.
Our robust financial performance led to a
change in our capital allocation priorities. Strong
operational cash flows in the year have enabled
us to acquire businesses and increase dividend
payments to shareholders beyond the ambition
stated at our 2023 CMD. We are now targeting
a 13% annualised increase to our total dividend
distributions to 2030. This will mean our
shareholders will receive c.$190m of dividends
across this time, which the Directors believe
is a substantial return of capital given our size
and profile.
During the year, the Directors also considered
the merits of a share buyback programme to
further increase our shareholder returns. The
commencement of the $40m buyback in August
reflects the balance of returning additional cash
to shareholders while still providing firepower to
complete acquisitions as and when they are
identified. Given the cash generation of the Group
together with the strength of the balance sheet,
the buyback programme was extended by $20m,
which was announced in December. In total, this
will mean shareholder returns of nearly $250m to
2030, underlining the Directors’ focus on stronger
returns to shareholders into the medium term.
I am particularly pleased to note that after
payments of $81.3m in relation to acquisitions,
$19.1m of dividends paid, treasury share
purchases of $18.2m, and $33.5m of the current
buyback completed, Hunting reports year-end
total cash and bank/(borrowings) of $62.9m,
which reflects the Directors’ strong belief that
retaining a robust balance sheet, in what is a
largely cyclical business, remains a key strategic
priority to support the long-term sustainable
success of the Group for many years to come.
EBITDA
$
135.7
m
+7%
Dividend per share declared
13.0
cents
+13%
Hunting PLC
Annual Report and Accounts 2025
28
Strategic Report
Corporate Governance
Financial Statements
Other Information
Chief Executive’s Report
continued
In March 2025, Hunting acquired the Organic
Oil Recovery (“OOR”) technology from its
founders for $18.2m.
Hunting has collaborated with the business
since 2017, when the Group entered into
a marketing agreement to assist in
the commercialisation of this exciting
technology, with access to markets outside
of North America.
OOR offers a low-cost, enhanced oil recovery
solution to exploration and production
companies and can be applied to most oil
reservoirs at any stage of the production
lifecycle.
This microbial-based solution breaks down
larger oil particles to allow for enhanced fluid
flow and, therefore, higher production levels
and higher resource recovery from a typical
oil reservoir.
In June 2025, Hunting acquired Flexible
Engineered Solutions (“FES”) for $64.8m from
its founders.
FES is a provider of subsea, marine and
offshore solutions to both traditional oil and
gas and non-oil and gas end-markets.
Founded over 25 years ago, the business
has built up a robust product offering, which
includes diverless bend stiffener connectors;
turret systems; fluid transfer swivels; stab
plates; and other equipment utilised on
floating production, storage and offloading
(“FPSO”) vessels.
This is likely to be a strong growth market in the
coming years as the global oil and gas industry
accelerates offshore projects. Headquartered in
Ashington, Northumberland, UK, FES operates
from a 35,000 sq. ft. facility, in addition to a
6,000 sq. ft. test facility. FES currently has 45
employees.
FES’s solutions have been deployed in many
key offshore regions including the Gulf of
America, West Africa, and South America,
Organic Oil Recovery
Flexible Engineered Solutions
The technology has been applied to an
increasing number of projects with excellent
production characteristics being demonstrated.
In 2025, Hunting acquired the technology to
accelerate production and access all global
locations for the application of this technology.
Since acquisition, the business has refurbished
its sampling and test laboratory in California,
US, hired additional scientists and sales
personnel to speed up the testing process
and also plans to open a laboratory in Dubai,
UAE, at Hunting’s new state-of-the-art facility,
which was opened in September 2025.
As we write, we have a number of exciting pilot
tests underway and will be adding new pilot
tests with other important customers in the
coming year to accelerate revenue and profits.
with the majority of its revenues coming
from international business outside of the UK.
FES also benefits from long-term relationships
with a wide variety of blue-chip customers,
including super majors, independent oil and
gas companies, and international energy
service companies, working on large,
multi-year projects, which provide high levels
of earnings visibility.
FES’s product offering is a perfect fit within
Hunting’s subsea portfolio as it enhances
the Group’s subsea umbilicals, risers and
flow lines (“SURF”) offering as it is highly
complementary to our titanium and steel stress
joint product range, manufactured by our
Spring business unit, which is also being
increasingly adopted for use by clients on
FPSOs given the stronger HSE and lower
maintenance operating characteristics.
The sales teams within FES and Spring
have identified and pursued new revenue
opportunities as Hunting takes its products
to new clients. We are delighted to report
that these new opportunities are well over and
above those identified at the time of acquisition.
Hunting PLC
Annual Report and Accounts 2025
29
Strategic Report
Corporate Governance
Financial Statements
Other Information
Source: FT.com
WTI crude oil price 2025
$ per barrel
90
70
80
50
60
40
D
J
F
M
A
M
J
J
A
S
O
N
D
Culture
In Q4 2025, we completed our third all-employee
engagement survey with the results being
summarised on page 71. Hunting’s culture
remains strong with our average tenure being
nine years (2024 – nine years) and reflects the
commitment of our employees to our values.
Market overview
The strength of Hunting’s performance during
2025 can only be fully appreciated when the
macroeconomic backdrop is considered as
context to the sentiment across the industry
throughout the year.
In September 2024, the OPEC+ group indicated
that it would commence the unwinding of its
production cuts, which had been in place since
2020 and, since 1 January 2025, 2.2m barrels
of oil per day (“bopd”) were added to OPEC+
supply, despite global economic strength being
generally soft.
This additional production created downward
pressure on the global price for WTI crude oil
– with an absolute c.20% decline being recorded
in the year, as noted in the chart to the left, with
the average price recorded across the year of
$65 per bbl, lower than the average price in 2024
of $76 per bbl.
The net impact of this lower oil price was to
reduce the overall industry capital expenditure
recorded. Spears & Associates note in their
December 2025 update that total expenditure
declined by c.4% to $184.5bn (2024 – $191.4bn)
in the year. North American spend declined c.8%
to $87.5bn (2024 – $95.4bn), while International
spend was more resilient at $97.0bn or c.1%
higher than in the prior year. The deterioration in
the crude oil price led to a c.6% decline in the
North America rig count, as noted in the chart
to the right.
However, Hunting delivered strong growth in
earnings, returns and cash flow in the year
despite this tepid market environment.
Financial summary
While Hunting reports a 3% decrease in
revenue in the year, international market activity
continued to show strong resilience. Revenue
in 2025 was $1,018.8m compared to $1,048.9m
in 2024. H1 2025, revenue was $528.6m
(2024 – $493.8m), while H2 revenue was
$490.2m (2024 – $555.1m). The impact of the
KOC orders on our first half revenue profile is
clearly seen. However, management notes that
momentum was relatively unaffected throughout
the balance of the year, as subsea orders and
North America OCTG sales momentum
continued. Non-oil and gas revenue increased
in the year to $82.9m (2024 – $75.1m).
US average rig count
#
560
2025
2024
598
2023
688
Source: Spears & Associates
Group EBITDA increased 7% to $135.7m in the
year (2024 – $126.3m). Group EBITDA margin
increased to 13% (2024 – 12%) as the strong
focus on higher margin product sales and cost
management and the drive for higher production
efficiencies supported this result. The Directors
note that this result is 13 percentage points
higher than 2021, and well on the way to reaching
our goal of greater than 15% by 2030 as laid out
in our CMD in 2023.
The Hunting Titan operating segment delivered
revenue of $228.7m in the year (2024 – $230.3m),
which was broadly in line with the prior year.
However, with the full impact of the restructuring,
which began in 2024, and a focus on higher
production efficiencies and higher margin sales,
management delivered a strong increase in
EBITDA in the year to $13.1m compared to
$0.6m in 2024. EBITDA margin for the segment
was 6% (2024 – 0%).
EBITDA
$m
135.7
2025
2024
126.3
2023
102.4
Source: Company
The North America operating segment reported
an increase in revenue to $389.5m in the year
(2024 – $388.4m), as robust sales from the
Group’s OCTG product group were delivered.
The Advanced Manufacturing product group
saw some weakness in the year as the
Electronics business unit reported lower oil
and gas sales as the MWD/LWD equipment
purchasing cycle slowed. EBITDA increased to
$69.1m (2024 – $62.2m), or by 11% in the year.
EBITDA margin for the operating segment
therefore, increased to 18% (2024 – 16%).
The Subsea Technologies operating segment
reported a year of more mixed fortunes, despite
the strong offshore market backdrop. Sales
of titanium stress joints to clients, such as
ExxonMobil and TPAO, were progressed as
deepwater projects continued in Guyana and
the Turkish area of the Black Sea. While sales
were down year-on-year within the Spring
business due to project timings, the sales order
book increased in the second half of the year due
to new tender wins.
Chief Executive’s Report
continued
Health and Safety
2025 has seen a solid QAHSE performance
with our key operational indicators recording
a Total Recordable Incident Rate (“TRIR”) of
0.75 compared to 0.93 in 2024.
It is with great sadness that we report a fatality
involving a contracted worker at our Wuxi
operations in China in the second half of the year,
the first such incident within Hunting for over
30 years. The individual sustained injuries after
entering an area that was not designated for
access and was taken to hospital for treatment,
but sadly passed away. This has deeply affected
the Directors and the wider workforce. The
Directors have undertaken a thorough review of
the circumstances, completed root cause analysis,
and management has swiftly implemented
remedial actions, including enhanced access
controls and reinforced training, to ensure this
cannot happen again. The Board remains
committed to maintaining the highest standards
of Health and Safety across all operations.
Product quality
Our manufacturing reject rate maintained its
strong performance recording a rate of 0.20%
in the year compared to 0.31% in 2024.
Hunting PLC
Annual Report and Accounts 2025
30
Strategic Report
Corporate Governance
Financial Statements
Other Information
The Stafford business, which supplies hydraulic
valves and couplings, also reported a slower year
as reduced global subsea tree orders depressed
volumes through the business. The Enpro
business reported good results, while Flexible
Engineered Solutions (“FES”) contributed
$10.0m to our sales. Revenue within the
operating segment was, therefore, $139.3m
(2024 – $147.1m) or a decrease of 5%. EBITDA
was $23.3m (2024 – $30.3.m) with an EBITDA
margin of 17% (2024 – 20%).
With the material restructuring announced in
January 2025, the EMEA operating segment
reported lower revenue in the year, as the
closure of facilities created disruption across
the Group’s EMEA businesses. Revenue was
$73.5m (2024 – $87.7m), while the EBITDA loss
was $7.0m (2024 – $7.9m loss). EBITDA margin
was, therefore, (10)% (2024 – $(9)%).
The Asia Pacific operating segment delivered
another strong result in the year, with revenue of
$226.7m (2024 – $240.6m) as the delivery of the
KOC orders continued. EBITDA was $37.2m in
the year, compared to $41.4m in 2024. EBITDA
margin for the segment was 16% (2024 – 17%)
with headcount and costs being flexed to match
the changing revenue profile in the year.
Gross profit in the year for the Group was
$279.8m compared to $271.9m in the prior year,
leading to an increase in gross margin to 27%
(2024 – 26%) or a one percentage point increase
over 2024. This reflects generally stronger
production efficiencies and better product mix
across the Group.
The Group changed the presentation of its
consolidated income statement during
the year and now reports research and
development (“R&D”) costs as a separate line
item as these costs are now more significant.
Adjusted diluted earnings per share
cents
34.1
2025
2024
31.4
2023
20.3
Source: Company
In the year, total R&D costs were $10.5m (2024
– $8.8m), with $5.9m (2024 – $6.6m) expensed in
the year.
The Group’s share of profit from joint ventures
and associates was $3.5m in the year
(2024 – $0.1m loss), with a valuable contribution
from the India JV in its second year of trading.
No impairment charges to goodwill were
recognised in 2025. In 2024, following the
difficult trading environment for Hunting Titan,
an impairment charge to goodwill of $109.1m
was recognised.
Operating profit was, therefore, $76.3m
(2024 – $21.1m loss), and includes adjusting
items totalling $14.2m (2024 – $109.1m).
Adjusting items comprised $9.3m of EMEA
restructuring costs and $4.9m of one-off
acquisition-related costs as due diligence
continued on a number of transactions.
Adjusted operating profit was $90.5m compared
to $88.0m in 2024 leading to an increase in
operating margin to 9% (2024 – 8%).
Net finance costs totalled $10.8m
(2024 – $12.4m), leading to profit before tax of
$65.5m (2024 – $33.5 loss) and an adjusted
profit before tax of $79.7m (2024 – $75.6m).
The Group’s tax charge was $22.7m
(2024 – $8.0m credit) and the adjusted tax
charge was $21.1m (2024 – $19.8m), leading to
profit for the year of $42.8m (2024 – $25.5m loss)
and an adjusted profit for the year attributable to
owners the parent of $56.9m (2024 – $53.3m).
Diluted earnings per share were 24.6 cents
(2024 – 17.6 cents loss per share). Adjusted
diluted earnings per share were 34.1 cents
(2024 – 31.4 cents).
Outlook
Hunting is well placed to build on its strong
2025 performance during the year ahead and,
following the successful delivery of the KOC and
ExxonMobil contracts, management is actively
converting its high-value tender pipeline to
backfill capacity and scale the order book.
Our OCTG product group continues to report a
strong tender pipeline across all key operating
regions. Large tenders in the Middle East are
being pursued with our strategic mill partners,
while in North America we are now driving our
TEC-LOCK™ product line into the international
market arena following strong growth within our
domestic US markets. A key region of growth
will be the Middle East where unconventional
resource development is accelerating.
Hunting’s Subsea product group will incorporate
OOR fully from 1 January 2026, with the
technology seeing strong interest across the
Americas, Middle East and Africa. With the
projected increase in subsea tree awards and
FPSO builds, our Stafford, Spring, and FES
businesses are seeing multiple opportunities to
drive margin through integrated bundling,
providing a unified ‘life-of-field’ solution across
the subsea landscape in the year ahead.
Hunting’s Perforating Systems business is
launching new technology, which will drive our
market share in North America, along with the
projected International growth in the Middle East
and South America.
The Advanced Manufacturing group continues
to pivot to more non-oil and gas sales, with a
strong focus on aviation and space markets. We
continue to streamline our operations, reduce our
cost base and improve efficiencies to focus our
resources on, and align our profitability with,
those markets where the strongest growth
opportunities are in the medium term.
In line with our stated capital allocation policy, we
have proposed a second share buyback totalling
$40m to be completed over the next two years.
This will mean that our returns to shareholders to
2030 will be c.$290m.
While we are closely monitoring the evolving
situation in the Middle East, the Group’s
financial outlook remains robust. Although
some tender and order slippage is possible
in the event of a protracted conflict, given our
strategic concentration on offshore and subsea
markets, alongside our growing international
diversification, our 2026 projections carry minimal
exposure to the Middle East. Consequently, while
minor timing shifts in orders are possible, we do
not anticipate a material impact on our long-term
growth trajectory.
Overall, Hunting is anticipating further
earnings growth in the year ahead and,
having demonstrated that the Group can
deliver growth and returns against a challenged
macroeconomic backdrop, the Directors remain
confident that our skilled workforce will rise to
these challenges as we continue to deliver our
Hunting 2030 Strategy.
Jim Johnson
Chief Executive
5 March 2026
Chief Executive’s Report
continued
Hunting PLC
Annual Report and Accounts 2025
31
Strategic Report
Corporate Governance
Financial Statements
Other Information
Product Group Review
Perforating Systems
Technology to drive
completion efficiency
The Group’s Perforating Systems
product group, predominantly
delivered through the Hunting
Titan operating segment,
continues to be a leading player
in the global well completions
market, supplying industry-
leading perforating guns,
energetics and instruments.
While the product group records
the majority of its revenue from
the important North American
onshore market, the international
adoption of US completions
technology is providing strong
growth opportunities in South
America and the Middle East.
Introduction and market overview
During 2025, the Perforating Systems
product group benefited from the restructuring
programme completed in 2024. The product
group delivered a strong rise in profitability
by focusing on higher margin basins,
reducing costs, and improving internal
production efficiencies through revised
production schedules that increased overhead
absorption across all manufacturing facilities.
Despite the declining US onshore rig count and a
lower average WTI oil price being recorded in the
year, the Perforating Systems product group and
the Hunting Titan operating segment reported
stronger year-on-year EBITDA, which is testament
to the performance of the new management
team put in place in Q3 2024.
Of particular note has been the growth reported
within our International markets, including South
America and the Middle East. The acceleration of
unconventional resource development, particularly
in Saudi Arabia where natural gas developments
have increased significantly over the past few
years, indicates that good growth prospects for
the product group lie in these markets given the
strength of Hunting’s technology and broad-
based component offering.
Coupled with this, the International growth profile
is also supported by the likelihood that natural
gas drilling across North America will see a
resurgence in the coming years, to support the
electricity demand anticipated through the
projected number of data centres planned, in
support of the acceleration of Artificial Intelligence
tools, which require higher power circuit boards,
cooling and larger capacity data centres.
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting PLC
Annual Report and Accounts 2025
32
Perforating Systems – revenue
$m
221.1
2025
2024
222.7
2023
243.8
Source: Company
Perforating Systems – sales order book
$m
23.4
2025
2024
16.5
2023
12.7
Source: Company
Perforating Systems – EBITDA
$m
13.9
2025
2024
1.4
2023
25.1
Source: Company
Product Group Review
continued
In summary, despite challenging North American
markets seen over the past two years, the
Perforating Systems product group has strong
growth prospects to pursue in the medium term.
Product group financial performance
Revenue from the Perforating Systems product
group was broadly flat year-on-year, with
$221.1m in 2025 compared to $222.7m in 2024.
Within this, US revenue of $158.0m was in line
with 2024 revenue of $159.1m, while Canada
revenue decreased from $17.9m in 2024 to
$13.4m. International revenue grew to $49.7m in
the year (2024 – $45.7m), despite the pause in
activity in Saudi Arabia during the year, as efforts
to globalise the Group’s technologies continued.
EBITDA for the product group was $13.9m in
2025 compared to $1.4m in the prior year, giving
an EBITDA margin of 6% in 2025 compared to
1% in 2024.
The Perforating Systems sales order book at the
year-end was $23.4m, compared to $16.5m at
the 2024 year-end. Due to its “manufacture to
stock” business model, Perforating Systems
does not carry a large order book and is a
short-cycle business overall.
Intellectual property
Intellectual property based on the Group’s
Perforating Systems product group totalled
115 patents.
Technology
In 2025, research and development efforts
were directed towards mitigating the impact
of price-sensitive perforating product sales
by prioritising high-margin instrumentation
and leasing revenue.
This strategy underscores our commitment
to innovation and operational efficiency while
delivering enhanced value to our customers.
A new Ballistic Release Tool was launched in
December 2025 to the US domestic market.
The new tool was developed to simplify client
operations and extend maintenance intervals.
By replacing complex moving parts with solid
components, the new tool delivers improved
durability and ease of servicing, while its lighter,
more compact design enhances operational
efficiency. These improvements reduce
maintenance requirements and inventory needs,
making the tool attractive for both outright
purchase or leasing, reinforcing Hunting’s
commitment to innovation-led growth.
In addition, a new Gyroscopic Orientation
Tool (“GOT”), was introduced internationally
in Q2 2025, which showcases Hunting’s ability
to deliver advanced technology that improves
efficiency and reduces costs for customers.
Designed for deployment in vertical conventional
wells, the tool enables active orientation and
perforation in a single run, combining our proven
ControlFire™ system with gyroscopic and
steering capabilities. This innovation allows
operators to streamline operations, significantly
reducing time and expense while maintaining
exceptional accuracy and reliability. By leveraging
Hunting’s expertise in ruggedised perforating
tools and precision logging, the GOT sets a new
standard for dependable performance in
challenging completion environments.
Outlook
The North American onshore unconventional
market is likely to be steady in 2026, given the
prevailing WTI oil price and the likely capital
expenditures planned in the year ahead.
Growth is projected from the Group’s International
markets, particularly in South America and the
Middle East where unconventional resource
development continues to accelerate, and as
global operators continue to adopt US
technology in their well completion programmes.
As noted above, the medium-term growth
of this product group is likely to be dictated by
liquid natural gas (“LNG”) demand and power
requirements to support new data centre
build-outs across North America, which
will require significantly higher amounts of
natural gas.
Hunting PLC
Annual Report and Accounts 2025
33
Strategic Report
Corporate Governance
Financial Statements
Other Information
Adam Dyess
Managing Director, Hunting Titan
OCTG
Global growth driven
by leading premium
connection technology
Hunting’s OCTG product group
comprises sales from the Group’s
three major premium and semi-
premium connection families:
SEAL-LOCK™, WEDGE-LOCK™
and TEC-LOCK™, together with
associated precision accessories
manufacturing. These connections
and accessories are applied to
many oil and gas wells and are
directly applicable to geothermal
and carbon capture projects,
which are long-term growth
sectors for this product group.
Introduction and market overview
The OCTG product group operates an agile
business model, whereby Hunting sources pipe
for its clients and applies the Group’s proprietary
connection technology.
In North America we source pipe from existing
distributor networks to achieve the best price on
raw material feedstock, while in Asia Pacific the
Group has a number of strategic mill partners
based in China and India, which support Hunting’s
International client base. This ‘virtual mill’ business
model has been successfully proven in the past few
years and is positioned as a key growth driver of
the Group to the end of the decade and beyond.
On this basis, Hunting has not been exposed
to the international tariffs put in place by the
US government in the year, as each region has
been historically carved out to avoid this type
of trade barrier.
The success of Hunting’s OCTG product group
in Kuwait during H2 2024 and into H1 2025,
delivered by the Group’s Asia Pacific operating
segment, has been testament to the strength of
Hunting’s proprietary connections offering and
agile supply channels to compete on the world
stage against its much larger competitors.
The Directors would like to thank KOC for its
commitment to the Group in the year.
In the year, the Group’s North America OCTG
business also reported a strong performance, as
Hunting’s high-torque TEC-LOCK™ connection
continued to gain market share within the North
America shale basins, despite the declining US
onshore rig count being reported in the year, as
longer laterals were drilled.
During 2025, new accessories orders for Guyana
were completed, which have also contributed to
the product group’s strong performance.
Product Group Review
continued
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting PLC
Annual Report and Accounts 2025
34
OCTG – revenue
$m
467.5
2025
2024
463.7
2023
395.8
Source: Company
OCTG – sales order book
$m
76.7
2025
2024
249.7
2023
222.0
Source: Company
OCTG – EBITDA
$m
87.7
2025
2024
80.2
2023
46.3
Source: Company
Product Group Review
continued
The Directors approved a plan during the year
to expand the Group’s international steel mill
partners, with initiatives underway to establish
new sources of OCTG raw material from mills
in Indonesia and Malaysia. In addition, Hunting
is looking to further build its presence in India,
with the support of its joint venture partner Jindal
SAW, whereby a stand-alone, wholly owned,
operating entity will establish a premium connection
threading capability on the east coast of India.
Product group financial performance
Revenue from the Group’s OCTG product group
totalled $467.5m in 2025, compared to $463.7m
in 2024. This has been primarily driven by the
OCTG contract wins within Asia Pacific for KOC,
with Hunting’s North America OCTG business
also supporting growth, as noted above.
The Group’s US business also undertook well
completion work in South America and saw
increased re-frac work in the US onshore market
in the year.
EBITDA for the product group was $87.7m
compared to $80.2m in the prior year, giving
an EBITDA margin of 19% in 2025 compared
to 17% in 2024.
The OCTG sales order book at the year-end
was $76.7m compared to $249.7m at the
2024 year-end, which included the large orders
from KOC.
North America
Hunting’s North America OCTG businesses
reported good activity throughout the US and
Canada in the year, with revenue increasing by
8%, from $202.5m in 2024 to $218.2m in 2025.
Continued sales growth and market share gains
of the TEC-LOCK™ semi-premium connection
family were reported in the US and robust sales
of the TKC4040™ and TEC-LOCK Wedge™
connections continued in Canada.
Outlook
Tender activity for the OCTG product group
continues to be strong, particularly across the
Middle East as national oil companies continue
to plan for increases to domestic production,
while also accelerating the development of
unconventional resource plays.
OCTG accessories manufacturing is also
positioned to grow in the medium term, in
support of the OCTG threading contracts likely
to be secured for Guyana and Namibia in the
coming years.
In India, good growth is also projected as
domestic activity accelerates.
On this basis, the short- to long-term outlook
for this product group remains extremely strong,
given the technology leadership of Hunting’s
premium and semi-premium connection offering
along with the Group’s reputable standing within
this segment of the industry.
The product group also continued to supply OCTG
well completion products into Guyana in the year,
in line with the general drilling activity in the country.
International – Asia Pacific and EMEA
The Group’s Asia Pacific and EMEA OCTG
product groups reported a decrease in total
revenue from $261.2m in 2024 to $249.3m in
2025, reflecting the completion of the large KOC
orders and the initiation of the EMEA
restructuring programme.
The EMEA operating segment has closed its
facilities in the Netherlands and Norway in the
year with the Fordoun, Aberdeen, operating site to
close in June 2026. Repair and some threading
capabilities have been established at the Group’s
remaining facility at Badentoy, Aberdeen, UK.
However, all pipe storage and associated work
will cease at Fordoun in the coming months as the
restructuring and drive for stronger profitability
continues.
India
Hunting’s JV in India had another strong year, with a
profit contribution to the Group of $3.3m recorded,
as activity in-country continued to accelerate.
Hunting is looking at options to expand its
manufacturing presence in India in the
coming year, possibly by opening a second
manufacturing facility on the east coast of India.
Hunting PLC
Annual Report and Accounts 2025
35
Strategic Report
Corporate Governance
Financial Statements
Other Information
Daniel Tan
Managing Director, Asia Pacific
Scott George
Managing Director, North America
Graham Goodall
Managing Director, EMEA
Advanced
Manufacturing
Precision engineering
capabilities underpin
diversification strategy
Hunting’s Advanced
Manufacturing product group
serves oil and gas, aviation,
commercial space, defence,
medical, and power generation
markets. Hunting’s expertise is
driven by its manufacturing
know-how and precision
engineering skills for high-value,
critical applications as well as high
temperature and high-pressure
electronics applications.
Introduction and market overview
The Dearborn and Electronics business units,
which comprise the majority of Hunting’s
Advanced Manufacturing offering, form the
foundation of the Group’s non-oil and gas sales
ambition, which is one of the pillars of the Hunting
2030 Strategy. Hunting’s offering of complex,
high-precision engineered products provides
clients with components that are used in critical
applications. The businesses attract blue-chip
clients, based on these skill sets and know-how,
and this forms the basis of our medium-term
sales diversification strategy.
The Dearborn business unit was successful in
developing its non-oil and gas sales order book
in the year, with its closing order book of $99.4m
dominated by non-energy clients. The business
has successfully pivoted from an energy-focused
revenue profile to an aviation, commercial space
and power generation profile.
The Electronics business continues to be
more reliant on oil and gas end-markets but
has made some progress in the development
of medical-related sales. The business continued
to manufacture firing switches for Hunting Titan
throughout the year.
Product group financial performance
Revenue from the Group’s Advanced
Manufacturing product group totalled $112.4m in
2025, compared to $126.9m in 2024. Dearborn
reported total revenue of $59.2m in the year
(2024 – $58.4m), while Electronics reported total
revenue of $46.9m in the year (2024 – $57.1m).
$8.9m of Dearborn’s revenue related to the oil
and gas sector, while 85% or $50.3m related to
non-oil and gas sectors.
Product Group Review
continued
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting PLC
Annual Report and Accounts 2025
36
Advanced Manufacturing – revenue
$m
112.4
2025
2024
126.9
2023
112.1
Source: Company
Advanced Manufacturing – sales order book
$m
116.2
2025
2024
130.0
2023
161.5
Source: Company
Advanced Manufacturing – EBITDA
$m
10.3
2025
2024
11.8
2023
10.6
Source: Company
Product Group Review
continued
A total of $40.5m of Electronics’ revenue related
to the oil and gas sector, which includes revenue
from work for Hunting Titan, and $6.4m related to
non-oil and gas markets, predominantly medical
and defence-related sales.
EBITDA for the product group was $10.3m
compared to $11.8m in the prior year, giving
an EBITDA margin of 9% in 2025 compared
to 9% in 2024.
The Advanced Manufacturing sales order book
at the year-end was $116.2m compared to
$130.0m at the 2024 year-end, which represents
a reduction of 11% in the year.
Advanced Manufacturing – Dearborn
The Dearborn business unit is now focused
on aviation, commercial space and power
generation markets, with key clients including
Solar Turbines, a subsidiary of Caterpillar Inc.,
Sikorsky and Pratt & Whitney, Inc.
Work from Solar Turbines increased during
2025, driven by higher demand for power
generation systems.
During the year, the business unit also received
its first contract from a nuclear fusion company
as well as new orders from existing fission plant
customers.
Pratt & Whitney revenue was also solid, with
demand for engine shafts continuing throughout
the year.
The business continued to complete work for
Blue Origin and SpaceX, as well as the major oil
field service groups for MWD/LWD tool housings.
At the year-end, the sales order book of the
business unit was $99.4m (2024 – $92.9m), with
61% of this order book to be delivered in 2026
and the rest in 2027 and beyond.
Advanced Manufacturing – Electronics
As noted elsewhere, the Electronics business
unit reported lower revenue in 2025 than in the
prior year, reflecting reduced capital investment
in new MWD/LWD circuit boards. This was
partly due to weaker demand following the year’s
decline in oil prices, and partly because the
business has completed a strong replacement
cycle of tooling since 2020, which is typical for
this product line.
The Electronics business continues to complete
inter-group switch production for the Perforating
Systems product group (Hunting Titan operating
segment) and at the year-end 53% of the closing
order book, or $15.9m, related to projected
demand from onshore completion work for
Hunting’s Perforating Systems product group.
The Electronics business continues to build its
medical-related sales and worked hard to
increase military-related revenue in the year.
During the year, the business reduced its
inventory by 39% to close the year at $25.9m.
In addition, the business unit also reduced its
headcount by 31% to align with the short-term
outlook and to save labour costs.
At the year-end, the order book of the business
unit was $29.9m (2024 – $53.9m), including
$15.9m of Perforating Systems orders, with 91%
of this order book to be delivered in 2026 and the
rest in 2027 and beyond.
Outlook
Advanced Manufacturing’s end-markets remain
extremely robust, with the aviation and power
generation markets likely to grow firmly in the
medium term.
Defence-related markets, which are tangential to
these industries, are also extremely strong given
the geopolitical and macroeconomic narrative
being reported at present. Given the lack of
capacity within these sectors in general, Hunting
will likely benefit from strong growth in these
non-oil and gas end-markets in the long term
and, on this basis, management believes that the
outlook and financial performance of this product
group will be solid for many years to come.
Efforts to improve margins and returns are
underway, including close control of the cost
base and inventory levels held by the Group,
supporting a robust position for these businesses
in the years to come.
Hunting PLC
Annual Report and Accounts 2025
37
Strategic Report
Corporate Governance
Financial Statements
Other Information
Scott George
Managing Director, North America
Subsea
Unique technologies
to accelerate the
offshore cash cycle
The Subsea product offering
comprises four sub-groups:
•
hydraulic valves and couplings,
manufactured by the Stafford
business unit;
•
titanium and steel stress joints,
manufactured by the Spring
business unit;
•
flow access modules and flow
intervention systems,
manufactured by the Enpro
Subsea business unit; and
•
diverless bend stiffener
connectors, turrets, and marine
equipment, manufactured by
the FES business unit.
Introduction and market overview
Offshore drilling and production capital
investment continued to be robust in the year,
with the outlook strong for offshore drilling and
project development to the end of the decade.
Global offshore capital investment was broadly
flat at $55.0bn in 2025, with revenue growth
driven by South America and the North Sea.
Regions of high activity and industry investment
continue to be South America and West and
Southern Africa where major offshore discoveries
have been made in recent years such as Brazil,
Guyana and Namibia. This supported the
momentum within the Spring business unit,
although in 2025 revenue was lower for this unit
compared to 2024 due to revenue recognition
and project timings of larger contracts underway.
In the year, some softness was noted within
the Subsea Distribution Systems (“SDS”)
sub-segment of the offshore market, which led to
a decline in the quantum of subsea trees being
commissioned, which in turn impacted sales
within the Stafford business unit for its hydraulic
valves and couplings. Sales within the Spring
business were also lower due to project timings.
A further area of long-term growth is offshore
decommissioning. The Enpro Subsea business
unit has seen increased interest in its Flow
Access Module and Flow Intervention System
product lines, which includes work in the
North Sea to assist in the removal of oil from
abandoned storage units.
Product group financial performance
Revenue in the year totalled $138.1m in 2025,
compared to $147.1m in 2024. Continued
momentum within Enpro Subsea, along with the
contribution from the FES business unit, was
offset by the Spring and Stafford business units,
contributing to the year-on-year decline in sales.
Product Group Review
continued
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting PLC
Annual Report and Accounts 2025
38
Subsea – revenue
$m
138.1
2025
2024
147.1
2023
98.6
Source: Company
Subsea – sales order book
$m
120.7
2025
2024
72.5
2023
152.2
Source: Company
Subsea – EBITDA
$m
23.7
2025
2024
30.0
2023
13.7
Source: Company
Product Group Review
continued
EBITDA for the product group was $23.7m
compared to $30.0m in the prior year, giving
an EBITDA margin of 17% in 2025 compared
to 20% in 2024.
The sales order book closed 2025 66% higher
than 2024. The year-end position was $120.7m,
compared to $72.5m in the prior year, and has
benefited from orders from BP, TPAO and new
decommissioning orders received by the Enpro
Subsea business for the North Sea.
Intellectual property
Intellectual property, patents and trademarks
totalled 200 at the year-end.
Spring
The Spring business unit saw a 19% decrease in
revenue year-on-year to $66.5m (2024 – $81.7m),
for the reasons noted above. Orders continued to
be completed for a number of clients, including
ExxonMobil Guyana for its YellowTail and Uaru
discoveries. The business continues to work
through its Whiptail orders for ExxonMobil, while
also securing new orders for titanium stress joints
for BP in the Gulf of America. Decommissioning
contracts in the North Sea totalled $38.0m,
which were announced in March 2025, followed
by new orders totalling $31.0m for titanium stress
joints for the Sakyara phase III development in
the Turkish Black Sea, which were announced
in July 2025.
Stafford
The Stafford business unit saw a 21% decline in
revenue year-on-year to $37.6m (2024 – $47.4m)
primarily due to the reduced demand for
hydraulic valves and couplings as noted above.
In 2025, market commentators estimate that the
number of commissioned trees declined by 13%
year-on-year.
Management notes this decline and points to
current market commentary, which indicates that
2026 will see strong growth in the number of
subsea tree awards, supporting an anticipated
recovery for the product sub-group.
Enpro Subsea
The Enpro Subsea business unit recorded a
year-on-year sales increase of 36% to $24.4m in
2025 compared to $18.0m in 2024. The business
continued to build the profile of its Flow Access
Modules and Flow Intervention Systems, the
former product delivering its 100th unit in the
year. Enpro also had success with Shell and
TAQA purchasing bespoke systems, which assist
in the recovery of oil from abandoned subsea
storage facilities in the North Sea and, as such,
increased its decommissioning-related sales in
the year.
FES
FES was acquired by the Group on 23 June 2025
for a total consideration of $64.8m. For more
information, please see the Chief Executive’s
Report on pages 28 and 29. The business
designs and assembles products including its
patented diverless bend stiffener connector
(“DBSCs”) product line, which is used on FPSOs,
and which connects into Hunting’s stress joints,
as part of the subsea umbilicals, risers and
flowlines (“SURF”) infrastructure on these
production vessels. The business also provides
other marine, subsea and renewable energy
related solutions.
In 2025, FES’s revenue contribution to the Group
was $10.0m. While this reflected a slower-than-
expected start, driven by certain award timings
slipping into 2026 and the impact of transitioning
to the Group’s revenue-recognition policies, it
remained broadly consistent with management
expectations at the time of acquisition.
FES has integrated its IT systems and is shortly
to go live with the Group’s D365 ERP platform
as part of its ongoing integration into the Group.
Outlook
Momentum within subsea markets is likely to
remain robust to the end of the decade given the
activity planned in South America and West Africa.
With the restarting of the process to issue new
offshore leases in the Gulf of America by the US
government, the short- to medium-term outlook
for this segment of the global industry is strong.
Renewed momentum in the commissioning of
subsea trees and the new builds planned for
FPSOs also support a strong outlook for both
the SURF and SDS segments of the subsea
industry, which Hunting is targeting to capture in
the long term. Decommissioning, and plug and
abandonment projects are also likely to be an
increasing theme in the coming years, which
will support the platform’s strategy.
Hunting PLC
Annual Report and Accounts 2025
39
Strategic Report
Corporate Governance
Financial Statements
Other Information
Dane Tipton
Managing Director, Subsea
Technologies
Other Manufacturing
Capabilities to support
a changing industry
Hunting’s Other Manufacturing
product group includes the
Group’s well intervention and
well testing product lines, along
with the trenchless and Organic
Oil Recovery businesses.
Introduction and market overview
Hunting’s Other Manufacturing revenue
is predominantly based on oil and gas
capital investment.
In March 2025, the Group acquired the
Organic Oil Recovery (“OOR”) technology from
its founding shareholders for $18.2m. In addition
to acquiring the intellectual property portfolio,
Hunting now has global commercialisation
rights to accelerate revenue and profits. Prior
to the acquisition, Hunting only had access to
International markets and was not able to pursue
clients in North and South America. The business
has a sampling and test laboratory in California,
US, and regional sales and commercial
personnel in the UAE, US and UK.
Hunting’s well intervention businesses are
serviced from the Group’s North America and
EMEA operations.
The Group’s well testing business unit was
relocated to Hunting’s new facility in Dubai,
UAE, which is close to its major end-markets
and is also a lower cost manufacturing region,
which should increase gross margins in the
medium term.
Hunting’s trenchless business unit sells drill
stems, connections and drill pipe, is located in
the US and forms part of the Group’s non-oil
and gas sales.
Product group financial performance
Revenue from the Group’s Other Manufacturing
product lines totalled $79.7m in 2025, compared
to $88.5m in 2024.
Product Group Review
continued
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting PLC
Annual Report and Accounts 2025
40
Other Manufacturing – revenue
$m
79.7
2025
2024
88.5
2023
78.8
Source: Company
Other Manufacturing – sales order book
$m
21.0
2025
2024
39.9
2023
16.8
Source: Company
Other Manufacturing – EBITDA
$m
0.1
2025
2024
2.9
2023
6.7
Source: Company
Product Group Review
continued
EBITDA was $0.1m in the year. In 2024, EBITDA
for the product group was $2.9m. EBITDA
margin was, therefore, 0% in the year compared
to 3% in 2024.
At 31 December 2025, the sales order book for
Other Manufacturing totalled $21.0m compared
to $39.9m in the prior year.
Organic Oil Recovery (“OOR”)
The acquisition of the OOR technology is
noted in the Chief Executive’s Report on
pages 28 and 29.
The business holds 28 core patents related to
microbial enhanced oil recovery and, to date,
operates from a laboratory in California, US.
Up to the point of acquisition, Hunting had a
number of sales and commercialisation
personnel attached to the product line.
Following acquisition, the Group invested $0.5m
to refurbish the sampling and test facility and
has added a number of scientists and sales
personnel globally. This led to a reduction in the
time it takes for samples to be analysed from
five months to one month.
In November 2025, the business announced
a sampling and testing contract for a client in
Brazil. This announcement was particularly
significant due to the client commencing
multi-well and multi-field sampling and test
programmes across its portfolio.
In February 2026, a US client also announced
positive production results, recording a 100%
uplift in daily production volumes.
These milestones present material progress
on the commercialisation of this technology
since acquisition.
Other key regions of material sampling and
testing include Brazil, Qatar, Malaysia, Thailand,
US (Texas and California), Oman, Pakistan,
West Africa, UK and Norway.
Well intervention
The year saw lower activity within the well
intervention product line, with sales driven by
Europe, Middle East and the US end-markets.
Manufacturing in Dubai, UAE, has now been
established.
In the year, well intervention revenue totalled
$47.0m compared to $53.9m in 2024.
Well testing
The well testing business has now been fully
transferred to Dubai, which is close to its
end-markets and customers.
In the year, well testing revenue totalled $3.9m
compared to $9.8m in 2024.
Trenchless
The trenchless business reported another solid
year during 2025, supported by the ongoing roll
out of 5G across North America.
Sales of connections, drill stems and drill pipe
have grown compared to 2024, with the outlook
for 2026 steady.
Despite strong end-markets, the business
has seen some cost inflation on raw materials
due to the international tariffs put in place
by the US, which led to some erosion in
profitability; however, this is immaterial to
the Group’s overall trading results.
In the year, trenchless revenue totalled
$29.7m compared to $25.9m in 2024.
Outlook
The OOR business unit is in a strong position
to grow revenue and profitability in the short
term given the level of client interest and the
number of active sampling, testing and field
treatments underway.
The well intervention and well testing businesses
are positioned for higher profitability now that the
restructuring of the EMEA operating segment is
nearing completion and manufacturing has been
established in Dubai.
Hunting PLC
Annual Report and Accounts 2025
41
Strategic Report
Corporate Governance
Financial Statements
Other Information
Dane Tipton
Managing Director, Subsea
Technologies
Scott George
Managing Director, North America
Graham Goodall
Managing Director, EMEA
The Group has invested $0.5m in
new sampling and test equipment
for its Organic Oil Recovery
laboratory in California, US. Plans
are underway to open a laboratory
in Dubai, UAE.
Hunting PLC
Annual Report and Accounts 2025
42
Strategic Report
Corporate Governance
Financial Statements
Other Information
Operating Segment Review
Introduction
The Hunting Titan operating segment focuses on
North American and International unconventional
drilling and completion markets, and services
these from its manufacturing facilities in Mexico
and the US. Hunting Titan has a network of
distribution centres throughout the US and
Canada from which the majority of the segment’s
sales are derived.
Hunting Titan
2025
2024
Market indicators
i
US onshore – average rig count
#
546
579
Canada onshore – average rig count
#
174
185
South America – average rig count
#
134
158
Saudi Arabia – average rig count
#
248
295
Revenue
Perforating
$m
94.3
92.0
Energetics
$m
69.0
66.3
Instruments
$m
49.9
52.8
Perforating Systems
$m
213.2
211.1
OCTG
$m
1.8
2.7
Advanced Manufacturing
$m
6.8
6.7
External revenue
$m
221.8
220.5
Inter-segment revenue
$m
6.9
9.8
Segment revenue
$m
228.7
230.3
Profitability
EBITDA
ii
$m
13.1
0.6
EBITDA margin
ii
%
6
0
Operating profit/(loss)
$m
3.4
(117.4)
Adjusting items
$m
–
109.1
Adjusted operating profit/(loss)
ii
$m
3.4
(8.3)
Adjusted operating margin
%
1
(4)
Other financial measures
Inventory
$m
99.0
107.8
Capital investment
ii
$m
2.2
3.3
i.
Source: Spears & Associates Drilling & Production Outlook – December 2025.
ii.
Non-GAAP Measure (see pages 236 to 243).
Hunting Titan also utilises the global
manufacturing footprint of the wider Group to
assist in meeting customer demand and, during
the year, the Electronics business unit, which is
part of the North America operating segment,
continued to manufacture firing switches on
behalf of Hunting Titan.
Segment performance
Hunting Titan’s performance in the year was
defined by a challenging North America onshore
market, where rig counts in the US continued to
decline for the most part of the year. International
sales momentum in the Middle East and South
America continued to be robust; however, sales
were impacted in Saudi Arabia during Q2 and Q3
2025 due to operators renegotiating contracts
with key suppliers, which halted purchasing
during the period.
The operating segment benefited from the
cost reduction programmes completed in
2023 and 2024 and focused its sales efforts
on those clients wishing to utilise and pay for
high technology products, which drives drilling
completion efficiencies. This focus, coupled
with a strong internal focus on manufacturing
efficiencies and close monitoring of production
variances, led to the operating segment returning
to profitability in the year, despite challenging
trading conditions.
Hunting Titan’s revenue streams are divided
into four sub-groups: (i) perforating guns;
(ii) energetics; (iii) instruments; and (iv) advanced
manufacturing and OCTG. Perforating guns
recorded sales of $94.3m (2024 – $92.0m);
energetics recorded sales of $69.0m
(2024 – $66.3m); instruments recorded sales
of $49.9m (2024 – $52.8m); and OCTG and
Advanced Manufacturing recorded sales of
$8.6m (2024 – $9.4m).
Overall, segment revenue was marginally down
in 2025 at $228.7m (2024 – $230.3m), with
North America sales remaining subdued due to
prevailing market momentum. Hunting Titan’s
international sales were, however, 9% higher at
$49.7m in 2025 compared to $45.7m in 2024 as
demand for perforating products was sustained
within the Middle East and South America.
EBITDA for the year was $13.1m (2024 – $0.6m),
leading to an EBITDA margin of 6% compared to
0% in 2024.
Operating profit for the year was $3.4m
compared to the operating loss of $117.4m in
2024, which included the $109.1m impairment
to goodwill that was recorded as an adjusting
item. The adjusted operating profit for 2025 was
$3.4m compared to an adjusted operating loss of
$8.3m in 2024, after adding back the impairment
charge, which recognises the hard work of
management to restore profitability to the
segment. Adjusted operating margin for 2025
was, therefore, 1% compared to (4)%
Hunting Titan continued to focus on reducing
inventories in the year given prevailing market
conditions in North America, with inventory
decreasing from $107.8m in 2024 to $99.0m
at 31 December 2025.
Hunting Titan recorded capital investment
of $2.2m (2024 – $3.3m) mainly relating to
replacement equipment purchases across
the segment.
The segment capitalised $1.0m (2024 – $2.2m)
of research and development costs in the year.
Operating footprint and headcount
At the year-end, Hunting Titan operated
from three (2024 – three) operating sites and
12 (2024 – 12) distribution centres, located in
Canada, Mexico, and the US.
Headcount within the segment remained stable,
with 516 employees at the year end compared
to 514 at the end of 2024.
Hunting PLC
Annual Report and Accounts 2025
43
Strategic Report
Corporate Governance
Financial Statements
Other Information
Operating Segment Review
continued
Introduction
Hunting’s North America operating segment
incorporates the US and Canada OCTG
businesses and the Dearborn and Electronics
businesses, which form the majority of the
Group’s Advanced Manufacturing product group.
North America
2025
2024
Market indicators
i
US onshore – average rig count
#
546
579
US offshore – average rig count
#
14
19
US – total drilling spend
$bn
87.5
95.4
Canada onshore – average rig count
#
174
185
Canada – total drilling spend
$bn
16.6
16.7
Revenue
OCTG
$m
216.4
199.8
Advanced Manufacturing
$m
105.6
120.2
Other Manufacturing
$m
41.3
37.3
External revenue
$m
363.3
357.3
Inter-segment revenue
$m
26.2
31.1
Segment revenue
$m
389.5
388.4
Profitability
EBITDA
ii
$m
69.1
62.2
EBITDA margin
ii
%
18
16
Operating profit
$m
50.7
45.5
Adjusting items
$m
–
–
Adjusted operating profit
ii
$m
50.7
45.5
Adjusted operating margin
%
13
12
Other financial measures
Inventory
$m
81.8
98.7
Capital investment
ii
$m
13.4
10.3
i.
Source: Spears & Associates Drilling & Production Outlook – December 2025.
ii.
Non-GAAP Measure (see pages 236 to 243).
The Advanced Manufacturing product group
generates a large proportion of the Group’s
non-oil and gas sales together with the
trenchless business unit that services the
telecommunications sector, which is reported
under the Other Manufacturing product group.
Segment performance
Revenue within the North America operating
segment is derived from three primary product
groups being: (i) OCTG, which incorporates
premium and semi-premium connections
and accessories manufacturing; (ii) Advanced
Manufacturing, which incorporates the
Electronics and Dearborn business units; and
(iii) Other Manufacturing, which incorporates
well intervention and trenchless sales.
In the year, the segment’s North America
OCTG businesses reported strong sales of
its TEC-LOCK™ family of semi-premium
connections, as longer lateral wells continued to
be drilled across North America. The business
also reported market share gains in certain shale
basins across the US and, coupled with steady
drilling activity across Canada as well as
accessories manufacturing work for ExxonMobil
Guyana, led to a strong year for the business
unit. Revenue from OCTG for North and South
America increased 8% to $216.4m in 2025
compared to $199.8m in 2024.
The Electronics business unit reported a more
subdued 2025 compared to the prior year, as
industry capital expenditures for MWD/LWD
equipment slowed. As a consequence of this,
a reduction-in-force was completed in the year.
The Dearborn business unit reported a steady
year, as aviation, power generation and
commercial space revenue continued to build.
Overall, Advanced Manufacturing revenue
decreased to $105.6m in the year compared
to $120.2m in 2024.
Other Manufacturing revenue increased 11%
to $41.3m (2024 – $37.3m), as the Group’s
trenchless business unit reported improved
sales.
Overall, segment revenue was comparable with
2024, up from $388.4m to $389.5m in 2025.
EBITDA for the segment was $69.1m
(2024 – $62.2m) as activity increased within
the OCTG product group, partially being offset by
the contribution of the Advanced Manufacturing
product group. This led to an EBITDA margin
of 18% compared to 16% in 2024.
Operating profit and adjusted operating profit for
the year were $50.7m (2024 – $45.5m), as there
were no adjusting items in the year.
Inventory levels within the segment decreased
from $98.7m in 2024 to $81.8m, following
particular focus on reducing Electronics,
well intervention and trenchless inventories
in the year.
The North America operating segment recorded
capital investment of $13.4m (2024 – $10.3m)
mainly related to new equipment purchases and
upgrades at the segment’s Electronics and US
Manufacturing businesses.
The segment spent $9.1m (2024 – $6.2m)
on research and development in the year,
including spend to support the development
and qualification of premium connections for
energy and non-oil and gas end-markets. In
the year, $3.5m of R&D spend was capitalised
(2024 – $2.2m).
Operating footprint and headcount
During the year, the operating footprint of
the segment remained unchanged, with 10
(2024 – 10) operating sites and two (2024 – two)
distribution centres at the year end.
The headcount within the segment decreased
from 886 in 2024 to 789 in 2025, predominantly
within the Electronics business unit.
Hunting PLC
Annual Report and Accounts 2025
44
Strategic Report
Corporate Governance
Financial Statements
Other Information
Operating Segment Review
continued
Introduction
The Subsea Technologies operating segment
comprises four business units: (i) Stafford, which
manufactures hydraulic valves and couplings;
(ii) Spring, which manufactures titanium and
steel stress joints; (iii) Enpro Subsea, which
manufactures flow intervention systems and
flow access modules; and (iv) FES, which
manufactures diverless bend stiffener
connectors (“DBSCs”), FPSO turrets, and other
marine-orientated products.
Subsea Technologies
2025
2024
Market indicators
i
Global offshore – average rig count
#
223
259
Global offshore – total drilling spend
$bn
55.0
55.2
Revenue
Stafford – Couplings & valves
$m
37.6
47.4
Spring – Stress joints
$m
66.4
81.7
Enpro Subsea – Flow intervention systems & Flow access modules
$m
24.1
18.0
FES – Connectors, turrets & marine products
iii
$m
10.0
–
Subsea
$m
138.1
147.1
Other Manufacturing
$m
0.1
–
External revenue
$m
138.2
147.1
Inter-segment revenue
$m
1.1
–
Segment revenue
$m
139.3
147.1
Profitability
EBITDA
ii
$m
23.3
30.0
EBITDA margin
ii
%
17
20
Operating profit
$m
14.4
25.6
Adjusting items
$m
–
–
Adjusted operating profit
ii
$m
14.4
25.6
Adjusted operating margin
%
10
17
Other financial measures
Inventory
$m
18.9
15.3
Capital investment
ii
$m
4.4
4.3
i.
Source: Spears & Associates Drilling & Production Outlook – December 2025.
ii.
Non-GAAP Measure (see pages 236 to 243).
iii. From acquisition date of 23 June 2025.
These businesses occupy different parts
of the offshore/subsea equipment supply chain,
with customers ranging from tier one OEMs to
exploration and production companies.
The segment operates out of five facilities
following the FES acquisition – two in the US
and three in the UK, with the Enpro Subsea
business operating from the Group’s shared
Badentoy, Aberdeen facility.
Segment performance
As noted in the Subsea product group narrative
on pages 38 and 39, Hunting’s subsea offering
extends from SURF products, which have FPSO
and deepwater rig end-markets to SDS products,
which have seafloor end-markets.
The Group’s Spring business unit, which
manufactures titanium and steel stress joints,
progressed its orders for ExxonMobil, TPAO and
BP in the year. The unit reported lower revenue
compared to 2024 as project timing and revenue
recognition of larger contracts led to the lower
result in the year.
The Stafford business unit also experienced a
more challenging year, as the number of subsea
trees commissioned across the global industry
declined, reducing demand for Hunting’s
hydraulic couplings and valves.
The Enpro Subsea business unit reported
another year of robust results as sales of its flow
access modules, flow intervention systems, and
bespoke decommissioning products accelerated
in the year.
In 2025, FES’s revenue contribution to the Group
was $10.0m. This reflects a slower-than-
expected start as a member of the Group, and
was driven by certain tender and award timings
slipping and the impact of project timings. FES
has integrated its IT systems and is shortly to go
live with the Group’s D365 ERP platform as part
of its ongoing integration into the Group.
Given the slowing momentum within the Stafford
and Spring business units, year-on-year revenue
declined 5% to $139.3m, compared to $147.1m
in 2024.
EBITDA for the segment was $23.3m
(2024 – $30.0m) reflecting the lower contribution
from the hydraulic valves and couplings and
project completion timings for longer orders for
stress joints. This led to an EBITDA margin of
17% compared to 20% in 2024.
Operating profit and adjusted operating profit for
the year were $14.4m (2024 – $25.6m), with an
operating profit margin of 10% compared to 17%
in 2024.
Inventory levels within the segment increased
from $15.3m in 2024 to $18.9m, as orders were
executed, particularly within the Spring and FES
business units.
During the year, the Subsea Technologies
operating segment recorded capital investment
of $4.4m (2024 – $4.3m) mainly relating to new
equipment purchases at the Spring facility,
including the installation of two long bed lathes.
Operating footprint and headcount
During the year, the operating footprint of the
segment increased following the FES acquisition,
with five facilities at year-end compared to three
in the prior year.
Headcount within the segment increased from
223 in 2024 to 309 in 2025, reflecting the
acquisition of FES.
Organic Oil Recovery
From 1 January 2026, the Subsea Technologies
operating segment will formally incorporate the
Organic Oil Recovery business unit, which is
seeing strong momentum in South America,
and which is currently reported in the EMEA
operating segment.
Hunting PLC
Annual Report and Accounts 2025
45
Strategic Report
Corporate Governance
Financial Statements
Other Information
Operating Segment Review
continued
Introduction
At the start of 2025, Hunting announced a major
restructuring of the Group’s EMEA operating
segment, given the lower levels of future market
activity projected across Europe, particularly in
the UK North Sea, which led to losses being
recorded for a number of years. During late 2024
and in early 2025, the senior leadership team
undertook a strategic review of the product
groups and operating footprint of the segment
and installed new management to lead this
EMEA
2025
2024
Market indicators
i
Europe – average rig count
#
98
95
Europe – spend
$bn
13.5
11.6
North Sea – average rig count
#
26
23
North Sea – spend
$bn
11.9
9.9
Middle East – spend
$bn
22.1
22.4
Revenue
OCTG
$m
26.1
27.5
Perforating Systems
$m
7.9
11.6
Other Manufacturing
$m
38.3
47.5
External revenue
$m
72.3
86.6
Inter-segment revenue
$m
1.2
1.1
Segment revenue
$m
73.5
87.7
Profitability
EBITDA
ii
$m
(7.0)
(7.9)
EBITDA margin
ii
%
(10)
(9)
Operating loss
$m
(20.3)
(12.4)
Adjusting items
$m
9.3
–
Adjusted operating loss
ii
$m
(11.0)
(12.4)
Adjusted operating margin
%
(15)
(14)
Other financial measures
Inventory
$m
18.1
19.7
Capital investment
ii
$m
7.3
2.0
i.
Source: Spears & Associates Drilling & Production Outlook – December 2025.
ii.
Non-GAAP Measure (see pages 236 to 243).
change. Conclusions from this strategic review
were announced in January and August 2025
and included the closure of the Group’s two
facilities in the Netherlands, its operating site in
Norway and also the Fordoun, UK, operating site.
As previously announced, targeted annualised
cost savings will be fully realised by June 2026
when the restructuring is complete, other than
the disposal of the Fordoun site itself.
The Group, in parallel to these activities, has been
increasing its operating presence in the Middle
East, with the transfer of the manufacturing of the
well testing product line from the Netherlands to
Dubai, UAE, and the transfer of well intervention
manufacturing from Singapore to Dubai, UAE,
as the new facility was commissioned.
The new Dubai facility was formally opened in H2
2025, which is a new 57,296 sq ft operating site
in the Jebel Ali Freezone, in Dubai, UAE.
The segment will continue to pursue sales from
the following product groups: (i) OCTG for Europe
and International markets, supported by the
Group’s Badentoy, UK, operating site and the
Saudi Arabia operating site; (ii) well testing and
well intervention (sales and rentals) products,
supported by the Group’s Dubai, UAE, operating
site; and (iii) perforating systems, through a
dedicated sales function in Dubai, UAE.
The Group’s operations in Saudi Arabia are
through a 65% joint venture arrangement with
Saja Energy.
Up to 31 December 2025, OOR trading results
were reported through the EMEA operating
segment and are included in the financial
statements of the segment for 2025. As
previously noted, from 1 January 2026, the
business unit will be reported under the
Subsea Technologies operating segment as
management of this business unit has been
transferred internally.
Segment performance
Given the restructuring and rationalisation of
the operating segment in the year, trading was
impacted as activity was wound down in the
Netherlands and Norway, and assets were
transferred to Dubai. Revenue in 2025 was,
therefore, $73.5m compared to $87.7m in 2024.
OCTG revenue was $26.1m (2024 – $27.5m) with
declining activity in Europe offset by decent sales
in Saudi Arabia. Perforating systems revenue
was also lower due to the slowing activity in
Saudi Arabia in the year. In total, the product
group recorded sales in the year of $7.9m
(2024 – $11.6m). Other Manufacturing revenue,
which includes well testing, well intervention and
OOR sales, was $38.3m (2024 – $47.5m).
EBITDA for the operating segment was a loss of
$7.0m (2024 – $7.9m loss). This led to an EBITDA
margin of (10)% compared to (9)% in 2024.
An operating loss of $20.3m was recorded in
2025, which compares to a $12.4m loss in 2024.
Restructuring costs and some asset impairments
totalling $9.3m are recorded within this result and
are considered to be adjusting items. In 2024,
there were no adjusting items. An adjusted
operating loss of $11.0m was, therefore,
recorded for the year compared to a loss of
$12.4m in the prior year, as the operating
segment moved to a breakeven position in
December 2025.
Inventory levels within the segment decreased
from $19.7m in 2024 to $18.1m, as activity
remained subdued and as a consequence of
the closure of businesses in the Netherlands
and Norway. During the year, the EMEA
operating segment recorded capital investment
of $7.3m (2024 – $2.0m) mainly relating to
equipment purchases at the segment’s new
Dubai, UAE, facility.
Operating footprint and headcount
During the year, the operating footprint of the
segment decreased by three sites, with four
operating sites at the year-end.
The headcount within the segment decreased
from 277 in 2024 to 200 at the end of 2025.
Hunting PLC
Annual Report and Accounts 2025
46
Strategic Report
Corporate Governance
Financial Statements
Other Information
Operating Segment Review
continued
Introduction
Hunting’s Asia Pacific operating segment
covers three operating sites across China,
Indonesia and Singapore and services
customers predominantly in Africa, Asia Pacific,
India, and the Middle East. In Singapore, Hunting
manufactures OCTG premium connections and
accessories. The Group’s Indonesia facility also
completes threading and accessories work. In
China, the Group operates from a facility in Wuxi,
which has OCTG threading and perforating gun
manufacturing capabilities. The Asia Pacific
leadership team also oversees the Group’s joint
venture relationship in India.
Asia Pacific
2025
2024
Market indicators
i
Far East – spend
$bn
22.5
21.4
Middle East – spend
$bn
22.1
22.4
Revenue
OCTG
$m
223.2
233.7
Other Manufacturing
$m
–
3.7
External revenue
$m
223.2
237.4
Inter-segment revenue
$m
3.5
3.2
Segment revenue
$m
226.7
240.6
Profitability
EBITDA
ii
$m
37.2
41.4
EBITDA margin
ii
%
16
17
Operating profit
$m
33.0
37.6
Adjusting items
$m
–
–
Adjusted operating profit
ii
$m
33.0
37.6
Adjusted operating margin
%
15
16
Other financial measures
Inventory
$m
22.0
64.4
Capital investment
ii
$m
2.1
4.7
i.
Source: Spears & Associates Drilling & Production Outlook – December 2025.
ii.
Non-GAAP Measure (see pages 236 to 243).
Segment performance
Revenue within the Asia Pacific operating
segment is primarily derived from OCTG sales.
2025 saw the continuation and completion of the
$231m KOC orders, which commenced in H2
2024. The significant financial impact of this order
is reflected in the robust levels of revenue and
profitability reported by the segment in the year,
albeit slightly lower year-on-year as activity
reduced in the second half following completion
of the order.
However, trading was supported by an additional
KOC order, which was awarded in Q1 2025, with
a total value of $26.8m. The segment continued
to complete orders for other major clients,
including Cairn Oil and Gas (Vedanta) Limited,
which relates to the three-year contract
announced in 2023.
Revenue in the year was, therefore, $226.7m
compared to $240.6m in 2024, or a decline
of 6%.
EBITDA for the segment was $37.2m
(2024 – $41.4m) reflecting the lower revenue
recorded in the year. Following the completion
of the KOC orders, the Group’s Wuxi facility
was reorganised to align with this lower level of
trading, leading to a head count reduction of 16%
at the year-end compared to the same point in
2024. EBITDA margin was, therefore, 16% in
2025 compared to 17% in 2024.
Operating profit and adjusted operating profit for
the year were $33.0m (2024 – $37.6m), as there
were no adjusting items in either year, and
operating margin was 15% compared to 16%
in 2024.
Inventory levels within the segment reduced from
$64.4m in 2024 to $22.0m, predominantly due
to the lower raw material requirements following
completion of the KOC orders.
During the year, the Asia Pacific operating
segment recorded capital investment of $2.1m
(2024 – $4.7m).
Operating footprint and headcount
During the year, the operating footprint of the
segment remained unchanged, with three
operating sites at year-end.
The headcount within the segment decreased
from 378 in 2024 to 342 in 2025, as headcount
and variable costs were reduced, as noted above.
India joint venture
The segment has Group oversight of the Jindal
Hunting Energy Services joint venture in India,
in which Hunting holds a 49% interest.
Good progress was made across India, with
major operators including ONGC, Reliance and
Oil India placing and completing orders during
the year. As noted above, the wider operating
segment also continued to fulfil orders for Cairn
Oil & Gas, reinforcing the Group’s growing
presence in the region.
In 2025, the India joint venture contributed $3.3m
(2024 – $2.4m) to the operating segment’s
EBITDA result noted above.
Hunting is currently exploring its options for
setting up a second manufacturing facility in
India for other product lines in the coming year.
A number of routes to achieve this objective are
currently being assessed, including building on a
greenfield site or the purchase of a manufacturing
site from another company.
Hunting PLC
Annual Report and Accounts 2025
47
Strategic Report
Corporate Governance
Financial Statements
Other Information
Group Financial Review
The Group delivered a robust
financial performance in 2025 and
reported year-on-year growth in
EBITDA. This was achieved through
increased contributions from our
OCTG and Perforating Systems
product groups.
The Group’s resilient financial performance
in the year against a difficult market backdrop
demonstrates that the measures put in place and
the work undertaken since the Capital Markets
Day in 2023 have ensured that the Group can
deliver shareholder value through the cycle.
All of the Group’s operating segments faced
headwinds in the year due to the geopolitical and
macroeconomic backdrop, which has impacted
revenue to varying levels. However, profitability
has increased as product mix and cost
eliminations have positively impacted our results.
Financial performance measures
The following are financial key performance indicators as identified on page 12:
2025
2024
Revenue
$m
1,018.8
1,048.9
EBITDA
i
(NGM C)
$m
135.7
126.3
EBITDA margin
ii
%
13
12
Adjusting items
i
(NGM A)
$m
14.2
109.1
Adjusted profit before tax
i
(NGM B)
$m
79.7
75.6
Adjusted diluted earnings per share
i
(NGM B)
cents
34.1
31.4
Free cash flow
i
(NGM P)
$m
96.6
139.7
Working capital to annualised revenue ratio
i
(NGM E)
%
33
29
Total cash and bank/(borrowings)
i
(NGM K)
$m
62.9
104.7
Dividend per share declared
i
(NGM Q)
cents
13.0
11.5
Sales order book
i
(NGM T)
$m
358.0
508.6
Financial performance measures derived from IFRS
2025
2024
Operating profit/(loss)
$m
76.3
(21.1)
Profit/(loss) before tax
$m
65.5
(33.5)
Diluted earnings/(loss) per share
cents
24.6
(17.6)
Net cash inflow from operating activities
$m
138.9
188.5
i.
Results are presented on a statutory basis as reported under UK-adopted International Accounting Standards. Adjusted results reflect
adjusting items determined by management, which are described in Non-GAAP Measures (“NGM”) on pages 236 to 243.
ii.
EBITDA as a percentage of revenue.
Within the Hunting Titan operating segment
revenue marginally reduced in 2025, as demand
for its Perforating Systems continued to be held
back by a reduction in the WTI oil price, a pause
in activity in the Middle East in the year, and the
lower North American rig count. However, the
operating segment delivered a significant
improvement in its profitability when compared
to 2024 as management focused on improved
production efficiencies and capitalising on
increased market activity in South America and
the Middle East.
We retain a solid balance
sheet at year-end, which will
support our future earnings
growth and increased
shareholder returns.
Hunting PLC
Annual Report and Accounts 2025
48
Strategic Report
Corporate Governance
Financial Statements
Other Information
Group Financial Review
continued
Within the North America operating segment,
revenue for 2025 was consistent with 2024 and
profitability increased in the year, predominantly
driven by the performance of the OCTG-related
and trenchless business units, where market
share gains and activity levels were higher.
The Electronics business unit reported lower
revenue in the year due to a slowdown in capital
expenditures for MWD/LWD equipment.
The Subsea Technologies operating segment
reported lower sales in the year. The Spring
business continued to deliver titanium and
steel stress joints for ExxonMobil, TPAO and
BP; however, due to contract timings for some
of these orders, revenue reduced in 2025
compared to the prior period. The Stafford
business saw lower demand for its hydraulic
couplings and valves as the number of subsea
trees commissioned in the year was lower than
2024. However, the Enpro Subsea business
delivered a solid year with increasing sales.
Newly-acquired Flexible Engineered Solutions
had a slower start due to award timing slipping
into 2026 and the adoption of Group
revenue-recognition policies, but has traded
broadly in line with management expectations.
EMEA’s revenue declined in the year with the
operating segment experiencing disruption as
it underwent a major restructuring programme.
Facilities in Norway and the Netherlands were
closed, with the well testing business transferring
to Dubai. While the restructuring dampened
activity levels in 2025, the segment is expected
to be profitable in the year ahead.
The Asia Pacific operating segment’s revenue and
profitability were lower in the year than 2024, as
the balance of the KOC orders were completed in
H1 2025. However, the contribution from the India
JV improved as noted elsewhere.
Basis of preparation
The Board continues to monitor the Group’s
progress using adjusted profitability measures
and reviews and approves the adjusting items
proposed by management, as the Group
believes these adjusted measures aid the
comparison of the Group’s operating
performance from one period to the next.
The Group’s adjusted trading results are
highlighted in the management narrative
below, with reconciliation between the statutory
and adjusted results detailed in NGM A. The
definition and calculation of a range of NGMs
including EBITDA, working capital, total cash
and bank/(borrowings), and free cash flow can
be found on pages 236 to 243.
The Group reports its 2025 results on a
consistent basis with the 2024 results, with no
changes to accounting policies except for
electing to apply a policy to expense variable
costs, rather than capitalise them, in relation to
purchases of intangible assets, see note 40(b).
A new line item ‘Research and Development
costs’ was added to the Group’s Income
Statement to present these costs separately
as they are increasingly material in size, and
strategically important.
The Group continues to report its results from
associates and joint ventures as part of its
consolidated operating result.
The Group revised its definition of free cash flow
to exclude proceeds from the disposal of
investments in businesses by the Group.
The prior year does not require restatement as
there were no disposals of businesses in 2024.
Please see NGM P.
Revenue
Overall, revenue in 2025 was behind 2024,
with revenue decreasing by 3% to $1,018.8m
(2024 – $1,048.9m), reflecting the more
challenging market environment, as noted above.
The trading results of our product groups is
noted on pages 32 to 41, with Perforating
Systems recording broadly flat revenue year-on-
year; OCTG increasing primarily due to the strong
performance of the Group’s North America and
Asia Pacific businesses; Subsea recorded lower
revenue due to contract timings and a slow down
in subsea tree awards; Advanced Manufacturing
also recorded lower revenue due to slower capital
equipment sales; and Other Manufacturing
recorded lower sales due to the disruption in
the well intervention businesses following the
restructuring completed in the year.
Operating results
Summary Group operating results
2025
$m
2024
$m
Revenue
1,018.8
1,048.9
Cost of sales
(739.0)
(777.0)
Gross profit
279.8
271.9
Selling and distribution costs
(52.5)
(53.5)
Administrative expenses
(155.9)
(127.9)
Research and development costs
(5.9)
(6.6)
Impairment of goodwill (note 15)
–
(109.1)
Net operating income and other expenses
7.3
4.2
Share of associates’ and joint venture’s results
3.5
(0.1)
Operating profit/(loss)
76.3
(21.1)
Adjusting items (NGM A)
14.2
109.1
Adjusted operating profit
i
(NGM B)
90.5
88.0
EBITDA
i
(NGM C)
135.7
126.3
Diluted earnings/(loss) per share (note 10)
24.6c
(17.6)c
Adjusted diluted earnings per share
i
(NGM B)
34.1c
31.4c
i.
Results are presented on a statutory basis as reported under UK adopted International Financial Reporting Standards. Adjusted results
reflect adjusting items determined by management, which are described in Non-GAAP Measures (“NGM”) on pages 236 to 243.
Non-oil and gas revenue of $82.9m in the year
was 10% higher compared to $75.1m in 2024
and was 8% of total revenue (2024 – 7%).
Gross profit
Gross profit for the year was $279.8m compared
to $271.9m in 2024. Gross margin was 27%
in the year (2024 – 26%), driven by improved
margins within Hunting Titan due to increased
focus on higher margin basins and reduced
production variances, leading to a better profit
drop-through, in addition to an improved product
mix within North America and improved
profitability in EMEA.
Operating profit/(loss)
Selling and distribution costs for the year were
$52.5m and in line with the prior year of $53.5m.
Hunting PLC
Annual Report and Accounts 2025
49
Strategic Report
Corporate Governance
Financial Statements
Other Information
Group Financial Review
continued
Administrative expenses were $155.9m
(2024 – $127.9m), and include $14.2m in relation
to acquisition and restructuring costs, which
are adjusting items. Excluding adjusting items,
administrative expenses have increased by
$13.8m in the year. The increase is mainly due to
an increase in salary and wage costs, including
the addition of OOR and FES to the Group; an
increase in the amortisation charge for intangible
assets relating to capitalised software licences;
and an increase in professional fees, including
the audit fee.
Research and development costs expensed
to the income statement were $5.9m
(2024 – $6.6m).
Net operating income and other expenses
were $7.3m compared to $4.2m. The increase
comprises the release of $0.9m contingent
consideration, the $0.9m profit on disposal of
Rival, a net increase in foreign exchange gains
of $1.2m, and other items of $0.1m.
In the year there were no impairments to goodwill
recorded. In 2024, an impairment charge of
$109.1m was recognised in relation to the
Hunting Titan operating segment, and was
treated as an adjusting item.
The Group’s share of associates’ and joint
venture’s results is included within operating
profit and in 2025 a profit of $3.5m was
recorded (2024 – $0.1m loss), with a profit
contribution from the India joint venture of $3.3m
(2024 – $2.3m), reflecting strong trading across
the sub-continent, and a profit from Cumberland
Additive of $0.2m (2024 – $1.4m loss).
The Group reported an operating profit in the
year of $76.3m compared to an operating loss
in 2024 of $21.1m.
The weighted average number of Ordinary
shares in issue was 156.8m (2024 – 159.1m), and
including dilutive potential Ordinary shares was
166.9m (2024 – 169.5m). The weighted average
number of ordinary shares reduced during the
year due to the share buyback programme,
which commenced at the end of August 2025,
with 7.2m shares repurchased by the year-end.
Adjusting items
The Board continues to monitor the Group’s
progress using adjusted profitability measures
and reviews and approves the adjusting items
proposed by management. The Group’s adjusted
trading results have been discussed throughout
this Annual Report as the Directors believe these
adjusted measures aid the comparison of the
Group’s operating performance from one period
to the next. Reconciliation between the statutory
and adjusted results have been presented in
NGM B.
The definition and calculation of a range of other
NGMs including EBITDA, working capital, total
cash and bank/(borrowings), free cash flow and
ROCE can be found on pages 236 to 243.
A charge of $9.3m in relation to the restructuring
of the Group’s EMEA operating segment
was recorded in 2025 as an adjusting item. The
charge reflects the facility closure and employee
separation costs associated with the reduced
footprint in Europe. An associated net deferred
tax charge of $1.7m was recognised following the
derecognition of a previously recognised deferred
tax asset in relation to UK tax losses offset by a
deferred tax credit in relation to deductible
restructuring costs.
Acquisition-related costs totalling $4.9m were
recorded as an adjusting item in the year.
An associated deferred tax credit of $0.1m
was recognised.
In 2024, Hunting Titan’s goodwill impairment
charge of $109.1m, together with the associated
deferred tax credit of $27.8m, were treated as
adjusting items. Total adjusting items, which
have been included within the Group’s reported
operating result in the income statement, were
$14.2m (2024 – $109.1m) as shown in NGM A.
The Group’s adjusted operating profit for 2025
was, therefore, $90.5m (2024 – $88.0m) and
adjusted profit before tax was $79.7m
(2024 – $75.6m).
The adjusted tax charge (NGM D) was $21.1m
(2024 – $19.8m) and adjusted ETR of 26%
(2024 – 26%), leading to an adjusted profit for
the year attributable to owners of the parent of
$56.9m (2024 – $53.3m), as shown in NGM B.
This resulted in adjusted diluted earnings per
share of 34.1c compared to 31.4c in 2024,
as noted in NGM B.
Non-GAAP profit measures
In 2025, the Group generated EBITDA of
$135.7m compared to EBITDA of $126.3m in
2024, a year-on-year increase of 7%, despite
the 3% reduction in revenue year-on-year. The
EBITDA margin of the Group improved in the year
and in 2025 was 13% compared to 12% in 2024.
The growth in EBITDA was driven by strong
trading results within the Group’s OCTG product
group and a strong increase in profitability in the
Perforating Systems product group.
The increase in EBITDA generated in the year
was achieved despite the more subdued North
America onshore market during the year, as well
as a flat international market and fewer subsea
trees, demonstrating the strong demand for the
Group’s diverse portfolio of products.
Net finance expense
Net finance expense was $10.8m
(2024 – $12.4m) in the year. Interest income on
bank balances, deposits and money market
funds increased by $3.3m in the year, and was
offset by an increase in interest incurred on bank
borrowings of $1.5m, which included a full year of
fees and interest on the borrowing facilities put in
place in October 2024.
Profit/(loss) before tax
Following the charges for net finance expense
noted above, the Group’s profit before tax for the
year was $65.5m compared to a loss of $33.5m
in 2024, which included the goodwill impairment
charge of $109.1m.
Taxation
The tax charge for the year was $22.7m. The
resulting effective tax rate (“ETR”) for the year
was 35% compared to the weighted average
tax rate of 20.5%, with the main difference in
the rates relating to distortion caused when
deferred tax is not fully recognised in loss-making
jurisdictions. The 2024 tax credit of $8.0m
included a deferred tax credit of $27.8m in
relation to the Hunting Titan goodwill impairment
charge noted above. The 2024 ETR was 24%.
Profit/(loss) for the year
Following the tax charge noted above
(2024 – credit), the profit for the year was
$42.8m (2024 – $25.5m loss), with a profit of
$41.1m (2024 – $28.0m loss) attributable to
Hunting’s shareholders.
Earnings/(loss) per share
The attributable profit of $41.1m resulted in
diluted earnings per share of 24.6 cents,
compared to a diluted loss per share of 17.6
cents in 2024, with 2024 including the impact of
the Hunting Titan impairment charge net of tax.
Hunting PLC
Annual Report and Accounts 2025
50
Strategic Report
Corporate Governance
Financial Statements
Other Information
Group Financial Review
continued
EBITDA in the year was driven by the higher margin KOC contract continuing in H1 2025, increased
TEC-LOCK™ semi-premium connection sales, and improved pricing of the SEAL-LOCK™ premium
connection in the Group’s OCTG product group, together with higher margin sales and improved
production variances in the Perforating Systems product group. The Subsea and Advanced
Manufacturing product groups experienced more subdued performances in the year.
Operating segment, product line financial data
and sales order book
The Hunting business is organised and managed by segment but has a consistent product structure
that runs across the organisation. In order to provide better insight and visibility, management has
provided additional information for revenue and EBITDA by product group, which clarifies the
relationship between Hunting’s operating segments and key product groups.
Segmental operating results
2025
2024
Revenue
$m
EBITDA
i
$m
Adjusted
operating
result
ii
$m
Sales
order
book
i
$m
Revenue
$m
EBITDA
i
$m
Adjusted
operating
result
ii
$m
Sales
order
book
i
$m
Hunting Titan
228.7
13.1
3.4
19.1
230.3
0.6
(8.3)
16.7
North America
389.5
69.1
50.7
174.7
388.4
62.2
45.5
207.3
Subsea Technologies
139.3
23.3
14.4
120.7
147.1
30.0
25.6
72.5
EMEA
73.5
(7.0)
(11.0)
27.1
87.7
(7.9)
(12.4)
50.2
Asia Pacific
226.7
37.2
33.0
36.1
240.6
41.4
37.6
186.9
Inter-segment
elimination
(38.9)
–
–
(19.7)
(45.2)
–
–
(25.0)
1,018.8
135.7
90.5
358.0
1,048.9
126.3
88.0
508.6
i.
EBITDA and sales order book are non-GAAP measures, see NGM C and NGM T respectively.
ii.
Results are presented on a statutory basis as reported under UK-adopted International Accounting Standards. Adjusted results reflect
adjusting items determined by management, which are described in NGM A.
Results by product group
2025
2024
Revenue
$m
EBITDA
i
$m
Sales
order
book
i
$m
Revenue
$m
EBITDA
i
$m
Sales
order
book
i
$m
Perforating systems
221.1
13.9
23.4
222.7
1.4
16.5
OCTG
467.5
87.7
76.7
463.7
80.2
249.7
Advanced Manufacturing
112.4
10.3
116.2
126.9
11.8
130.0
Subsea
138.1
23.7
120.7
147.1
30.0
72.5
Other Manufacturing
79.7
0.1
21.0
88.5
2.9
39.9
1,018.8
135.7
358.0
1,048.9
126.3
508.6
i.
EBITDA and sales order book are non-GAAP measures, see NGM C and NGM T respectively.
The Advanced Manufacturing product group
continues to see a strong non-oil and gas
order book driven by new aviation and power
generation projects. Advanced Manufacturing’s
sales order book comprises $98.6m, or 76%,
in relation to non-oil and gas end-markets.
Hunting’s Perforating Systems’ sales order book
is generally small, given the short order times
from clients.
The sales order book at the year-end comprises
7% Perforating Systems (2024 – 3%); 21% OCTG
(2024 – 49%); 32% Advanced Manufacturing
(2024 – 26%); 34% Subsea (2024 – 14%); and 6%
Other Manufacturing (2024 – 8%).
Of this order book, approximately 85% or
c.$305.0m is expected to be recognised as
revenue in 2026, 10% or c.$36.0m during 2027
and 5% or c.$17.0m from 2028 onwards,
underpinning Hunting’s revenue visibility.
Detailed commentary on the financial
performance of Hunting’s product groups
can be found on pages 32 to 41.
Detailed commentary on the financial
performance of each operating segment
can be found on pages 43 to 47.
At 31 December 2025, the Group’s sales order
book (NGM T) totalled $358.0m compared to
$508.6m at 31 December 2024. As noted
elsewhere, the sales order book declined over
the past 12 months as large orders for KOC and
ExxonMobil have been completed for projects in
the Middle East and South America. However,
new tenders were won during the year,
particularly within the Subsea product group.
Progress to scale this order book continues with
the tender outlook for OCTG remaining positive,
with management estimating its tender pipeline
to be broadly unchanged during the year at
c.$1.0bn, with opportunities in South America,
the Middle East and Asia Pacific underpinning
this position.
In the year, the Group’s OCTG business in
North America continued to show good
resilience despite the lower rig count with
premium connection bookings ahead of the
same period last year. The EMEA OCTG
business secured new orders for Tubacex for
South America and in Asia Pacific a $26.8m
order from KOC was received.
In March 2025, Hunting announced new
Subsea-related orders in respect of a new
titanium stress joint order for BP in the Gulf of
America, in addition to new intervention orders
received by the Enpro Subsea business for the
North Sea. Further, in July 2025, the Group also
announced new Subsea orders in the Turkish
area of the Black Sea, for Hunting’s titanium
stress joints, totalling $31m. New orders are
anticipated in early 2026 as developments in
Guyana, West Africa, and the Gulf of America
continue to be progressed.
Hunting PLC
Annual Report and Accounts 2025
51
Strategic Report
Corporate Governance
Financial Statements
Other Information
Cash flow
Summary Group cash flow statement
2025
$m
2024
$m
EBITDA (NGM C)
135.7
126.3
Add: share-based payment expense
12.7
14.1
148.4
140.4
Working capital movements (NGM M)
18.0
53.3
Capital investment (NGM N)
(29.5)
(25.3)
Intangible asset investment
(11.1)
(4.8)
Lease payments
(9.7)
(8.9)
Net interest and bank fees paid
(9.3)
(12.9)
Net taxation paid
(8.7)
(3.5)
Restructuring costs paid in the year
(6.1)
–
Proceeds from asset disposals
9.9
1.7
Other operating and non-cash movements (NGM O)
(5.3)
(0.3)
Free cash flow (NGM P)
96.6
139.7
Acquisitions
(81.3)
–
Acquisition-related costs
(4.8)
–
Net transactions with associates and joint ventures
12.6
(0.9)
Share buyback including costs
(33.9)
–
Dividends paid to equity shareholders
(19.1)
(16.7)
Net purchase of treasury shares
(18.2)
(13.9)
Net cash flow
(48.1)
108.2
Foreign exchange
6.3
(2.7)
Movement in total cash and bank/(borrowings) (note 26)
(41.8)
105.5
Opening total cash and bank/(borrowings)
104.7
(0.8)
Closing total cash and bank/(borrowings) (NGM K)
62.9
104.7
Working capital
During 2025, the Group recorded a working
capital inflow of $18.0m compared to the inflow
of $53.3m in 2024, which reflects the unwinding
of the bank acceptance drafts associated with
the significant KOC orders.
The Group continues to focus on its working
capital efficiency, with the inflow reflecting strong
discipline in respect of the Group’s inventory
levels, coupled with efficient management of the
Group’s trade receivables and payables.
Hunting continues to measure its balance sheet
efficiency using working capital as a percentage
of annualised revenue, which was 33% at the
year-end, compared to the 2024 year-end
position of 29% (NGM E), which is in line with the
Group’s long-term target of 35% set out at the
Capital Markets Day in September 2023.
Inventory days have decreased from 123 days at
31 December 2024 to 118 days at 31 December
2025 (NGM F) reflecting the reduction in the
inventories balance, as orders for KOC and
ExxonMobil were delivered in the year.
Receivable days increased to 78 days compared
to 67 days at 31 December 2024 (NGM G)
despite the reduction in trade receivables
balances as revenue recognised in the last three
months of the year was lower than the equivalent
period in 2024. Payable days decreased from
81 days to 41 days (NGM H) as bank acceptance
drafts in relation to the KOC contract were settled
in Q1 2025.
Purchases of property, plant and equipment
Purchases of property, plant and equipment in
the year totalled $29.5m in 2025 and broadly
matched the depreciation charge in the year of
$25.9m. Hunting Titan spent $2.2m, with $1.0m
in relation to facility improvements; $13.4m
was in North America, with $3.0m spent by
Dearborn on new finishing equipment, $2.0m by
Electronics on facility improvements, and $6.3m
spent by US Manufacturing on new machines
and upgrades; $4.4m was in Subsea
Technologies, with $1.5m in Enpro on fluid
intervention systems and $1.4m in Spring on two
lathes for high precision engineering of large and
complex components; $7.3m was spent in
EMEA, with $4.7m on the new Dubai facility and
$1.4m on plant, machinery and vehicles in the
Middle East; $2.1m by Asia Pacific, to support
growth; and $0.1m centrally.
EBITDA
Hunting reported EBITDA of $135.7m during
2025 (2024 – $126.3m), as discussed above.
When adjusted for non-cash share-based
payment charges of $12.7m (2024 – $14.1m),
the inflow for the year was $148.4m
(2024 – $140.4m).
Purchases of intangible assets
Intangible asset investment in the year was
$11.1m (2024 – $4.8m), comprising $5.2m on
the D365 licence renewal and implementation,
$5.2m by Hunting Titan and US Connections
on internally generated technology and other
additions of $0.7m.
Lease payments
During the year, the Group’s leasing
arrangements gave rise to cash payments of
$9.7m, which were comparable with the $8.9m
paid in 2024.
Net finance costs
Net interest and bank fees paid in the year
were lower at $9.3m than those paid in 2024 of
$12.9m, which included $4.3m arrangement fees
for the new borrowing facilities. Interest earned
on money market funds and bank deposits
during the year was $4.7m compared to $1.4m
in 2024, which was offset by an increase of $2.1m
in interest paid on bank fees and borrowings,
with the new facility in place for the full year.
Taxation
Net tax payments of $8.7m in 2025 were notably
higher than the prior year of $3.5m, reflecting
the change in jurisdictions where profits have
arisen and the fact that certain jurisdictions are
becoming tax payable following the utilisation of
historic tax losses offsetting taxable profits.
Restructuring costs
Net costs paid in the period in relation to the
EMEA restructuring programme totalled $6.1m.
Asset disposals
Proceeds from the disposal of assets totalled
$9.9m (2024 – $1.7m) and include proceeds from
the sale of the owned property in the Netherlands
of $6.0m.
Group Financial Review
continued
Hunting PLC
Annual Report and Accounts 2025
52
Strategic Report
Corporate Governance
Financial Statements
Other Information
Group funding
In October 2024, the Group entered into new
committed borrowing facilities totalling $300m to
finance the ongoing working capital requirements
of the existing business and to support Hunting’s
stated organic and inorganic growth strategy.
The Group’s facilities comprise a $200m revolving
credit facility (“RCF”) and a $100m term loan.
The Group’s facilities are provided by a four-bank
syndicate, comprising Wells Fargo, HSBC, First
Abu Dhabi Bank and Emirates NBD.
These facilities provide Hunting with committed
liquidity and headroom that will enable us to
pursue Hunting’s stated growth ambition, as
outlined in the Hunting 2030 Strategy at the
Capital Markets Day in September 2023.
A conventional earnings-based covenant regime
is attached to the RCF and includes a leverage
test (being the ratio of total net debt to adjusted
EBITDA not exceeding 3.0:1) and an interest
cover test (being the ratio of consolidated
EBITDA to consolidated net finance charges
not being less than 4.0:1).
During the year, the Group exercised its option
to extend the maturity of the RCF by 12 months
to October 2029. The RCF remains undrawn at
the year-end and fully available to the Company.
The $100m term loan was arranged with a
three-year tenor and, pursuant to the conditions
of the facility agreement, was fully drawn on
inception of the facilities. The term loan was
arranged with an amortisation profile comprising
eight quarterly repayments of $9.4m, with the first
repayment made in September 2025 and a final
$25.0m repayment due in September 2027.
Accordingly, the closing borrowing position on
the term loan at 31 December 2025 was $81.6m
(2024 – $100.4m), which was offset by $144.5m
of cash and cash equivalents, net of overdrafts,
held across the Group. Overall, the Group was
in a net cash position of $28.1m at the year-end
(see note 26).
It is management’s view that the facilities are
resilient and will provide a strong foundation on
which the strategic growth aspirations of the
Group may be established.
Further details relating to all the Group’s facilities,
as well as information on the Group’s financial
risk management are disclosed in note 30.
Consideration of the likelihood that the Group
will require access to the facilities, or any other
sources of external funding, to support our
existing operations in the next 12 months are
covered in the going concern assessment on
page 100.
Group Financial Review
continued
Free cash flow
As a result of the above and other operating and
non-cash outflows, the resulting free cash inflow
was $96.6m in the year, compared to an inflow
in 2024 of $139.7m.
Free cash flow in 2024 benefited from the
utilisation of working capital instruments in
relation to the $231m KOC contract, whereby the
letters of credit were discounted to accelerate the
collection of receivables and bank acceptance
drafts were used to defer OCTG payments to
suppliers.
Acquisitions and associated costs
The Group completed two acquisitions in
the reporting period for a combined cash
consideration of $81.3m, with $18.2m spent on
the OOR technology and $63.1m paid in relation
to FES. There were no business acquisitions
in 2024.
Acquisition-related costs of $4.8m were paid in
the year.
Associates
The Group disposed of its investment in Rival
Downhole Tools for a total consideration of
$13.0m. The net inflow from transactions with
associates was $12.6m after other transactions
with associates of $0.4m resulted in a cash
outflow.
In 2024, the Group made an investment in
Cumberland Additive of $0.9m.
Share buyback
The Group announced the launch of a share
buyback programme in August 2025. A total of
$33.5m, before costs of $0.4m, of the share
buyback programme was completed at the
year-end, with 7.2m Ordinary shares
repurchased.
Dividends
There were increased returns to shareholders
in 2025, with dividends paid to Hunting PLC
shareholders amounting to $19.1m
(2024 – $16.7m), representing an increase
of 14% in the year.
Purchases of treasury shares
During the year, the Company purchased 5.0m
Ordinary shares (2024 – 2.9m) as treasury shares
through Hunting’s Employee Benefit Trust for a
total consideration of $19.3m (2024 – $14.2m).
These shares will be used to satisfy future
awards under the Group’s share award
programme.
The purchase of treasury shares was offset by
proceeds received on the disposal of treasury
shares of $1.1m (2024 – $0.3m).
Net cash flow
Overall, in the year, the Group recorded a
net cash outflow of $48.1m (2024 – $108.2m
inflow), which was predominantly driven by
the acquisitions, purchases of treasury shares,
the share buyback, and dividend payments,
as noted above.
As a result of the above cash outflows offset
by $6.3m of foreign exchange movements,
total cash and bank/(borrowings) decreased
from $104.7m (NGM K) at 31 December 2024
to $62.9m at the year-end.
Hunting PLC
Annual Report and Accounts 2025
53
Strategic Report
Corporate Governance
Financial Statements
Other Information
Property, plant and equipment
Property, plant and equipment was $250.9m at
31 December 2025 (2024 – $252.8m) following
additions of $29.6m and other items of $3.8m,
offset by depreciation of $25.9m, impairment of
$4.2m, and disposals, including assets held for
sale, of $5.2m. Capital expenditure during the
year included investment in the new Dubai facility
and replacement expenditure to improve
efficiency and support the Group’s growth, as
previously discussed.
Right-of-use assets
Right-of-use assets slightly increased in the
year and totalled $28.9m at 31 December 2025
(2024 – $28.3m). Additions in the year of $4.4m,
leases acquired of $1.9m, lease modifications
of $1.9m and foreign exchange and other
movements of $0.2m were offset by depreciation
of $7.8m. During the year, leases were exited as
part of the EMEA restructuring.
Balance sheet
Summary Group balance sheet
2025
$m
2024
$m
Property, plant and equipment
250.9
252.8
Right-of-use assets
28.9
28.3
Goodwill
65.1
45.1
Other intangible assets
100.6
39.4
Investments in associates and joint ventures
12.7
9.2
Assets held for sale
1.5
12.1
Working capital (NGM E)
335.9
355.5
Taxation (current and deferred)
74.3
98.0
Provisions
(16.6)
(14.3)
Other net assets (NGM I)
3.9
5.5
Capital employed (NGM J)
857.2
831.6
Total cash and bank/(borrowings) (NGM K)
62.9
104.7
Lease liabilities
(30.9)
(30.1)
Shareholder loan from non-controlling interest
(3.9)
(3.9)
Net cash (note 26)
28.1
70.7
Net assets
885.3
902.3
Goodwill
Goodwill increased by $19.6m following the
acquisition of FES in June 2025, with the goodwill
balance at the year-end $65.1m compared to
$45.1m in 2024. Foreign exchange movements
of $0.4m were also recognised. See note 13 for
further details.
Other intangible assets
Intangible assets in relation to patented
technology, customer relationships and order
book totalling $44.0m were recognised on the
acquisition of FES, and $18.1m on a patent
portfolio in relation to the acquisition of the
OOR technology (see note 40).
Additions of $11.1m, as discussed above,
including the capitalisation of technology, were
offset by the amortisation charge for the period
of $11.5m and other items of $0.5m.
Other intangible assets were $100.6m at
31 December 2025 compared to $39.4m at the
2024 year-end.
Investments in associates and joint ventures
Investments in associates and joint ventures
increased by $3.5m, reflecting the Group’s share
of associates’ and joint venture’s net profits for
the year (2024 – $0.1m loss).
The profit for the year is attributable to the
Group’s share of profit of $3.3m from the
India JV and $0.2m from Cumberland Additive.
Assets held for sale
At the year end, the Drilling Tools property at
Latrobe, Pennsylvania with a carrying value of
$1.5m was recognised as held for sale.
The Group’s owned property in the Netherlands
was classified as held for sale at 30 June 2025.
This was sold for $6.0m in H2, realising a gain
of $4.7m.
At 31 December 2024, the Group’s 23%
investment in Rival Downhole Tools of $12.1m
was classified as an asset held for sale. The
investment was sold for $13.0m on 3 March 2025,
realising a gain of $0.9m.
Working capital
Working capital (NGM E) decreased by $19.6m
to $335.9m from the 2024 position of $355.5m.
Net inventory levels decreased by $65.8m to
$237.5m as the Group delivered on orders for
ExxonMobil and KOC; with inventory provision
levels remaining stable at $54.6m reflecting some
additional provisions offset by utilisation of
provisions in EMEA following the restructuring
that was ongoing in the year.
Trade, contract and other receivables decreased
in 2025 to $238.3m from $262.4m in line with the
decrease in revenue.
Trade, contract and other payables decreased by
$70.3m to $139.9m from $210.2m.
At the end of 2024, trade payables were larger
due to the payments for the purchases of
Chinese pipe in relation to the large KOC orders
being deferred through the use of bank
acceptance drafts, with settlement occurring
in Q1 2025.
Taxation
Net tax assets, comprising current and deferred
balances, were $74.3m at 31 December 2025
compared to $98.0m in the prior year, with the
reduction in the year largely reflecting the
additional deferred tax liabilities of $11.0m
recognised on the acquisition of FES in the year,
and the derecognition of previously recognised
deferred tax assets of $5.4m.
Provisions
Provisions increased by $2.3m from $14.3m
in 2024 to $16.6m at 31 December 2025.
The main reason for the increase in the period is
the recognition of provisions in relation to the
EMEA restructuring announced in January 2025
(see note 27).
Capital employed
As a result of the above changes, capital
employed in the Group increased by $25.6m
to $857.2m.
The return on average capital employed was 10%
in 2025 compared to 9% in 2024 (NGM S).
Group Financial Review
continued
Hunting PLC
Annual Report and Accounts 2025
54
Strategic Report
Corporate Governance
Financial Statements
Other Information
Dividends
The Board has proposed a final dividend of
6.8 cents per share (2024 – 6.0 cents), bringing
total dividends declared for the year ended
31 December 2025 to 13.0 cents per share
(2024 – 11.5 cents per share), representing
a 13 per cent increase on the prior year.
Subject to shareholder approval at the 2026
Annual General Meeting, the Final Dividend will
be paid on 8 May 2026. This distribution will
amount to an estimated cash return of c.$10.0m
(2024 – $9.5m).
The dividend will be paid in Sterling with the
Sterling value of the dividend payable per share
fixed and announced approximately two weeks
prior to the payment date, based on the average
spot exchange rate over the three business days
preceding the announcement date. The dividend
will be paid to those shareholders on the register
at the close of business on 10 April 2026, with an
ex-dividend date of 9 April 2026.
Bruce Ferguson
Finance Director
5 March 2026
Net cash
Net cash at 31 December 2025 was $28.1m
(note 26) compared to the net cash position at
31 December 2024 of $70.7m.
The strong cash flow generation in the year,
including working capital and asset disposal
inflows, supported the cash outflows in relation to
capital expenditure, the acquisitions of FES and
the OOR technology, dividend payments, the
share buyback programme, and purchases of
treasury shares.
Net cash includes $30.9m (2024 – $30.1m) of
lease liabilities, which increased by $0.8m during
the year due to acquired leases offsetting the exit
of leases in relation to the Norway and the
Netherlands businesses.
Total cash and bank/(borrowings) decreased
in the year by $41.8m, as discussed above,
to $62.9m at the year-end (2024 – $104.7m).
Net assets
Net assets have, therefore, decreased by $17.0m
to $885.3m at 31 December 2025, compared to
$902.3m at the 2024 year-end.
This was driven by the share buyback
programme totalling $40.4m in the year,
dividends paid in the year of $19.1m to equity
shareholders of Hunting PLC, and the net
purchase of treasury shares of $18.2m offset by
the profit for the year of $42.8m, and foreign
exchange and other items totalling $17.9m.
Group Financial Review
continued
Free cash flow
$
96.6
m
(2024 – $139.7m)
Total cash and bank/(borrowings)
$
62.9
m
(2024 – $104.7m)
Hunting PLC
Annual Report and Accounts 2025
55
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
At Hunting, our dedication to
operating responsibly, ethically,
and sustainably remains central
to creating long-term value.
These core principles are actively embedded
in our strategy and culture by our leadership.
We continue to prioritise meaningful and
transparent disclosures, further enhancing our
ESG-related reporting procedures. This ongoing
work ensures we align with evolving disclosure
regulations, industry standards, and the crucial
information needs of all our stakeholders.
In 2025, to begin our journey to align with ISSB
and UK SRS requirements, we carried out a
double materiality assessment. This process
allowed us to engage with internal and external
stakeholders and understand our material and
financial sustainability risks and opportunities.
At a glance
Prioritising safety and
good governance
Making a positive
contribution to society
Climate and
environment
Aligning to external frameworks
To continually drive
improvements, we believe it is
important to benchmark our
sustainability progress against
external rating agencies.
Every year we submit our
relevant data to the Carbon
Disclosure Project. This can be
reviewed at
www.cdp.net
.
We report in line with the
SASB Oil & Gas – Services and
Industrial Machinery & Goods
standards. Our SASB content
index can be found on pages
72 and 73.
Sustainability assurance
The Group assures a number
of ESG-related data points,
including QAHSE and Scope 1
and 2 data, with our 2024 Scope
1 and 2 carbon emissions data
assessed during the year against
the ISO 14064-3 standard,
with improvements to our
air-conditioning data collection
being introduced in 2025.
Our engineering expertise is vital in
navigating the energy transition and
revenue diversification plans while
ensuring operational excellence
in all of our end-markets. By focusing
on issues such as health and safety,
product quality and climate
mitigation, we are contributing
towards a more resilient future.
Jim Johnson
Chief Executive
50
%
of the Board are women
as of 5 March 2026
(6 March 2025 – 50%)
23
%
of entire workforce are
women
(2024 – 25%)
2
Ethics and Sustainability
Committee met twice in 2025
(2024 – twice)
6,142
tonnes scope 1 CO
2
e emissions
(2024 – 3,630 tonnes CO
2
e)
3.8:1
ratio of engaged to not-engaged
employees
(2023 – 3.5:1)
11.4
%
voluntary turnover rate
(2024 – 10.3%)
17,064
tonnes scope 2 CO
2
e emissions
(2024 – 18,603 tonnes CO
2
e)
$
62
k
charitable donations
(2024 – $70k)
451,688
tonnes scope 3 CO
2
e emissions
(2024 – 534,835 tonnes CO
2
e)
76
%
of our facilities are compliant
with ISO 9001:2015
(2024 – 76%)
1
contractor fatality in 2025
(2024 – zero)
19
recordable incidents
(2024 – 25)
2.78
near-miss frequency
rate for employees
(2024 – 3.15)
68
%
of facilities are accredited
with ISO 14001:2015
(2024 – 68%)
Hunting PLC
Annual Report and Accounts 2025
56
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
Our sustainability strategy
Prioritising safety and
good governance
Climate and environment
Making a positive contribution to society
Maintaining a zero-harm culture and the
highest standards for quality-assured products,
underpinned by strong ethical governance
and transparent business practices.
Minimising our environmental impact by driving
energy efficiency, protecting biodiversity, and
developing sustainable products to support
a lower carbon world.
Investing in employee development, while
fostering positive, long-lasting relationships
with customers, suppliers, and the communities
in which Hunting operates.
Health and safety
Ensuring the highest health and safety standards for all workers
through robust management systems and training.
Strong ethical governance
Maintaining effective leadership, ethical governance, and
transparency to ensure accountability and build stakeholder
trust.
Cyber security
Employing robust cyber security measures to protect digital
assets, proprietary data, and ensure operational continuity.
Quality assurance of products
Developing innovative, high-quality products to meet customer
needs and ensure safety of operation in the field.
Climate change
Addressing climate change impacts through operational
resilience and sustainable energy technologies.
Energy use and GHG emissions
Maximising energy efficiency and exploring low-carbon
solutions to reduce GHG emissions and environmental impact.
Protecting biodiversity
Minimising environmental impact through sustainable design
and supporting customer biodiversity protection efforts.
Sustainable products
Manufacturing products and technologies that lower
environmental impact and support the longer-term energy
transition to a lower carbon world.
Employee development
Attracting and retaining diverse talent through comprehensive
development, training, and well-being initiatives.
Supplier engagement
Engaging suppliers on processes and emissions to ensure
responsible sourcing and high ESG standards.
Community engagement
Building positive local community relationships through
meaningful consultation to maintain the social license to operate.
Hunting PLC
Annual Report and Accounts 2025
57
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
We recognise that robust
sustainability reporting demands a
strong alignment between financial
and environmental opportunities
and risks.
Therefore, this year we updated our double
materiality assessment, which considers both the
impact of Hunting’s business operations on its
stakeholders and the planet, and whether these
external sustainability issues could have a
financial impact on Hunting’s business.
The sustainability information and double
materiality assessment have been prepared on
a consolidated basis, with the scope of this being
the same as the financial statements.
All identified issues have been deemed material
from either an impact perspective, a financial
perspective, or both. This dual-lens assessment
helps us to create a holistic and impactful
strategy to address our most material issues.
Our materiality process comprised the following steps:
Peer and
regulatory review
An assessment of relevant peers and
their approach to sustainability; rating
agencies and their requirements; as
well as the wider regulatory landscape.
Stakeholder
engagement
Interviews and surveys with key internal
and external stakeholders to review the
material issues and identify impacts,
risks and opportunities.
Significance
scoring
The final scoring of the material issues,
impacts, risks and opportunities to
determine which issues remain material
to Hunting.
Double materiality
Hunting PLC
Annual Report and Accounts 2025
58
Strategic Report
Corporate Governance
Financial Statements
Other Information
Financial
materiality
Sustainability and
climate impact on
your Company
Impact
materiality
Company
impact on the
planet
01 02 03
Financial materiality
Impact materiality
Minimal
Informative
Important
Significant
Significant
Important
Informative
Minimal
Critical
Critical
B
G
A
E
F
D
C
H
I
Our material issues
A. Climate change
Addressing climate change impacts through
operational resilience and innovation in
sustainable technologies for the energy sector.
B. Sustainable products,
innovation and manufacturing
Developing innovative, high-quality products
meeting customer needs while using materials
efficiently and minimising environmental impact,
and maximising chemical and water recycling.
We support and supply products that lower the
environmental impact of the oil and gas sector,
and we have developed products which support
the energy transition, particularly in geothermal,
offshore wind and carbon capture end-markets.
C. Quality assurance of products
Developing innovative, high-quality products
meeting customer needs to ensure safety of
operation in the field.
D. Energy use and GHG emissions
Managing energy consumption and greenhouse
gas emissions from operations by exploring
low-carbon solutions to maximise our energy
efficiency and reducing our operational
environmental impact.
E. Cyber security
Protecting digital infrastructure, proprietary
technology, and sensitive data from cyber threats
through robust security measures to maintain
operational continuity and confidentiality.
F. Strong, ethical governance
Maintaining effective board leadership and
corporate governance structures, ensuring
strategic direction, risk oversight, and stakeholder
accountability with integrity and transparency to
create stakeholder trust.
G. Health and safety
Ensuring the highest occupational health and
safety standards across all our operations to
protect workers and contractors through strong
safety management systems and training.
H. Supplier engagement on processes
and emissions
Managing environmental and social impacts
across the supply chain, from raw material
extraction through to manufacturing by
implementing robust due diligence processes,
tracking supplier emissions, minimising
biodiversity impacts, and ensuring ethical
practices that meet stakeholder expectations.
I. Employee development
Creating a workplace that attracts and retains
diverse talent through comprehensive
development and training opportunities,
supported by health programmes, and diversity
initiatives to ensure a diverse talent pool, safe
from modern slavery.
Materiality matrix
ESG and Sustainability
continued
Environmental
Social
Governance
A
Climate change
B
Sustainable products, innovation
and manufacturing
C
Quality assurance of products
D
Energy use and GHG emissions
E
Cyber security
F
Strong, ethical governance
G
Health and safety
H
Supplier engagement on processes
and emissions
I
Employee development
Hunting PLC
Annual Report and Accounts 2025
59
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
Our commitment to good governance
means that we believe in fostering
mutually beneficial partnerships that
keep people safe and create ethical
conduct within our business and
across our supply chain.
In this section, we will outline how
we strive for operational excellence
through our strong governance,
business ethics, and commitment
to health and safety.
Prioritising safety
and good governance
Our commitments
• To demonstrate Board-level
ownership and accountability
for sustainability issues
• To set and deliver long-term
sustainability goals
• To link key ESG metrics to
the remuneration of the senior
leadership team
• To foster mutually beneficial
partnerships
Material issues
• Health and safety
• Strong, ethical governance
• Cyber security
• Quality assurance of products
How we made progress
on our commitments in 2025
• Zero employee fatalities
• One contractor fatality
• 19 total recordable incidents
– employees
• 0.75 total recordable incident rate
– employees
• 72 total near miss incidents
• 2.86 total near-miss frequency rate
• 7 total lost time incidents
• 6 total vehicle incidents
• Zero HSE fines
• 52,130 total HSE training hours
Strategic Report
Corporate Governance
Financial Statements
Other Information
60
Hunting PLC
Annual Report and Accounts 2025
ESG and Sustainability
continued
Our commitment to being an ethical
business
The Hunting PLC Code of Conduct (the “Code
of Conduct”) is fundamental to how we operate,
detailing the policies and procedures that govern
our business conduct, internally, externally, and
in our key relationships.
The Code of Conduct sets out essential
operating guidelines and our core ethics policies,
including robust anti-bribery and corruption
and modern slavery procedures, which are
reinforced by a parallel training framework
designed to ensure relevant and broad-based
education, awareness, and strong compliance
across the Group.
All employees and business partners receive
the Code of Conduct and are expected to adhere
to it. To continuously strengthen this culture,
each year all employees must complete Code
of Conduct training. This course covers all
aspects of our ethical policies, conduct and
any other key issues.
A zero-tolerance approach to anti-bribery
and corruption
We are committed to conducting our business
in a transparent and fair manner, globally.
This commitment is underpinned by robust,
Group-wide anti-bribery policies and training
programmes.
The Directors mandate a zero-tolerance policy
towards bribery, which expressly prohibits the use
of facilitation payments in any form and requires
all interactions with public officials to be
conducted with complete transparency.
This foundational policy is strictly adhered to,
and we are pleased to confirm that the Group
incurred no bribery-related fines during the year.
Furthermore, to maintain independence and
focus, it remains Group policy not to make any
political donations.
As part of the mandatory Code of Conduct
training (see page 21), an additional training
module for higher-risk employees is mandated
on anti-bribery and corruption matters.
Prioritising health and safety
Our Health, Safety, and Environment (“HSE”)
agenda is consistently driven by the foundational
goals of “No Accidents, No Harm to People”,
and “No Damage to the Environment.” These
objectives guide our pursuit of consistently high
performance standards.
We work to ensure there are no fatalities, and
we aim for our employee total recordable incident
rate to be less than 2.0, with each local business
required to develop bespoke health and safety
policies to suit their specific environment.
Our rigorous HSE policy is not merely
aspirational; it actively directs our operations and
embeds a culture where safety comes first.
We place significant emphasis on actively
ingraining best practice as part of our culture and
deploying rigorous health and safety management
practices across all our activities to meet legal
requirements as a minimum.
Our approach to Health and Safety includes:
• Regular audit and maintenance reviews of
facilities;
• Appropriate training and education of all staff;
• Accreditation and alignment of long-standing
internal programmes with internationally
recognised standards; and
• Regular reporting to the Board and to the
Ethics and Sustainability Committee.
Health and safety reports are received by the
Directors four times a year, with a deep dive
completed by the Ethics and Sustainability
Committee twice a year.
Every HSE incident is rigorously investigated,
and immediate rectification processes are
implemented. The resulting learnings are
quickly integrated into safety training sessions,
including the mandatory weekly “Tool Box” talks
attended by all shop-floor personnel, where
key HSE messages are consistently reinforced.
We place strong emphasis on a culture of
continuous improvement derived directly from
incident analysis.
Our Group Health, Safety and Environmental
Global Manual is accredited to ISO 14001
(Environmental Management) and compiled in
accordance with ISO 45001 (Occupational
Health and Safety). This manual defines strict
requirements for training, protective equipment,
and high-risk procedures. As a minimum, we
comply with local regulatory requirements, but
we strive for performance excellence through
tailored local health and safety policies. To verify
both regulatory compliance and adherence to
our internal standards, we regularly complete
detailed on-site testing for climate, noise, and air
quality at our operations.
At Hunting we are committed to continuous
improvements and prioritising the safety of
everyone across our operations.
However, sadly, this year we did suffer one
contractor fatality in the Group within our China
operations. A fully-trained contractor entered an
off-limits area during production, suffering an
impact injury. The contractor was taken to
hospital for treatment and following a medical
procedure contracted an infection which led to
him passing away.
A detailed investigation and root cause analysis
of this incident was completed in H2 2025 with
the Directors receiving reports from the Director
of QAHSE. Modifications to our production
procedures have been introduced and rolled
out across the Group as a consequence of this
analysis. With no employee fatalities recorded in
the year, the total number of fatalities in the year
was one (2024 – nil).
Our overall safety performance is measured by our
total recordable incident rate, which we target to
be less than 2.0. This was achieved in 2025, with
an improvement in the measure from last year.
The number of employee recordable incidents in
2025 decreased to 19 (2024 – 25), the total
recordable incident rate also decreased to 0.75
(2024 – 0.93). Hunting remains significantly below
the industry average of 4.0, as published by the
Bureau of Labor Statistics in the US. The total
recordable incident rate is one of the non-
financial performance conditions of the Strategic
Scorecard portion of the HPSP awards granted
to senior employees and the executive Directors,
see page 139.
Employee near-miss incidents fell in 2025 from
106 in 2024 to 70, which translates into a
near-miss frequency rate of 2.78 (2024 – 3.15).
Contractor near-miss incidents decreased to two
in 2025, compared to three in 2024, recording a
contractor near-miss frequency rate of 0.08 (2024
– 0.11). Therefore, total near-miss incidents were
72 (2024 – 88), with a total near-miss frequency
rate of 2.86 (2024 – 3.27).
There were six employee (2024 – seven) lost time
incidents, equating to 359 employee lost time
days (2024 – 214 days), or an employee lost time
incident rate of 0.24 (2024 – 0.26). There was one
(2024 – nil) contractor lost time incident in the
year, leading to a total of seven for the Group
(2024 – seven).
Hunting PLC
Annual Report and Accounts 2025
61
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
In the year, Hunting recorded six (2024 – four)
employee and no contractor vehicle incidents in
2025, therefore the total for the year was six
(2024 – four).
With the restructuring and closure of facilities
in Europe, our total number of hours worked
decreased from 5.4m hours in 2024 to 5.0m
hours during the year. The average number
of employees decreased by 5% in the year, as
part of the EMEA restructuring completed and
reduction-in-force programmes, which were
carried out in businesses such as Electronics,
with a year-end employee count of 2,246
compared to 2,367 at 31 December 2024.
Total near-miss frequency rate
#
2.78
2025
2024
3.15
2023
2.69
Source: Company
Total recordable incident rate
#
0.75
2025
2024
0.93
2023
0.91
Source: Company
In the year, the Group incurred no HSE fines nor
did it pay any fines (2024 – 1 fine/$9k).
Our commitment to cyber awareness is
reflected in training, with 1,371 computer-access
employees completing a number of mandatory
courses in the year.
Governance of cyber security is managed by
the Chief IT Officer, who oversees all IT policies,
systems, and training. This role ensures strong
oversight, with progress reported quarterly to the
Executive Committee and annually to the
Directors.
Furthermore, we strategically mitigate supply
chain risk by engaging exclusively with Tier 1
suppliers.
Upholding integrity and human rights
We maintain an unwavering commitment to
upholding the fundamental human rights of all
our stakeholders. This commitment is realised
through our actionable principles:
• Providing a safe and supportive working
environment for all employees and contractors;
• Respecting individual rights with a zero-
tolerance approach to any form of
discrimination, harassment, or bullying;
• Investing in training and development
programmes for our global workforce;
• Respecting and upholding the right to engage
in collective bargaining, where applicable; and
• Acting with integrity, honesty and transparency
in all dealings with our workforce and any
third party in contact with, or reliant, on
our business.
Crucially, we maintain a zero-tolerance stance
on slavery and trafficking, a standard we
rigorously expect from all our business and
trading partners.
Our compliance with these core corporate
regulations is demonstrated through foundational
documents, including our Ethical Employment
and Trading Policy, our detailed Modern Slavery
and Human Trafficking Transparency Statement,
and our comprehensive Ethics Reporting
Procedures.
As part of the mandatory Code of Conduct
training (see page 21), a module on Human
Rights is included.
Whistleblowing governance
The Board has established robust procedures
whereby employees can raise concerns in
confidence by contacting the Company Chair
or Senior Independent Director.
We also use an independent, third-party
whistleblowing service operated by SafeCall.
Information on SafeCall is available across staff
noticeboards and within Hunting’s internal
magazine, the ‘Hunting Review.’ The Group
received two whistleblowing reports in the year
(2024 – three reports), through the SafeCall system.
All whistleblowing reports related to HR matters,
are investigated and resolved by Hunting’s Chief
HR Officer. All reports are reviewed by the Senior
Independent Director, with a summary also
reported to the Board, via the Ethics and
Sustainability Committee.
Whistleblowing reports
#
2
2025
2024
3
2023
6
Source: Company
Health and safety training
We maintain a fully embedded health and safety
training curriculum for all employees, with an
on-boarding programme for new employees.
Our training hours saw a decrease from 68,834
in 2024 to 52,130 this year, which is an average
of 23 hours per employee. This reduction is
predominantly due to the reduction in the number
of hours worked, noted above, and also the
reduction to the Group’s workforce within the
Hunting Titan, North America and EMEA
operating segments.
All Health and Safety compliance, training,
communication and reporting activities are now
captured seamlessly within the Group’s internal
HSE Management System, OnBase. This single
application enhances regulatory compliance and
process consistency across all global operations.
Protecting our data and mitigating
cyber threats
In an era of sophisticated, globally connected
IT infrastructure, we recognise the inherent
increase in our cyber risk profile and vulnerability
to evolving threats.
We view ourselves as custodians of critical data
for our employees, customers, and suppliers,
and protecting this information is essential to
maintaining trust. Our approach is, therefore,
proactive and precautionary.
To actively mitigate these risks, we employ robust
processes and procedures to safeguard our
systems from attack, including a cyber attack,
arranged by a third-party consultant, to test the
Group’s procedures and response.
In early 2026 our cyber resilience was tested with
penetration tests being completed by an external
consultant.
Hunting PLC
Annual Report and Accounts 2025
62
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
Our approach to eliminating modern slavery
The ethical imperative to protect our workforce
from modern slavery and human trafficking is a
key pillar to our Human Resources strategy. To
ensure this commitment is realised, we maintain
a system of rigorous, embedded controls across
the Group. These controls include mandatory
reviews of all employment documentation to
proactively eliminate any potential for forced
labour, alongside protocols that guarantee
employee compensation is paid directly to the
individual. Awareness is reinforced through our
Code of Conduct training, which contains a
dedicated module focused on identifying risk
indicators and detailing appropriate reporting
procedures. The overall enforcement of anti-
bribery and modern slavery compliance is
managed by the Group’s centralised compliance
function, ensuring robust, high-level oversight
under the direction of the Company Secretary.
Our Modern Slavery statement can be found on
our website (www.huntingplc.com).
Our commitment to product quality
Our Quality Management System (“QMS”)
stands as the essential governance framework
underpinning every aspect of our business.
We enforce Group-level minimum requirements
globally while supplementing these with specific,
tailored quality measures across all
manufacturing sites and product lines.
Internal manufacturing reject rate
%
0.20
2025
2024
0.31
2023
0.20
Source: Company
The QMS dictates how we control and assure
every stage of a product’s life cycle. Its
comprehensive scope encompasses:
• Detailed procedure specifications and defined
work processes;
• Clear accountability through precise job
descriptions; and
• Control over the entire product journey,
spanning initial risk assessment, engineering
changes, product design, and final delivery.
Crucially, every single product is logged, tracked,
and its complete journey is auditable, ensuring
total accountability and transparency for our
customers.
The Group’s internal manufacturing reject rate
was 0.20% (2024 – 0.31%) and the percentage of
goods shipped that were returned by customers
was 0.0021% (2024 – 0.0006%).
The Group’s internal manufacturing reject rate is
one of the non-financial performance conditions
of the Strategic Scorecard portion of the HPSP
awards granted to senior employees and the
executive Directors, see page 139.
Leveraging technology and innovation
While we command a wide range of existing
technologies, accelerated technology
development remains a vital foundation of
Hunting’s business strategy.
Recognising that market success relies on
collaboration, we prioritise strategic partnerships
to drive innovation and speed commercialisation.
This collaborative approach ensures that our
innovations are informed by real-world demand,
improving time-to-market and reinforcing
Hunting’s role as a trusted provider of advanced,
resilient and future-ready technologies.
The Hunting TEK-HUB™ best exemplifies our
commitment to co-development. This innovative
company-customer partnership actively seeks
external expertise, attracting individuals and
companies to accelerate the commercialisation
of new technologies.
Complementing this, we maintain crucial
strategic alliances such as those with Jiuli and
Jindal-SAW.
Rejected parts shipped rate
%
0.0021
2025
2024
0.0006
2023
0.0006
Source: Company
Delivering mutual benefits
By collaborating directly with technology
developers, we secure a range of benefits:
• Accelerated delivery: significantly reducing
time-frames for bringing technologies from
concept to market and field deployment.
• Resource efficiency: avoiding duplication of
effort, which yields measurable savings in
financial, time, and opportunity costs, while
also generating energy and CO
2
efficiencies.
This frees internal resources to focus on new,
complex challenges.
For our partners, the value of aligning with
Hunting is substantial, offering immediate access
to critical capital, a robust international presence,
and an established, extensive customer base.
Export sanctions compliance
Given the heightened complexity and geopolitical
volatility of international trade, we have significantly
enhanced our trade compliance programme.
This proactive strategy addresses the increasing
risk of goods diversion, especially for dual-use
products like our perforating systems, to
higher-risk regions or entities.
Our enhancements include intensified due
diligence for customers and suppliers, mandatory
end-user declarations and export checks, and
improved internal awareness training.
Fundamentally, Hunting operates a zero-
tolerance approach to sanctions risk. We
constantly monitor and align with the latest
regulations from the EU, UK, and US, ensuring
absolute compliance.
To reinforce this control, we engage third-party
legal experts to review key contracts and tenders
specifically for sanctions exposure.
Group revenue derived from the 20
lowest ranked countries published
within Transparency International’s
Corruption Perception Index
0.08
%
($0.8m)
(2024 – 0.3% / $3.4m)
Source: Company
Hunting PLC
Annual Report and Accounts 2025
63
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
Acknowledging our role in the
energy transition, Hunting is
committed to the principles of the
2015 Paris Agreement and the 1.5°C
trajectory.
We aim to be a highly trusted
innovator, creating products that
deliver sustainable value while
increasing revenue diversification,
and reinforcing transparent,
TCFD-aligned climate governance
to build resilience and investor
transparency.
Climate and
environment
Our commitments
• Managing our environmental
performance and mitigating
our impacts
Material issues
• Climate change
• Energy use and GHG emissions
• Biodiversity
How we made progress
on our commitments in 2025
• Zero significant or non-significant
non-compliance environmental
incidents
• Zero environmental fines
• 474,894 scope 1, 2 and 3 emissions
• 22.8 CO
2
e intensity factor
• 93,000 m
3
water consumption
• 4,047 tonnes metal recycling
• 55 tonnes wood recycling
• 18 tonnes plastic recycling
Strategic Report
Corporate Governance
Financial Statements
Other Information
64
Hunting PLC
Annual Report and Accounts 2025
ESG and Sustainability
continued
Our approach to climate action
We formally endorse a science-based approach
to climate action, recognising our role in
mitigating global impact. The Board supports the
principles of 2015 Paris Agreement, specifically
supporting the goal of limiting global warming
to 1.5°C. This alignment is reinforced by our
strengthened Climate Policy, updated in January
2023 and our undertaking of a double materiality
assessment this year.
Protecting biodiversity has been identified as a
material issue for the Group and is considered
alongside climate-related matters within
the Climate and Environment section. The
Group’s approach to reducing greenhouse
gas emissions, improving resource efficiency
and managing water and waste supports the
minimisation of environmental impacts on
local ecosystems. Further detail on site level
environmental management practices is set
out elsewhere in this section.
We are actively exploring lower-carbon products
and services. We are firmly committed to
pursuing energy transition opportunities and
significantly increasing our revenue diversification
through non-oil and gas sales. This shift is integral
to our long-term value creation and resilience.
Our governance framework is robust and
transparent. We have progressed our reporting
initiatives in line with the Task Force on Climate-
related Financial Disclosures (“TCFD”), with these
disclosures also complying with the UK’s
Climate-related Financial Disclosures (“UKCFD”).
This structure allows us to actively manage our
climate-related risks and opportunities across
short-, medium-, and long-term horizons, driving
us to set and achieve tangible emissions
reduction targets.
Innovating to create sustainable products
Hunting’s purpose is to be a highly trusted
innovator and manufacturer of technology and
products that create sustainable value. Our
customers require us to not only meet their
current demands but to actively pre-empt their
future needs with solutions that are inherently
reliable and sustainable. Sustaining this cycle
of innovation and trust demands an unwavering
delivery of strongly quality-assured products.
Our customer engagement strategy is built
on the strategic application of our core
competencies in systems manufacture, precision
engineering and print-part manufacturing.
This targeted approach ensures we consistently
deliver high-impact solutions, securing our
leadership in existing markets while effectively
driving expansion into new sectors.
Measuring our scope 1 and 2 emissions
We are committed to reducing our operational
emissions. Our goal is to publish a Group Net
Zero plan by 2027.
To reduce our scope 1 and 2 emissions effectively,
we aim to improve our operational efficiency and
increase our use of renewable energy.
Improving our operational energy efficiency
Our energy efficiency is continually improved by:
• Making our production and manufacturing
more efficient. We have achieved this through
automation and by including zero-emission
vehicles across production sites and updating
equipment.
• Building new facilities that incorporate energy
efficiency measures or enhancing existing
facilities by adding solar panels, such as the
Dubai facility commissioned in the year.
• Closing facilities. During the year, we closed
the Netherlands and Norway facilities, as these
were no longer viable or efficient facilities that
supported our long-term priorities.
To date, our progress has been considerable:
• In 2022, the Board approved targets to
purchase 50% of our energy from renewable
sources by the end of the decade and to reduce
our GHG emissions by 50% by 2030, from levels
reported in 2019, the baseline year. This equates
to a target of 17,937 tonnes in total scope 1
and 2 emissions by the end of the decade;
• In March 2025, the Group announced its
revised ambition to drive the carbon intensity
factor to 20 or less (calculated as total scope 1
and 2 emissions divided by revenue);
• In 2023, we assured our 2022 scope 1 and 2
GHG emissions data using S&P Global;
• In 2024, we appointed the Carbon Trust to
assess our scope 1 and scope 2 GHG
emissions data. Carbon Trust will conduct
independent verification of the Group’s 2025
carbon data in accordance with ISO 14064-3,
a recognised standard used by independent
verifiers to assess the accuracy, completeness,
consistency and credibility of greenhouse gas
information; and
• Scope 3 GHG emission inventories reporting
for 2025 was extended to all of the Group’s
operating segments.
Highlights across our sites
In 2025, Hunting reshaped and optimised its
global operating footprint, maintaining agility
and strengthening its long-term strategic position.
The Company operated from 25 sites across
nine countries following targeted consolidation
in Europe. This rationalisation was balanced by
strategic expansion, most notably the opening of
the new Dubai facility, a key hub for well testing,
well intervention and future OOR activities.
The Subsea Technologies segment also
expanded its footprint from three to five sites
through the acquisition of Flexible Engineered
Solutions, bolstering Hunting’s capabilities in
FPSO and subsea applications.
Operational performance across the network
remained robust. Asia Pacific sites played a
central role in delivering major OCTG orders to
Kuwait, while North America’s ten operating sites
and two distribution centres supported ongoing
growth in OCTG demand and further adoption
of the TEC-LOCK™ connection family.
The integration of FES created cross-selling
opportunities across our Spring, Enpro and
Stafford operations, strengthening subsea
delivery in the US, UK and other international
regions.
Quality performance across the Group remained
strong, with millions of components produced
globally and exceptionally low reject rates
demonstrating the maturity of Hunting’s
manufacturing systems.
Sustainability, safety and operational governance
remained priorities across all sites. The Dubai
facility introduced enhanced environmental
design features that improve climate resilience
and reduce carbon intensity. In line with Hunting’s
2030 emissions-reduction goals, the UK
operations increased their use of renewable
electricity during the year. For the first time, all
operating segments contributed full scope 1, 2
and 3 emissions data, marking a significant step
forward in the transparency and depth of the
Group’s ESG reporting framework.
Hunting PLC
Annual Report and Accounts 2025
65
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
Carbon data reporting for 2025
For 2025 we engaged a third party to assist in
the data collection and analysis. The following
scope 1, 2 and 3 emissions data was collected for
all five operating segments up to 30 September
2025, with extrapolated data adopted for the final
quarter of the year. A true-up of this data will be
reported in our next Annual Report.
Total purchased electricity
GWh
48.2
2025
2024
50.2
2023
49.4
Source: Company
Renewable electricity purchased
GWh
12.6
2025
2024
10.5
2023
11.4
Source: Company
Total scope 1 and 2 emissions
tonnes CO
2
e
23,206
2025
2024
22,233
2023
22,599
Source: Company
Our scope 3 footprint
Hunting’s scope 3 emissions in 2025 are made
up of 12 of the 15 pillars of scope 3 inventories,
including: purchased goods and services,
product and non-product; fuel and energy-
related activities; upstream and downstream
transportation and distribution; and employee
commuting.
Three pillars were determined not to be relevant
to the business profile: upstream leased assets;
processing of sold products; and use of sold
products.
Emissions from the investments pillar have been
included within our scope 1 and 2 emissions
and have, therefore, been excluded from the
scope 3 reporting.
Based on the above, Hunting’s scope 3
emissions for the Group were calculated to be
451,688 tonnes CO
2
e in 2025 (2024 – 534,835
tonnes CO
2
e).
In 2024, the Group’s scope 3 emissions were
derived from four of Hunting’s five operating
segments. The scope 3 data for the North
America operating segment was extrapolated
from the relative proportions of the segment’s
cost of sales, as this was considered to be a
reasonable proxy for materials purchased.
Further, the whole data set was extrapolated
from nine months of data, up to 12 months.
2025 scope 3 emissions have, therefore,
decreased from the prior year due to a reduction
in the raw materials purchased in relation to
the $231m KOC orders, which had a large raw
material (pillar 1) component.
Total scope 1, 2 and 3 emissions
tonnes CO
2
e
474,894
2025
2024
557,068
2023
375,945
Source: Company
Carbon intensity
Hunting’s CO
2
e intensity factor is based on total
carbon dioxide equivalent emissions divided by
Group revenue. In 2025, this was 22.8kg/$k of
revenue (2024 – 21.2kg/$k of revenue). This data
is based on the Group’s scope 1 and 2 data only.
Despite the 42% increase in parts manufactured
in the year, our scope 1 and 2 GHG emissions
increased by 4%, mainly due to the inclusion of
emissions data on air conditioning as our data
collection improves. The carbon intensity factor
increased year-on-year, as scope 1 and 2
emissions increases while revenue for the year
was 3% lower.
In March 2025, the Group announced a revised
carbon intensity factor target for 2030 of 20kg/$k
of revenue to further encourage a reduction in
our emissions.
CO
2
e intensity factor
kg/$k of revenue
22.8
2025
2024
21.2
2023
24.3
Source: Company
Our scope 1 footprint
Hunting’s scope 1 footprint has seen a material
decline since we published our base line year in
2019. Due to facility consolidation and ongoing
rationalisation of our businesses, our natural gas
usage has declined over time; however, we were
able to include emissions from air conditioning for
the first time leading to a 2025 scope 1 result of
6,142 tonnes CO
2
e (2024 – 3,630 tonnes CO
2
e).
Our scope 2 footprint
In 2025, our total electricity usage was 48.2 GWh
(2024 – 50.2 GWh). The 4% decrease in
electricity usage was in line with the Group’s
3% decrease in revenue in the year. Of the total
figure, total renewable electricity purchased
was 12.6 GWh, (2024 – 10.5 GWh), or 26% of
electricity purchased (2024 – 21%), an increase
over 2024. Based on this energy usage, our
scope 2 emissions in 2025 were 17,064 tonnes
CO
2
e (2024 – 18,603 tonnes CO
2
e).
The data reported and the carbon dioxide
conversion factors used to report the Group’s
carbon footprint, are based on those published
by the International Energy Agency, and BEIS
and DESNZ in the UK (www.gov.uk).
The Group’s total scope 1 and 2 emissions in
2025 were, therefore, 23,206 tonnes CO
2
e
(2024 – 22,233 tonnes CO
2
e). This data point is
the basis of our intensity factor reported below.
The intensity factor is calculated using total
scope 1 and scope 2 greenhouse gas emissions,
expressed in kilogrammes of CO
2
e, divided by
total Group revenue in $’000.
In the UK, total scope 1 and 2 emissions were
541 tonnes CO
2
e (2024 – 733 tonnes CO
2
e),
which decreased due to the reduced activity at
the Fordoun facility following the restructuring
programme.
Hunting PLC
Annual Report and Accounts 2025
66
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
Carbon pricing
The Company monitors external carbon pricing
given that in the future this may be a path for
Hunting to achieve a Net Zero ambition.
The metrics and targets table on page 86
notes the potential cost to the Group should it
commence the purchase of carbon credits to
mitigate its net carbon footprint. This cost is
based on our scope 1 and 2 carbon footprint.
Moving our business to a lower carbon
impact
Hunting is currently engaged in a long-term
business model transformation designed to
proactively pursue opportunities within non-oil
and gas sectors as well as the emerging
low-carbon economy to mitigate climate
change risks.
This strategic pivot is already yielding measurable
results: non-oil and gas sectors currently
contribute $82.9m, or 8% (2024 – $75.1m, or 7%),
of our total revenue. This revenue diversification is
set for steady, continuous growth in the years
ahead.
Our efforts to align our business model and
strategy with this transition, and to capitalise on
the substantial diversification opportunities it
presents, are detailed in our approach to climate
action on page 65.
Furthermore, integrating environmental impact
considerations into the planning for all new
facilities is an integral and non-negotiable
component of our Group risk management
approach.
Managing our water usage responsibly
Although Hunting is not categorised as a
significant industrial water user, we recognise
water as a valuable and often scarce resource
in several regions where we operate.
Our supply portfolio includes municipal utility
networks and dedicated on-site boreholes. We
are proactively committed to three key principles:
• actively reducing freshwater consumption;
• maximising internal water reuse and recycling;
and
• rigorously ensuring that no contaminated water
is discharged into any source.
Any water contaminated during industrial
processes is strictly managed: it is collected
and either treated or contained as special waste.
Our policy is to recycle the maximum amount
possible internally or facilitate external treatment
and recycling.
Furthermore, we are acutely mindful of the
potential impact of extreme weather events on
our facilities. To mitigate risk, we utilise secondary
containment measures to capture and treat any
site run-off, with the likely impact of severe
storms being a core design consideration for all
new and planned facilities.
Water consumption
‘000 m
3
93
2025
2024
90
2023
92
Source: Company
Minimising waste and driving efficiency
Hunting operates with a firm consciousness
of the need for responsible raw material
stewardship across the entire product life cycle.
Our strategy prioritises optimising the reuse and
recycling of materials, minimising consumption
and ensuring the ethical disposal of unavoidable
waste streams.
Our commitment to a circular economy is
realised through action at all sites, where
comprehensive recycling programmes are in
place to manage metal, wood, and plastics.
While much of our industrial output is
characterised by liquid waste streams, we are
focused on exploring innovative reuse solutions
such as a mechanism to capture and reuse
cutting fluids, an action that not only significantly
limits this waste stream but also provides
demonstrable cost savings.
Where waste streams are unavoidable, we
ensure responsible disposal exclusively through
appropriately vetted suppliers.
Metal recycling
tonnes
4,047
2025
2024
3,848
2023
2,827
Source: Company
During the year, Hunting had no environmental or
significant environmental non-compliance incidents
and did not incur any environmental fines.
Wood recycling
tonnes
55
2025
2024
85
2023
75
Source: Company
Plastic recycling
tonnes
18
2025
2024
30
2023
23
Source: Company
Future-focused goals
We are setting ambitious precedents across
our global network. Notably, our joint venture
manufacturing facility in Nashik, India, which
produces and supplies pipes, tubes, and premium
connections, is actively working toward achieving
an entirely waste-free operational status.
Non-financial Information and
Sustainability Statement
As required by the Companies Act 2006, the
Company’s Non-financial Information and
Sustainability Statement can be found on
page 246.
Hunting PLC
Annual Report and Accounts 2025
67
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual energy summary
Units
2025
2024
2023
2022
2021
2020
2019
baseline year
Energy type
Scope 1: Natural gas and other fuels – Group
GWh
8.2
7.3
7.2
7.9
8.5
13.7
17.8
Scope 1: Natural gas and other fuels – UK
GWh
0.1
0.9
0.8
0.8
0.9
2.6
4.2
Scope 1: Vehicle consumption and process emissions – Group
i
tonnes CO
2
e
1,788
1,584
2,132
3,367
2,491
3,338
2,972
Scope 1: Vehicle consumption and process emissions – UK
ii
tonnes CO
2
e
18
95
76
76
28
34
60
Scope 2: Electricity purchased – Group
GWh
48.2
50.2
49.4
43.4
40.5
48.6
55.7
Scope 2: Electricity purchased – UK
GWh
1.8
1.1
1.7
0.5
1.4
1.4
1.6
Scope 2: Renewable electricity purchased – Group
GWh
12.6
10.5
11.4
8.7
6.5
5.8
2.1
Scope 2: Renewable electricity purchased – UK
GWh
1.6
1.1
1.7
0.5
0.3
0.4
0.5
Scope 3: Pillar 1 – Purchased Goods and Services
tonnes CO
2
e
390,452
492,317
Extrapolated
Extrapolated
n/a
n/a
n/a
Scope 3: Pillar 4 – Upstream Transportation and Distribution
tonnes CO
2
e
28,119
20,811
Extrapolated
Extrapolated
n/a
n/a
n/a
Scope 3: Pillar 3 – Fuel and Energy Related Activities
tonnes CO
2
e
7,786
3,938
Extrapolated
Extrapolated
n/a
n/a
n/a
Scope 3: Pillar 7 – Employee Commuting
tonnes CO
2
e
5,375
2,905
Extrapolated
Extrapolated
n/a
n/a
n/a
Scope 3: Pillar 9 – Downstream Transportation and Distribution
tonnes CO
2
e
4,208
2,584
Extrapolated
Extrapolated
n/a
n/a
n/a
Scope 3: Other pillars
tonnes CO
2
e
15,748
12,280
Extrapolated
Extrapolated
n/a
n/a
n/a
Total scope 3
tonnes CO
2
e
451,688
534,835
353,346
277,143
n/a
n/a
n/a
Greenhouse gas emissions
Scope 1
iii
tonnes CO
2
e
6,142
3,630
4,169
5,778
4,171
6,605
7,100
Scope 2
iv
tonnes CO
2
e
17,064
18,603
18,430
16,644
14,688
18,811
28,774
Total scope 1 and 2
tonnes CO
2
e
23,206
22,233
22,599
22,422
18,859
25,416
35,874
Scope 3
tonnes CO
2
e
451,688
534,835
353,346
277,143
n/a
n/a
n/a
Total scope 1, 2 and 3
tonnes CO
2
e
474,894
557,068
375,945
299,565
n/a
n/a
n/a
CO
2
e intensity factor
(based on scope 1 and 2 emissions only)
kilograms per $k revenue
22.8
21.2
24.3
30.9
36.2
40.6
37.4
Water consumption
thousand cubic metres
93
90
92
58
69
257
319
i.
Scope 1 Vehicle consumption and process emissions for the Group were 7.4 GWh in 2025. Therefore, total energy consumption was 23.0 GWh in 2025 in relation to scope 1 emissions.
ii.
Scope 1 Vehicle consumption and process emissions for the UK were 0.1 GWh in 2025. Therefore, total energy consumption for the UK was 0.7 GWh in 2025 in relation to scope 1 emissions.
iii. Total scope 1 greenhouse gas emissions include UK scope 1 emissions of 216 tonnes CO
2
e (2024 – 498 tonnes CO
2
e).
iv. Total scope 2 greenhouse gas emissions include UK scope 2 emissions of 325 tonnes CO
2
e (2024 – 235 tonnes CO
2
e).
ESG and Sustainability
continued
Hunting PLC
Annual Report and Accounts 2025
68
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
Creating a working environment
where everyone is respected and
can develop is of the highest
importance to Hunting.
We are committed to looking after
our people and engaging with those
outside of our direct business
operations.
Our people
At 31 December 2025, the Group employed
2,246 people across our global operations
(2024 – 2,367 people). Of these:
• 35% are employed in our North America
operations;
• 23% at Hunting Titan;
• 15% in Asia Pacific;
• 14% at Subsea Technologies;
• 9% in EMEA; and
• 4% in regional headquarters.
Ensuring the safety and overall well-being of
every person at Hunting, or anyone associated
with our business, is our top priority. We firmly
believe that our people are not just essential but
are the primary engine driving the development
of our business and underpinning the long-term
success of the Company.
Attracting, retaining and developing
the best talent
Hunting’s long-term reputation and ability to
deliver on its strategic objectives rely on the skills,
values and commitment of its highly trained
workforce. We remain diligent in complying with
all regional employment laws, including minimum
wage legislation, while continuing to attract and
place high-quality candidates in an increasingly
competitive global talent market.
Making a positive
contribution to society
Our commitments
• Operating safely
• Supporting and developing
our people
• Supporting communities around us
Material issues
• Supplier engagement
• Employee development
• Community engagement
How we made progress
on our commitments in 2025
• Two whistleblowing reports
• 95% of employees have completed
Code of Conduct training
• Internal manufacturing reject
rate 0.2%
• Shipped goods returned 0.0021%
• 76% of facilities are accredited
to ISO 9001:2015
• 68% of facilities are accredited
to ISO 14001:2015
• $82.9m non-oil and gas revenue
• $62k charitable donations
Hunting PLC
Annual Report and Accounts 2025
69
Strategic Report
Corporate Governance
Financial Statements
Other Information
69
Hunting PLC
Annual Report and Accounts 2025
ESG and Sustainability
continued
Our focus is on building a workforce that
embodies our culture of integrity, safety and
excellence, ensuring we are well-positioned to
meet the evolving needs of our customers and
the wider industry.
We measure retention success through voluntary
turnover and employee tenure. In 2025, our
voluntary turnover rate rose to 11.4%, up from
10.3% in 2024, indicating a modest increase in
attrition despite our continued investment in
retention, employee development and cultural
enhancement. Hunting maintains workforce
stability through competitive pay, comprehensive
training and an average employee tenure of nine
years, supporting strong productivity, operational
continuity and a good safety performance.
While these foundations remain robust, the slight
turnover increase reflects broader labour-market
pressures, particularly within the energy and
engineering sectors, where heightened
competition for specialised skills continues to
influence employee mobility.
Hunting remains deeply committed to the
professional advancement of all employees.
Our development framework spans general
career progression initiatives as well as
specialised leadership programmes designed
to build future capability across the organisation.
In 2025, employees globally were selected
to participate in the Energy Workforce and
Technology Council training programmes,
with additional investment in internal leadership
pathways, including the Senior Manager and
Executive Leadership Programme and the
Mid-Level Operations Leadership Programme.
These initiatives strengthen our talent pipeline,
reinforce organisational capability and ensure
we continue to grow the next generation of
Hunting leaders.
Compensation, benefits and recognition
We ensure our employees are fairly remunerated
through a competitive compensation structure
that places base pay well above minimum wage
thresholds. We maintain success through a
compelling suite of benefits, including healthcare,
post-retirement plans, and participation in annual
bonus arrangements. We are continuously
enhancing our offerings, such as improved
maternity and paternity leave.
Engaging with our employees
Hunting views a highly engaged workforce
as a strategic differentiator, directly translating
to superior job performance, elevated client
satisfaction, and stronger financial stability.
To solidify our commitment to a positive work
environment, the Board actively engages with
employees, exemplified by the recent site visit to
Singapore and China, where Directors gained
first-hand insights into the delivery of the KOC
contracts and fostered transparent, two-way
dialogue with the workforce.
Measuring progress and success
To measure progress and success in strengthening
our culture, Hunting again used the Gallup Q12
all-employee engagement survey, achieving an
impressive 81% participation rate and reinforcing
the value our workforce places on being heard.
The 2025 results demonstrate steady,
measurable improvement, with our overall
satisfaction score rising to 4.16 (out of a total
of 5.00) and the average score across all 12
engagement questions increasing to 3.97,
continuing the positive upward trend seen since
2019. Our Engagement Index Ratio also
improved to 3.8:1, bringing us closer to the
benchmark of 4:1 and reflecting a higher
proportion of engaged employees across
the organisation.
While the survey highlights clear strengths,
such as employees consistently having the tools
and resources they need to perform effectively,
it also identifies opportunities for further progress
in areas such as recognition, communication
and feedback. These insights allow us to take
focused, data-driven action to continue building
engagement across all parts of the business.
Full details and the accompanying case study
can be found on page 71.
Diversity and inclusion
Hunting is committed to being a fair and
responsible employer, fostering a workplace
that is respectful, safe and genuinely inclusive.
We maintain a zero-tolerance approach to
harassment, bullying and discrimination, and
our ethics policies guarantee equal employment
opportunities across all operations. This
commitment applies to all employees and
applicants, regardless of race, ethnic origin,
nationality, age, trade union activity, sex, marital,
part-time status, sexual orientation, religion, belief
or disability.
We view diversity as a strategic strength and
embed inclusive principles throughout the talent
lifecycle – from recruitment and training to
development and working conditions – while
ensuring full and fair consideration for applicants
with disabilities. Our Gender Diversity Policy
reinforces clear accountability by requiring
external recruitment partners to share their
diversity policies, provide gender-balanced
short-lists, and support ongoing oversight
through periodic reviews by the Nomination
Committee.
Hunting’s approach aligns with the gender
and ethnicity recommendations of the
Hampton-Alexander Review and the Parker
Review, as well as the requirements set out by
the Financial Conduct Authority (“FCA”). These
frameworks continue to guide Board refreshment
and succession planning, with full details found
on pages 110 to 112.
Engaging with our local communities
Hunting remains deeply committed to supporting
and engaging with the communities surrounding
our global operations. We view this not merely as
an activity, but as a commitment to fostering
strategic local partnerships. Our engagement
spans a wide range of initiatives, from fundraising
events and corporate volunteering to direct
community donations. Crucially, we empower
each region to develop and manage its own
community engagement programmes. This
decentralised approach ensures initiatives are
both culturally resonant and effectively aligned
with the specific needs of the local area, all while
upholding Hunting’s core corporate values. In the
year, the Company made charitable donations
of $62k (2024 – $70k), including donations of
unclaimed dividends to UK-based charities.
Hunting PLC
Annual Report and Accounts 2025
70
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
During 2025, Hunting completed its third
all-employee engagement survey using
Gallup’s Q12 Employee Engagement platform.
Management recognises that strong employee
engagement benefits the bottom-line outcome
for the Group with the “most engaged”
organisations enjoying greater financial returns.
Improving employee engagement remains a
core strategic objective for our organisation.
We were pleased with the survey’s participation
rate of 81% of the 2,165 eligible employees,
with local HR teams and managers working
diligently to ensure that employees without
regular computer access were able to
participate and that any confidentiality concerns
were addressed.
The most important question the survey asked,
“On a five-point scale, how satisfied are you
with your organisation as a place to work?”.
For 2025, Hunting achieved a score of 4.16
out of 5.00, reflecting a 0.09 increase from this
measurement in the 2023 survey.
We were delighted with the average across all
12 core engagement questions being 3.97,
an improvement from 3.88 in 2023 and 3.78
in 2019. This upward trend reflects stronger
engagement across the organisation. Results
were largely consistent across business
segments, with Asia Pacific scoring above
the overall average, while EMEA trailed slightly
below, as the workforce was impacted by the
restructuring programme.
Another important result is the employee
engagement ratio, which defines engaged
workers to actively disengaged workers.
Hunting’s Engagement Index Ratio is 3.8:1,
meaning we have 3.8 engaged employees for
every actively disengaged employee. This reflects
an improvement from our 2023 ratio of 3.5:1 and
brings us close to the optimal benchmark of 4:1.
Overall engagement also increased, with 45% of
employees now classified as engaged compared
to 42% in 2023.
One of the most important insights from the
data is that 43% of employees fall into the “Not
Engaged” category, representing a significant
opportunity for positive improvement. Prioritising
the areas where responses were consistently
lower will allow us to make measurable progress
and shift a substantial portion of our workforce
towards higher engagement.
2019
2023
2025
Change
2023-2025
I know what is expected of me at work
4.42
4.47
4.51
0.04
I have the materials and equipment I need
to do my work right.
4.11
4.12
4.28
0.16
At work, I have the opportunity to do what
I do best every day.
4.12
4.19
4.27
0.08
Hunting performed especially well in the first
few questions that define our employees’
basic needs, which were also our top-scoring
questions in both the 2019 and 2023 surveys.
These results indicate that Hunting consistently
provides employees with the technology, tools,
and equipment they need to perform effectively,
reinforcing that the Company offers a high-quality
workplace environment.
The survey also offered us insight on areas
that require our attention, namely the need to
focus our attention on employee recognition
procedures, providing more detailed feedback,
and improving communication. Although these
areas were also identified in 2023, each has
shown measurable improvement since the last
survey. An action plan has been developed to
address these issues, including the development
of a programme that strengthens leaders’ ability
to identify and deliver meaningful, timely
recognition; the use of different media to
strengthen messaging and reinforce key
priorities; and the further advancement of our
leadership development programme.
Hunting’s employees remain invested in their workplace
Results from the 2019, 2023, and 2025 surveys
were consistent, showing steady improvement.
With these insights, we are well positioned to
further strengthen engagement through
consistent, company-wide programmes and
we anticipate repeating the survey in two to
three years’ time.
Hunting PLC
Annual Report and Accounts 2025
71
Strategic Report
Corporate Governance
Financial Statements
Other Information
Sustainability Accounting Standards Board information
Oil & Gas – Services
Topic
Accounting metric
SASB code
Reported
by Hunting
Section
Page navigation
Emissions Reduction Services
& Fuel Management
Total fuel consumed, percentage renewable, percentage used in:
(1) on-road equipment and vehicles; and
(2) off-road equipment.
EM-SV-110a.1
Yes
No
No
Our scope 2 footprint /
Annual energy
summary
66 and 68
Discussion of strategy or plans to address air emissions-related risks,
opportunities, and impacts.
EM-SV-110a.1
Yes
Task Force on
Climate-related
Financial Disclosures
74 to 86
Percentage of engines in service that meet Tier 4 compliance
for non-road diesel engine emissions.
EM-SV-110a.3
n/a
n/a
n/a
Water Management
Services
(1) Total volume of fresh water handled in operations; and
(2) percentage recycled.
EM-SV-140a.1
Yes
No
Managing our water
usage responsibly
67
Discussion of strategy or plans to address water consumption
and disposal-related risks, opportunities and impacts.
EM-SV-140a.2
Yes
Managing our water
usage responsibly
67
Chemicals Management
Volume of hydraulic fracturing fluid used, percentage hazardous.
EM-SV-150a.1
n/a
n/a
n/a
Discussion of strategy or plans to address chemical-related risks,
opportunities and impacts.
EM-SV-150a.2
Yes
Minimising waste and
driving efficiency
67
Ecological Impact
Management
Average disturbed acreage per:
(1) oil; and
(2) gas well site.
EM-SV-160a.1
n/a
n/a
n/a
Discussion of strategy or plan to address risks and opportunities
related to ecological impacts from core activities.
EM-SV-160a.2
n/a
n/a
n/a
Workforce
Health & Safety
(1) Total recordable incident rate;
(2) fatality rate;
(3) near-miss frequency rate;
(4) total vehicle incident rate; and
(5) average hours of health, safety and emergency response training for:
(a) full-time employees;
(b) contract employees; and
(c) short-service employees.
EM-SV-320a.1
Yes
Yes
Yes
n/a
Yes
No
No
No
Prioritising Health and
Safety / Health and
Safety training
61
61
61
n/a
62
Description of management systems used to integrate a culture
of safety throughout the value chain and project life cycle.
EM-SV-320a.2
Yes
Training / Health and
Safety training
21 and 62
Business Ethics & Payments
Transparency
Amount of net revenue in countries that have the 20 lowest rankings
in Transparency International’s Corruption Perception Index.
EM-SV-510a.1
Yes
Export sanctions
compliance
63
Description of the management system for prevention of corruption
and bribery throughout the value chain.
EM-SV-510a.2
Yes
Anti-bribery and
corruption (“ABC”)
23 and 61
No political or lobbying donations were made.
EM-SV-510a.2
Yes
A zero-tolerance
approach to anti-bribery
and corruption
61
Management of the Legal
& Regulatory Environment
Discussion of corporate positions related to government regulations and/or policy
proposals that address environmental and social factors affecting the industry.
EM-SV-530a.1
Yes
Business model
14 to 27
Critical Incident
Risk Management
Description of management systems used to identify and mitigate catastrophic
and tail-end risks.
EM-SV-540a.1
n/a
n/a
n/a
ESG and Sustainability
continued
Hunting PLC
Annual Report and Accounts 2025
72
Strategic Report
Corporate Governance
Financial Statements
Other Information
ESG and Sustainability
continued
Sustainability Accounting Standards Board information
continued
Oil & Gas – Services: metrics
Activity metric
SASB code
Reported
by Hunting
Section
Page navigation
Number of active rig sites
EM-SV-000.A
n/a
n/a
n/a
Number of active well sites
EM-SV-000.B
n/a
n/a
n/a
Total amount of drilling performed
EM-SV-000.C
n/a
n/a
n/a
Total number of hours worked by all employees
EM-SV-000.D
Yes
Prioritising Health and
Safety
62
Industrial Machinery & Equipment
Topic
Accounting metric
SASB code
Reported
by Hunting
Section
Page navigation
Energy Management
(1) Total energy consumed;
(2) percentage grid electricity; and
(3) percentage renewable.
RT-IG-130a.1
Yes
Yes
Yes
Our scope 2 footprint /
Annual energy summary
66 and 68
Employee Health & Safety
(1) Total recordable incident rate;
(2) fatality rate; and
(3) near-miss frequency rate.
RT-IG-320a.1
Yes
Yes
Yes
Prioritising Health and
Safety / Health and
Safety training
61
61
61
Fuel Economy &
Emissions in Use-phase
Sales-weighted fleet fuel efficiency for medium- and heavy-duty vehicles.
RT-IG-410a.1
n/a
n/a
n/a
Sales-weighted fuel efficiency for non-road equipment.
RT-IG-410a.2
n/a
n/a
n/a
Sales-weighted fuel efficiency for stationary generators.
RT-IG-410a.3
n/a
n/a
n/a
Sales-weighted emissions of:
(1) nitrogen oxides (NOx); and
(2) particulate matter (PM) for:
(a) marine diesel engines;
(b) locomotive diesel engines;
(c) on-road medium- and heavy-duty engines; and
(d) other non-road diesel engines.
RT-IG-410a.4
n/a
n/a
n/a
Industrial Machinery & Equipment: metrics
Activity metric
SASB code
Reported
by Hunting
Section
Page navigation
Number of units produced by product category
RT-IG-000.A
n/a
n/a
n/a
Number of employees
RT-IG-000.B
Yes
Our people
69
Hunting PLC
Annual Report and Accounts 2025
73
Strategic Report
Corporate Governance
Financial Statements
Other Information
Task Force on Climate-related Financial Disclosures (“TCFD”)
During 2025, Hunting has further
expanded scope 3 data collection,
with all five operating segments now
collecting scope 1, 2 and 3 data.
This data set will form the basis of
longer-range emissions reduction
target setting and the formulation of
a transition plan which is encouraged
by the UK regulator.
Further, management is monitoring
closely the evolution of sustainability
and climate reporting, and has
begun a process of comparing the
Company’s TCFD disclosures to
the ISSB S2 reporting standard
requirements, which are anticipated
to be adopted by the UK regulator
in the near future.
This Policy acknowledges the goal to limit global
warming to 1.5°C above pre-industrial levels in
line with the 2015 Paris Accord and commits the
Group to assisting in the delivery of this ambition
through a reduction in its global carbon footprint.
Progress in Hunting 2030 Strategy
The Board of Hunting has continued to deliver
on the Hunting 2030 Strategy during the year.
In March 2025, the Company purchased the
Organic Oil Recovery (“OOR”) technology from its
founding shareholders for a total consideration of
$18.2m. The benefits of this technology are wide
ranging, in that it can enhance oil production
from a reservoir, which benefits a client’s financial
performance, but also reduces the longer term
need to drill new oil wells, which will have a net
benefit to the environment in the long term.
The Group continues to develop a strategy
to increase its non-oil and gas sales. In 2025,
Hunting recorded non-energy sales of $82.9m
(2024 – $75.1m), which shows a robust year-on-
year improvement. These sales are supported
by a year-end non-oil and gas order book of
$98.6m, which is primarily driven through our
Dearborn business, which has key aviation,
power generation and commercial space clients,
which are all target end-markets of the Group
in the long term.
For more information on the Hunting 2030
Strategy please see pages 6 to 11.
Risk management
To pro-actively identify and manage potential
climate-related risks, the Group conducts an
annual climate risk assessment across all
business units. This assessment evaluates
the potential impact of climate change on the
long-term outlook of each unit under multiple
scenarios, including a “business as usual”
pathway and a 1.5°C global warming scenario,
consistent with international climate frameworks.
The process captures both transition and
physical risks, including the implications of the
Group’s strategic shift toward reducing oil and
gas-related sales and the resilience of Hunting’s
asset base to climate-related physical hazards.
Insights from this assessment inform strategic
planning and risk management, ensuring
alignment with the Group’s sustainability
objectives and regulatory requirements.
The climate change risk analysis outlined
on pages 78 to 81 integrates climate-related
disclosures and evaluates the potential financial
impacts of these risks across short-, medium-
and long-term horizons. In 2025, management
undertook a review of these risks through the lens
of long-term materiality to the Group, resulting
in the removal of insurance and tax risk from
the assessment.
To strengthen this analysis, the Group has
advanced its financial modelling capabilities.
This model assesses the carrying values of
assets within each business unit and provides
a forward-looking view of potential financial
impacts under the climate scenarios considered.
These insights support informed decision-making
and enhance the Group’s resilience planning.
Metrics and targets
The Group’s greenhouse gas (“GHG”) emissions
reduction targets, approved by the Directors
in 2023, commit Hunting to a 50% reduction
in scope 1 and scope 2 emissions by 2030,
compared with the 2019 baseline year. In March
2025, the Company set a long-term emissions
intensity target of 20 kg/$k of revenue or less,
based on the ratio of the Group’s combined
scope 1 and scope 2 greenhouse gas emissions
Compliance
Hunting is committed to decarbonising our
businesses, and being transparent about the
impacts, risks and opportunities that climate
change poses to the business. In line with the
FCA’s UK Listing Rule 6.6.6(8)R for companies
with the listing of equity shares in the Equity
Shares Commercial Companies category,
Hunting is required to disclose on a “comply
or explain” basis its consistency with the
TCFD Recommendations and Recommended
Disclosures, and also in scope with the
Companies (Strategic Report) (Climate-related
Financial Disclosure (“CFD”)) Regulations
2022, in respect of the financial year ended
31 December 2025. The disclosures have
been prepared in accordance with TCFD,
FCA and CFD requirements.
The climate-related financial disclosures, which
follow, are consistent with the four reporting
pillars contained within the TCFD Recommended
Disclosures, being:
(i) Governance (page 76);
(ii) Strategy (pages 77 to 84);
(iii) Risk Management (pages 84 and 85); and
(iv) Metrics and Targets (pages 85 and 86).
The Directors consider Hunting to be fully
compliant with UK Listing Rule 6.6.6(8)R,
following enhancements to its reporting
procedures completed during 2025, as well as
the climate-related financial disclosures required
by sections 414CA and 414CB(2A) (2H) of the
Companies Act 2006.
Climate policy
The Directors retain a Climate Policy (located at
www.huntingplc.com), which commits the Board
to Group-level monitoring of climate-related
opportunities and risks.
Hunting PLC
Annual Report and Accounts 2025
74
Strategic Report
Corporate Governance
Financial Statements
Other Information
Climate exposure of asset base by weather event – under RCP8.5 (4.0°C) climate scenario
Source: WillisTowersWatson
2024
2030
2050
2100
Extratropical
Cyclone
River Flood
Sea Level
Rise
Heat
Fire
Tropical
Cyclone
Drought
Precipitation
60%
100%
90%
80%
70%
50%
40%
30%
20%
10%
0%
Percentage
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
to revenue. The intensity factor is calculated
using total scope 1 and scope 2 greenhouse gas
emissions, expressed in kilogrammes of CO
2
e,
divided by total Group revenue in $’000. Further
detail on the Group’s emissions intensity metric
and associated targets, including calculation
methodology, is provided in the TCFD Metrics
and Targets section.
Carbon data collection and assurance
As noted above the Group now collects scope 1,
2 and 3 data from all of its operating segments.
For 2025, data has been collected up to 30
September 2025 and extrapolated for the final
quarter of the year. A revised, full-year figure will
be re-stated in next year’s annual report as data
collection and computations are still underway as
of the date of publication of this report. Following
the completion of Group-wide collection of scope
1, 2 and 3 carbon data, an assurance process
will commence with the Carbon Trust.
The Group expects to develop enhanced carbon
reduction targets during the next reporting cycle,
once a revised baseline year has been finalised.
The Company engaged the Carbon Trust
to undertake a review and perform limited
verification procedures on its 2024 carbon data.
During this process, it was identified that certain
air conditioning data sets were incomplete.
The Group is actively addressing this gap
and implementing measures to enhance data
accuracy and completeness. Looking ahead,
the Carbon Trust will conduct independent
verification of the Group’s 2025 carbon data in
accordance with ISO 14064-3, a recognised
standard used by independent verifiers to assess
the accuracy, completeness, consistency and
credibility of greenhouse gas information, thereby
strengthening the robustness of the Group’s
greenhouse gas reporting.
Physical risk assessment
In 2024, the Group engaged WillisTowersWatson
(“WTW”) to conduct a comprehensive
assessment of the physical climate risk profile
across Hunting’s global asset base.
The resulting report from WTW was reviewed
by the Ethics and Sustainability Committee
in December 2024, which summarised the
updated risk profile for the Group, reported under
three climate scenarios: (i) RCP2.6 or a 1.5°C
scenario; (ii) RCP4.5 or a 2.0 – 3.0°C scenario;
and (iii) RCP8.5 or a 4.0°C scenario.
The analysis has concluded the following
climate-related physical risk profile for the Group,
based on the current climate and projected
hazard pathways. For the purposes of this
assessment, 2030 is treated as the short-term
horizon and 2050 as the medium-term horizon,
aligned with the Group’s strategic and financial
planning cycles. Long-term climate risks (beyond
2050) have not been presented as discrete
sensitivity outputs, as they extend beyond the
typical economic life of the majority of the Group’s
assets and the timeframe used for strategic
decision making and capital allocation. However,
modelling to 2100 has been used to inform the
directional trend and severity of hazards,
providing management with an understanding of
how physical risks are expected to evolve over
time and enabling early consideration of resilience
measures where appropriate.
On this basis, the analysis indicates the following
exposure profile, with risks expected to crystallise
in the short term (to 2030) and intensify through
the medium term (to 2050):
• Heat stress: 79% of Hunting’s total insured
asset base is exposed to material heat stress.
Impacts are expected to crystallise in the short
term, with increasing frequency and severity
through the medium term.
• Drought stress: 47% of the asset base is
exposed to drought stress, with impacts
expected to emerge primarily in the medium-
term as water stress intensifies in exposed
regions.
• Fire stress: 29% of the asset base is exposed
to fire stress, with risks expected to crystallise
largely in the medium term, reflecting higher
temperatures and prolonged dry conditions.
• Precipitation risk: 71% of the asset base is
exposed to material precipitation risk.
Short-term impacts are already evident, with
further intensification expected through the
medium term due to increased rainfall
variability and flooding.
• Tropical storms: 33% of the asset base is
exposed to material tropical storm risk, with
impacts expected to crystallise in the short to
medium term as storm intensity increases in
vulnerable regions.
This assessment will be repeated in 2027.
In the 2050 RCP8.5 scenario, the above
values change to:
• 33% of our asset base is exposed to material
tropical storms;
• 62% is exposed to fire stress;
• 67% of our asset base is exposed to drought
stress;
• 80% of Hunting’s total insured asset base is
exposed to material heat stress; and
• 84% is exposed to material precipitation risk.
The Directors, therefore, noted that for Hunting
the key climate/natural hazards are heat and
drought stress, fire stress, and tropical cyclones
under the more aggressive climate change
scenario, as analysed by WTW.
Approximately 81% of the Group’s assets are
located in North America, with the balance
mostly located in Europe and Asia Pacific.
Hunting PLC
Annual Report and Accounts 2025
75
Strategic Report
Corporate Governance
Financial Statements
Other Information
Ethics and Sustainability
Committee
Hunting Executive
Committee
Remuneration
Committee
TCFD Working
Group
Audit and Risk
Committee
ESG Steering
Group
Nomination
Committee
Hunting PLC Board
Climate governance framework
Governance
The Board of Hunting has put in
place a robust climate-related
governance framework to oversee
and deliver on its objectives
going forward. This governance
framework is summarised below.
The Board maintains an Ethics and Sustainability
Committee to monitor Hunting’s overall
governance and reporting framework in the area
of climate change and wider ESG issues. The
Ethics and Sustainability Committee comprises
the non-executive Directors of the Company,
excluding the Company Chair, (pages 106 and
107) and is chaired by Dr Margaret Amos.
The Committee meets twice a year, with carbon,
climate and TCFD matters being regular agenda
items.
This Committee also monitors, on behalf of the
Board, Hunting’s progress against its current
emissions reduction targets.
All members of the Board attend each meeting
of this Committee, with its activities and actions
completed during the year detailed on pages
124 to 126.
While the Ethics and Sustainability Committee
reviews these important non-financial matters,
the Audit and Risk Committee retains key
oversight of Hunting’s public disclosures in these
areas, including the information contained in its
Annual Report and other Stock Exchange
announcements and the evaluation of the risk
profile of the Group in respect of climate change.
Further, the Audit and Risk Committee and
Board reviews the TCFD reporting, which
includes the climate-related risk assessment
prepared by the Group’s central finance function.
Disclosure (b) – Management’s role in
assessing climate risks and opportunities
Members of the Group’s senior leadership team
including the Group Company Secretary, Chief
HR Officer, General Counsel and Director of
QAHSE are invited to meetings of the Ethics
and Sustainability Committee.
These managers, in turn, are supported by the
Hunting Executive Committee; a formal ESG
internal steering group comprising operational
and finance staff; and a TCFD steering group,
the latter being charged with developing formal
reporting and new strategies to curtail the
Group’s carbon footprint, to reduce its impact
on the environment and to provide direction
on Hunting’s sustainability ambitions.
The responsibility of managing climate risks
is vested in the Executive Committee, which
comprises the senior operational leaders of
the Company.
During the year an Internal Controls
Committee was formed, which oversees the
Group risk and controls framework. This will
evolve over time to include all non-financial risk
factors, including any TCFD related matters.
The Group’s central compliance function oversees
TCFD external reporting and compliance matters
and works with the Executive Committee to
develop the Company’s climate-related objectives.
Management completed a Group-level and
operating segment climate risk register, which
is detailed on pages 78 to 81. As part of this
process, strategic opportunities were considered
by each business unit, which formed part of the
Group’s wider plan to pivot revenue to more
non-oil and gas revenue and the new market
opportunities that underpin this strategy.
For more information on the Group’s wider
governance framework, please refer to the
Corporate Governance Report on pages
109 to 121.
Disclosure (a) – Board oversight
The Chief Executive has been charged with
oversight and responsibility for all TCFD matters.
The Board continues to be briefed by the
Group’s central compliance and finance
functions on TCFD reporting requirements and
the work streams underway across the Group
to assess compliance.
This includes evaluation of the transition
and physical risks facing the Group and the
opportunities climate change presents to
the Company.
Climate change perspectives and strategic
initiatives, including the pursuit of energy
transition opportunities as well as the pivot of
revenue to more non-oil and gas sales, are
therefore included in the Board’s strategic
planning discussions, which include merger and
acquisition opportunities being considered.
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Hunting PLC
Annual Report and Accounts 2025
76
Strategic Report
Corporate Governance
Financial Statements
Other Information
Base Case Scenario
Net Zero Scenario
Country Pledges Scenario
Delayed Transition Scenario
2015
2025
2020
2030
2040
2035
2045
2050
120
100
80
60
20
40
0
millions of bopd
Scenarios for oil demand: 2015 to 2050
Source: Wood Mackenzie
Strategy
Disclosure (a) – Description of risks and
opportunities over the short, medium and
long term
Disclosure (b) – The impact of climate-
related risks and opportunities
Hunting has not presented climate-related risks
and opportunities by reference to the geographic
distribution of its global operations or the industry
sectors it serves, as recommended by part (a)
of the Strategy disclosures. As a global energy
services group predominantly focused on the
oil and gas industry, all of Hunting’s operating
segments are exposed to broadly similar
climate-related risks and opportunities. The
physical and chronic risk assessment highlights
the profile of the Group’s asset base by region
and presents a detailed risk assessment of the
Group’s total asset base. Non-oil and gas
revenue was 8% of the Group’s total sales in
2025 and therefore remains at a level which is
not sufficiently material to analyse as a separate
sector or geography. Opportunities to transition
towards non-oil and gas-related revenue exist
across all operating segments, particularly in
North America, EMEA and Asia Pacific, which
together account for all of the Group’s current
non-oil and gas revenue, as well as in segments
with a high proportion of OCTG-related sales.
As a result, non-oil and gas activities do not
constitute a separate business unit within the
Group. The Board therefore considers that a
geographical or sectoral split approach to climate
change analysis is not relevant to Hunting.
Climate scenarios for evaluating transition
risks and opportunities
The Group uses three scenarios to evaluate
transition risks and opportunities:
• Business as usual scenario (aligned to 2.5°C
warming) – continuation of current policies
with gradual development of existing and
emerging technologies;
• Middle case scenario (aligned to 2.0°C
warming) – which incorporates policy
response to the current energy crisis as well
as decarbonisation commitments, but not as
swift as under the rapid transition scenario; and
• Rapid transition scenario (1.5°C) – global Net
Zero by 2050 in line with the Paris Agreement,
including early peak energy demand, rapid
deployment of hydrogen and carbon removal,
and shifts in consumer behaviour.
In selecting these scenarios, the Group used
energy demand analysis from Wood Mackenzie
(see graph on the right), which analyses a range
of climate change scenarios, as well as the latest
energy transition projections and oil and gas
demand scenarios from the International Energy
Agency (“IEA”), see graph on page 82, which is
assumed to be in a Current Policies Scenario.
The IEA research included three scenarios: the
Current Policies Scenario, the Stated Policies
Scenario, and the Net Zero Emissions by 2050
Scenario.
Climate scenarios for evaluating physical
risks and opportunities
The Company utilises analysis provided by WTW
to assess its longer-term physical climate risk
profile out to 2100. This provides the Directors
with a view on the measurable changes to the
physical risks facing Hunting’s asset base.
The Directors note that this timescale is longer
than its operational risk management horizon.
The Group’s operational/transition risk profile
uses shorter scenarios to reflect management’s
strategy to address more immediate challenges
facing the Group. These scenarios are used to
evaluate climate-related risks and opportunities
over the short (0–5 years), medium (5–10 years)
and long term (10+ years). The short-term horizon
extends to 2030, which aligns with the Group’s
business, operational and financial planning
cycle, while the long-term horizon extends to
2050, reflecting broader assumptions on
energy demand provided by reputable market
commentators. Other known risks are evaluated
by the Board under the Group’s current
operational risk programme, with estimates
being made as to the likely quantitative impact.
Although considerations beyond 2050 extend
beyond the economic life of most Group assets
and practical financial planning horizons, climate
modelling to 2100 has been used to inform
management’s understanding of the potential
trajectory and severity of physical climate
hazards. This analysis supports assessments of
long-term resilience and adaptability rather than
near- or medium-term financial decision-making.
Climate-related opportunities associated with the
energy transition, including revenue diversification
and participation in lower-carbon markets, are
addressed further in the Strategy section under
Climate opportunities. EBITDA impacts noted
below have been assessed as ‘in year’ impact.
Climate risks have been categorised as follows:
• Low – small to no impact on the Group’s
profitability ($0–$10m EBITDA) and/or ability
to achieve strategic objectives;
• Medium – some impact felt to the Group’s
profitability ($10–$20m EBITDA) and/or ability
to achieve strategic objectives, requiring some
mitigation plans and action; and
• High – significant impact to the Group’s
profitability (>$20m EBITDA) and/or ability to
achieve strategic objectives, therefore requiring
critical and urgent mitigation plans and action.
Where risks have no impact on profitability, they
have been categorised based on the impact on the
Group’s ability to achieve its strategic objectives.
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Hunting PLC
Annual Report and Accounts 2025
77
Strategic Report
Corporate Governance
Financial Statements
Other Information
Category
Description of risk
Management actions
Impact
1. Market
Risk rating:
Medium
Time frame:
Long term
Financial impact:
Revenue
Hunting’s primary revenue
streams are derived from the oil
and gas industry, which can be
highly cyclical and is driven by
commodity prices.
Oil and gas demand is also
driven by geopolitical events
and economic growth, which
influence energy supply/demand
dynamics.
The drive by many global
governments and economies to
reduce emissions may impact
long-term oil and gas demand,
which in turn will impact Hunting’s
long-term revenue profile.
The Board reviews a number of primary energy demand scenarios
developed by Wood Mackenzie and the IEA, which include energy
transition projections and oil and gas demand scenarios to 2050.
The former is presented on page 77 and the latter on page 82.
The Directors also regularly receive reports from the Chief Executive
on the short- to medium-term outlook for oil and gas demand, given
that this is a key revenue driver for the Group.
From this analysis, the Directors believe that in the business as usual
scenario there is a robust outlook for oil and gas in the long term
i.e. to 2050 and beyond, which will drive strong demand for Hunting’s
energy-focused products through this time frame. The Directors will
continue to monitor these projections and government legislation and
will also track its customers and suppliers who are also monitoring
energy transition developments.
As noted on pages 6 to 11, the Board is putting initiatives in place to
diversify revenue streams, which do not rely as heavily on the global oil
and gas industry, to minimise earnings volatility over time.
As noted in the Market Overview on page 30, market data, including
rig count and drilling and production spend, published by Spears &
Associates, support the Groups wider financial reporting needs in the
short term, including impairment reviews. In October 2025, the IEA issued
its annual energy outlook which provides a perspective on the long-term
changes to energy demand and its primary energy inputs.
The analysis from Wood Mackenzie provides a high-level view of the
possible changes to global oil and gas demand and therefore to
Hunting’s revenue profile to 2050, which indicates possible reductions in
oil and gas revenue of c.50–60% in the middle case and rapid transition
scenarios in the short to medium term. These energy demand scenarios
have implications for Hunting’s long-term strategy, as the products and
services, and overall revenue profile, are currently largely driven by oil
and gas demand and investment in the exploration and production of
hydrocarbons, notwithstanding the opportunities in non-oil and gas
markets as described below. The Board believes that the primary energy
mix to 2050 supports Hunting’s long-term focus on energy, underpinned
by the pivot to non-oil and gas sales in this time-scale (see opportunities
below). The split of revenue between oil and gas and non-oil and gas
sectors, the relevant metric for managing the risk, is disclosed in note 2
on page 176.
2. Technology
Risk rating:
Medium
Time frame:
Long term
Financial impact:
Revenue
Hunting’s products and services
are primarily targeted at the oil
and gas industry, given its
expertise and know-how of
this sector.
Should the pace of the energy
transition be more rapid than
what is currently projected,
certain of the Group’s product
lines and technologies will be
less adaptable to a lower carbon
world or could become obsolete.
The Directors believe that Hunting’s engineering excellence, particularly
within the Advanced Manufacturing product group, has the ability to
diversify the long-term revenue streams of the Group. As part of the
business unit level risk assessment, the adaptability to non-oil and gas
markets was explored. Most businesses across the Group believe that
revenues from new markets, using Hunting’s core competencies, will
enable a level of transition to occur and are, therefore, well placed to
develop non-oil and gas sales. In 2022, a global Energy Transition
sales group was formed to pursue carbon capture and geothermal
revenue. Since its formation, these activities have been integrated
into the Group’s broader commercial strategy and product offering.
While no material revenues from these markets have been disclosed
separately to date, Hunting continues to develop and market products
applicable to geothermal and carbon capture wells, consistent with
the Group’s long-term diversification and energy transition strategy.
International commentators believe that climate reduction commitments
are very challenging, given (a) the pace of global warming and (b) the
absence of technologies to assist in material carbon mitigation and
reduction. The Directors of Hunting believe that its strategic ambition to
assist its clients in making drilling operations safer and more efficient will
place Hunting in a valuable part of the energy transition, as brownfield
developments extract oil and gas more efficiently, reducing the need for
greenfield project developments.
Hunting’s current technology offering enables the efficient and safe
delivery of hydrocarbons. While there is a risk that certain products could
become obsolete in the long term, the Directors believe that a number of
its product lines are directly applicable to the energy transition and non-oil
and gas markets which provides a level of resilience to its long-range
revenue profile.
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Climate change risk analysis
Transitional risks
Hunting PLC
Annual Report and Accounts 2025
78
Strategic Report
Corporate Governance
Financial Statements
Other Information
Category
Description of risk
Management actions
Impact
3. Regulatory, legal and compliance
Risk rating:
Medium
Time frame:
Short to medium
term
Financial impact:
Expenditure,
capital and
financing
Regulatory and compliance
risk with respect to climate
has increased, including the
introduction of TCFD reporting
requirements and the demand
for long-term planning disclosures
to address climate change. The
Directors of Hunting believe that
regulatory and compliance costs
are likely to increase over time as
companies address carbon and
climate issues, which will likely
require additional human capital
to meet stakeholder expectations
as well as to develop and
implement Net Zero strategies.
As noted in the Risk Management section on pages 84 and 85,
the Directors believe that regulatory compliance with climate change
legislation could differ substantially given the various government
and political agendas where Hunting’s stakeholders are located.
Management is continuously monitoring regulatory and compliance
changes across its various jurisdictions.
International policies and legislation in respect of climate change and
climate action have increased at pace, examples of which include new
reporting procedures introduced into the UK for publicly listed companies
along with the encouragement for all businesses to commit to a Net Zero
ambition. Further to this, initiatives such as the UK’s Energy Savings
Opportunities Scheme, which requires energy audits of businesses to
identify carbon reduction measures, provide an indication of western
governments’ ambitions to achieve carbon containment.
It is likely that climate-related legislation will increase over time, which will
lead to higher compliance, legal, operational, and administrative costs to
keep pace with these new regulations.
Climate-related litigation is a further potential cost pressure, which may
materialise over time, as activism increases.
4. Reputation
Risk rating:
High
Time frame:
Short to long term
Financial impact:
Capital and
financing
Many stakeholders have become
more aware of climate change,
linking a Company’s response
to the climate debate to its
reputation.
Further, with the continued
focus on oil and gas, investors
in certain geographies will not
invest in a traditional energy
company, which may lead to
a lower market capitalisation.
The Directors believe that a proportionate response to climate change
planning is being implemented, which protects shareholders’ interests,
including earnings and capital returns. Over time, the Directors will
increase the disclosures in this area as longer term plans are agreed.
The Directors and the Board monitor the Company’s market
capitalisation against the value of its net assets, which provides
an indication of how various investors view Hunting’s response to
climate change.
Management is focused on close investor relationships and more
regular interactions, and further transparency on strategy.
Reputation risk is not easily quantified.
Hunting’s association with the oil and gas industry is believed to be high
risk in the long term with respect to investor and shareholder perceptions,
given the negative media attention on traditional primary energy sources.
Recent global shifts in positive sentiment around the oil and gas industry
support Hunting’s ongoing development and innovation in its core
products and markets, while continuing to diversify into products and
technology relevant to the energy transition.
The Directors believe that Hunting’s strong relationships with customers
and suppliers will support its ambition to play a key role in the energy
transition, which will contribute to the Board’s strategy of pivoting revenue
to more non-oil and gas sources. Further, the Directors believe that secure
energy sources from regions such as North America continue to play a
key role in global economic stability.
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Climate change risk analysis
continued
Transitional risks
continued
Hunting PLC
Annual Report and Accounts 2025
79
Strategic Report
Corporate Governance
Financial Statements
Other Information
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Category
Description of risk
Management actions
Impact
5. Assets
Risk rating:
Medium
Time frame:
Long term
Financial impact:
Revenue,
Assets and
liabilities
The global operating footprint of
the Group is potentially exposed
to the acute and chronic physical
risks of more volatile and severe
weather events due to climate
change.
These events have the ability to
damage the Group’s operating
facilities and property, plant and
equipment, thus impairing
Hunting’s ability to generate
revenue.
Additionally, in terms of
chronic physical risks, higher
temperatures are likely to
increase the requirement for
operational and office cooling,
but there will likely be a minor
reduction in requirement for
space heating in winter.
In December 2024, the Board and the Ethics and Sustainability
Committee reviewed an independent report from Willis Towers Watson
(“WTW”) that presented the Group’s physical risk profile with respect
to climate change and which presented analysis of Hunting’s operating
locations and their respective risk profiles against a variety of weather
events. The report also detailed a longer range risk analysis
incorporating a number of climate scenarios and how this could
potentially impact the Group’s operations. The graph on page 75
presents the Group’s facilities’ exposure to various severe weather
events based on the physical risk climate scenarios.
A significant proportion of the Group’s operating locations are situated
in regions exposed to tropical storm activity, reflecting the historical
development of its manufacturing footprint in regions exposed to
severe weather events (c.80%).
As part of ongoing measures to enhance operational resilience,
one of the Group’s primary North American data centres was
relocated from Houston to Austin in 2025, reducing exposure to
hurricane-related risks affecting critical IT infrastructure.
The Directors consider that the Group’s long-standing presence in
regions exposed to severe weather has resulted in well-established
procedures, infrastructure standards and response protocols,
supporting effective management of physical climate risks. This
assessment is informed by operational experience rather than
geographic risk segmentation.
The Group’s ability to manufacture products across multiple facilities
further supports operational resilience and has mitigated the risk of
revenue loss, with no material asset impacts from acute climate events
reported during 2025.
The Group’s physical risk assessment is summarised on page 75.
The analysis shows that a large percentage of Hunting’s facilities are
exposed to heat stress, drought, flood, and precipitation risks, which
can mean that in any one year, certain facilities may be offline for a short
period of time if a severe weather event occurs. The Directors note the
Group’s international footprint and believe that this does not have a
material impact on the Group’s ability to generate revenue.
Longer range physical and chronic risks, as summarised in the risk
assessment, show increases in the risk profile of certain weather events,
including drought and fire stress, and flooding.
The Group operates several specialist manufacturing facilities, including
those producing Electronics, Energetics, Subsea, and Perforating
Systems products. In the event of a severe weather incident affecting
one of these sites, restoration of full production could take several months.
However, as these facilities represent distinct product lines that contribute
only a modest proportion of Group profit before tax, the overall financial
impact on the Group is assessed as low risk.
The Directors consider that the Group’s diversified product portfolio and
broad geographic footprint, spanning North America and international
markets, provide significant mitigation against physical climate risks. This
diversity reduces the likelihood that any single weather-related event would
materially impact the Group’s overall operations or financial performance.
Climate change risk analysis
continued
Transitional risks
continued
Hunting PLC
Annual Report and Accounts 2025
80
Strategic Report
Corporate Governance
Financial Statements
Other Information
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Category
Description of risk
Management actions
Impact
6. Labour and expenses
Risk rating:
Medium
Timeframe:
Short to medium
term
Financial impact:
Expenditure
Historically, the oil and gas sector
has provided highly competitive
rates of pay and benefits and,
therefore, has always been an
attractive sector to work in.
However, with recent volatility
across the industry, along with
the global climate agenda, there
has been a change in perception
of the global oil and gas sector,
which may present a continuing
risk of attracting and retaining
skilled talent. The consequence
of this risk is that employee costs
may rise in the short- to medium-
term to ensure Hunting can
achieve its strategic objectives.
The Directors continued to monitor labour risk during 2025 through the
Remuneration and Ethics and Sustainability Committees to ensure
possible labour market issues in Hunting’s various regions of operation
are minimised.
Hunting’s products and services are delivered by a highly skilled
workforce comprising of engineers, machinists and professional services
staff. The competition for talent remains a principal risk to the Company
as noted on page 94, with employment costs likely to increase in the
long term, to attract and retain employees to the oil and gas industry.
Hunting’s employee costs are disclosed in note 7 on pages 179 and 180.
Energy costs represent a potential transition-related cost consideration
for the Group. Total electricity costs amounted to c.$5.9m in 2025
(2024 – c.$5.9m). While changes in the energy mix may influence
electricity pricing over time, this risk is mitigated through the Group’s
focus on operational efficiency and increased procurement of renewable
electricity where available.
It is expected that the impact will increase in each scenario, with the
largest impact expected in the rapid transition scenario.
7. Financial markets
Risk rating:
High
Timeframe:
Short to long term
Financial impact:
Capital and
financing
With the increased attention
climate change is being given by
financial markets, the standing of
energy-related companies has
come under increased scrutiny
in recent years. Many investors
who wish to invest in the oil and
gas sector look for evidence of
a Net Zero plan as part of their
investment screening. Energy
transition risk imputed by
shareholders, lenders and market
commentators has the potential
to impact funding support from
equity/debt financial institutions.
The Directors believe that investors and lenders will be more
demanding in respect of the provision of financing in the future.
However, this risk is partially mitigated by the Board’s Hunting 2030
Strategy and its ongoing access to equity capital markets.
The Group relies on equity and debt markets to fund its businesses.
These stakeholders are increasingly demanding strong ESG and
long-term sustainability credentials from companies, and in the
absence of this, are unlikely to fund businesses which do not give it
attention. The Group has access to a $200m borrowing facility until
2029. The Term loan, which was originally $100m and made up the
balance of the original $300m of facilities arranged in October 2024,
is now amortising and will be fully repaid by September 2027.
The Hunting 2030 Strategy includes initiatives to diversify revenue streams
to non-oil and gas sales – to mitigate capital and financing risk in the long
term.
Capital investment
– it is likely that new investment in facilities will occur
over time to align with the physical risk profile noted on page 75, which
will require funding. However, the Directors believe that Hunting’s diverse
operational footprint will in the short to medium term mitigate the majority
of operational risks as many sites are configured in similar ways,
minimising the requirement for access to debt in this regard.
Dividends
– the Directors note that shareholder distributions are a key
element to the Group’s investment case and will endeavour to support
this strategy in the long term. Capital allocations may change over time to
enable the Group to pivot to non-oil and gas revenue streams, which may
lead to lower distributions.
Acquisitions
– Hunting has a strategy to develop its non-oil and gas
revenue which, in part, will be funded by internally generated cash flows.
Climate change risk analysis
continued
Transitional risks
continued
Hunting PLC
Annual Report and Accounts 2025
81
Strategic Report
Corporate Governance
Financial Statements
Other Information
2050
1990
2000
2010
2020
2030
2040
300
500
450
400
350
250
200
150
100
50
0
60%
100%
90%
80%
70%
50%
40%
30%
20%
10%
0%
Exajoules
Projected fossil fuel demand: 2000–2050
Source: IEA – World Energy Outlook (2023)
Oil
Coal
Natural gas
Share of fossil fuels in Total Energy Supply (right axis)
P
o
w
e
r
G
e
n
e
r
a
t
i
o
n
N
a
v
a
l
A
v
i
a
t
i
o
n
S
p
a
c
e
M
e
d
i
c
a
l
G
e
o
t
h
e
r
m
a
l
a
n
d
C
a
r
bo
n
C
a
p
t
u
r
e
C
a
r
b
o
n
C
a
p
t
u
r
e
D
a
t
a
A
n
a
l
y
t
i
c
s
M
a
c
h
i
n
e
L
e
a
r
n
i
n
g
G
e
o
t
h
e
r
m
a
l
a
n
d
C
a
r
b
o
n
C
a
p
t
u
r
e
G
e
o
t
h
e
r
m
a
l
a
n
d
C
a
r
b
o
n
C
a
p
t
u
r
e
E
n
e
r
g
y
E
n
e
r
g
y
E
n
e
r
g
y
E
n
e
r
g
y
E
n
e
r
g
y
A
d
v
a
n
c
e
d
M
a
n
u
f
a
c
t
u
r
i
n
g
S
u
b
s
e
a
O
C
T
G
S
y
s
t
e
m
s
P
e
r
f
o
r
a
t
i
n
g
Core
Competencies
Systems Engineering
Bespoke Manufacturing
Metallurgy & materials expertise
Innovation
Premium service culture
Hunting’s core competencies – current and
target markets
Climate opportunities
Resource efficiency
The Group retains an ongoing lean
manufacturing programme that is aimed at
increasing productivity and reducing costs
of operation.
In 2025, the cost saving estimated by this
programme was $1.5m (2024 – $0.5m).
Key resource inputs for the Group include the
availability of power and water.
Energy source
The Group’s carbon emissions footprint is noted
on pages 85 and 86.
The Board believes that simple, but meaningful,
carbon reduction strategies will drive down the
Group’s emissions and include:
i.
Moving electricity contracts for Group facilities
to renewable-based energy arrangements;
ii.
Building a zero-emission vehicle fleet over time,
including heavy- and light-duty vehicles and
the provision of all-electric cars to relevant
staff;
iii.
Installation of solar panels on relevant facilities,
for a zero-emission base load energy feed; and
iv.
A tree and grass planting strategy at Group
facilities to offset residual carbon emissions.
Products and services
The Directors of Hunting have assessed the
opportunities that climate change presents to
the Group. These opportunities are considered
to exist in each scenario but would be expected
to accelerate and happen more swiftly in the
rapid transition and middle case scenarios.
i. Participation in non-oil and gas primary
energy development
An area of focus within the global energy
industry is geothermal energy development.
These projects present a long-term opportunity
for the Company to provide OCTG premium and
semi-premium connections and accessories to
operators. Hunting has industry-leading products
and expertise in this area and, therefore,
accessing these markets is believed to be
relatively low risk. The Group has analysed the
global market for geothermal energy and believes
that the Asia Pacific and North America regions
hold good opportunities to develop revenue in
this sector given the number of projects
announced over the past two years.
The Directors also note that a number of the
Group’s major customers have begun their
climate journey, with energy transition strategies
being announced. Hunting’s long-standing
relationship with key exploration and production
companies and international energy service
groups position the Group as a trusted partner
within the global energy supply chain. The Board
believes that Hunting can successfully leverage
its strong brand, technical expertise, and
reputation to remain a key contributor to the
evolving energy landscape and to support
customers in achieving their transition objectives.
ii. Participation in carbon capture and
storage projects
As noted in the Business Strategy and Model on
pages 6 to 27, a number of carbon capture and
storage projects are to be completed within the
2030 time frame, to offset carbon dioxide
build-up in the atmosphere.
These projects, which require carbon dioxide
re-injection into known oil and gas fields, or
greenfield developments, present a long-term
opportunity for the Company to provide OCTG,
premium and semi-premium connections and
accessories to operators.
The Group’s Energy Transition sales group is
exploring increased participation in this market.
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Hunting PLC
Annual Report and Accounts 2025
82
Strategic Report
Corporate Governance
Financial Statements
Other Information
High
Low
Low/Moderate
Moderate
Moderate/High
8
7
6
5
4
3
2
1
0
Level of Adaptability
Number of business units
Business unit resilience and adaptability
Source: Company
iii. Diversification into other non-oil and
gas sectors
The chart on the previous page illustrates
the Group’s key product groups and core
competencies and demonstrates that the
majority of Hunting’s businesses have expertise
to diversify into other growth sectors, such as
medical, space, aviation and naval. Hunting has
launched a medium-term strategy to materially
increase non-oil and gas sales by 2030, which
is supported by this analysis, and has taken
steps to drive new sales, particularly within the
Group’s Advanced Manufacturing group.
These opportunities are explained further as part
of the Hunting 2030 Strategy on pages 6 to 11.
Supply chain
Our commitment to the delivery of innovative,
high-quality, and reliable products is of material
importance to the achievement of our “total
customer satisfaction” goal, and this is reflected
in our Quality Policy and our Sustainability
Framework.
Hunting’s total commitment to quality is
shown through operational excellence, and a
comprehensive Quality Management System
(“QMS”) supported by strong management
oversight, which includes supply chain risk
management. The Group’s supply chain is
predominantly related to raw material supplies,
including the responsible resourcing of readily
available materials such as carbon steel, nickel,
and chrome-based specialist steel alloys,
which are used in the manufacture of Hunting’s
various products.
Traditionally, these materials constitute a
very low risk in terms of availability and price
changes. Over the past few years, due to
geopolitical and market factors, we have seen
significant supply chain disruptions, including
supply chain inflation and the extension of lead
times of critical components. This has resulted
in a surge in demand, price increases, and
uncertain availability.
Measuring and reducing carbon emissions
across the Company’s supply chain is intricate
and challenging, but Hunting’s role in this effort
is driven by products that deliver more efficient
drilling procedures. The Company is increasing
its efforts to communicate its carbon reduction
ambitions to its supplier base, through a Supplier
Code of Conduct, which was introduced in 2022.
A small number of our products contain
electronic components that may contain critical
materials as defined by the National Research
Council. These are a very small proportion of our
purchased materials and constitute a low risk to
the Company. However, for critical materials such
as tungsten, required for Hunting Titan’s charge
production, we carry out regular risk assessments
to identify potential supply chain risks. In addition,
all other identified critical raw materials and/or
components are regularly reviewed, forecasted
for sales, availability, and projected market pricing,
to create a purchase plan. At all times, Hunting
has existing mitigation plans in place should there
be a supply chain interruption. For example,
we maintain, and in some circumstances have
increased, a safe stock, or buffer stock, for
critical materials and components. We also have
a highly diverse range of approved suppliers in
place as part of our supply chain, for example
sourcing from Chinese to domestic US steel
mills. In some areas, we have expanded our
approved supplier list.
Adaption and mitigation
As noted above, the Group is pivoting revenue
to more non-oil and gas sources, including
the development of Energy Transition revenue
from geothermal, carbon capture and offshore
wind opportunities.
Investment in research and development for new
products and technologies is a strategic objective
to maintain market leadership in the Group’s
core markets.
In 2025, research and development expenditure
totalled $10.5m (2024 – $8.8m).
Acquisitions and divestments
As noted elsewhere, the Group’s ambition to
develop more non-oil and gas sales will be
achieved through targeted acquisitions and
an overall strategic expansion of the Group’s
portfolio. The Group continues to review and
monitor opportunities in this area.
Access to capital
The Group currently has access to $200m of
committed lending facilities. The Directors believe
that Hunting continues to have access to both
equity and debt markets, given the strength of
its position in the oil and gas sector, and wider
energy industry.
Disclosure (c) – climate resilience based
on a 1.5°C scenario
As part of the TCFD risk assessment process,
disclosures from each of the Group’s business
units were requested, which included details of
the resilience of its operations and business
model in a 1.5°C climate scenario by 2050. While
Hunting is currently focused on the oil and gas
sector, the Group retains diverse manufacturing
capabilities and participates in sectors as diverse
as aerospace, medical and space.
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Hunting PLC
Annual Report and Accounts 2025
83
Strategic Report
Corporate Governance
Financial Statements
Other Information
TCFD risk assessment chart
Policy and legal
Resource efficiency
Technology
Energy source
Market
Products/services
Reputation
Markets
Acute
Revenues
Resilience
Assets and liabilities
Balance
Sheet
Opportunities
Income
Statement
Risks
Strategic planning
Risk management
Financial impact
Statement of
Cash Flows
Chronic
Expenditures
Capital and financing
Source: TCFD – Recommendations of the Task Force on Climate-related Financial Disclosures – 2017
Transition risks
Physical risks
Opportunities
A key factor that determines the impact on the
Group is the adaptability of our businesses to
transition to different sectors. Until our plans are
further developed, we have taken a conservative
approach and have considered how adaptable
our businesses are with minimal capital
investment.
Furthermore, for some of our businesses,
the opportunities to adapt will depend on the
potential development of new markets such as
carbon capture and storage, the use of hydrogen
as an energy source together with the expansion
of the geothermal market and our ability to
compete in these areas. The majority of the
Group’s businesses report that they have a
moderate or higher level of adaptability if energy
markets change materially.
We have progressed scenario analysis in 2025
to allow us to further test the resilience of our
strategy against the three climate scenarios
identified above with reference to evaluating
transition risks and opportunities, one being a
1.5°C scenario. The scenario analysis leveraged
the Group’s extended forecast out to 2030 and is
extrapolated to the long-term using growth rates
and assumptions that are consistent with other
forward-looking financial statement elements. In
the analysis modelled, the Group is considered
resilient to climate-related scenarios.
senior leadership team and business leads
can respond in an appropriate manner.
Further information on climate change and
energy transition risk can be found on page 94
within Risk Management and Internal Controls.
The Group’s central compliance function rolls
out a specific climate-change risk assessment
process to be completed by each business unit
within the Group to enable an integrated risk
register to be assembled.
Disclosure (a) – climate risk identification
Each business unit undertakes a comprehensive
risk assessment twice annually. The outcomes
are consolidated into a Group-level risk register,
detailing identified risks and associated mitigating
controls. This register encompasses financial,
reputational, strategic, legal, insurance, and
operational risks relevant to the Company.
The Group’s Audit and Risk Committee reviews
the consolidated risk register twice a year as part
of its scheduled work programme. This review is
supported by input from the Group Finance
Director, Group Financial Controller, Group Risk
Manager, and the Internal Auditor, ensuring
robust oversight and governance of risk
management processes.
In 2022, the Group’s central compliance function
introduced a climate-specific risk questionnaire
across all businesses, capturing key information
on transition and physical risks associated with
climate change, as well as strategic opportunities
arising from the accelerating energy transition,
which asked for key information on transition
and physical risks related to climate change,
as well as strategic opportunities as the energy
transition accelerates.
Risk management
Hunting’s climate-related Risk Management
disclosures are detailed on page 76. As part
of Hunting’s TCFD reporting, Hunting’s central
compliance function prepares an annual
business unit climate risk assessment, which
assesses the short-, medium-, and long-term
risks and opportunities of climate change. The
assessment also gives a deeper consideration to
Hunting’s longer range risks, including revenue
and expenditure risks in addition to analysis of
major cash-generating units within the Group
with respect to the impact of climate change.
Given the Group’s focus on the changing oil and
gas industry and the scrutiny of climate change
by investors and lenders, the Directors’ view is
that climate change risk is a principal risk to the
Group and has been embedded into our Risk
Management processes to which the Group’s
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Hunting PLC
Annual Report and Accounts 2025
84
Strategic Report
Corporate Governance
Financial Statements
Other Information
In 2025, Hunting extended its bi-annual climate-
related risk assessment to all business units,
ensuring a comprehensive and integrated
perspective on climate risks and opportunities
across the Group.
To prioritise climate risk, in consideration of the
principal risks, climate questionnaires feed into
the Group-level risk matrix. As a result, climate
change and energy transition risk is included in
the principal annual risk list, with further Group-
level discussion around inter-dependencies to
understand how this risk impacts other
principal risks.
Disclosure (b) – climate risk management
Following the risk identification process,
management has been challenged to develop
processes and procedures to mitigate and
reduce its climate-related risks and impact. This
includes the reduction of the carbon footprint of
each business unit; management of the physical
risk profile of each business or facility, includes
dialogue with the Group’s insurers and other
business units to develop production synergies
for Hunting’s product portfolio; and the broader
efforts to decarbonise the Group’s supply chain,
whether that be to develop non-oil and gas sales
such as geothermal or carbon capture or to
make our activities more efficient or less
carbon intensive.
The central compliance function oversees the
Group’s annual insurance renewal for all of
Hunting’s businesses, working with specialists
from WTW and, in 2024, completed a second
physical climate risk assessment for Hunting’s
climate exposures which extends to 2100.
Disclosure (c) – integration of climate risk
identification and management
The climate-related governance processes
highlighted on page 76 have been introduced
to allow the Board to have direct oversight of the
risks, opportunities, and climate-related strategies
being considered by the Group’s management.
There is also direct access between the
Directors, Chief Executive and senior
management team to enable climate matters
to be challenged.
Further, the senior management team has
empowered each business unit leader to
address climate matters on a decentralised
basis, to enable regional considerations to be
integrated into the Group’s overall processes.
In addition, the Board has ensured that financially
orientated risks are reviewed by the Audit and
Risk Committee, with the broader strategic and
operational risks being reviewed by the Ethics
and Sustainability Committee to ensure broad-
based challenge is given to management and all
levels of the workforce in this important area.
Metrics and targets
Disclosure (a) – metrics
To ensure effective oversight of climate-related
risks and opportunities, the Group has
implemented a diverse range of metrics, as
presented in the accompanying table on
page 86.
Disclosure (b) – scope 1, 2 and 3 emissions
The Group currently collects scope 1, 2 and 3
GHG emissions data based on the Greenhouse
Gas Protocol, published by the World Resources
Institute.
For 2025, the Group has started to use an
external consultant to collect and analyse our
data. For the purposes of data for 2025, this has
been collected up to 30 September 2025 with
the final quarter of the year extrapolated. Next
year’s Annual Report will contain a restated data
for scope 1, 2 and 3 data.
Scope 1 emissions in 2025 were, therefore, 6,142
tonnes CO
2
e (2024 – 3,630 tonnes CO
2
e) and
scope 2 emissions were 17,064 tonnes CO
2
e
(2024 – 18,603 tonnes CO
2
e).
Hunting’s total scope 1 and 2 emissions have
been assessed to be 23,206 tonnes CO
2
e
(2024 – 22,233 tonnes CO
2
e).
Scope 1 and 2 emissions, when comparing 2025
outcomes to the prior year, have increased by 4%
as we were able to collect data on emissions
from air conditioning in 2025.
Scope 3 emissions have been assessed to be
451,688 tonnes CO
2
e (2024 – 534,835 tonnes
CO
2
e). The reduction year-on-year is due to the
lower level of purchased raw materials, primarily
OCTG. These emissions have been calculated
across 12 of the 15 scope 3 categories defined
under the Greenhouse Gas Protocol, comprising
purchased goods and services (product and
non-product), fuel and energy-related activities
(not included in scope 1 or 2), upstream and
downstream transportation and distribution,
waste generated in operations, and employee
commuting.
The remaining scope 3 categories were
assessed and determined not to be material to
the Group’s business profile and have, therefore,
been excluded from the current inventory.
Total scope 1, 2 and 3 emissions have been
assessed to be 474,894 tonnes (2024 – 557,068
tonnes.
Disclosure (c) – targets
In 2023, the Company announced new GHG
emissions targets, with the Group’s scope 1
and 2 emissions reduction now targeted at 50%
below the 2019 baseline year by 2030. This
equates to absolute scope 1 and 2 emissions
of 17,937 tonnes CO
2
e by 2030.
With 2025 scope 1 and 2 emissions of 23,206
tonnes CO
2
e, Hunting has reduced its emissions
by 35% since 2019 and needs to reduce its
emissions by a further 29% to meet its medium-
term target.
In March 2025, the Group published a new
carbon intensity factor target of less than
20kg/$k of revenue by 2030. In 2025, the
Group’s intensity factor was 22.8 (2024 – 21.2).
The Group has also set a non-oil and gas
revenue target of 25% by 2030. Due to the
growth in Hunting’s oil and gas revenue in the
2023-2025 period, the Group’s non-oil and
gas sales were 8% of total revenue or $82.9m
(2024 – $75.1m/7%). The Directors remain
committed to the medium-term goal of 25%.
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Hunting PLC
Annual Report and Accounts 2025
85
Strategic Report
Corporate Governance
Financial Statements
Other Information
Sector specific and cross-sector metrics and targets
Metric
Description of metrics/reason for adoption
2025
2024
Revenue – oil and gas:
$m
Hunting’s core markets are oil and gas related, therefore the long-term monitoring of this measure assists in the understanding of
the Group’s resilience.
935.9
973.8
Revenue – non-oil and gas:
$m
Hunting’s longer-term resilience can, in part, be monitored by the development of non-oil and gas sales as the Group seeks to
diversify its revenue streams.
82.9
75.1
Expenditure – total cost of electricity:
$m
The long-term cost of energy, including the purchasing of renewable energy, is a key metric to understanding the financial impact
of the energy transition.
5.9
5.9
Expenditure – insurance premiums:
£m
The cost of insurance, including product liability and property damage/business interruption cover, is a key metric in
understanding the Group’s financial and asset risk profile.
3.7
4.0
Expenditure – research and development:
$m
The long-term diversification to non-oil and gas revenue will require investment in new technology and will form part of the
Group’s research and development activities.
10.5
8.8
Assets and liabilities – capital expenditures:
$m
The investment in non-current assets provides an indication of the long-term viability of the Company’s investment case.
40.6
30.1
Scope 1 GHG emissions:
tonnes CO
2
e
Hunting’s scope 1 carbon footprint provides investors with data on the Group’s contribution to climate change.
6,142
3,630
Scope 2 GHG emissions:
tonnes CO
2
e
Hunting’s scope 2 carbon footprint provides investors with data on the Group’s contribution to climate change.
17,064
18,603
Scope 3 GHG emissions:
tonnes CO
2
e
Hunting’s scope 3 carbon footprint provides investors with data on the Group’s contribution to climate change.
451,688
534,835
Water consumption:
’000s cubic metres
Hunting’s water consumption provides investors with data on this impact on the planet.
93
90
Lean manufacturing savings:
$m
The Group’s drive for higher efficiencies in its operations provides an indication of its efforts to lower its environmental impact.
1.5
0.5
Carbon emissions offset cost:
€m
The cost of purchasing carbon credits (scope 1 and 2 emissions only) to become a Net Zero business.
2.0
1.7
Market capitalisation:
$m
The value of the Group’s equity provides an indication of the future value of the Group’s cash-generating assets.
789.6
597.6
Net asset value:
$m
The book value of the Group’s assets, compared to the Company’s market capitalisation, provides an indication of the future
value investors place on the Group’s assets.
885.3
902.3
Renewable electricity purchased:
GWh
The level of renewable energy purchased provides an indication of the Group’s drive to lower emissions.
12.6
10.6
Assets exposed to heat stress risk:
%
The proportion of assets exposed to heat stress risk provides an indication of the physical risk exposure of the Group.
79
79
Assets exposed to precipitation risk:
%
The proportion of assets exposed to precipitation risk provides an indication of the physical risk exposure of the Group.
71
71
Task Force on Climate-related Financial Disclosures (“TCFD”)
continued
Hunting PLC
Annual Report and Accounts 2025
86
Strategic Report
Corporate Governance
Financial Statements
Other Information
Risk Management and Internal Controls
Managing risks and
opportunities from
subsea to space
We operate in a complex global
environment, which is highly
regulated and demands high
specification products across a wide
product portfolio that meet stringent
quality criteria.
Hunting’s risk management and
internal control processes are
designed to appropriately mitigate
risks inherent in this sector while
allowing the Group to deliver its
strategic objectives and sustainable
shareholder value.
Effective management of risks is
essential to achieving the Group’s
strategic objectives and
safeguarding long-term value.
Risk framework
Risk
governance
Read more
on page
88
Risk
management
framework
• COSO
alignment
• Our risk
universe
• Our risk
appetite
Read more
on page 89
Risk
approach
• Identification
Read more
on pages
89 and 90
Business model
Read more on pages
14 to 27
Business strategy
Material
controls
Read more
on pages
96 and 97
Lines of
defence
and
assurance
Read more
on pages
97 and 98
Principal
risks
Read more
on pages 89 to 95
Financial
Non financial
IT
ESG
Principle risks
Growth
Read more on page
7
Strong returns
Read more on page
8
Operational excellence
Read more on page
9
ESG and sustainability
Read more on page
10
Control
environment
Read more
on page 96
Hunting PLC
Annual Report and Accounts 2025
87
Strategic Report
Corporate Governance
Financial Statements
Other Information
Risk Management and Internal Controls
continued
Risk Governance
Board
The Board has overall responsibility for
determining the nature and extent of the risks the
Group is willing to take and ensuring that risks
are managed effectively across the Group.
Risk is considered regularly at Board and
Committee meetings and reviewed (including
emerging risks) within business planning and
the annual strategy review. The Board delegates
oversight of certain risk activities to the Audit and
Risk Committee.
In preparation for the introduction of Provision 29
of the UK Corporate Governance Code, which
takes effect for the 2026 year‑end, the Board
will monitor and review the effectiveness of the
Group’s risk management and internal control
framework. The Board will, when next reporting,
make a declaration on material controls (financial,
operational, reporting, and legal and compliance)
were effective at the 2026 year‑end balance
sheet date and will outline any actions required
where controls did not operate as intended.
Audit and Risk Committee
The Committee regularly receives reports on
internal controls, monitors key risks identified
by risk assessment processes, and ensures
appropriate actions follow risk and control findings.
It reviews and evaluates the effectiveness of the
Group’s risk and internal control framework,
supported by insights from the Ethics and
Sustainability Committee, Internal Controls
Committee and the Remuneration Committee.
The Committee reports any findings to the Board
twice a year.
Ethics and Sustainability Committee
The Ethics and Sustainability Committee
oversees the Group’s approach to climate
resilience, transition planning, and workplace
environment, including quality and health and
safety. Its remit includes ensuring alignment
with the Task Force on Climate‑related Financial
Disclosures (“TCFD”) framework and monitoring
developments under the International
Sustainability Standards Board (“ISSB”), including
IFRS S1 and S2. The Committee also tracks
emerging Sustainability Reporting Standards
(“SRS”) and anticipated changes in environmental
legislation and regulation to maintain compliance
and strengthen governance.
This proactive approach ensures that climate‑
related risks, opportunities, and disclosures are
integrated into strategy and reporting, supporting
transparency and resilience.
Remuneration Committee
The Remuneration Committee ensures that
risk management and the Company’s risk culture
are integral considerations in determining the
Directors’ Remuneration Policy and annual
compensation outcomes. Behavioural risks
from target‑based incentives are identified and
mitigated, and Risk Appetite considerations
are embedded to align incentives with prudent
risk taking.
Approach
Hunting’s approach prioritises early identification
of material risks; proactive mitigation as required,
given the Company’s risk appetite, before they
occur; and effective response if they crystallise.
Reporting is structured to escalate key issues
through management to the Board, ensuring
timely oversight. Risks are monitored regularly,
associated action plans are reviewed, and
information is captured through established
management control procedures.
In line with the UK Corporate Governance Code,
the Board reviewed the effectiveness of the
Group’s risk management and internal controls,
including material financial, operational, reporting,
legal and compliance controls. Confirming that
the system of internal controls were in place
throughout 2025 and to the date of this report.
As with any system, controls provide reasonable,
not absolute, assurance.
Process
Responsibility for risk identification, analysis,
evaluation and mitigation rests with business
unit management, supported by the Group Risk
function, acting as a challenger to ensure robust
governance. Hunting operates a decentralised
risk management philosophy where local teams
manage market specific risks, complemented
by Group‑level rigorous pressure testing of
risk assessments and mitigation strategies.
This approach is complemented by Group‑level
oversight through the Audit and Risk Committee,
which reviews principal and emerging risks
bi‑annually. This supports compliance with the
UK Corporate Governance Code, reinforcing
robust controls and governance while enabling
Hunting to pursue opportunities in a dynamic
external environment.
Reporting on our risks
Principal risks identified at Group and segment
levels are consolidated into the Group Risk Register.
The Audit and Risk Committee challenges principal
risks and mitigations twice a year. Top business
risks are reported bi‑annually to the Executive
Committee aligning bottom up and top down
perspectives. Each risk has an executive owner
supported by local management.
Managing our risks – internal controls
The Board conducts an annual review of the
effectiveness of the Group’s risk management
and internal control framework.
Each operational segment, supported by
the Group’s Risk Manager, maintains detailed
risk registers that capture key risks, their
characteristics, and mitigation strategies.
Ownership and accountability are embedded:
every risk is assigned both an operational
segment and an executive owner. Registers are
refreshed twice yearly to identify and incorporate
emerging risks, such as cyber threats and
regulatory changes, and inform the Group’s
most significant risks reported to the Executive
Committee and the Board. This process
underpins the Board’s principal risk assessment
and provides assurance over the robustness of
the control environment.
Each business unit operates robust systems
of controls and processes aligned with the
Group Manual and local regulatory requirements.
Strategic plans, annual budgets, and long‑term
viability projections are presented to the Board,
forming the basis for performance monitoring
and supporting the Viability Statement, which
considers both principal and emerging risks.
During the year, an Internal Controls Committee,
a sub‑committee that reports directly to the
Executive Committee was established to
strengthen oversight by:
• Reviewing significant changes to the Group
Manual and Delegation of Authority;
• Assessing reports on the effectiveness of
material controls;
• Monitoring remedial actions in response to
identified control deficiencies; and
• Reviewing risk and fraud‑related reports and
their impact on the control environment.
The organisation has robust governance
arrangements in place, with the Executive
Committee and the Audit and Risk Committee
overseeing the timely remediation of any
control findings.
Hunting PLC
Annual Report and Accounts 2025
88
Strategic Report
Corporate Governance
Financial Statements
Other Information
Risk management framework
(“RMF”)
The RMF defines our end‑to‑end process to
identify, prioritise, respond to and monitor
significant risks and themes. Culture and
leadership are central, with tone from the top
reinforcing shared values. Capability is
strengthened via targeted training (e.g. cyber
security) and control awareness. The risk
management and internal controls framework
is illustrated in the diagram on page 98.
Strengthening our risk management
framework in 2025
We focused on continuous improvements,
dynamic data collection, and improved
communication to enhance business and
strategic value, through the following:
• Introduced the Risk Universe across the Group
and businesses; established baseline Risk
Registers for five operating segments and
Group functions for consistent assessment.
• Implemented Governance Risk and
Compliance software (AuditBoard) to align
risks, mitigations and controls.
• Completed a Group‑level risk assessment
integrating strategic and operational risks,
both principal and emerging.
• Re‑worded and standardised risk‑scoring
criteria to improve clarity, contextual alignment,
and across the Group consistency in
assessment and reporting.
• Established the Internal Controls Committee,
a committee that reports directly to the
Executive Committee.
Enterprise risk management (“ERM”)
and COSO alignment
Hunting’s risk management framework is
designed to incorporate the principles of the
Committee of Sponsoring Organisations of
the Treadway Commission (“COSO”) ERM
framework.
This approach ensures that risk management
is embedded across the organisation and
integrated with strategy‑setting and performance
management. COSO’s core components:
governance and culture; strategy and objective‑
setting; performance; review and revision; and
information, communication and reporting, are
reflected in Hunting’s processes, enabling a
structured and proactive approach to identifying,
assessing, and mitigating risks.
The Board sets the tone from the top, defining
risk appetite and overseeing the effectiveness of
internal controls.
Risk universe
In 2025, Hunting introduced a formal Risk
Universe, capturing the full spectrum of risks
across strategic, operational, financial, legal
and compliance categories. This initiative
standardises risk assessment across all
segments, ensuring comparability and
transparency.
Baseline risk registers have been implemented
at both Group and operating segment levels,
forming the foundation for the consolidated
Group Risk Register. Principal risks, those that
could threaten Hunting’s business model, future
performance, solvency, liquidity, or reputation,
are identified through a combination of bottom‑
up and top‑down assessments and are reviewed
regularly by the Board.
Emerging risks, such as AI‑related cyber threats,
regulatory uncertainty, and energy transition
challenges, are monitored through structured
horizon scanning and incorporated into bi‑annual
risk assessments.
Risk appetite and tolerance
Risk appetite defines the level of risk Hunting
is willing to accept in pursuit of its strategic
objectives, while risk tolerance sets the
boundaries for operational decision‑making.
Hunting’s appetite varies by risk category:
• Strategic risks (e.g., market consolidation,
commodity price volatility): Moderate to High,
reflecting the need to pursue growth while
maintaining resilience.
• Operational risks (e.g. health and safety,
product quality): Low, consistent with Hunting’s
commitment to zero incidents and
uncompromising quality standards.
• Legal and compliance risks: Very low, given
the potential reputational and regulatory
consequences.
• Cyber security and IT risks: Very low,
supported by robust controls and continuous
investment in security measures.
• Financial: Low, maintaining a prudent financial
strategy ensuring stability and sustainable
growth.
Monitoring and linkage
Appetite statements are reviewed annually by
the Board; and breaches and near misses are
reported to the Executive Committee and the
Audit and Risk Committee. Incentive design
incorporates risk considerations to align
behaviour with appetite.
Principal risks
The extent of Hunting’s exposure to each
principal risk evolves over time, with movements
in risk ratings driven by changes in external
factors and by the effectiveness of the Group’s
internal control environment in mitigating these
risks. The Group’s principal risks, which are
set out in the following pages, are presented
individually; however, the Board recognises the
interdependencies between them, as internal and
external events frequently influence multiple risks
simultaneously. These interconnections, along
with a detailed overview of each risk, including
the controls in place, the actions taken during
the year, and the reasons for any changes, inform
the Board’s overall assessment of risk impact
on the Group.
Principal and emerging risks
The Board carried out an assessment of principal
and emerging risks, those that could threaten our
strategy, business model, future performance,
solvency, liquidity or reputation, based on
likelihood, impact and timescale. A detailed
description of principal risks, impacts and
mitigations strategies is provided on pages
91 to 95.
Principal risks and stress testing outcomes
inform the Board’s Viability Statement, including
the assessment horizon and assumptions
consistent with FRC guidance.
Climate‑related transition and physical risks are
evaluated under the TCFD framework across
the governance, strategy, risk management,
and metrics and targets pillars. We continue
to monitor the UK‑endorsed ISSB standards
(IFRS S1 and S2) to understand implications
for future adoption and assurance.
Risk Management and Internal Controls
continued
Hunting PLC
Annual Report and Accounts 2025
89
Strategic Report
Corporate Governance
Financial Statements
Other Information
Low
Movement in risks (post-control) during the year
Emerging risks are identified through bi‑annual
risk assessments and structured processes,
including horizon scanning, industry analysis,
and stakeholder engagement. Management
also monitors external commentary, regulatory
trends, and insights from insurers and advisers.
Shareholder activism has also been recognised
as a potential threat to the business model,
reflecting the increasing influence of investor
expectations on governance, strategy, and
capital allocation.
Current emerging risks include:
Artificial intelligence (AI):
potential privacy
and cyber risks, alongside opportunities for
operational efficiency.
Regulatory and legal uncertainty:
driven by
global political shifts, increasing compliance
costs, and evolving governance requirements.
Change management risks:
associated
with acquisitions and joint ventures, including
regulatory and cultural integration challenges,
as well as succession planning and potential
workforce impacts from reduction‑in‑force
(“RIF”) activities.
Energy transition:
impact on product
demand and supply chains including TCFD
and ISSB alignment.
Likelihood
Likelihood
Impact
Low
Low
High
High
Current status
Prior year status
1
Increased competition and market consolidation
2
Geopolitical instability
3
Adverse movement in commodity prices
4
Information technology and cyber security
5
Our ability to achieve our strategic goals
6
Legal and compliance
7
Loss of key executives or staff and shortage of key staff
8
Climate change and energy transition
9
Product quality and reliability
10
Work environment issues including health and safety
Post-control status
Pre-control status
Effectiveness of internal controls
Impact
High
Low
High
Risk Management and Internal Controls
continued
Hunting PLC
Annual Report and Accounts 2025
90
Strategic Report
Corporate Governance
Financial Statements
Other Information
9
10
1
2
3
4
4
8
7
6
2
5
7
9
2
3
1
10
4
8
6
5
7
1-8
9
10
1
Increased competition
and market consolidation
Risk category
Strategic
Change from last year
Link to strategy
Growth
Strong
returns
2
Geopolitical instability
Risk category
Operational
Change from last year
Link to strategy
Growth
Strong
returns
Risk description
The market for goods and services to oil and gas
drilling companies remains highly competitive,
with aggressive pricing strategies and ongoing
consolidation placing pressure across our
products groups and operating segments.
Some competitors also act as customers or
suppliers for other products, increasing
complexity and potential impact.
Intense competition for raw materials and
components continues to challenge supply
chain resilience, as securing materials and
labour remains difficult amid global constraints
and market tightness.
Rapid technological and process advancements,
including AI‑driven efficiencies, require continuous
innovation to avoid revenue and market share
erosion. Ongoing industry consolidation also has
the potential to impact our operations and
financial results.
Key mitigations
The Group continually assesses merger
and acquisition opportunities and invests in
research and development to drive technological
advancement and maintain a strong, evolving
product portfolio. Our commitment to high‑
quality standards helps mitigate pricing
pressure, while strong customer relationships,
an expanded offering and strategic alliances
support competitiveness and long‑term growth.
Management continues to strengthen supply
chain resilience and has implemented structured
training programmes to enhance new machinist
proficiency and improve operational efficiency.
Key changes during 2025
The Group continues to widen its product
offering through organic and inorganic
investments. In the year, we acquired the FES
and OOR businesses to broaden our product
offering through the investment cycle of a
producing well, as detailed within the Chief
Executive’s Report on pages 28 to 31.
Hunting’s operations continue to be established
close to their end‑markets, which traditionally
enables the Group to offer reduced lead‑times
and a focused product range appropriate to each
region. In the year we opened a larger facility in
Dubai, UAE, to drive new business opportunities
through the Middle East, while also transferring
well testing and well intervention manufacturing
capabilities to be closer to our end‑customers.
Amid supply chain constraints and a tight labour
market, management continues to work closely
with customers to encourage earlier order
placement and to agree longer lead‑times
where necessary.
Risk description
Global uncertainty persists, driven by geopolitical
tensions, political fragmentation and shifting
power dynamics. Escalating trade and
technology disputes, broadening sanctions and
increased tariffs continue to disrupt global supply
chains and drive input‑cost volatility.
As drilling activity shifts geographically, Hunting’s
products and services must remain aligned with
where drilling companies choose to operate. The
Group focuses on establishing local operations in
strategic, stable conditions while avoiding highly
volatile environments. Geographic diversification
supported by growth initiatives in high potential
regions such as India remains central to the
Group’s long‑term strategy. All market entry and
expansion decisions undergo rigorous economic,
regulatory and geopolitical risk evaluation.
The Board anticipates geopolitical and trade
volatility will persist into 2026 amid evolving
sanctions, regional conflict and shifts in industrial
policy. Monitoring and escalation processes have
been strengthened to enable timely responses to
emerging risks.
Key mitigations
The Board and management actively monitor
geopolitical developments, sanctions regimes
and trade measures to support timely operational
decision‑making and protect supply continuity.
Robust sanctions‑compliance procedures are
maintained to prevent engagement with high‑risk
jurisdictions, entities or counterparties.
Macroeconomic and energy market indicators
are regularly assessed to align capacity with
regional demand. Ongoing supply chain
diversification initiatives, including through the
Group’s joint venture, Jindal Hunting Energy
Services Limited, continue to reduce reliance
on Chinese mills for export business.
Disciplined geographic expansion supports a
balanced and resilient global footprint. Further
details of the Group’s geographic exposure are
provided on pages 32 to 47.
Key changes during 2025
Geopolitical developments remained a defining
feature of the operating environment during 2025,
contributing to oil price volatility, supply chain
disruption and shifts in political alignment. The
introduction of the US “Liberation Day” tariff
measures in April 2025 triggered rapid trade
realignments, increasing exposure to retaliatory
actions, cost inflation and cross‑border supply
chain reconfiguration. Measures targeting Iran’s
oil export networks further increased volatility
across global energy markets.
Geopolitical risks have also risen since the start
of 2026, in respect to Venezuela, Greenland and
Iran, which has also impacted commodity prices.
Risk Management and Internal Controls
continued
Hunting PLC
Annual Report and Accounts 2025
91
Strategic Report
Corporate Governance
Financial Statements
Other Information
Risk description
Hunting remains exposed to fluctuations in oil
and gas prices, which continue to be a primary
driver of demand for the Group’s products and
services. Ongoing volatility in both energy and
raw material prices presents sustained risks
across our global operations.
Oil and gas exploration companies may scale
back or suspend operations if prices fall below
economic thresholds directly impacting Hunting’s
order volumes.
Recent trends, including moderating global
demand growth and increased production from
non‑OPEC+ countries, have intensified pricing
pressure. This contributed to OPEC+ unwinding
production cuts during the year, leading to lower
oil prices and reduced sector investment.
Adverse commodity price movements also
heighten shale‑drilling exposure and influence
investment decisions across the wider energy
industry.
Key mitigations
As outlined at the 2023 Capital Markets Day,
the Group has signalled its intention to pivot
towards offshore/subsea and non‑oil and gas
end‑markets. The subsea segment of the
industry is longer cycle and is less sensitive to
swings in the oil and gas price, as projects can
be multi‑decade investments.
More broadly, the Group also targets product
portfolio spanning the entire wellbore life cycle
ensuring demands across multiple phases of
drilling and completion. To anticipate changes
in activity levels, the Board and management
closely monitor market reports on current and
forecast activity associated with each phase of
the wellbore life cycle.
The Group’s strategic, but measured,
diversification into non‑oil and gas markets,
including geothermal and carbon capture,
helps reduce exposure to sector‑specific risks.
In addition, there is ongoing investment
in automation, robotics and advanced
manufacturing technologies support cost
efficiencies and mitigating margin pressure.
Key changes during 2025
Commodity price volatility remained elevated
throughout 2025, driven by geopolitical
uncertainty, supply‑demand imbalances,
and macroeconomic pressures.
Oil price forecasts and geopolitical uncertainty
continue to exert significant influence on Hunting’s
operations, share price, and the wider industry.
As a result, this risk continues to be considered
top priority and remains subject to close
monitoring by the Board and management with
diversification and cost‑control initiatives forming
a central part of the Group’s strategic response.
3
Adverse movement
in commodity prices
Risk category
Strategic
Change from last year
Link to strategy
Growth
Strong
returns
Risk description
Hunting’s operations depend on secure and
resilient IT systems, making cyber security a
critical priority. Risks range from high‑impact
cyber attacks, data breaches, network and
server outage to the emerging risks, challenges
and opportunities presented by AI.
Due to the ever‑present and increasing
sophistication risk of cyber attacks, combined
with Hunting’s global footprint and, acquisition
activity, IT and cyber security continues to elevate
this risk.
Through increased IT system consolidation,
enhanced disaster recovery procedures, ongoing
business analysis, cyber awareness training,
regular monitoring, content filtering, domain
name system (“DNS”) security solutions, and
improvements in communication, risk mitigation
has grown significantly over the past several
years and most components of the risk have
lowered net risk likelihoods although cyber attack
risk continues to remain high.
Key mitigations
Risks associated with cyber security range from
loss of control of financial data, reputational
damage and lost client and supplier trust, and
financial loss.
Hunting takes a proactive approach to cyber
security through initiatives such as the annual
Cyber Security Summit and tabletop exercises
to strengthen crisis response.
Key mitigating actions include the introduction
of an AI policy, regular monitoring, strengthened
access management, back‑ups and offsite
servers and disaster recovery procedures
including security awareness training, secure
mail gateway, content filtering, and DNS security
solutions. The ongoing efforts have led Hunting
to align more strongly with industry benchmarks
through working partnerships with top‑tier
industry specialists.
Key changes during 2025
Cyber security risk remained heightened
throughout 2025, driven by the growing
sophistication of AI‑enabled attacks and external
threat factors. In response, Hunting strengthened
its mitigation efforts with a focus on human
behaviour, addressing negligence and error
through enhanced training and phishing
simulations.
Cyber security training continues to evolve,
supported by phishing simulation campaigns
and the introduction of AI‑focused training. With
enhanced leadership engagement and a clear
tone from the top on IT risk, the Group’s cyber
risk culture and overall awareness is steadily
improving.
4
Information technology
and cyber security
Risk category
Operational
Change from last year
Link to strategy
Operational
excellence
Risk Management and Internal Controls
continued
Hunting PLC
Annual Report and Accounts 2025
92
Strategic Report
Corporate Governance
Financial Statements
Other Information
Risk description
Hunting’s ability to deliver its strategic goals relies
on effective execution in the face of both internal
and external challenges. These factors present
not only risks but also meaningful opportunities.
The Group set out a clear strategy and long‑term
growth ambitions to investors at its Capital
Markets Day in 2023, and successful delivery
now depends on executing those plans,
including meeting financial targets for profitability
and cash generation.
With public targets, strategy execution is closely
linked with share price and not meeting financial
targets communicated to shareholders could
impact investor confidence. Despite the risk
score remaining in line with the prior year, this risk
has been escalated due to its significance and
the inclusion of key sub‑risks, notably merger
and acquisition, R&D and execution risk.
Internal and external risks could cause Hunting to
miss financial and acquisition targets previously
communicated to shareholders. This could
impact investor confidence and, therefore,
impact the Hunting share price. Additionally,
Hunting has a range of external stakeholders and
shareholders, whose interests and definitions of
success vary. There is a risk that our definition of
success is not aligned to the changing external
perspective.
Key mitigations
Hunting’s Capital Markets Day enabled the
sharing of strategy and long‑term goals to inform
the market. Increased focus on continuously
developing investor and analyst relations further
influenced the ongoing collection of market
intelligence to enable Hunting to address any
change in shareholder expectations more
quickly.
Key changes during 2025
Hunting achieved several strategic milestones
during the year, support by stronger operational
performance across the OCTG and Perforating
Systems product groups.
The acquisition of the FES and OOR businesses,
strengthened our technology and subsea
capabilities. These acquisitions support our
strategic goals, broaden our market reach,
and accelerate progress toward key targets.
Strong cash generation in the year led to
improvements in free cash flow and a positive
total cash position, which contribute to
considerable balance sheet strength.
A continued priority is maintaining a sharper
focus on monitoring both the internal and
external environment, together with evolving
stakeholder expectations.
5
Our ability to achieve
our strategic goals
Risk category
Strategic
Change from last year
Link to strategy
Growth
Strong
returns
Operational
excellence
ESG and
sustainability
Risk description
Hunting operates across multiple jurisdictions
with complex and evolving regulatory
frameworks, creating an ongoing risk of
non‑compliance. This risk remains significant
due to factors such as acquisition activity, entry
into new markets, and rapid changes in global
compliance requirements.
External drivers include increased tax and
labour regulations, heightened climate‑related
requirements, and changing international
standards such as TCFD and ISSB reporting.
Emerging risks encompass fragmented global
data governance frameworks, mandatory cyber
security disclosure requirements and increasing
regulatory scrutiny on ESG practices.
Climate regulation continues to vary significantly
across jurisdictions, influencing shareholder
expectations, particularly between the US
and the UK. Hunting maintains a comprehensive
legal and compliance framework to manage
regulatory, contractual, and tax‑related risks
across global operations. Continuous
monitoring and increased internal resources
have strengthened our ability to track evolving
regulatory requirements and maintain compliance.
Key mitigations
Hunting utilises a third‑party Supply Chain
Code of Conduct to define our principles and
compliance expectations for all suppliers.
At the same time, we issued a revised Group
Manual to strengthen governance and ensure
consistent application of policies across all
operations.
Key changes during 2025
Some components of legal and compliance risk
increased owing to a combination of internal and
external factors. The Group remains focused on
strengthening its mitigation measures, including
enhanced management of tax and compliance
matters in a rapidly evolving global environment.
Greater emphasis has been placed on contract
standardisation and rigorous contractual due
diligence, particularly when entering new
markets. Processes have also been improved for
acquisitions, joint ventures, and other non‑routine
business activities, ensuring that legal, regulatory,
and compliance considerations are embedded
early and consistently. To support these efforts,
additional training for relevant stakeholders has
been introduced and continues to be rolled out.
6
Legal and compliance risk
Risk category
Legal and compliance
Change from last year
Link to strategy
Operational
excellence
ESG and
sustainability
Risk Management and Internal Controls
continued
Hunting PLC
Annual Report and Accounts 2025
93
Strategic Report
Corporate Governance
Financial Statements
Other Information
Risk description
The Group relies heavily on the continued service
of key executives and senior management,
whose commercial, engineering, technical,
and financial expertise is critical to our success.
Robust succession planning for these roles is
essential to maintain continuity of effective
leadership.
Similarly, skilled labour, particularly machinists,
is vital to our operations. Shortages could
compromise product quality in the short term.
Global competition for skilled labour remains
intense across the industry; however, Hunting
benefits from above‑average retention rates and
tenure, which help reduce this risk, supported by
targeted recruitment, training programmes and
leadership development initiatives.
Details of executive Director remuneration are
provided in the Remuneration Committee Report
on pages 127 to 143.
Key mitigations
Hunting actively manages talent risk through
robust succession planning and competitive
remuneration practices. Executive and senior
leadership roles are supported by documented
succession plans, engagement with executive
search consultants, and coaching for internal
successors.
Remuneration packages are regularly reviewed
to align with market benchmarks and include
healthcare, pension arrangements, and
long‑term incentive plans. External consultants
provide guidance on best practices, while new
pension arrangements and enhanced benefits
have been introduced in key regions.
Executive management and leadership
development programmes have been
implemented across the US and are being
expanded globally to strengthen internal talent
pipelines. Technical training, professional
development pathways and upskilling initiatives
continue to be rolled out to support capability
building across all levels of the organisation.
Key changes during 2025
Retention and development of senior
management remain key priorities across
the Group.
Recruitment of machinists and operators is
also essential, to meet evolving technical
requirements, while global shortages of skilled
labour continued to present challenges.
To address these challenges, Hunting
enhanced succession planning and leadership
development programmes across all regions.
These initiatives were strengthened following
recent restructuring activities and are designed
to support growth targets, talent retention,
and long‑term organisational resilience.
7
Loss of key executives or staff
and shortage of key staff
Risk category
Strategic
Change from last year
Link to strategy
Growth
Operational
excellence
ESG and
sustainability
8
Climate change
and energy transition
Risk category
Strategic
Change from last year
Link to strategy
Growth
Strong
returns
ESG and
sustainability
Risk description
Failure to adapt to climate change and the energy
transition, or to mitigate Hunting’s environmental
impact, could significantly damage the Group’s
reputation and lead to financial and strategic
challenges, including access to capital.
Hunting’s exposure to climate‑related risk is
driven by long‑term revenue risk arising from
the global shift away from oil and gas, in addition
to regulatory requirements and reputational
considerations. These risks include increasingly
stringent climate disclosure obligations, investor
scrutiny, and funding constraints as financial
institutions reduce lending to oil and gas
businesses. Physical risks have also intensified,
with extreme weather events causing operational
disruptions, including IT network outages and
periodic flooding which has stopped employees
from getting to work.
Financial and reputational pressures continue to
grow due to heightened stakeholder scrutiny of
climate‑mitigation efforts.
Funding risk is increasing as the sector faces
reduced access to borrowing, and legal and
compliance risk is rising as governments
introduce more ambitious climate targets and
reporting standards such as TCFD and ISSB.
The Group’s environmental, climate and TCFD
disclosures are provided on pages 25, 64 to 68,
and 74 to 86.
Key mitigations
The Group takes its environmental commitments
seriously and has implemented a range of
measures to manage climate‑related risks and
support the energy transition. An ESG Steering
Group oversees sustainability initiatives and
monitors evolving disclosure requirements,
including TCFD and related standards.
In 2025, the Group expanded scope 3 data
collection, with all operating segments now
reporting scope 1, 2 and 3 emissions. To
proactively identify and manage potential
climate‑related risks, an annual climate‑risk
assessment is conducted across all operating
segment to evaluate long‑term exposure under
multiple scenarios.
Key changes during 2025
The Hunting 2030 Strategy underpins long‑term
environmental objectives, complemented by
marketing and operational plans that integrate
climate considerations into business decisions.
This includes long‑term investment in geothermal
and carbon capture opportunities.
To strengthen alignment between risk
management and climate risk, climate‑risk
assessments have been enhanced,
questionnaire quality improved, and
climate‑related risks more effectively
embedded into both Group‑level and
operating segment risk registers.
Risk Management and Internal Controls
continued
Hunting PLC
Annual Report and Accounts 2025
94
Strategic Report
Corporate Governance
Financial Statements
Other Information
Risk description
Due to the broad nature of Hunting’s activities
and the jurisdictions in which the Group
operates, exposure to Health, Safety, and
Environmental (“HSE”) risks remain significant.
The Group’s exposure to risk, therefore, includes
the potential for the occurrence of a reportable
incident, the financial risk of a breach of
HSE regulations, and the risk of unexpected
compliance expenditure whenever a law or
regulation is renewed or enhanced.
Key mitigations
The Board is committed to achieving zero
incidents and full compliance with all applicable
laws and regulations in every jurisdiction where
the Group operates. Each facility is overseen
by a dedicated Health and Safety Officer
responsible for ensuring adherence to current
and newly issued HSE compliance standards.
Local management places particular emphasis
on training new employees in Hunting’s stringent
safety procedures to maintain a strong
safety culture.
The Board receives a comprehensive Group HSE
compliance report at every meeting, ensuring
continuous oversight and accountability.
The Group’s Health and Safety performance is
detailed on pages 61 and 62.
Key changes during 2025
The Group recorded a HSE total recordable
incident rate of 0.75 in the year. This particular
risk pertaining to HSE incidents, remains relatively
low, post‑control review.
During the year, the Group regretfully recorded
a fatality involving a contractor, the first such
incident in many decades. The Board oversaw a
comprehensive root cause analysis, conducted
by the Global Director of QAHSE, and
management implemented remedial actions
immediately to strengthen safety controls and
prevent recurrence. The Board received detailed
reports and assurance that all identified risks
were addressed, reaffirming our commitment
to the highest standards of health and safety.
Health and safety performance is monitored
closely, with reports presented to the Board
quarterly and in‑depth reviews conducted by
the Ethics and Sustainability Committee twice
a year.
10
Work environment issues,
including health and safety
Risk category
Operational
Change from last year
Link to strategy
Operational
excellence
ESG and
sustainability
Risk description
The Group has an established reputation for
producing high‑quality products across many
specialist and niche environments. A failure of
any one of these products could adversely
impact the Group’s reputation and demand
for the Group’s entire range of products
and services.
The risk of not developing or innovating products
or differentiating existing products could have
an adverse effect on our ability to respond to
customers’ needs, which could result in a loss of
customers and/or our competitors developing
competitive products, adversely affecting our
future success and profitability.
Key mitigations
Hunting enforces strict quality assurance
standards across all operations under the
oversight of the Quality Assurance Director,
who reports directly to the Chief Executive.
Key mitigation measures include strict adherence
to the Group’s Quality Management System,
enhanced quality assurance programmes led
by the Quality Assurance Director, competency‑
based training, and ongoing capital investment
to replace ageing equipment. Regular cross‑
functional collaboration between manufacturing,
engineering, and quality teams ensures early
detection and resolution of potential issues.
Ongoing capital investment in modern equipment
further strengthens product reliability. These
measures collectively safeguard Hunting’s
reputation for delivering high‑quality products
and mitigate risks associated with product failure.
Key changes during 2025
The risk of product quality or reliability remained
unchanged during the year, with no significant
issues raised by the Group’s customers or during
the Board’s internal monitoring process.
The Group’s commitment to product quality is
detailed on page 63.
9
Product quality and reliability
Risk category
Operational
Change from last year
Link to strategy
Growth
Strong
returns
Operational
excellence
Risk Management and Internal Controls
continued
Hunting PLC
Annual Report and Accounts 2025
95
Strategic Report
Corporate Governance
Financial Statements
Other Information
Risk Management and Internal Controls
continued
Control environment and
compliance with UK Corporate
Governance Code (Provision 29)
Hunting’s control environment is designed to
safeguard assets, ensure accurate and reliable
reporting, and support the delivery of strategic
objectives.
The Board maintains overall responsibility for
monitoring and reviewing the effectiveness of risk
management and internal controls, with regular
oversight by the Audit and Risk Committee.
Work completed in 2025 – Provision 29
readiness
During 2025, the Group strengthened its
governance framework in line with the UK
Corporate Governance Code, in respect of the
new requirements of Provision 29.
Hunting’s framework anchors material controls
to principal risks, integrates bottom‑up business
unit registers with a Group level assessment,
and uses AuditBoard to capture evidence,
testing, and action tracking.
Throughout the year, Hunting enhanced its
assurance model by formalising the three lines
of defence and establishing the Internal Control
Committee. This committee met to review
material controls, monitor remediation progress,
assess reporting quality, and set the cadence for
assurance activities in 2026.
The introduction of the Risk Universe provided
baseline registers across segments, enabling
consistent risk assessment and comparability.
Material controls were refined into a clearly
defined set, aligned to principal risks and
mapped to the Group Manual, with
completeness validated against external
benchmarks.
The annual financial controls self‑assessment,
now fully integrated into AuditBoard, confirmed
the strength and reliability of the Group’s control
environment.
Internal Audit complemented this by completing
design and effectiveness reviews in priority
locations, supporting investigations, and initiating
independent testing of material controls to
underpin compliance with Provision 29.
Deloitte updated the full‑year 2025 audit plan,
reviewed the approach to material controls and
control reliance, completed component visits
and provided interim feedback on D365
implementations, revenue recognition, inventory
valuation, management override of safeguards,
and restructuring disclosures.
Planned and agreed actions for 2026
Looking ahead to 2026, the Board approved a
balanced assurance approach with twice‑yearly
reporting to the Audit and Risk Committee.
Second‑line design and effectiveness testing of
material and key financial controls, governance
controls and IT general controls will be
completed by mid‑year and year‑end, with
independent testing of material controls reported
in February and August.
Material controls will be refreshed and
presented for approval in April, incorporating risk
movements and lessons learned. Non‑financial
information assurance will continue in 2026 and
consideration given to expanding the scope of
work to include a broader set of metrics.
Technology enablement will deepen as D365
Phase 2 standardises configuration and
workflows, strengthening segregation of duties
and automated controls, while AuditBoard
provides real‑time evidence, grading and
close‑out tracking for findings.
Enhanced scenario testing will be applied to
financial reporting cut‑off, project accounting,
supplier master change controls, inventory
valuation, cyber event recovery and data integrity,
and climate‑related operational resilience, with
results reported through the Internal Controls
Committee and Audit and Risk Committee.
The 2026 year‑end process will culminate in a
Board‑level assessment and a clear declaration
on the effectiveness of material controls at the
balance sheet date, aligned with Provision 29.
Three lines of defence (“TLoD”) and
reporting
The TLoD remain central to this model:
operational management owns risks and
controls; Group Finance, QAHSE and other
functions monitor, test, design and coordinate
assurance; and Internal Audit provides
independent reviews.
The Internal Controls Committee oversees this
structure and reports outcomes to the Audit and
Risk Committee and the Board.
Internal Controls Committee
The Internal Controls Committee, a sub‑
committee of the Executive Committee, was
established in 2025. Two meetings have been
held during the year to review material controls,
remediation actions, and compliance with the
assurance model. Reporting lines have been
established to the Audit and Risk Committee
for oversight.
Overview of material controls
Hunting’s control environment is underpinned
by a clearly defined suite of material controls,
designed to provide reasonable assurance
over governance, financial reporting integrity,
operational resilience, and compliance
processes.
These controls are mapped to the Group’s
Principal Risks and embedded within the Group
Manual, ensuring accountability, consistency,
and transparency across all operations.
Identification and scope
In 2025, Hunting completed a comprehensive
review of its control framework to prepare for
compliance with Provision 29 of the UK
Corporate Governance Code. This review
identified 46 material controls, comprising:
• 34 Entity Level Controls (“ELCs”); and
• 12 Internal Controls over Financial Reporting
(“ICFR”)
These controls address the most significant risks
facing the Group, including strategic, operational,
legal and compliance, financial reporting, fraud,
and IT resilience risks.
The scope reflects external benchmarks and
peer analysis to ensure completeness and
relevance.
Key features of the material
controls framework
Entity-level controls (“ELCs”):
Include governance and oversight mechanisms
such as Board‑approved delegations of authority,
M&A and investment policies, a whistleblowing
programme, and annual assurance statements.
Hunting PLC
Annual Report and Accounts 2025
96
Strategic Report
Corporate Governance
Financial Statements
Other Information
Risk Management and Internal Controls
continued
These controls ensure strategic decisions, risk
management, and compliance activities are
executed within defined parameters and reported
to the Internal Controls Committee and the Audit
and Risk Committee.
Financial reporting controls (“ICFR”):
Controls over inventory valuation and existence,
revenue cut‑off, revenue recognition under IFRS
15, and journal entry approval processes mitigate
risks of material misstatement.
These controls are supported by automated
workflows within the Group’s ERP system (D365)
and monitored through AuditBoard for real‑time
evidence capture and remediation tracking.
IT general controls:
Cyber security monitoring, disaster recovery
planning, and segregation of duties within core
systems form part of the Material Control set,
reflecting the Group’s very low risk appetite for
IT and cyber threats.
Non-financial controls:
Initial scope includes health and safety and
product quality metrics. Future reviews will
consider whether to expand the scope of metrics
covered for 2027.
Assurance and testing
Hunting PLC applies the TLoD and assurance
model as part of its internal control and
assurance framework, which is aligned with the
UK Corporate Governance Code and Provision
29 requirements.
The following outlines how the TLoD and
assurance model work:
First line of defence
– operational management
Role: Business units own and operate controls
day‑to‑day.
Key activities:
Completion of operational assurance statements
at half‑year and year‑end to confirm entity‑level
controls are functioning.
Annual self‑assessment of internal controls over
financial reporting (“ICFR”) via AuditBoard.
Direct responsibility for designing, implementing
and evidencing controls linked to principal risks,
including financial, operational, legal and
compliance, and fraud risks.
Second line of defence
– oversight and monitoring
Role: Group finance risk and controls team
provides independent monitoring and testing.
Key activities:
Design and effectiveness testing of material and
key controls (financial and non‑financial).
Design and monitoring of entity‑level controls
and reporting to the Internal Controls Committee
and the Audit and Risk Committee.
Use of AuditBoard for real‑time tracking
of remediation actions.
Includes internal IT specialists for general IT
controls (“GITC”) and ERP configuration reviews.
Third line of defence
– independent assurance
Role: Internal Audit delivers independent
assurance to the Audit and Risk Committee.
Key activities:
• Testing of material controls and operational
effectiveness.
• Process mapping and control documentation
for high‑risk units.
• Fraud investigations and compliance reviews.
• Support from external specialists for IT general
controls and other technical areas.
Assurance model
Role: The assurance model is structured around
these three lines, with clear accountability:
• Board and Audit and Risk Committee maintain
overall oversight.
• Independent assurance combines internal
audit and second‑line reviews, supplemented
by external IT specialists where needed.
• Testing of material controls is progressing,
with full effectiveness reporting scheduled
to be resolved during 2026.
Hunting PLC
Annual Report and Accounts 2025
97
Strategic Report
Corporate Governance
Financial Statements
Other Information
Board engagement and decision
making – risk
The Board maintains overall responsibility
for monitoring and reviewing the effectiveness
of risk management and internal controls,
with regular oversight by the Audit and
Risk Committee.
Risk Management and Internal Controls
continued
Three Lines of Defence model
For the effective oversight and support of risk management. Effective risk management drives better commercial decisions, protects assets and supports a growing, resilient and sustainable business.
The TLoD model is designed to ensure each material control receives independent assurance from either the second or the third line, as appropriate.
Audit and Risk Committee
• Definition of risk appetite and statements
• Assessment of internal and external risk environment
• Consideration of emerging risks
• Approval of principal risks
Internal Controls Committee
• Ensure the operation and monitoring of the Group’s risk
and internal controls in place to manage principal risks
• Oversight of internal controls, including governance
• Reviews reported related to risk and fraud and their potential
impact on the control environment
Third line of defence
Internal audit provides independent assurance
on the effectiveness of internal controls and risk management systems
External audit evaluates the internal control environment
and identifies potential risks
Second line of defence
Global policies, standards and guidance are developed and implemented
Group Finance Risk and Controls team, including functional teams,
provide oversight of the first line’s risk
First line of defence
General Managers are responsible for identifying, assessing and managing risks
within their areas, and the execution of controls to respond to these risks
Business unit and operating segment management
• Identification and assessment of risks
• Identification of emerging risks
• Risk mitigation actions
The Board
Reporting and information
Oversight and challenge
External Auditor
Risk management approach and structure
Lines of defence
Hunting PLC
Annual Report and Accounts 2025
98
Strategic Report
Corporate Governance
Financial Statements
Other Information
Viability Statement and Going Concern
We consider our sustainability and resilience of
the business model over the long term, including
liquidity, risks and solvency. This is supported by
the risk management framework and internal
control process.
This long‑term prospect assessment is over a
longer period than that over which the Board has
assessed the Group’s viability.
Assessment
The nature of the Group’s operations exposes
the business to a variety of risks which are noted
on pages 91 to 95. The Board regularly reviews
the principal risks and assesses the appropriate
controls and further actions as described on
pages 88 and 89 given the Board’s appetite for
risk as described on page 89.
The Board has further considered their potential
impact within the context of the Group’s viability
assessment.
In assessing the viability of the Group, the Board
considered internal financial projections to the
end of 2029 which made the following
assumptions:
• global exploration and production spend,
excluding Russia, China and Central Asia, is
expected to rise by 31% from 2025 to 2029;
• demand for energy service products improves
in the medium term, given the global outlook
for oil and gas demand, which is driven by
growth within emerging markets and sustained
demand from developed markets. These are
the fundamental drivers of Hunting’s core
business of manufacturing, supplying and
distributing products and services which
enable the extraction of oil and gas;
• the Group continues to widen its customer
base beyond the oil and gas industry, including
into non‑oil and gas, aerospace, military and
medical markets;
• the Group’s cost base is expected to benefit
from improved efficiency resulting from
reductions in fixed costs, simplified
management structures and back‑office
services, which together with the improved
operating leverage, is expected to drive
EBITDA margins up;
• the Group will continue to have a low to
medium exposure to higher risk countries
given the proportion of its current revenues
and profits derived from politically stable
regions such as North America, Europe,
the Middle East and South East Asia.
A downside case of the financial projections was
also produced to model a severe but plausible
deterioration in market conditions relevant to the
Group’s principal risks.
The downside case models a reduction in
revenue of between 10‑15% per year in 2028
and 2029, and the resulting impact on EBITDA
and total cash and bank/(borrowings), assuming
a modest reduction in discretionary corporate
cash outflows such as dividends and treasury
share purchases.
If conditions were worse than anticipated in
the downside case, corporate cash outflows,
capital expenditure and operating costs
would be reassessed resulting in additional
financial flexibility.
In the downside scenario, the Group continued
to generate cash and had significant headroom
under its committed facilities and financial
covenants.
Viability Statement
Introduction
As required by the 2024 UK Corporate
Governance Code, the Board has undertaken
an assessment of the prospects of the Group,
taking into account the Group’s current position
and principal risks. This assessment considered
the Group’s prospects over a three‑year period,
as well as its ability to continue in operation
and meet its liabilities as they fall due over that
same period.
Assessment period
The Group’s customers are principally involved in
the exploration for, and production of, oil and gas.
Given the nature of the industry and the planning
cycles involved, these activities can cover periods
of no more than several weeks up to several
years from start to end.
Hunting’s management works closely with its
customers to understand their operational plans
and related capital expenditure programmes,
with a natural focus on the earlier years in which
projects will be in progress, or committed, and
for which requirements for goods or services
from Hunting will be more certain.
The outlook for the Group beyond this period is
generated from management’s assessment of
industrial data and projections published by
industry commentators and analysts, including
statistics on exploration and production
expenditure, footage drilled and rig activity.
These macro, longer term forecasts are subject
to significant volatility.
Due to the uncertainty in projecting forward any
meaningful outlook beyond three years, the
Group’s bank funding facilities are generally
limited to a similar period.
This enables the Group to reduce the risk
of either being underfunded or over funded,
thereby mitigating non‑utilisation fees, beyond
the foreseeable future by being able to negotiate
new facilities to accommodate revised
operational and strategic changes expected
during that additional period.
In October 2024, the Group entered into an
earnings‑based facility comprising a revolving
credit facility (“RCF”) with an initial tenor of four
years, expiring on 16 October 2028 and a
three‑year term loan.
The RCF was extended by an additional twelve
months in 2025, and expires on 16 October
2029.
Financial projections beyond the facility term are
too uncertain for the Group to commit to a longer
facility.
The Group’s treasury department generally
aims to initiate negotiations for a facility renewal
approximately twelve months before the maturity
date and the most recent outlook would
contribute to those discussions.
Taking these factors into consideration, the
Board believes that a three‑year forward‑looking
period, commencing on the date the financial
statements are approved, is the appropriate
length of time to reasonably assess the Group’s
viability.
Long term prospects
The Group’s prospects are primarily assessed
through our strategic and planning processes.
Performance against our annual strategic
planning process is continuously monitored,
and it underpins our business planning model.
Hunting PLC
Annual Report and Accounts 2025
99
Strategic Report
Corporate Governance
Financial Statements
Other Information
The Board is also satisfied that no material
uncertainties have been identified.
The Board is satisfied that it has conducted
a robust review of the Group’s going concern
and has a high level of confidence that the Group
has the necessary liquid resources to meet its
liabilities as they fall due.
Consequently, the Board has considered it
appropriate to adopt the going concern basis of
accounting in preparing the financial statements.
Liquidity and solvency
In October 2024, the Group entered into a new
earnings‑based facility, comprising a $200m
revolving credit facility (RCF) and a $100m term
loan with a three‑year tenor.
The RCF had been arranged with an initial tenor
of four years, expiring on 16 October 2028.
However, during 2025 the Group exercised its
option to extend the contracted maturity date by
an additional twelve‑month term.
The RCF contains an accordion feature that
allows the Group to increase the facility quantum
by an additional $100m (subject to further credit
approval from the relevant lenders) enabling
the Group to increase the total RCF quantum
to $300m. At 31 December 2025, the RCF
was undrawn.
The term loan was fully drawn on signing of the
facilities (with funding taking place on 18 October
2024). After an initial twelve‑month period,
amortisation of the term loan commenced in
September 2025 with eight quarterly repayments
of $9.375m (with two payments made during
2025 on 30 September and 31 December) and
a final $25m repayment due on 30 September
2027.
At 31 December 2025, the Group had total cash
and bank/(borrowings) of $62.9m (NGM K) and
an undrawn RCF.
The Group’s internal financial projections indicate
that the Group is expected to continue to deliver
a cash positive position.
Conclusion
The Board believes that the Group’s strategy for
growth, its positive approach towards mitigating
its impact on climate change, the diverse
customer, supplier and product base, the
resilience of its business model against the
principal risks, the availability of borrowing
facilities and the positive outlook for the oil
and gas industry, in the medium term provide
Hunting with a strong platform on which to
continue its business.
The Directors therefore have a reasonable
expectation that Hunting will be able to continue
in operation and meet its liabilities as they fall due
over the three‑year period of their assessment.
Going Concern
Accounting standards require that Directors
assess whether the entity is a going concern
when preparing financial statements, and the
Code requires that the Board should state
whether it considers it appropriate to adopt the
going concern basis of accounting in the financial
statement preparation.
In conducting its review of the Group’s ability
to remain as a going concern, the Board
considered the Group’s recent trading
performance and its latest forecasts and took
account of reasonably predictable changes in
future trading performance.
The Board also considered the principal risks
faced by the Group and the potential financial
impact of the estimates, judgements and
assumptions that were used to prepare these
financial statements and concluded that, given
the significant financial headroom, the Group
is able to maintain sufficient cash resources to
meet its liabilities as they fall due over the twelve
months following the date of approval of the
financial statements.
Viability Statement and Going Concern
continued
Hunting PLC
Annual Report and Accounts 2025
100
Strategic Report
Corporate Governance
Financial Statements
Other Information
Section 172(1) Statement
• In March 2025, the Company announced
its new carbon intensity target for 2030;
• Hunting engaged a third party in the latter half
of 2025 to complete assurance of the Group’s
2024 carbon data;
• The Group continued to enhance its carbon
data and climate reporting. Following the
scope 3 emissions analysis completed in 2024
for the Hunting Titan, EMEA, Asia Pacific, and
Subsea Technologies operating segments,
senior management extended the project in
2025 to include the Group’s North America
operating segment;
• Hunting’s TEK‑HUB™ continues to strengthen
relationships with innovative individuals
and organisations developing technologies
that align with our customers’ and wider
stakeholders’ needs. During the year, TEK‑
HUB™ launched Opti‑TEK™, a suite of
optimised intervention technologies;
• Hunting’s US and Asia Pacific teams held
month‑long heart awareness campaigns
to promote heart health and encourage
preventative care;
• Hunting celebrated International Women’s
Day 2025 in its traditional style, hosting a
series of inspiring events organised by teams
across the globe, spanning Asia Pacific,
EMEA, and the Americas. To mark the
occasion, Hunting produced a video featuring
female employees from around the world,
sharing their experiences of working in the
sector and offering insights on how to create
more opportunities for future generations. The
aim is to encourage more young women to
pursue careers in STEM and the wider energy
industry; and
• In Dubai, sustainability was central to the
design of the new facility, with a range of
carbon‑reducing features incorporated to
support the Group’s ambition for a sustainable
operating site. The facility provides a safe
and comfortable working environment for
employees while prioritising measures to
reduce water and electricity consumption;
and During June, the Board visited the Group’s
Singapore and China facilities, which provided
an opportunity to meet and engage with
employees.
To avoid duplication, this statement incorporates
information from other areas of the Annual
Report. The Board considers that the statement
focuses on those risks and opportunities that are
strategically important and consistent with the
size and complexity of the Group.
The following sections and cross references
provide a summary of where details of key
stakeholder and associated engagement and
decision making is located within the 2025
Annual Report and Accounts, and also some of
the considerations taken by the Board in fulfilling
their duty under section 172(1) of the Act:
This statement has been prepared
in compliance with the Companies
(Miscellaneous Reporting)
Regulations 2018.
The Board of Hunting PLC considers that, in
complying with its statutory duty during 2025 and
under section 172 of the Companies Act 2006
(the “Act”), the Directors have acted fairly, and in
good faith, and in a manner which they believe
will promote the continued success of the
Company for the benefit of its members and
stakeholders as a whole.
Informed decision making
When making long‑term decisions, the Board
reviews reports and other information provided
by management, as well as input from external
advisers, and considers the impact of these
decisions on the budget, extended forecasts,
and the Hunting 2030 Strategy. Examples of
decisions made by the Board during the year
can be found on page 115.
In reaching these decisions, the Board takes
into account the likely impact of any major or
long‑term strategic choices on its stakeholders
in the following ways:
• Each year the Board reviews its short‑ and
long‑term strategy. In recent years these
have remained consistent, with a focus on
maintaining a firm financial foundation,
improving facilities, and investing in the
development of new technology and in
our workforce;
• The Board aims to ensure that our employees
work in a safe environment, that there is a
talent pipeline and that employees receive
appropriate training and are rewarded for
their efforts;
• Over the years, we have built long‑standing
relationships with our customers, suppliers,
and external advisers. Our philosophy is
rooted in sharing our core values with key
stakeholders across the supply chain. We
maintain regular communication with suppliers
and customers, keeping them informed of our
market strategy and product innovations;
• As a Company operating in the oil and gas
industry, we regularly monitor the impact of
our activities on the environment and on the
communities in which we operate, in particular,
where we maintain active manufacturing
facilities; and
• As a Board, we endeavour to operate
responsibly and to make carefully considered
decisions. We encourage high standards of
business conduct from our employees and
ensure we lead by example.
Following engagement with a wide range of
stakeholders, the following actions were taken:
• Each year, the Company Secretary provides
the Board with a stakeholder engagement
report which is completed by all the Group
entities. This enables the Board to monitor
senior management engagement with
customers, suppliers, investors and other
stakeholders;
• Our global Human Resources function
continues to monitor workforce remuneration,
hiring and retention policies to ensure our
employees are paid fairly when compared to
similar companies in our sector;
• Charitable donations were made in line with
the policy to distribute unclaimed dividends
to UK‑based charities;
Hunting PLC
Annual Report and Accounts 2025
101
Strategic Report
Corporate Governance
Financial Statements
Other Information
Section 172(1) Statement
continued
Section 172 Matter
Relevant disclosures
Page
(a) The likely consequences of any
decision in the long term
Strategic Report:
Company purpose
Company Chair’s Statement
Key performance indicators
Operation in the current market
Hunting 2030 Strategy
Business Model
Risk Management and Internal Controls
Viability Statement
113
4 and 5
12 and 13
28 to 31
6 to 11
14 to 27
87 to 98
99 and 100
Corporate Governance Report:
Company Chair’s governance statement
Board activity
Audit and Risk Committee Report
104 and 105
111
144 to 150
(b) The interests of employees
Strategic Report:
Business Model
Non‑financial reporting
Diversity and inclusion
Employees
14 to 27
56 to 73
22 and 70
69 to 71
Corporate Governance Report:
Company Chair’s statement
Board activity
Audit and Risk Committee Report
Ethics and Sustainability Committee Report
Nomination Committee Report
4 and 5
111
144 to 150
124 to 126
122 and 123
Remuneration Committee Report:
Remuneration Committee Chair’s statement
Directors’ pay in a wider setting
Chief Executive pay ratio
127 to 130
140 to 142
142
(c) The need to foster business
relationships with suppliers,
customers and other stakeholders
Strategic Report:
Business Model
Delivering value to customers
Supporting stakeholders
Responsible payment practices
14 to 27
23
23 to 26
24
Corporate Governance:
Anti‑bribery and corruption
Human rights and modern slavery
Supply chain sustainability
Ethics and Sustainability Committee Report
23 and 61
62 and 63
23 and 24
124 to 126
Section 172 Matter
Relevant disclosures
Page
(d) The impact of operations on the
community and environment
Strategic Report:
Supporting communities
TCFD disclosures
Community engagement
Corporate giving
Ethics and Sustainability Committee Report
27
74 to 86
101
27
124 to 126
(e) Maintaining a reputation for high
standards of business conduct
Strategic Report:
Non‑financial reporting
Business conduct
Culture and values
56 to 73
23 and 24
114
Corporate Governance:
Whistleblowing
Internal financial controls
Awards and recognition
116
120 and 121
140
(f) The need to act fairly between
members of the Company
Strategic Report:
Shareholder engagement
19 and 20
Corporate Governance:
Company Chair’s statement
Directors’ Report
Shareholder information
Annual General Meeting
Shareholder voting
4 and 5
152 to 154
245
246
153 and 246
On behalf of the Board
Jim Johnson
Chief Executive
Bruce Ferguson
Finance Director
5 March 2026
Hunting PLC
Annual Report and Accounts 2025
102
Strategic Report
Corporate Governance
Financial Statements
Other Information
Introduction to Corporate Governance
104
Board of Directors
106
Executive Committee
108
Corporate Governance Report
109
Nomination Committee Report
122
Ethics and Sustainability Committee Report
124
Remuneration Committee Report
127
– Remuneration at a glance
131
– Annual Report on Remuneration
133
Audit and Risk Committee Report
144
Executive Committee Report
151
Internal Controls Committee Report
151
Directors’ Report
152
Corporate Governance
02
Hunting PLC
Annual Report and Accounts 2025
103
Strategic Report
Corporate Governance
Financial Statements
Other Information
Introduction to Corporate Governance
Dividends declared in the year
13.0
cents
(2024 – 11.5 cents)
Value of shares bought for cancellation
$
33.5
m
(2024 – $nil)
Stuart M. Brightman
Company Chair
2025 has been a pivotal year for the
Company on several fronts. The
Group has delivered on commitments
made in respect of our Hunting 2030
Strategy with the completion of two
acquisitions in the year; delivered
increased financial performance; and
increased our shareholder returns.
Introduction
The Directors have spent time overseeing the
introduction of new compliance procedures to
enable us to report against the 2024 UK
Corporate Governance Code (the “Code”).
While we are not reporting compliance with
Provision 29 in this report, new risk management
and internal control protocols have been
implemented in the year in preparation for this
2026 requirement.
New policies, personnel, software and
compliance procedures were introduced in
the year, including the formation of an Internal
Controls Committee of the Executive Committee,
which will support the Board of Directors and
Executive Committee going forward with a robust
governance framework in place to enable the
reporting of strong oversight over internal controls.
I would like to thank all members of the Executive
Committee and the senior leadership team for
their time and effort in developing these new
procedures, as Hunting is a stronger company
due to the work completed in the year.
Board succession and refreshing
On 3 March 2025, we welcomed Cathy Krajicek
as an independent non-executive Director of the
Company. Cathy’s experience of the exploration
and production segment of the oil and gas
industry is key to the Board’s deliberations, given
our product portfolio and geographical reach.
While the Directors see strong demand for our
technology and product offering for many years
to come, the industry is more fast paced than
ever before, and Cathy’s insights will be key to
keeping Hunting relevant in this important
end-market.
On 1 February 2025, we saw the retirement
of Annell Bay as a Director after ten years’
service to the Company. Annell’s insights into
the industry as well as her robust contribution
to the Company’s remuneration policies and
procedures have positioned Hunting firmly for
the future. We wish Annell a happy retirement.
Capital allocation
The Directors also spent a great deal of time
considering the Company’s capital allocation
priorities, in light of the sector we occupy, the
location of our share listing, as well as what other
oilfield service companies are doing in this area.
Our strong balance sheet management and
cash generation demonstrated since our Capital
Markets Day in 2023 has supported the Directors
in their aim to maximise shareholder returns.
Following discussions with, and feedback from,
major shareholders, the Board revised its capital
allocation policy.
In July 2025, we announced a revision to
the Company’s dividend ambitions, with a
commitment to increase our annual dividend
distributions by 13% per annum to the end of the
decade. This means that Hunting PLC will deliver
c.$220m of returns to shareholders via dividend
distributions across this period, which supports
our investment proposition.
At the same time, the Company announced the
commencement of a $40m share buyback
programme and, following further consultation,
was extended by a further $20m which, on
completion, will see $60m being returned
to shareholders.
Hunting PLC
Annual Report and Accounts 2025
104
Strategic Report
Corporate Governance
Financial Statements
Other Information
In regard to dividends, in August 2025 we
announced an interim dividend of 6.2 cents
per share (2024 – 5.5 cents), in line with our new
distribution ambition. This equated to a cash
distribution of $9.6m.
The Directors are proposing a Final Dividend in
respect of 2025 of 6.8 cents per share (2024 –
6.0 cents), which will equate to a cash distribution
of c.$10.0m.
In total, our 2025 dividend distributions amount
to 13.0 cents per share, which is a 13% increase
over 2024.
2024 UK Corporate Governance Code
Hunting is reporting compliance against the new
Code, with the exception of Provision 29, which
is a requirement for financial years beginning
on or after 1 January 2026, as detailed in the
following statement.
In the year, we reviewed our resources and
policies across all key operating functions of
the Group and, where appropriate, revised
or introduced new procedures to strengthen
our governance framework.
As noted above, we are on track to report
compliance with Provision 29 on internal controls
next year given the work completed in 2025.
Please see page 121 for a full update on our
Provision 29 progress.
Throughout this Annual Report we also set out
the decisions and outcomes of the deliberations
of the Directors.
ESG and sustainability
As a responsible company, we continued
to strengthen our ESG and sustainability
commitments this year, and in March 2025
Hunting announced a new 2030 carbon-intensity
target.
As noted elsewhere in this report, the Company
has collected scope 3 carbon emissions data for
all five of its operating segments in the year.
This is an important milestone for Hunting as it
will enable management to develop a Net Zero
carbon reduction plan, which is an area of
increased focus for investors.
Employee engagement
In October 2025, the Group completed its
third all-employee engagement survey, via the
Gallup Q12 survey platform, with the results
being presented to the Board at its December
2025 meeting.
The Directors noted the improved scoring
recorded in this process, which underlines their
belief that Hunting retains a strong culture across
all of its global operations. Please see page 71
for further details on the results of the survey.
Engagement with all stakeholders, including
shareholders, employees, customers and
suppliers, has continued to be strong in the year
and I would like to thank Jim Johnson, our Chief
Executive, and Liese Borden, Chief HR Officer,
for the strong tone from the top on all matters in
this area.
Board and Committee performance reviews
The Directors completed an internally facilitated
performance review in December 2025. With the
new procedures in place, including the creation
of our new Internal Control Committee, we have a
strong governance framework with lines of
accountability throughout the Group.
ISSB sustainability reporting
Our Ethics and Sustainability Committee has
also spent time reviewing the requirements of
the ISSB’s sustainability accounting standards.
Our disclosures, set out on pages 56 to 73, have
been revised in the year to begin aligning our
procedures with these new requirements. Again,
the Directors remain confident that Hunting will
be well placed to introduce and deliver these new
reporting requirements over time.
Summary
In conclusion, on behalf of the Directors I would
like to thank Jim Johnson and Bruce Ferguson,
our executive Directors, the members of the
Executive Committee and our wider workforce
for delivering another strong year of growth in
profits and returns. We look forward to the future
with confidence.
On behalf of the Board
Stuart M. Brightman
Company Chair
5 March 2026
Total dividends payable to shareholders
in respect of the financial year
$
19.6
m
(2024 – $18.2m)
Total distributions to shareholders
in respect of the financial year
$
53.1
m
(2024 – $18.2m)
Introduction to Corporate Governance
continued
Hunting PLC
Annual Report and Accounts 2025
105
Strategic Report
Corporate Governance
Financial Statements
Other Information
Key to committees:
N
Nomination Committee
E
Ethics and Sustainability Committee
R
Remuneration Committee
A
Audit and Risk Committee
I
By invitation
Chair
N
I
I
I
N
R
A
E
Board of Directors
Arthur James (Jim) Johnson
Chief Executive
Nationality
American
Length of service
34 years; appointed to the Board as a Director
and Chief Executive in September 2017.
Skills and experience
Jim held senior management positions within
Hunting from 1992 up to his appointment as
Chief Operating Officer of the Group in 2011.
In this role, he was responsible for all
day-to-day operational activities of the
Company. Jim is a member of and chairs
the Executive Committee.
External appointments
None.
Bruce Ferguson
Finance Director
Nationality
British
Length of service
32 years; appointed to the Board as a Director
and Finance Director in April 2020.
Skills and experience
Bruce is a Chartered Management
Accountant and has held senior financial
and operational positions within the Group
since 1994. From 2003 to 2011, Bruce
was the financial controller of the Group’s
European operations. From 2011, Bruce held
the position of managing director of Hunting’s
EMEA operating segment and has been a
member of the Executive Committee since
its formation in 2018. Bruce also chairs
the Internal Controls Committee of the
Executive Committee.
External appointments
None.
Margaret Amos
Non-executive Director
Nationality
British
Length of service
Two years; appointed to the Board as a
non-executive Director in January 2024 and
is viewed as independent. Margaret is Chair
of the Ethics and Sustainability Committee.
Skills and experience
Margaret spent the majority of her career at
Rolls-Royce plc, where she held a number of
senior positions including Finance Director –
Engineering, IT and Corporate as well as
Director of Business Planning. During 2025,
Margaret completed a degree in sustainability
at Cambridge University.
External appointments
Margaret is currently a non-executive
Director of Invinity Energy Systems plc
and Oxford Metrics plc.
Stuart M. Brightman
Non-executive Company Chair
Nationality
American
Length of service
Three years; appointed to the Board as a
non-executive Director in 2023 and appointed
Company Chair in April 2024, and is viewed
as independent. Stuart was reappointed for
a second three-year term in January 2026.
Skills and experience
Stuart spent the majority of his career
at TETRA Technologies Inc. (“TETRA”),
Dresser Inc. and Cameron Iron Works. During
his time at TETRA, Stuart held the position of
Chief Operating Officer between 2005 and
2009, when he was appointed Chief
Executive Officer, a position he held to 2019,
before his retirement from the business.
External appointments
None.
Hunting PLC
Annual Report and Accounts 2025
106
Strategic Report
Corporate Governance
Financial Statements
Other Information
Key to committees:
N
Nomination Committee
E
Ethics and Sustainability Committee
R
Remuneration Committee
A
Audit and Risk Committee
I
By invitation
Chair
N
N
N
N
E
E
E
E
R
R
R
A
A
A
A
R
Board of Directors
continued
Carol Chesney
Non-executive Director
Nationality
American and British
Length of service
Eight years; appointed to the Board as a
non-executive Director in April 2018 and is
viewed as independent. Carol is Chair of the
Audit and Risk Committee. In April 2024, Carol
was reappointed for a final three-year term.
Skills and experience
Carol is a Fellow of the Institute of Chartered
Accountants in England and Wales. Carol was
formerly the Group Financial Controller and,
latterly Company Secretary of Halma plc.
External appointments
Carol is currently a non-executive director
of IQE plc and Hill & Smith plc.
Paula Harris
Non-executive Director
Nationality
American
Length of service
Four years; appointed to the Board as a
non-executive Director in April 2022 and is
viewed as independent. Paula was appointed
Chair of the Remuneration Committee in
February 2025 and is also the Company’s
designated non-executive Director for
employee engagement. In March 2025,
Paula was reappointed for a second three-
year term.
Skills and experience
Paula has extensive oilfield services
experience following a 33-year career at SLB,
the international energy services group, where
latterly she was Director of Stewardship.
External appointments
Paula is currently a non-executive director
of Chart Industries, Inc and Helix Energy
Solutions Group, Inc.
Keith Lough
Senior Independent non-executive Director
Nationality
British
Length of service
Eight years; appointed to the Board as a
non-executive Director in April 2018 and
appointed Senior Independent Director
in August 2018. In April 2024, Keith was
reappointed for a final three-year term.
Skills and experience
Keith was formerly the non-executive
Chairman of Gulf Keystone Petroleum Limited
and Rockhopper Exploration plc as well as
a non-executive Director of Capricorn Energy
PLC. He has previously held a number of
executive positions within other energy-related
companies, including British Energy plc and
LASMO plc.
External appointments
Keith is currently the non-executive Chair
of Southern Water.
Catherine (Cathy) Krajicek
Non-executive Director
Nationality
American
Length of service
One year; appointed to the Board as a
non-executive Director on 3 March 2025 and
is viewed as independent.
Skills and experience
Cathy has deep experience of the exploration
and production segment of the oil and gas
industry, spending 22 years at ConocoPhillips
and 11 years at Marathon Oil Company.
During this time, Cathy held technical, major
project, and asset management roles in the
US and Indonesia. As well as asset manager
roles at Marathon, Cathy held roles within
HSE & Security and Technology & Innovation
functions. Cathy was formerly a non-executive
director at Capricorn Energy PLC.
External appointments
Cathy is currently a non-executive Director
of Gulf Keystone Petroleum Limited.
Hunting PLC
Annual Report and Accounts 2025
107
Strategic Report
Corporate Governance
Financial Statements
Other Information
N
E
R
A
Executive Committee
Nationality
American
Length of service
15 years; joined Hunting in 2011.
Nationality
American
Length of service
13 years; joined Hunting in 2013.
Nationality
Singaporean
Length of service
18 years; joined Hunting in 2008.
Nationality
American
Length of service
16 years; joined Hunting in 2010.
Nationality
American
Length of service
39 years; joined Hunting in 1987.
Nationality
British
Length of service
Four years; joined Hunting in 2021.
Nationality
American
Length of service
Eight years; joined Hunting in 2018.
Nationality
American
Length of service
16 years; joined Hunting in 2010.
Nationality
British
Length of service
16 years; joined Hunting in 2010
and was appointed Company
Secretary in 2013.
Liese Borden
Chief HR Officer
Scott George
Managing Director
North America
Adam Dyess
Managing Director
Hunting Titan
Daniel Tan
Managing Director
Asia Pacific
Ryan Elliott
Chief IT Officer
Dane Tipton
Managing Director
Subsea Technologies
Gregory T. Farmer
Global Director
QAHSE/Compliance/
ESG
Ben Willey
Company Secretary
Graham Goodall
Managing Director
EMEA
Jim Johnson and Bruce Ferguson
are also members of the Hunting
Executive Committee.
Hunting PLC
Annual Report and Accounts 2025
108
Strategic Report
Corporate Governance
Financial Statements
Other Information
Corporate Governance Report
Compliance
The Directors of Hunting PLC have applied
governance principles aligned with the 2024 UK
Corporate Governance Code (the “Code”), which
can be found at www.frc.org.uk. Hunting PLC is
reporting its corporate governance compliance
against this version of the Code.
The Company is not reporting on compliance
with Provision 29 of the 2024 Code this year,
which is a requirement for financial years
beginning on or after 1 January 2026. During
the year, the Directors continued to review and
monitor the effectiveness of the Company’s risk
management and internal controls system in
accordance with Provision 29 of the 2018 Code,
as required under the transitional arrangements
of the 2024 Code.
Throughout the year ended 31 December 2025,
the Directors note that the Company complied
with all the relevant provisions within the Code
except for the following matter:
Provision 39 departure
The pension contribution rate of the Chief
Executive (who is resident in the US) currently
does not align with the workforce as required by
Provision 39 of the Code and, therefore, there
was a departure from the Code as at 5 March
2026. Jim Johnson’s terms of employment,
including pension arrangements, were set prior
to the implementation of both the 2018 and
2024 Codes. It should be noted that since his
appointment to the Board in 2017, the pension
contribution Jim Johnson has received from the
Company averaged 12% of base salary, which is
the same as the contribution rate of the Finance
Director. The Board has agreed that the pension
contribution rate for all new executive Director
appointments will be capped at 12% of base
salary, in line with the UK workforce.
• The Nomination Committee, whose report can
be found on pages 122 and 123;
• The Ethics and Sustainability Committee, whose
report can be found on pages 124 to 126;
• The Remuneration Committee, whose report
can be found on pages 127 to 143; and
• The Audit and Risk Committee, whose report
can be found on pages 144 to 150.
The work of the Nomination Committee supports
the Board’s responsibility for ensuring that a
framework for the recruitment and retention of
talent is in place to run the Company and that
succession is well planned and executed in a
timely manner.
The Ethics and Sustainability Committee
supports the Group’s environmental, social
and governance (“ESG”) decision-making. This
Committee also monitors the Group’s long-term
strategies to reduce our adverse impact on the
environment and the communities in which
we operate and to increase sustainability.
Stakeholder engagement procedures and the
Company’s culture are monitored by this
Committee, which also oversees our ethics
policies.
The Remuneration Committee ensures that
executive pay remains aligned with Company
performance, workforce remuneration, and
the broader shareholder experience. The
Remuneration Committee ensures the executive
Directors remain motivated and incentivised, as
the senior leadership team executes the Board
approved strategy on a day-to-day basis.
The Audit and Risk Committee’s responsibilities
include reviewing the Group’s financial results,
risk management and internal control procedures,
challenging management and overseeing the
internal audit and external audit functions.
The Executive Committee comprises the senior
leaders of the Group, including operational
and functional management, and is chaired
by the Chief Executive. The Committee
meets regularly to review financial performance,
operational delivery and progress against
strategic objectives, providing a forum for
the consideration of matters delegated by
the Board. It is responsible for implementing
Board-approved strategy, overseeing the
application of Group policies, and managing the
day-to-day operations of the business within the
authorities and risk parameters set by the Board.
Operating under formal terms of reference, the
Executive Committee supports the governance
framework through clear accountability, effective
internal reporting and timely escalation of material
matters, promoting alignment across the Group
in the delivery of long-term value.
During 2025, as part of the Company’s
preparation for compliance with Provision 29
of the 2024 Code, the Directors approved the
creation of an Internal Controls Committee
of the Company’s Executive Committee.
Bruce Ferguson, Finance Director, chairs this
sub-committee and it comprises members of the
Executive Committee and the Deputy Company
Secretary, the Group Financial Controller and the
Financial Controllers of each operating segment
of the Group. To provide additional detail on
the work of the Executive Committee and this
sub-committee, a new section has been added
to this report, which can be found on page 151.
In 2023, a new deferred savings plan was
implemented in the US, which fully aligns the
workforce and management across the region.
The Remuneration Committee notes that this
plan will be offered to future US-based executive
Directors, which will make the Company fully
compliant with the Code.
Governance framework
Introduction
Subject to the Company’s Articles of Association,
UK legislation and any directions prescribed by
resolution at a general meeting, the business of
the Company is managed by the Hunting PLC
Board (“the Board”).
The Board sets the Company’s governance
principles and reviews and approves key
Group-level policies and decisions. It also
oversees strategic planning and long-term
growth objectives. Once strategic plans are
agreed, they are implemented across the
Group’s operations and communicated to key
stakeholders.
Risk appetite is embedded within the strategic
planning process. The Group’s Risk Management
Framework (see page 89), together with
supporting procedures, enables the Board to
evaluate opportunities and risks for long-term
success and growth against the Group’s risk
appetite and culture. These considerations inform
the execution of the Group’s Business Strategy
and Model.
The Board has four sub-committees to which it
delegates certain governance and compliance
procedures, with these Board Committees
supporting the Directors in their decision-making:
Hunting PLC
Annual Report and Accounts 2025
109
Strategic Report
Corporate Governance
Financial Statements
Other Information
Our purpose
Stakeholder
engagement
Non-executive
Directors
Executive
Directors
1
Strategic intent
2
Challenge and
decision making
3
Short-/long-term plans
Execution and
value creation
(Business Model)
Executive
Committee
Internal Controls
Committee
Risk
management
Strategic and
financial
performance
Business
strategy
Audit and Risk
Committee
Nomination
Committee
Ethics and
Sustainability
Committee
Market environment and
other external factors
KPIs
Remuneration
Committee
Corporate Governance Report
continued
Hunting governance framework
Board leadership
and Company purpose
(Section 1 of the Code)
Constitution of the Board
The Board is responsible for the management
and strategic direction of the Company, to ensure
long-term sustainable success by generating
value for its shareholders, while giving due
consideration to other stakeholders and society,
as prescribed by UK law.
Directors with skills and experience designed
to deliver this success are appointed, with the
current Board profile reflecting Hunting’s focus
on the global oil and gas and aviation industries,
which are, by far, the leading revenue and profit
drivers of the Group. The tenure and experience
of the Directors within these industries, coupled
with the operational, strategic and financial
backgrounds of other Directors, are the underpin
of a highly effective and entrepreneurial Board.
Composition and diversity
Annell Bay retired on 1 February 2025 after ten
years’ service to the Group. The Directors would
like to thank Annell for her contribution to Hunting
over the past decade, particularly in her role as
Chair of the Remuneration Committee.
Cathy Krajicek was appointed as a Director
on 3 March 2025. Following the Company’s
Articles of Association, Ms Krajicek automatically
retired at the 2025 AGM and offered herself for
reappointment by shareholders. Heidrick &
Struggles, an independent executive search
agent, supported the Board in this search
process. Heidrick & Struggles does not have any
other connection to the Group or the individual
Directors, other than in executive search
processes completed in the year.
As at 5 March 2026, the gender balance of the
Board comprises four female Directors (50%) and
four male Directors (50%). For further information
on the biographical details of the Board of
Directors, please see pages 106 and 107.
Tenure
The average tenure of the Directors of the Board,
at 5 March 2026, is five years (6 March 2025 –
four years). Within the non-executive Directors,
the average tenure is four years (6 March 2025
– three years).
For the appointment of executive Directors, the
Company enters into a service contract with the
Director, which reflects the terms of employment,
remuneration and termination, taking into
account the country of residence and local
employment laws applicable at the time of the
appointment. For more information on the service
contracts of the current executive Directors,
please see the Directors’ Remuneration Policy,
which can be located at www.huntingplc.com.
For the appointment of non-executive Directors,
a letter of appointment is agreed with the
Director, which sets out the time commitment,
fees, and term of appointment.
Responsibilities of the Board
The Board of Hunting PLC has clearly defined
areas of responsibility, which are separate
to those of the Company Chair, executive
Directors, and the Committees of the Board.
The non-executive Directors approve the
strategic goals and objectives of the Company,
as proposed by the executive Directors.
The Board exercises overall leadership of the
Company, setting the values of the Hunting
Group, providing a strong tone from the top,
which all businesses within the Group, and their
employees, are encouraged to adopt.
The Board approves all major acquisitions and
divestments; and capital allocations, including
dividends, share buybacks and capital
investments. The Board also reviews and
approves annual budgets and strategic
growth plans.
Hunting PLC
Annual Report and Accounts 2025
110
Strategic Report
Corporate Governance
Financial Statements
Other Information
The Directors monitor Hunting’s trading
performance, including progress against the
annual budget, reviewing regular management
accounts and forecasts, comparing these
forecasts to market expectations, and assessing
other financial matters. They review and approve
all public announcements, including financial
results and trading statements.
The Company’s internal control and risk
management framework and associated
procedures are reviewed by the Board.
However, key monitoring procedures are
delegated to the Audit and Risk Committee,
the Executive Committee and the Internal
Controls Committee.
Compensation for the executive Directors is set
by the Remuneration Committee, which also
reviews and monitors the remuneration of the
members of the Executive Committee, as well
as monitoring the remuneration structure of
the workforce.
2025 Board meetings and agenda items
9 Jan
20 Jan
28 Feb
4 Mar
16 Apr
10 Jun
2 Jul
27 Aug
1 Oct
3 Dec
Standing items
Chief Executive’s Report
•
•
•
•
•
•
•
•
Finance Director’s Report
•
•
•
•
•
•
•
Operational Reports
•
•
•
•
Quality Assurance, Health, Safety & Environmental Reports
•
•
•
•
Shareholder Report and Investor Relations Update
•
•
•
•
•
•
•
Other items
Board Rotation and Succession
•
•
•
•
•
Annual/Interim Report and Accounts
•
•
Board Evaluation
•
•
Risk Review
•
Governance and Internal Controls
•
•
•
AGM Preparation
•
Trading Statement
•
•
Strategy
•
•
•
•
•
•
•
Organisation and Personnel Review and Succession
•
•
•
•
•
•
Annual Budget
•
Company Chair/Senior Independent Director Investor Feedback
•
and Subsidiary Delegations of Authority were
revised to align with the enhanced control
environment now in place.
Going forward, these policies and practices will
be reviewed by the Directors on a periodic basis
or, if suitable, on an annual basis by the relevant
Committee of the Board or the Executive
Committee.
Board activities
Board and Committee papers are distributed in
advance of each meeting to allow sufficient time
for review. At each meeting, the Chief Executive
provides an update on key operational
developments, global market conditions, health
and safety performance, and progress against
Hunting’s strategic objectives. The Finance
Director reports on the Group’s financial
performance and position, trading outlook,
banking arrangements, legal matters, analyst
and investor engagement, tax issues, and
developments in statutory reporting relevant to
the Group.
These updates form the basis for discussion,
debate, and constructive challenge among the
Directors. Medium-term planning initiatives are
developed within the Executive Committee
and reviewed regularly by the Board, supported
by periodic presentations from Executive
Committee members.
In 2025, the Board met ten times (2024: nine
times), with attendance details set out below:
Number of meetings held
10
Number of meetings attended
(actual/possible):
Margaret Amos
9/10
Annell Bay (to 1 February 2025)
2/2
Stuart Brightman
10/10
Carol Chesney
10/10
Bruce Ferguson
10/10
Paula Harris
10/10
Jim Johnson
i
9/10
Cathy Krajicek (from 3 March 2025)
7/7
Keith Lough
10/10
i.
Jim Johnson was unable to attend one meeting due to
unforeseen personal circumstances.
The Board approves all key recommendations
from the Audit and Risk, Ethics and Sustainability,
Nomination, and Remuneration Committees and
approves all appointments to these Committees.
Resources, policies and practices
As part of the work undertaken by the Directors
to report compliance with the 2024 Code, the
Directors regularly review and challenge executive
management on the resources available to
deliver the Company’s long-term strategy.
As described elsewhere, the project to report
compliance with Provision 29 of the 2024 Code
included the complete revision of the Hunting
Group Manual (“the Manual”) during the year.
The Manual contains all of the Company’s
governance, operational, financial, legal,
compliance and other key procedures and
policies for managing the Group on a day-to-day
basis. Existing policies were reviewed by the
Directors in the year, with new policies being
developed and approved prior to inclusion in the
Group Manual and, in addition, Hunting’s Group
Corporate Governance Report
continued
Hunting PLC
Annual Report and Accounts 2025
111
Strategic Report
Corporate Governance
Financial Statements
Other Information
Board of Directors and Executive Committee
In accordance with the UK Listing Rules, the Company is required to provide the information below, with the applicable reference date for this data being 31 December 2025. To collect this data, the Company
asked members of the Board and Executive Committee to respond, in confidence, to a questionnaire.
Gender
Number of
Board members
% of Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management*
% of executive
Management*
Men
4
50
4
8
89
Women
4
50
0
1
11
Not specified/prefer not to say
–
–
–
–
–
Ethnic background
Number of
Board members
% of Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management*
% of executive
Management*
White British or other White (including minority-white groups)
7
87
4
8
89
Mixed/multiple ethnic groups
–
–
–
–
–
Asian/Asian British
–
–
–
1
11
Black/African/Caribbean/Black British
1
13
–
–
–
Other ethnic group
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
*
‘Executive management’ refers to members of the Executive Committee, excluding the Executive Directors.
Based on the current gender balance and allocation of roles within the Board, Hunting meets two of the three targets set out in UK Listing Rule 6.6.6R(9)(a). The target requiring at least one senior Board
position to be held by a woman has not yet been achieved. The current composition of senior roles has remained unchanged for several years; however, the Directors anticipate that this will be addressed by
no later than 2028 as the Board continues its planned refresh.
The Board also monitors the Group-wide ethnicity profile and intends to align the diversity profile of the senior management team with that of the wider workforce.
Corporate Governance Report
continued
Average tenure of the Directors
5
years
at 5 March 2026
(6 March 2025 – 4 years)
Average tenure of the non-executive
Directors
4
years
at 5 March 2026
(6 March 2025 – 3 years)
[XX]
%
[XX]
%
[XX]
%
Board tenure
at 5 March 2026
Less than 3 years
3-6 years
6-9 years
50%
25%
25%
Board gender diversity
at 5 March 2026
Male
Female
50%
50%
Hunting PLC
Annual Report and Accounts 2025
112
Strategic Report
Corporate Governance
Financial Statements
Other Information
Creation of sustainable value for our stakeholders
Our purpose – to be a highly trusted innovator and manufacturer of technology
and products that create sustainable value for our stakeholders.
Purpose
Our purpose shapes our strategic decisions
and drives our business model
Our culture and values are aligned with our purpose
Business strategy
(page 6)
Business model
(page 14)
Risk management and
internal controls
(page 87)
Our culture and values
underpin our business model
Culture and values
(page 114)
Purpose and strategy
Hunting’s long-term strategy and sustained
success are underpinned by a reputation grounded
in trust, reliability and responsible governance.
Hunting’s products are designed to operate in
a safe and reliable way to ensure our customers
meet their strategic objectives, while protecting
people and the environment. Our strategy aims
to offer technically differentiated products that
meet these customer demands.
We choose to operate in the oil and gas industry,
which supports the energy demands of today’s
global community. We also supply mission-
critical parts to other sectors, such as defence,
medical and aerospace.
Our customers are constantly pursuing higher
levels of safety and reliability and better efficiencies,
leading to a lower cost of operation for themselves,
while aiming to be good stewards of the
environment through a safe and responsible
approach to oil and gas field development.
This drives our ambition to deliver innovative
technologies and products to enable us to lead
the market and be the supplier of choice.
Our products and services include precision
engineered components that are quality-assured
to exceed the highest levels of industry
regulation. Our employees are highly trained to
ensure our operations are safe and deliver total
customer satisfaction.
The Directors have approved Hunting’s continued
focus on energy-related markets, while using the
earnings generated from that sector to diversify
into non-oil and gas sectors that utilise our core
competencies and offer an attractive return.
Our strategy is laid out on pages 6 to 11.
Corporate Governance Report
continued
Hunting PLC
Annual Report and Accounts 2025
113
Strategic Report
Corporate Governance
Financial Statements
Other Information
Culture and values
Hunting’s culture reflects the shared behaviours and standards that guide how we operate, underpinned
by our values of respect, honesty, integrity, innovation and reliability. With a heritage dating back to
1874, the Company has built a strong culture of excellence, with our people at its core.
The Board is responsible for monitoring the Company’s culture and ensuring it is embedded
throughout Hunting, in line with the requirements of the 2024 UK Corporate Governance Code.
During the year, a framework for monitoring and reporting on culture was agreed, including
enhancements to the materials reviewed by the Board. The key metrics adopted for reporting are
set out below. In December, the Board received the first “Culture Dashboard”, which provided a
comprehensive overview of cultural indicators across the Group. Directors offered feedback, and
an action plan was agreed to further embed this process within the Group’s operations.
Our culture is shaped and determined by the way we:
Attract and retain people
Training and development
To ensure we deliver for our
customers, we train and develop
our people to make sure we
maintain a highly skilled workforce
ready to deliver quality-assured
products and services.
Fair remuneration
To retain our staff, our employees
are fairly remunerated, which, in
addition to a competitive base
salary, can comprise a range of
benefits. Given the competitive
landscape of our industry, our base
levels of pay are well above
minimum wage thresholds.
Safety
Zero harm to our employees.
Key metrics
• HSE hours of training per
employee;
• Voluntary turnover rate;
• Average employee tenure;
• Salary and benefits;
• Talent development;
• Succession planning and
talent development;
• Total recordable incident rate;
and
• Total near-miss frequency rate.
Work together
Speak up
Our positive and inclusive culture
fosters open communication
and encourages a “speak up”
environment to enable our
processes to be improved, but
also to address possible concerns
from all levels of staff.
Equity and inclusion
Hunting prides itself on being a fair
and responsible employer. We are
committed to creating a positive
workplace environment for all of
our employees; one that is safe,
respectful, fair and inclusive, and
free from any form of harassment,
bullying or discrimination.
Diversity and inclusion
The Company recognises the
business benefits of having a
diverse workforce, including a
diverse Board, as this supports
the delivery of high performance
and increases the effectiveness
of the Company.
Key metrics
• Diversity of employees;
• Diversity at management level;
• SafeCall reports; and
• Employee engagement survey.
Do business in a responsible
and sustainable way
Strong HSE and quality
assurance ethic
We seek to achieve and maintain
the highest standards of safety
for our employees, customers,
suppliers, and the public.
Looking after local communities
The Board encourages community
focused initiatives, with the
Executive Committee responsible
for identifying local activities and
projects to support. This delegation
allows regional cultural practices to
be taken into account.
Commitment to minimising
our impact on the environment
We protect and minimise our
impact on the environment in
which we operate, and where our
products are used. We focus on
setting targets for, and achieving,
emissions reductions and
mitigating climate-related risks.
Key metrics
• Total recordable incident rate;
• Total near-miss frequency rate;
• Internal manufacturing reject rate;
• Charitable donations;
• Scope 1, 2 and 3 emissions; and
• ISO accreditation of facilities.
Make decisions
Flat management structure
The Group’s flat management
structure has short chains of
command, which allows for rapid,
considered decision making that
empowers and enables our
employees to be part of the process
to take the Company forward.
Ongoing engagement with
our shareholders, customers,
suppliers, and employees
Stakeholder engagement is a
key element for our culture as
our stakeholders enable Hunting
to deliver its strategy.
Incorporating environmental
concerns into our business
decisions
Our operating principles are
focused on containing and
reducing our carbon footprint.
Key metrics
• Employee engagement survey;
• Town hall meetings;
• NED engagement meetings;
• Hunting 2030 Strategy targets;
and
• Customer satisfaction surveys.
Maintain high business
standards
Code of Conduct and Supplier
Code of Conduct
Hunting’s Code of Conduct
underpins all our engagements,
internally and externally.
Internal and external audit
and assurance, risk assessment
Hunting is committed to carrying
out its business in a responsible
way and holds itself to high
standards of honesty and integrity.
Long-term relationships
with core stakeholders
Creating positive, long-term
relationships with our key
stakeholders ensures that
we are sustainable.
Key metrics
• Code of Conduct training;
• Rolling out a Supplier Code of
Conduct;
• Cyber security training;
• Prompt payment of suppliers;
• Total recordable incident rate;
• Total near-miss frequency rate;
and
• ESG metrics linked to remuneration
and included in short- and
long-term incentive plans.
Corporate Governance Report
continued
Hunting PLC
Annual Report and Accounts 2025
114
Strategic Report
Corporate Governance
Financial Statements
Other Information
Board decisions and outcomes
The decisions and outcomes made by the Directors during the year are laid out throughout this Annual Report, ranging from strategic growth decisions, approval of capital expenditures and budgets,
to capital allocation.
As laid out within the Strategic Report, including the reports from Hunting’s Company Chair, Chief Executive and Finance Director, the highlights of the Board’s decision making and outcomes are
summarised below:
Strategic Focus
Decision
Date
Outcome
Reference in Strategic Report
Growth
• Acquisition of Organic Oil Recovery
March
Securing of intellectual property and control
of commercialisation
Pages 28 and 29
• Acquisition of Flexible Engineered Solutions
June
$64.8m purchase expands subsea offering in
line with 2023 Capital Markets Day
Pages 28 and 29
• Commissioning of new operating site in Dubai
September
Expansion of Middle East presence
Page 28
Strong returns
• Increased dividend distribution ambition
July
Total dividends declared increased 13% to
13.0 cents per share for 2025
Page 5
• Commenced share buyback programme
August
$40m returned to shareholders by Q1 2026
Page 5
• Expansion of share buyback programme
December
Increase target returns to shareholders to $60m
Page 5
Operational excellence
• Restructuring of EMEA
January
c.$11m of annualised cost savings targeted by
June 2026
Page 28
• Restructuring of Hunting Titan
March
c.$6m of annualised cost savings targeted by
Q2 2025
Page 28
• Introduction of working capital optimisation
January
Reduced working capital balance, leading to
working capital cash inflows of $18.0m, and a
working capital to revenue ratio of 33%
Page 52
ESG and Sustainability
• Expanded scope 3 data collection to include
North America operating segment
July
Group now reports a complete scope 1, 2 and 3
data set
Page 66
• New stretching carbon intensity factor ambition
announced
March
Hunting will target a factor of 20kg/$k of revenue
or less by 2030
Page 25 and 66
• Increased non-oil and gas sales
Throughout year
Non-oil and gas revenue was $82.9m compared
to $75.1m, an increase of 10%
Page 30
• Continued premium connection testing for
energy transition markets
Throughout year
In the year, the Group continued to develop and
test connections for geothermal and carbon
capture end-markets at our test facility in
Ameriport
Page 15
Corporate Governance Report
continued
Hunting PLC
Annual Report and Accounts 2025
115
Strategic Report
Corporate Governance
Financial Statements
Other Information
Corporate Governance Report
continued
Board engagement
The Directors oversee all stakeholder
engagement activities and receive regular reports
on regional initiatives throughout the year. Further
details on engagement and decision-making
activities are provided in the Business Model
section on pages 14 to 27.
Investors and shareholders
The Board meets shareholders as part of an
investor relations programme of work which
includes the Company Chair, Senior Independent
Director, Chief Executive, Finance Director,
Company Secretary, and Deputy Company
Secretary.
In January 2025 and January 2026, the
Company Chair and Senior Independent Director
met with shareholders to discuss governance,
remuneration, capital allocation, and other key
matters. Committee Chairs also attend these
meetings when relevant topics, such as
remuneration and sustainability, are under
discussion.
Throughout the year, the Chief Executive,
Finance Director, Company Secretary, and
Deputy Company Secretary held regular
meetings with shareholders during roadshows,
conferences, and one-to-one sessions to discuss
financial performance and strategic priorities.
Investor feedback reports prepared by the
Group’s advisers are shared with the Board
following these engagements.
Employees
All the Directors participate in employee
engagement initiatives. During the year, the
Board met with employees at our Singapore
and China facilities, as part of ongoing
engagement programmes.
Paula Harris, in her role as designated Director
for employee engagement, met members of the
workforce on a number of occasions throughout
the year.
In October, the Group completed its third
all-employee engagement survey using the
Gallup Q12 platform. A summary of the findings
of the survey is noted on page 71.
Customers and suppliers
Engagement with our customers and suppliers
is primarily delegated to the Chief Executive
and Executive Committee members.
Other stakeholder engagement
Following the announcement of the full-year and
half-year results, the Finance Director and the
Group Treasurer met with bank representatives
from the RCF lending group.
Details of engagement activities between all our
key stakeholders and the Board can be found
within the Strategic Report on pages 19 to 27.
Engagement processes are embedded within all
business units to enhance transparent two-way
dialogue between the Board and the Group’s
employees.
The Board has considered its engagement
mechanisms with its various stakeholders and
confirm that they remain effective.
Whistleblowing/speak up
Our employees are encouraged to engage in
dialogue with management to raise issues of
concern. Keith Lough, the Senior Independent
Director, is the primary point of contact for staff
or other key stakeholders to raise, in confidence,
any concerns they may have over any possible
improprieties.
An independent and anonymous whistleblowing
reporting service has been in place for many
years. This independent reporting service is
operated by SafeCall, where confidential matters
can be raised by employees with the Board.
Annual General Meeting
The Annual General Meeting (“AGM”) of the
Company is the normal forum for all shareholders
to meet the Directors and to ask questions about
the strategy and performance of the Group.
The formal business of the AGM includes
receiving the Annual Report and Accounts,
approving remuneration policies and outcomes,
re-electing Directors, appointing the auditor and
providing the Directors with powers to transact
Company business on behalf of its members.
The Chief Executive normally provides a
presentation on the Group’s performance and
answers questions from shareholders. At the
Company’s AGM in April 2025, an open meeting
was held where shareholders had the
opportunity to meet the Directors and to ask
questions. A webcast of the AGM was also
broadcast, with the ability for any shareholders
online to also pose questions to the Board. All
resolutions were passed at the AGM with good
majorities, with no resolutions receiving more
than 20% votes against.
Details of the resolutions put to shareholders at
the meeting can be found within the Notice of
Meeting located within the “General Meetings”
section of the Company’s website
www.huntingplc.com.
The Company’s 2026 AGM is again being
planned as an open meeting. In addition to going
to the AGM venue, shareholders are also able to
access the AGM via a webcast, where questions
can be submitted, ahead of and during the
meeting, to be answered by the Board.
Conflicts of interest
Each Director is required to declare any potential
conflict of interest that exists, or which may arise.
These are formally recorded by the Company
Secretary. Appropriate decision-making, in light
of this declaration, is undertaken, which could
include a Director not participating in a Board
decision or vote. Each Director is required to
complete annually a declaration of known
conflicts of interest.
The Board noted that Mr Lough, an existing
Director, and Ms Krajicek, newly appointed to
the Board in 2025, both previously served as
Directors of Capricorn Energy PLC, and that
Mr Lough had also served as a Director of Gulf
Keystone Petroleum Limited. In line with the
Company’s governance procedures, the Board
reviewed any potential or continuing conflicts
arising from these former roles and concluded
that neither Director has any such conflicts and
that both are considered fully independent.
Hunting PLC
Annual Report and Accounts 2025
116
Strategic Report
Corporate Governance
Financial Statements
Other Information
Division of responsibilities
(Section 2 of the Code)
At 5 March 2026, the Hunting Board comprises
of an independent non-executive Company
Chair, Chief Executive, Finance Director and
five independent non-executive Directors, one
of whom is the Senior Independent Director.
The profiles and experience of each Director
are found on pages 106 and 107.
In line with the Code’s recommendations, the
Notice of Annual General Meeting incorporates
details of the contribution in the year by each
Director and the Board’s reasons for proposing
the re-election of each Director.
There is a clear division of responsibilities
between the Company Chair and Chief
Executive, with the Company Chair required to
lead the Board, while the Chief Executive runs
the Group’s businesses, as shown on the right.
Company Chair
Stuart Brightman, Hunting PLC’s Company
Chair, was appointed as a Director on 3 January
2023 and became Company Chair on 17 April
2024. Mr Brightman was viewed as independent
on appointment. The roles of Company Chair
and Chief Executive are divided and have been
occupied by different Directors for many years.
The responsibilities of Hunting’s Company Chair,
which are codified in the Board’s Terms of
Reference, are as follows:
Responsibilities
• Manage the day-to-day activities of
the Group;
• Make strategic planning recommendations
to the Board and implement the agreed
Board strategy;
• Identify and execute new business
opportunities, acquisitions and disposals;
• Ensure an appropriate system of internal
controls is in place;
• Report to the Board regularly on the
Group’s performance and position; and
• Present to the Board an annual budget
and operating plan.
Non-executive Directors
Hunting PLC’s non-executive Directors are noted
on pages 106 and 107, and all are determined to
be independent when compared to Provision 10
of the 2024 Code. The responsibilities of the
non-executive Directors are as follows:
Responsibilities
• Appointing and removing Directors,
as part of the activities of the Nomination
Committee;
• Provide independent, constructive
challenge to executive management on
the proposed strategy and hold them
to account;
• Monitor the execution of the approved
strategy and of the financial performance of
the Company on an ongoing basis;
• Ensure executive management remains
motivated and incentivised through a
responsible remuneration policy; and
• Ensure the integrity of financial information
and that internal control and risk
management processes are effective
and defensible.
Senior Independent Director
Keith Lough, Hunting PLC’s Senior Independent
Director (“SID”), was appointed as a Director
on 23 April 2018 and as SID in August 2018.
The responsibilities of Hunting PLC’s Senior
Independent Director are as follows:
Responsibilities
• Provide a sounding board for the Company
Chair and serve as an intermediary for
other Directors;
• Be available to shareholders, should the
normal channels through the Company
Chair and Chief Executive not be
appropriate;
• Chair meetings of the Board in the absence
of the Company Chair;
• Lead an annual performance evaluation of
the Company Chair, supported by the other
non-executive Directors;
• Oversee the Group’s whistleblowing reports
and responses; and
• Attend meetings with shareholders to
develop a balanced understanding of any
issues or concerns.
Responsibilities
• Lead and build an effective and balanced
Board;
• Direct the activities of the Company;
• Chair meetings of the Board, ensuring the
agenda and materials are fit for purpose;
• Ensure the Directors are provided with
accurate, timely and relevant information;
• Promote good dialogue between all
Directors, with strong contributions
encouraged from all Board members;
• Meet the non-executive Directors without
the executive Directors present;
• Discuss training and development with the
non-executive Directors;
• Arrange Director induction programmes;
• Arrange an annual Board evaluation and
act on its findings; and
• Ensure shareholders and other
stakeholders are communicated
with effectively.
The Company Chair holds meetings with the
other non-executive Directors as part of each
Board Meeting throughout the year.
Chief Executive
Jim Johnson, Hunting PLC’s Chief Executive,
was appointed as a Director on 1 September
2017. Mr Johnson manages the day-to-day
running of the Group.
The responsibilities of Hunting’s Chief Executive,
which are codified in the Board’s Terms of
Reference, are as follows:
Corporate Governance Report
continued
Hunting PLC
Annual Report and Accounts 2025
117
Strategic Report
Corporate Governance
Financial Statements
Other Information
Corporate Governance Report
continued
Directors’ and officers’ liability insurance
Hunting maintains insurance against certain
liabilities, which could arise from a negligent act
or a breach of duty by the Directors and Officers
in the discharge of their duties. This is a qualifying
third-party indemnity provision that was in force
throughout the year, for both the parent
Company and its subsidiaries.
Board independence
At the date of signing these accounts, being
5 March 2026, the Board, including the
Company Chair, comprises 75% independent
non-executive Directors. Excluding the Company
Chair, the Board comprised 71% independent
non-executive Directors.
The Board, including the Chair, has access to
professional advisers, at the Company’s
expense, to fulfil their various Board and
Committee duties.
Time commitment and external
appointments
When the Hunting PLC Board appoints a new
Director, other commitments are disclosed and
discussed as part of the process.
All external appointments are approved by the
Company Chair. The Group has procedures in
place that permit the executive Directors to join
one other company board. In the year, neither the
Chief Executive nor the Finance Director held any
external board appointments.
Company Secretary
All Directors have access to Ben Willey, Hunting
PLC’s Company Secretary, whose appointment
or removal is a matter reserved for the Board.
Responsibilities of the Company
Secretary
The Company Secretary is appointed by
the Board and supports the Company Chair
in providing all materials and information flows
between the executive and non-executive
Directors, specifically on matters of
governance and regulatory compliance. The
Company Secretary is also available to the
Board and all its Committees for advice and
ensures that all procedures are followed and
that sufficient resources are made for the
Board to function effectively and efficiently.
Composition, succession
and evaluation
(Section 3 of the Code)
Board appointments
All appointments to the Board are in accordance
with the Company’s Articles of Association and
the Code and are made on the recommendation
of the Nomination Committee.
Nomination Committee
The work of the Nomination Committee completed
in the year is detailed on pages 122 and 123.
The Nomination Committee comprises the
non-executive Directors of the Company and
is led by Stuart Brightman, Hunting PLC’s
Company Chair. The Company Chair does
not lead the succession process when a new
Company Chair is required, this process being
led by the Senior Independent Director who
chairs the Nomination Committee.
Appointments are rigorous and transparent with
the views of all Directors inputting into the process.
Recruitment of new Directors follows Group
policy, including the formulation of a detailed
description of the role that considers the required
skills, experience and diversity requirements for
the appointment.
Recruitment consultants
The Nomination Committee engages
independent, external recruitment consultants
for all Board appointments. Typically, the
Directors review a long list of candidates before
the Nomination Committee recommends a short
list for face-to-face interviews with each Director.
Diversity, inclusion, and equal opportunity
considerations are integral to the compilation
of candidate long lists.
Board changes in the year
Cathy Krajicek was appointed on 3 March 2025
as a new, independent, non-executive Director
of the Company, in line with the succession
and rotation recommendations tabled by the
Nomination Committee.
Annell Bay stepped down as a Director on
1 February 2025 after ten years’ service.
Annual General Meeting
All Directors retired and were proposed for
re-election at the Company’s 2025 AGM.
Reasons for re-election were included in the
2025 Notice of AGM.
Company Chair Tenure
Stuart Brightman was appointed to the Board in
January 2023, and appointed Company Chair in
2024. He has served as a Director for three years.
Board succession and rotation
The Directors, led by the Nomination Committee,
monitor the succession and rotation plans of the
Board and senior leadership team throughout the
year. The tenure of the non-executive Directors is
monitored with a tenure of nine years’ service
targeted, with an evaluation and review process
occurring at three-year intervals, in line with UK
best practice. In extraordinary circumstances,
a non-executive Director may be appointed for
a final tenth year of appointment, when deemed
necessary for continuity purposes.
Executive Director succession is also closely
planned, with a strong process in place to
develop future leaders of the Company. All
executive Director appointments use professional
recruitment consultants, with both internal and
external candidates comprising shortlists
developed by the Nomination Committee
and wider Board.
Board independence
(excluding Company
Chair) at 5 March 2026
Independent
Non-independent
29%
71%
Board independence
(including Company
Chair) at 5 March 2026
Independent
Non-independent
25%
75%
Hunting PLC
Annual Report and Accounts 2025
118
Strategic Report
Corporate Governance
Financial Statements
Other Information
Corporate Governance Report
continued
Board skills and experience
The expertise and competencies of the non-executive Directors are noted in the table below and
underpin the balance of skills and knowledge of the Board.
Director
Expertise
Margaret Amos
Accounting and finance, corporate planning, aviation markets, ESG and
sustainability, ethics compliance, and UK quoted companies.
Stuart Brightman
Oilfield services and manufacturing, investor relations, business transformation,
and US quoted companies.
Carol Chesney
Accounting and finance, UK corporate governance, ethics compliance,
and UK quoted companies.
Paula Harris
Oilfield services and manufacturing, US energy market development,
investor stewardship, and ESG.
Cathy Krajicek
Upstream oil and gas, health and safety, technology and innovation,
and UK quoted companies.
Keith Lough
Accounting and finance, upstream oil and gas, UK energy regulation and market
development, and UK quoted companies.
Audit, risk and internal control
(Section 4 of the Code)
Audit and Risk Committee
The work of the Audit and Risk Committee
(“ARC”) is described on pages 144 to 150.
The ARC comprises the five independent
non-executive Directors of the Company
(excluding the Company Chair).
Dr Amos, Mrs Chesney and Mr Lough are
determined to hold recent and relevant financial
experience. Ms Harris, Ms Krajicek and Mr Lough
have strong experience of the global oil and gas
industry.
The roles and responsibilities of the ARC are
detailed in its report on page 145.
Policies and procedures
The Group’s policies, procedures and approach
to the internal and external audit processes,
in addition to the risk and internal controls
environment is described within the Risk
Management and Internal Controls section
(pages 87 to 98). The ARC has responsibility for
monitoring risk and internal control as there is no
separate risk committee.
Financial and narrative statements
The ARC, and wider Board of Directors, receives
reports from the central finance function ahead
of publication of the Company’s half-year and
full-year reports.
Management narrative covering these results is
circulated to all the Directors for comment, in
addition to professional advisers who provide
input to the proposed draft narrative.
The ARC then opines whether the proposed
disclosures are fair, balanced and
understandable, and the financial statements
give a true and fair view, with a recommendation
being made to the Board of Directors, ahead of
final approval and publication.
Attention is given to the information disclosed
to ensure that all stakeholders understand the
position, performance, strategy and business
model of the Company.
Annual Report and Accounts
The 2025 Annual Report and Accounts contain
a description of the work of the ARC, including
disclosures related to the External Audit:
Minimum Standard.
External audit
The ARC is responsible for monitoring the
statutory audit of the annual financial statements
by the external auditor and receives regular
updates and a report from the external auditor.
The ARC will report to the Board on the outcome
of the statutory audit and findings of the external
auditor. The ARC is also responsible for
monitoring and reviewing the independence
of the external auditor and, in particular, the
provision of additional services to the Company.
The ARC is responsible for overseeing the
process of selection of the external auditor and
recommending their appointment.
Internal audit
The Company maintains a fully independent
internal audit function that reports to the ARC
at each meeting.
A performance review of the function is
completed at the ARC in December of each year.
Board evaluation
In December 2025, the Board undertook an
internally facilitated Board and Committee
performance review, which was arranged by the
Company Chair and Company Secretary.
An evaluation questionnaire covering all aspects
of Hunting PLC’s governance processes and
procedures was completed by each Director,
with feedback reviewed by the Company Chair
and then discussed as part of the evaluation
process with the Board.
An area for further improvement noted in the
evaluation was long-term corporate planning,
however, it was noted that strong progress had
been made in this area since the Group’s Capital
Markets Day in 2023.
Action points were determined for consideration,
with the Company Chair, Chief Executive and
Senior Independent Director confirming the
completion of the evaluation in March 2026.
A performance evaluation and reappointment
of Stuart Brightman, Hunting PLC’s Company
Chair, was completed on Monday 1 December
2025, led by Mr Lough, with the non-executive
Directors in attendance.
The last externally facilitated Board Performance
Review was undertaken in 2024, completed by
Clare Chalmers Limited, an independent
practitioner.
Executive Committee and senior leadership
development and succession
Throughout 2025, the Nomination Committee
dedicated significant time to reviewing
succession and development plans for the
Executive Committee and their direct reports.
The Committee’s focus was to ensure that key
leadership roles have a strong pipeline of suitably
qualified and diverse candidates identified and
actively developed. A detailed briefing was
delivered by the Company’s Chief HR Officer in
August 2025.
Hunting PLC
Annual Report and Accounts 2025
119
Strategic Report
Corporate Governance
Financial Statements
Other Information
Corporate Governance Report
continued
Risk Management and Internal Controls
Framework
The ARC has oversight of risk management
and internal controls on behalf of the Board of
the Directors. A report is submitted twice a year
on the Company’s risk management framework
and internal control environment by management
to the ARC. The effectiveness of the internal
controls environment is assessed annually. The
Risk Management and Internal Controls section
on pages 87 to 98 includes information on the
Group’s principal and emerging risks, as required
by the Code.
Provision 29 compliance
As noted on page 109, the Company is not
reporting compliance with Provision 29 of the
2024 Code, rather it is reporting compliance
with Provision 29 of the 2018 Code. However,
a ‘Roadmap to Compliance’ summary is
detailed on page 121, which describes the
work completed by the Company in the year
in preparation for Provision 29 of the 2024
Code becoming effective from 1 January 2026.
The ARC and wider Board have monitored the
progress of this work during the year and is
targeting compliance with Provision 29 of the
2024 Code during 2026.
Going concern
The ARC received reports ahead of publication
of the Company’s half-year and full-year results
in respect of a Going Concern Assessment
completed by management. The external auditor
reviews this assessment and reports to the ARC
on its conclusion. As set out in the going concern
assessment on page 100, the Board considers it
appropriate to adopt the going concern basis
of accounting in the preparation of the financial
statements for the year ended 31 December 2025.
Viability assessment
Management also prepares a viability
assessment, which, at present, covers a three-
year outlook for the Company. The assessment
is reviewed by the ARC and wider Board, ahead
of publication of the Company’s full-year results.
As detailed in the viability assessment on pages
99 and 100, the Directors have a reasonable
expectation that the Company will continue in
operation and meet its liabilities as they fall due
over the three-year assessment period.
Remuneration
(Section 5 of the Code)
Directors’, Executive Committee and
Workforce remuneration policies
The remuneration framework of the Company
is designed to support the Group’s Business
Strategy, which supports the long-term
sustainability of the Company.
As noted in the Strategic Report, most
employees, on joining the Group, are offered
a base salary and benefits, including pension
contributions and healthcare arrangements.
Annual bonus programmes are also in place,
which reward employees for outperformance.
Where appropriate, participation in the
Company’s long-term incentive plan is offered.
The remuneration framework of the Group is
detailed in the Directors’ Remuneration Policy,
which can be found at www.huntingplc.com.
This Policy was last approved by shareholders in
April 2024, with strong levels of investor support
for Hunting’s remuneration principles.
Executive Director remuneration is aligned with
the Company’s purpose, values and culture,
with short- and long-term financial performance
targets chosen to deliver growth in the Group’s
financial performance but also contains
non-financial metrics, which support the Group’s
culture of quality assurance and health and safety.
The Group’s long-term performance target
setting is guided by the Hunting 2030 Strategic
ambition, which was communicated to
shareholders at the Company’s Capital Markets
Day in 2023.
The Directors believe that the Company’s
remuneration framework and policies are
transparent.
No Director or employee is involved in the setting
of their own remuneration.
Remuneration Committee
The Company operates a Remuneration
Committee, comprising the independent
non-executive Directors of the Company, and
excludes the Company Chair.
Paula Harris is the Chair of the Remuneration
Committee, was appointed Committee Chair
on 1 February 2025, and joined the Committee
on appointment as a Director on 22 April 2022.
The Remuneration Committee is tasked with
ensuring remuneration outcomes are fair but
align with the performance of the Group, as well
as reflecting the wider shareholder experience
in the year. The short-term remuneration of
the executive Directors includes personal
performance objectives, which are reviewed and
measured prior to an outcome being agreed.
The Remuneration Committee is charged with
developing the Directors’ Remuneration Policy,
which sets the executive Directors’ remuneration.
The Remuneration Committee also sets the
compensation of the Company Chair and
Company Secretary.
The Committee reviews the remuneration
outcomes for the Executive Committee,
following receipt of recommendations from
the Chief Executive.
The Committee also monitors the remuneration
of the wider workforce, to ensure that the
purpose, culture and values of the Company
are reflected in the compensation paid.
The remuneration of the non-executive Directors
is set by the Board of Directors, following receipt
of independent benchmarked data from the
Remuneration Committee’s independent
consultant. The fees paid to the non-executive
Directors are reviewed annually by the Board, and
reflects the time commitments to Hunting PLC.
The independent remuneration consultant and
the fees paid by the Company for their services
are noted in the Remuneration Committee
Report on page 142. The Remuneration
Committee considers the advice of the
consultant on an objective basis, to ensure it
reflects the wider ambition of the Group.
Remuneration policy
The short-term incentive framework for the
executive Directors comprises profit before tax,
return on average capital employed and personal
performance targets. The vesting of the
short-term incentive is indexed to the delivery
of the Company’s annual budget targets and
vests in line with parameters set within the
Directors’ Remuneration Policy.
Hunting PLC
Annual Report and Accounts 2025
120
Strategic Report
Corporate Governance
Financial Statements
Other Information
Corporate Governance Report
continued
The long-term incentive framework is enshrined
in the 2024 Hunting Performance Share Plan
(“HPSP”), which was approved by shareholders
in April 2024. The performance targets are
normally based around growth targets for
earnings per share, return on average capital
employed, free cash flow, total shareholder
return, in addition to a scorecard comprising
non-financial performance measures including
health and safety and quality assurance
performance.
The 2024 HPSP provides for the grant of
performance and time-based shares to the
executive Directors.
The performance period is normally three years,
with an additional two-year holding period, taking
the total vesting timeline to five years.
The Directors’ Remuneration Policy also has
post-employment shareholding requirements for
the executive Directors, whereby shares are held
for a period of two years, to a level of 200% of
base salary.
Discretion
As detailed in the Directors’ Remuneration
Policy, the Committee has specific areas where
discretion can be applied to the formula driven
remuneration outcomes. This enables the
Company to recover or withhold remuneration
in certain circumstances. Malus and clawback
provisions are contained in all areas of variable
remuneration paid to the executive Directors.
Pension
As noted on page 109, the pension of the Chief
Executive is an area of non-compliance with the
Code, given that Mr Johnson was appointed
as a Director prior to this being a requirement.
Mr Ferguson’s pension’s arrangements fully align
with the Code.
Roadmap to compliance
with Provision 29
Readiness for Provision 29 of the 2024
UK Corporate Governance Code
Provision 29 of the 2024 UK Corporate
Governance Code requires boards to monitor
their company’s risk management and internal
control framework and conduct an annual review
of its effectiveness. For financial years beginning
on or after 1 January 2026, companies must
report on how the board monitored and reviewed
the framework, confirm the effectiveness of
material controls at the year-end, and disclose
where any material controls did not operate
effectively, including actions taken or planned.
Building on the work completed during 2024, and
in preparation for these requirements, Hunting
has completed a two-year, Company-wide
project sponsored by the Executive Committee
and overseen by the Audit and Risk Committee.
This programme, based on the COSO Internal
Control Framework, strengthened governance,
controls, and evidence, while embedding a
culture of accountability across the business.
We have strengthened our governance
framework by mapping principal risks to both
financial and non-financial reporting, compliance,
operational, and fraud controls, with clear
accountability for each Executive Committee
member as well as across the business.
This ensures focus on material controls aligned
with our risk appetite and provides defined
responsibilities for their operation. This involved
evaluation of our risk appetite and, therefore,
ensures that our governance framework focuses
clearly on material controls, with responsibility for
those controls defined and understood.
The Group’s risk management process remains
consistent and robust, supported by a
comprehensive risk universe setting out the
Group and business risks. This year, we
strengthened our approach by enhancing the risk
template to place greater emphasis on emerging
risks and opportunities.
Material controls primarily comprise entity-level
controls, significant transactional level internal
controls over financial reporting, and general IT
controls. Control owners are responsible for
understanding the risks within their area and
evidencing that the material controls operated
effectively during the period and at the year-end.
Initially, non-financial reporting controls cover two
QAHSE metrics, with plans to expand this scope.
To support this framework, we implemented
AuditBoard, a governance, risk, and compliance
tool that streamlines risk management, internal
controls, and audit processes. AuditBoard
enhances efficiency by linking control sign-off,
review, and assurance activities for the Executive
Committee and the Audit and Risk Committee,
while reducing compliance administration costs
and providing clear assurance across the
organisation.
The assurance model has been developed with
clear differentiation between the three lines of
defence. Independent assurance will be provided
by a combination of the second line of defence,
comprising a risk and controls team within Group
Finance and internal audit, with the support of
independent advisers, where necessary.
All material controls have been tested during the
year and into Q1 2026, with results expected to
be reported to the Audit and Risk Committee
meeting. While a small number of remediation
activities are ongoing, completion is expected by
mid-2026. As we transition to business-as-usual,
we continue to embed a controls mindset,
enhance monitoring and reporting standards,
and progress ERP system development to
improve consistency and automation.
Notice periods
Executive Directors are employed under
service contracts that provide for a one-year
notice period.
Remuneration Committee Report
The 2025 Remuneration Committee Report can
be found on pages 127 to 143 and includes the
letter from the Remuneration Committee Chair
and the Annual Report on Remuneration.
The report contains:
• An explanation of the strategic rationale for the
remuneration paid to the executive Directors in
the year;
• Internal and external measures used for the
remuneration paid in the year;
• The remuneration paid in respect of the
Company’s performance in the year;
• Engagement activities with shareholders;
• Engagement activities with the workforce; and
• The application of discretion.
As noted above, the Directors’ Remuneration
Policy can be found at www.huntingplc.com, and
will be resubmitted to shareholders for approval
in 2027.
On behalf of the Board
Stuart M. Brightman
Company Chair
5 March 2026
Hunting PLC
Annual Report and Accounts 2025
121
Strategic Report
Corporate Governance
Financial Statements
Other Information
Nomination Committee Report
The work of the Nomination
Committee during 2025 focused
on the appointment and onboarding
of Cathy Krajicek as a new,
independent, non-executive Director
and also gave deep consideration to
executive and senior leadership
succession planning and training.
Introduction
Since our last Annual Report, the Hunting Board
has seen a period of stability, given that no new
appointments have been made since March
2025 when Cathy Krajicek joined as a Director
on 3 March 2025.
The Committee’s work in the year has given
strong focus to senior leadership and executive
succession, with various initiatives occurring
in the year including the review of detailed
succession plans and the continued development
and training of Hunting’s senior executives.
In December 2025, the Committee reappointed
Stuart Brightman for a second three-year term
following a detailed evaluation process led by
Keith Lough, Hunting’s Senior Independent
non-executive Director.
Composition and frequency of meetings
The Committee comprises the Company
Chair, Stuart Brightman, who also chairs the
Committee, and the independent non-executive
Directors of the Company. The Committee meets
as required to discuss succession matters at
both the Board and Executive Committee levels.
During 2025, the Committee met six times
(2024 – six times).
The Committee operates under written terms
of reference approved by the Board, which
can be viewed on the Company’s website at
www.huntingplc.com. The attendance of the
Nomination Committee during 2025 is noted
in the table on the left.
Retirement of Annell Bay
On 1 February 2025, Annell Bay stepped down
as a Director after ten years of dedicated service
to the Group. During her tenure, the Group
further strengthened its Directors’ Remuneration
Policy, supporting long-term succession planning
for its most senior executives. The Board thanks
Annell for her significant contribution and extends
its best wishes for her retirement.
Appointment of Catherine (“Cathy”) Krajicek
Following the retirement of Annell Bay in February
2025, the Board sought to replace key energy-
related sector expertise, specifically in the
exploration and production sub-sector of
the industry. The following outlines the process
undertaken for this appointment.
In September 2024, the Committee initiated a
search process to appoint a new, independent
non-executive Director, with a strong background
in energy. Heidrick & Struggles, an independent
executive search firm, was appointed to support
the Directors in this process. Heidrick & Struggles
has no other relationship with the Company.
During 2024, the Committee reviewed a long
list of potential candidates and compiled a
short list in November. Interviews with short listed
candidates were conducted in December 2024
and January 2025.
On 28 February 2025, the Nomination
Committee recommended the appointment
of Catherine (“Cathy”) Krajicek, who joined
the Board on 3 March 2025. Cathy became
a member of all Board Committees upon
her appointment.
In accordance with the Company’s Articles
of Association, Cathy retired at the 2025
Annual General Meeting and offered herself
for reappointment by shareholders.
Member
Invitation
Number of meetings held
6
Number of meetings attended
(actual/possible):
Margaret Amos
6/6
–
Annell Bay (to 1 February 2025)
0/0
–
Stuart Brightman (Committee Chair)
6/6
–
Carol Chesney
6/6
–
Bruce Ferguson
–
6/6
Paula Harris
6/6
–
Jim Johnson
i
–
5/6
Cathy Krajicek (from 3 March 2025)
4/4
–
Keith Lough
6/6
–
i.
Jim Johnson was unable to attend one meeting due to
unforeseen personal circumstances.
Stuart M. Brightman
Chair of the Nomination Committee
Hunting PLC
Annual Report and Accounts 2025
122
Strategic Report
Corporate Governance
Financial Statements
Other Information
Nomination Committee Report
continued
Hunting’s current Board
profile reflects a good balance
between energy and non-oil
and gas expertise as well as
an excellent gender profile.
With the appointment of
Cathy Krajicek we have
strengthened our oil and
gas expertise and look
forward to her wise counsel
as the energy industry
continues to evolve.
Internally facilitated performance review
In December 2025, the Board completed an
internally facilitated performance review,
which also gave consideration to each of the
sub-Committees operated by the Board.
A detailed description of this process is noted on
page 119, with the Committee concluding that it
had been effective during 2025.
Company Chair reappointment
In December 2025, the Committee completed
an evaluation and reappointment process for
Stuart Brightman, Hunting’s Company Chair.
Led by Keith Lough, the Company’s Senior
Independent non-executive Director, the
Committee evaluated Stuart Brightman’s
performance since appointment as a Director in
January 2023, and particularly since appointment
as the Company Chair in April 2024.
Following this process, the Committee
recommended the reappointment of
Mr Brightman for a second three-year term,
commencing on 3 January 2026.
On behalf of the Board
Stuart M. Brightman
Chair of the Nomination Committee
5 March 2026
Gender balance
With these Board changes in the year, the
Hunting Board retains its equal gender balance
across the Directors.
Senior management development and
succession
The Nomination Committee devoted significant
time during the year to considering senior and
executive management succession.
At the August 2025 meeting of the Committee,
the Group’s Chief HR Officer presented detailed
succession plans for each member of the
Hunting Executive Committee and their direct
reports. Further, the Committee reviewed the
leadership training programmes for high potential
candidates, which have been occurring for a
number of years. The Committee engages
several industry and global recruitment
consultancies to assist in this process.
The Committee also gave strong consideration
to short- to medium-term executive succession,
with high potential candidates receiving
independent evaluation and coaching. This forms
part of Hunting PLC’s development programmes
and succession planning for the most senior
executive roles within the Company.
Further discussions on the progress of these
initiatives were concluded in December 2025.
Terms of reference
At its December 2025 meeting, the Committee
reviewed its terms of reference.
Hunting PLC
Annual Report and Accounts 2025
123
Strategic Report
Corporate Governance
Financial Statements
Other Information
Ethics and Sustainability Committee Report
Member
Invitation
Number of meetings held
2
Number of meetings attended
(actual/possible):
Margaret Amos
2/2
–
Annell Bay (to 1 February 2025)
0/0
–
Stuart Brightman
–
2/2
Carol Chesney
2/2
–
Bruce Ferguson
–
2/2
Paula Harris
2/2
–
Jim Johnson
–
2/2
Cathy Krajicek (from 3 March 2025)
2/2
–
Keith Lough
2/2
–
Margaret Amos
Chair of the Ethics and Sustainability Committee
During the year, the work of the
Ethics and Sustainability Committee
focused on improving its carbon data
reporting, by expanding the scope 3
data collection to all operating
segments of the Group.
In December, the Committee
received the report summarising
the results of Hunting’s third Gallup
Q12 employee engagement survey.
The Committee also received
HSE updates following the fatality
recorded in the year and has
overseen improvements to the
incident reporting regime across
the Company.
Introduction
Hunting’s ethics, sustainability, and broader ESG
activities continued to progress during 2025.
Carbon data reporting was expanded to include
scope 3 emissions across all five of the Group’s
operating segments, an important milestone that
enables the development of a UK government-
mandated Net Zero transition plan.
The Committee also reviewed the results of
Hunting’s third Gallup Q12 employee engagement
survey presented by the Chief HR Officer at its
December meeting.
In September, the Group recorded its first
workplace contractor fatality in many years at its
China operating site. This deeply affected the
Directors and Executive Committee, given
Hunting’s historically strong safety record.
Reports were presented by the Chief Executive
and Director of QAHSE at the October Meeting
of Directors, including root cause analysis and
remedial actions, followed by a further update
in December 2025.
Composition and frequency of meetings
The Committee comprises the independent,
non-executive Directors of the Company and is
chaired by Margaret Amos.
Margaret Amos joined the Committee on her
appointment as a Director on 10 January 2024
and was appointed Committee Chair on
17 April 2024.
Annell Bay retired as a Director on 1 February
2025 and stepped down from the Committee
on the same date. Cathy Krajicek joined the
Committee on her appointment to the Board
on 3 March 2025.
The Committee met twice in the year, as
planned, in August and December 2025. The
attendance of the Ethics and Sustainability
Committee is noted in the table on the left.
Responsibilities
The principal responsibilities of the Ethics and
Sustainability Committee are to:
• Monitor the Group’s scope 1, 2 and 3 GHG
emissions and the initiatives to contain and
reduce its carbon footprint;
• Monitor public disclosures in respect of the
Task Force on Climate-related Financial
Disclosures (“TCFD”) framework and the
UK Climate-related Financial Disclosures
(“UKCFD”);
• Monitor the risks and opportunities that climate
change presents to the Group’s operations;
• Monitor and review the quality assurance and
health, safety and environmental reports
prepared by the Executive Committee;
• Monitor the Group’s employee and human
capital matters, including engagement with
Hunting’s workforce;
• Monitor the Group’s interaction with certain
key stakeholders, including customers,
suppliers and communities;
• Monitor the Group’s Modern Slavery Act
initiatives;
• Monitor the Group’s policies and procedures
in respect of sanctioned territories;
• Monitor the Group’s whistleblowing
procedures; and
• Monitor the Group’s anti-bribery and
corruption initiatives.
Hunting PLC
Annual Report and Accounts 2025
124
Strategic Report
Corporate Governance
Financial Statements
Other Information
Ethics and Sustainability Committee Report
continued
The Ethics and Sustainability
Committee has continued
to strengthen our approach
to environmental and social
responsibility by expanding
carbon reporting and
enhancing the transparency
of key sustainability metrics.
These improvements ensure
that stakeholders have a
clear view of the progress
and initiatives that underpin
our business model and
long-term strategy.
During the year, a double materiality assessment
of sustainability issues was completed by a
consultant who also provided input into Hunting’s
current ESG and Sustainability reporting
framework. Additionally, the consultant assisted
Hunting with beginning to align the Group’s
disclosures to what ISSB requires of public
companies. Further alignment with the ISSB
standards will occur in 2026 as and when these
are fully ratified.
Carbon and climate
As noted above, a major workstream was
completed in 2025 to expand the collection of the
Group’s scope 3 carbon emissions data to all of
the Group’s operating segments.
In the year, the Group appointed an external
data collection company to assist with its
carbon reporting.
The Committee continues to report against
TCFD and UKCFD requirements, which are
included on pages 74 to 86. Hunting’s TCFD
reporting aligns with the four recommended
pillars of governance, strategy, risk management
and targets. Further, the TCFD disclosures
include the 11 recommended areas of narrative
proposed by the TCFD panel, which was issued
in 2017 and updated in 2021.
For further information on the areas of carbon
and climate, please refer to the Strategic Report.
Gallup Q12 employee engagement survey
The Group’s third Gallup Q12 employee
engagement survey was conducted in Q4 of
2025. The Committee noted the improved
scoring since the last survey in 2023,
underpinning the Board’s belief that Hunting’s
culture and engagement with its employees is
robust. For further information on this process,
please refer to the Strategic Report.
Employees
The Committee received workforce reports from
the Group’s Chief HR Officer in the year, which
included details of employee changes, tenure
and engagement initiatives undertaken.
Of note has been the focus on the development
of talent across the Company, with training and
development programmes being a key area
of consideration.
The HR reports also included diversity and
inclusion planning, which are to be put in place
in the coming years.
Quality assurance and HSE (“QAHSE”)
As part of its review work, the Committee
received quality assurance and health and safety
reports from the Group’s Director for QAHSE.
As noted in the introduction, the Group recorded
its first contractor fatality. The Committee will
continue to monitor the implementation and
effectiveness of the remedial actions proposed
by the Director of QAHSE.
For further information on QAHSE performance,
please refer to the Strategic Report.
Code of Conduct
The Group’s Code of Conduct provides
guidelines to ensure that the behaviour of
the Group’s Directors, employees and other
stakeholders align with Hunting PLC’s culture
and values.
The Code of Conduct informs all employees of
the Board’s expectations with respect to Hunting
PLC’s business practices and how the Company
maintains its relationships with business partners.
Work undertaken by the Committee
during 2025
The Committee discussed, reviewed, and made
a number of decisions on key areas in 2025,
which are set out below:
Aug
Dec
Carbon and climate
Procedures for measuring and
monitoring the Group’s scope 1, 2
and 3 GHG emissions
•
•
TCFD and UKCFD analysis
and reporting
•
•
Climate scenario reports
•
•
Stakeholders
Employee and workforce reports
•
•
Code of Conduct training reports
•
•
Whistleblowing summary reports
•
•
Quality assurance and health
and safety reports
•
•
Community reports
•
•
Review resourcing needs
•
Ethics
Anti-bribery and corruption reports
•
•
Entertainment and hospitality
summary
•
•
Modern slavery analysis
•
•
Customer and supplier risk analysis
•
•
Sanctions and export compliance
•
•
SASB reporting framework
During the year, the Group reported against
the SASB reporting standards for Oil & Gas –
Services and Industrial Equipment & Machinery,
which are noted on pages 72 and 73.
ISSB reporting
The ISSB issued its S1 and S2 reporting
standards in 2024, which continue to be
evaluated by the UK regulator prior to adoption.
The Committee received reports from the
Company Secretary on the development of
Hunting’s reporting plans, as and when these
standards are implemented.
Hunting PLC
Annual Report and Accounts 2025
125
Strategic Report
Corporate Governance
Financial Statements
Other Information
Ethics and Sustainability Committee Report
continued
In the year, the Hunting PLC Code of Conduct
was fully revised as part of the Group’s wider
review of policies and provisions, in respect of
the internal control and risk management project
underway. A new training course was rolled out
in March 2026, which is to be completed by
all employees.
The Code of Conduct deals with a broad range
of issues, including:
• Preventing corruption, including measures that
prevent bribery and corruption in our dealings
with government officials;
• Personal integrity, including money laundering;
• Conflicts of interest;
• Employee share dealing;
• Human rights;
• Harassment and equal opportunity;
• Prevention of fraud, tax evasion and facilitation
of tax evasion; and
• Our approach to national and international
trade, including compliance with laws and
regulations, competition, and export and
import controls.
The Code of Conduct is available on the Group’s
website and is distributed to most customers.
Supplier Code of Conduct
The Company publishes a Supplier Code of
Conduct, which commits businesses within
Hunting’s supply chain to many of the principles
contained in the Company’s Code of Conduct.
Following the update to the Code of Conduct,
the Supplier Code of Conduct was also revised.
Whistleblowing
The Company’s Senior Independent Director,
Keith Lough, is the primary point of contact for
staff or other key partners of the Group to raise,
in confidence, concerns they may have over
possible improprieties, financial or otherwise.
The Committee reviewed the compliance
procedures relating to the Bribery Act at its
December meeting, which incorporates risk
assessments completed by each business unit
and gifts and entertainment disclosures made
during the reporting period.
The Group’s internal audit function reviews local
compliance with the Bribery Act and reports
control improvements and recommendations
to the Committee, where appropriate.
Prevention of fraud and tax evasion
In advance of the new Failure to Prevent Fraud
offence being introduced in the UK, management
developed a Prevention of Fraud and Tax Evasion
Policy, which was reviewed and approved by
the Committee.
The bribery risk assessment completed by
senior managers was expanded to include an
assessment related to fraud and tax evasion.
As part of the revised Code of Conduct training
course, additional modules were included on
preventing fraud and tax evasion.
Modern Slavery Act
The Modern Slavery Act requires companies
to assess internal and external risks related to
human trafficking and modern slavery. Hunting
has established procedures across all business
units to conduct workforce due diligence and
identify potential employment risks.
In addition, all businesses within the Group
have completed a risk-mapping exercise of
their supply chains to evaluate customers
and suppliers operating in jurisdictions
where trafficking and slavery risks are higher.
Hunting’s latest Modern Slavery Statement
was published in March 2025 and is available
at www.huntingplc.com.
To reinforce awareness, a module on modern
slavery and human trafficking will be completed
by all employees as part of the new Code
of Conduct training course launched in
March 2026.
Sanctions and export compliance
The Group sells products to over 70 countries,
which presents a general risk of sanctions and
export compliance.
Hunting has detailed procedures in place that
monitor sales in medium- to high-risk territories,
where end-user disclosures, and company
evaluation and analysis are completed prior to
a sales order being agreed.
Terms of reference
At its December 2025 meeting, the Committee
reviewed its terms of reference.
Internally facilitated performance review
In December 2025, the Board completed
an internally facilitated performance review,
which also gave consideration to each of the
sub-Committees operated by the Board.
A detailed description of this process is noted
on page 119, with the Ethics and Sustainability
Committee concluding that it had been effective
during 2025.
On behalf of the Board
Margaret Amos
Chair of the Ethics and
Sustainability Committee
5 March 2026
In addition, the Group engages the services of
SafeCall Limited to provide an independent and
anonymous whistleblowing service available to
staff across all of Hunting’s operations.
All employees have been notified of these
arrangements through the corporate magazine,
Group noticeboards, and the Group’s website.
During the year, the posters detailing these
arrangements were refreshed.
Communities
The Committee also reviewed a report that
summarised community initiatives, which
were undertaken by the Group’s businesses
throughout the year. A number of these initiatives
are described in the Section 172(1) Statement on
pages 101 and 102.
Bribery Act
In compliance with the UK Bribery Act, Hunting
has procedures in place, including the publication
of anti-bribery and corruption policies and
detailed guidelines on interacting with customers,
suppliers and agents, containing specific policies
for gifts, entertainment and hospitality.
Senior managers across the Group are required
to report their compliance activities to the
Committee on a twice-yearly basis, including
an evaluation of risk areas.
The Group completed a screening exercise as
part of the implementation of the new Code of
Conduct training course to identify relevant
employees who face a heightened risk of bribery,
with all relevant personnel to complete a formal
training and compliance course in 2026, as part
of the Code of Conduct training, in line with the
Group’s procedures.
Hunting PLC
Annual Report and Accounts 2025
126
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
Member
Invitation
Number of meetings held
5
Number of meetings attended
(actual/possible):
Margaret Amos
5/5
–
Annell Bay (to 1 February 2025)
1/1
–
Stuart Brightman
–
5/5
Carol Chesney
5/5
–
Bruce Ferguson
–
5/5
Paula Harris (Committee Chair
from 2 February 2025)
5/5
–
Jim Johnson
i
–
4/5
Cathy Krajicek (from 3 March 2025)
4/4
–
Keith Lough
5/5
–
i.
Jim Johnson was unable to attend one meeting due to
unforeseen personal circumstances.
Paula Harris
Chair of the Remuneration Committee
On behalf of the Board, I am
pleased to present the Remuneration
Committee report to shareholders
for the year ended 31 December
2025. This Letter provides a
summary of the work completed
by the Remuneration Committee
(the “Committee”) in the year, the
progress between our in-year goals
and strategy and how this links to
performance, and the major decisions
taken in the year to determine the
remuneration outcomes.
Introduction
In 2025, the Group delivered growth in earnings,
cash flows, and returns, despite operating in
energy markets marked by significant volatility
and uncertainty arising from commodity price
declines, geopolitical tensions, macroeconomic
challenges, and supply chain disruptions.
The Committee is pleased to note that
management successfully navigated these
market conditions throughout the year, achieving
a commendable financial and shareholder return
performance, demonstrating the increased
resilience in our earnings profile.
Directors’ Remuneration Policy
The 2024 Directors’ Remuneration Policy
(“Policy”) was approved by shareholders at the
Company’s AGM on 17 April 2024 with 85%
of the votes cast in favour.
This outcome gives the Committee a strong
mandate in respect of its compensation
framework, with the Directors mindful of
the feedback received during the investor
consultation completed at that time.
The 2024 Directors’ Remuneration Policy
can be found on the Company’s website at
www.huntingplc.com.
The Remuneration Committee, Company
Chair and Senior Independent Director
have continued to hold strong dialogue with
shareholders throughout the year and exercise
strong stewardship of the 2024 Policy in the year,
which is reflected in the decision making noted
in this report.
Context of remuneration outcomes in 2025
The Company recorded successes in a number
of its product groups, with our OCTG product
group being a strong performer in the year.
Our Perforating Systems product group also
delivered EBITDA growth in the year, as
restructuring and targeted market growth was
delivered from international completions markets.
Management executed two acquisitions and one
divestment in the year, which have contributed
to the Company’s improved results, and indicate
further delivery of the Hunting 2030 Strategy.
The Remuneration Committee and wider Board
of Directors are pleased with the strategic
milestones delivered during 2025.
However, during the year, the Company recorded
a contractor fatality in China, as noted in the
Strategic Report. Executive management took
strong remedial actions in responding to this
incident, completing root cause analysis and
changing working practices to prevent a
recurrence of the incident. For further information
please see the Chief Executive’s Report on
pages 28 to 31.
Discretion
The Remuneration Committee has, therefore,
considered the total remuneration awarded to
the executive Directors in light of this incident and
exercised downward discretion on the vesting
outcome of the 2023 grant under the Hunting
Performance Share Plan (“HPSP”) in regard to
the safety portion of the Strategic Scorecard.
The Committee has also exercised downward
discretion on the annual bonus to the executive
Directors. This is explained in further detail on the
following pages.
The Group delivered a good
performance during 2025,
despite highly volatile
markets. Two acquisitions
were completed in the year,
which have contributed to
our results and the
remuneration outcomes.
Hunting PLC
Annual Report and Accounts 2025
127
Strategic Report
Corporate Governance
Financial Statements
Other Information
Adjusted diluted earnings per share*
cents
34.1
2025
2024
31.4
2023
20.3
Source: Company
Return on average capital employed*
%
10
2025
2024
9
2023
6
Source: Company
Free cash flow (pre-capex)*
$m
137.2
2025
2024
169.8
2023
34.1
Source: Company
Total shareholder return (one-year)*
%
32
2025
2024
0
2023
(9)
Source: Company
Internal manufacturing reject rate
#
0.20
2025
2024
0.31
2023
0.20
Source: Company
* Non-GAAP measure, see pages 236 to 243.
Summary of financial performance
The Company recorded a 3% decline in
revenue in the year to $1,018.8m; a 7% increase
in EBITDA, a 5% increase in adjusted profit
before tax, and a 9% increase in diluted EPS.
The Company reports ROCE in 2025 of 10.35%,
which compares to 8.86% in the prior year, or a
1.49 percentage point improvement. Free Cash
Flow was $96.6m in the year, which represents
a 71% conversion of EBITDA. This compares to
$139.7m in 2024, which was a 111% conversion
of EBITDA.
The three-year performance of the Company has
been commendable despite market conditions
being volatile through the period, with a 175%
increase in EBITDA being recorded; a 681%
increase in adjusted profit before tax; and an
8.9 percentage point increase in ROCE over the
period. Three-year cumulative Free Cash Flow
before capital expenditure was $341.1m.
In 2025, the Company recorded a 32% Total
Shareholder Return (“TSR”), and a three-year
TSR of 6.5%.
These outcomes have informed the Committee
in its decision making during the year.
Base salary
In April 2025, the Committee met to review
proposals for base salary increases to the
executive Directors. In the year, Hunting’s workforce
received on average a 4% increase to base
salaries and, following Committee discussion,
the same increase was awarded to the executive
Directors, with effect from 1 January 2025.
Annual bonus
The 2025 Annual Budget, which was agreed in
January 2025, is linked to the Company’s KPIs
(see pages 12 and 13) and focuses on increased
profitability and returns, which reflect sustained
activity within the Company’s core energy
markets.
The 2025 Annual Bonus vesting targets are set at
the same time as the Annual Budget is approved,
which has been a practice of the Remuneration
Committee for many years.
As noted in the 2024 Annual Report and
Accounts, the Company recorded a $109.1m
impairment in respect of the carrying values of
goodwill held within the Hunting Titan operating
segment. This quantum was agreed with
Deloitte, the Company’s external auditor, ahead
of finalising the 2024 results.
This determination, however, led to a reduction in
the Company’s gross capital employed balances
for 2025 and, therefore, the average gross capital
employed for the year, see NGM S.
The Remuneration Committee reviewed this
position in the final quarter of 2025, in parallel
with the Company’s current trading position,
and determined that the ROCE vesting outcome
for the Annual Bonus, which was close to
maximum on a formulaic assessment, should be
reduced to “Target” to reflect the lower hurdle
rate for this performance measure.
The Remuneration Committee then considered
the financial outturn of the Company, in particular,
the trading of Hunting’s core businesses, the
acquisitions and divestments completed in the
year, which contributed to the full-year results,
and the performance of the Group in the context
of investor expectations. On this basis, the
Remuneration Committee reduced the vesting
of the profit before tax performance measure
to “Target”.
In January 2026, the Remuneration Committee
also met to review and agree the delivery of the
personal performance objectives set for the
executive Directors. More details are provided
in the Annual Report on Remuneration on
pages 136 and 137; however, the outcome of this
deliberation resulted in a “Target” performance.
Performance and remuneration outcomes
2022
2023
2024
2025
1-year growth
Absolute 3-year
growth
Link to remuneration
Adjusted profit before tax
$10.2m
$50.0m
$75.6m
$79.7m
5%
681%
Annual bonus
ROCE
1.45%
6.48%
8.86%
10.35%
1.49 points
8.9 points
Annual bonus and HPSP
Adjusted diluted EPS
4.7c
20.3c
31.4c
34.1c
9%
626%
HPSP
FCF (pre-capex)
i
$(38.4)m
$34.1m
$169.8m
$137.2m
-19%
N/A
HPSP
Share price (31 December)
333p
296p
289p
371p
28%
11%
HPSP
i. Free cash flow as per the financial statements for the relevant year, excluding tangible and intangible capital expenditure, as defined for the 2022 HPSP grant.
Remuneration Committee Report
continued
Hunting PLC
Annual Report and Accounts 2025
128
Strategic Report
Corporate Governance
Financial Statements
Other Information
Adjusted result before tax ($m) vs Chief Executive pay ($k)
0
1,000
3,000
2,000
4,000
5,000
6,000
7,000
8,000
$k
2025
2024
-40
-60
-20
0
20
40
60
80
Chief Executive Pay – $k (left axis)
Adjusted PBT – $m (right axis)
2023
2022
$m
100
Source: Company
Remuneration Committee Report
continued
Overall, the Remuneration Committee has
determined that the 2025 Annual Bonus awarded
to the executive Directors should vest at a
“Target” quantum, with Jim Johnson receiving
$914,386 – or 100% of base salary; and
Bruce Ferguson receiving $354,098 – or 75%
of base salary.
2023 HPSP awards vesting
In January 2026, the Remuneration Committee
met to review the three-year performance of the
Company and to determine the vesting outcome
of the 2023 awards under the 2014 HPSP.
The Committee noted that there had been a
commendable performance across the three-year
vesting period, with the Company positioning
itself well to take advantage of strong market
momentum in the offshore segment of the
industry and delivering on its key strategic
priorities.
Three-year growth in adjusted diluted EPS
was 626%; for ROCE, an 8.9 percentage point
increase; and cumulative cash generation over
the three years, was $341.1m on a pre-capex
basis. EPS and ROCE vestings are determined
by the financial outturn of the third-year of the
performance period, with the EPS performance
condition recording a 10.5% vesting (of a total
of 20% of the award); the ROCE performance
condition a nil vesting (of a total of 25%); and the
FCF performance measure recording a 20%
vesting (of a total of 20%). The FCF performance
condition is measured over the three-year
vesting period.
The Company’s TSR against its peer group was
ranked fifth against a basket of 13 comparator
companies, delivering a return of 42.7% over
the three-year period, which equates to a 71st
percentile ranking, or a 17.8% vesting (of a total
of 20%).
Activities undertaken by the Remuneration Committee during 2025
Jan
Mar
Apr
Aug
Dec
Overall remuneration
•
Annual base salary review
•
•
•
Review senior management annual emoluments
•
•
Review total remuneration against benchmarked data
•
•
Shareholder and proxy group feedback on new Policy
•
Items specific to the annual bonus
Approve annual bonus including delivery
of personal performance targets
•
•
Review Annual Bonus Plan rules
•
Agree personal performance targets for the year ahead
•
•
•
Items specific to long-term incentives
•
Approve HPSP vesting and new annual grant
•
•
Review HPSP grant performance targets
•
•
•
Governance and other matters
Approve Annual Report on Remuneration
•
Review and approve Remuneration Policy (if required)
•
Review governance voting reports
•
Review AGM proxy votes received for Annual Report
on Remuneration and Policy
•
Review Committee effectiveness
•
Review terms of reference
•
Review resourcing needs
•
The Remuneration Committee then reviewed
the Quality and Safety performance conditions,
which comprise the measures attached to the
Strategic Scorecard.
The Quality performance condition, which is
measured against the Internal Manufacturing
Reject Rate of the Company, through the
three-year period was again commendable
and recorded a full vesting at 7.5%.
The Safety performance condition, which
is measured against the Company’s Total
Recordable Incident Rate, also delivered a full
vesting based on the three-year performance.
As noted above, the Company recorded its first
contractor fatality in many years during 2025. The
investigation and remedial actions in response to
this saddening incident are detailed in the Chief
Executive’s Report and the wider Strategic
Report disclosures. While the Company is proud
of its safety culture and historical performance,
the Remuneration Committee reviewed the
vesting of the Safety performance measure and,
after detailed discussions, exercised discretion to
reduce the vesting from 7.5% to zero to reflect
the fatality.
Overall, the vesting of the 2023 HPSP was
55.8%, which is broadly a “Target” vesting of the
long-term incentive plan. The award will vest on
6 March 2026, being the third anniversary of
the award.
Jim Johnson, Hunting’s Chief Executive, will
receive 555,035 Ordinary shares on the vesting
date, and Bruce Ferguson, Hunting’s Finance
Director, will receive 131,983 Ordinary shares.
These shares are subject to a two-year
holding period. In line with the operation of the
2014 HPSP, accrued dividends totalling 32.2
cents per vested share will be added to
the award.
Hunting PLC
Annual Report and Accounts 2025
129
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
2025 HPSP award grant
Following shareholder approval of the 2024
Directors’ Remuneration Policy and the new 2024
Hunting Performance Share Plan (the “2024
HPSP”) at the Company’s 2024 Annual General
Meeting, the Remuneration Committee in 2025
granted long-term incentive awards comprising
a blend of performance shares (“PSP”) and
restricted shares (“RSP”).
The 2025 PSP grant was 350% and 160% of
base salary for the Chief Executive and Finance
Director, respectively. Vesting of these awards
depends on achievement of stretching
performance conditions against a number of
metrics, which comprise: TSR 30%; ROCE 25%;
EPS 15%; FCF, post-capex, 15%; and Strategic
Scorecard 15%.
The Committee considers that these metrics
continue to provide a balance of performance
targets for the executive Directors to achieve.
The awards encourage the continued delivery
of earnings and cash generation growth.
These metrics were implemented following a
shareholder consultation process on our
Remuneration Policy, where shareholders
requested that the proportion of the TSR
performance condition be increased to ensure
a focus on delivering growth.
The 2025 RSP grant was 100% and 50% of
base salary for the Chief Executive and Finance
Director, respectively. These will vest after three
years and are subject to an underpin based on
holistic Company performance assessed by the
Committee prior to vesting, and are subject to
a two-year post-vesting holding period.
Summary of 2025 remuneration paid and
applied discretion
The Remuneration Committee notes the strong
growth targets set for the executive Directors
for both the short- and long-term incentive
structures across the one-year and three-year
performance periods and believes that it
continues to set stretching and demanding
targets, which are designed to deliver growth and
returns to shareholders over time, in accordance
with the principles of the UK Corporate
Governance Code.
The Committee continues to review executive
Director compensation both in the context of
market conditions, the short- and medium-term
targets set, and also the Group’s 2030 strategic
ambitions.
The discretion applied in the year is believed
to reflect both specific events reported by the
Group in the year, but also a holistic view of the
performance of management in the context of
the commitments made to shareholders over
the medium term.
In total, the remuneration paid to Jim Johnson,
Chief Executive, was $4.8m compared to $7.2m
(restated), or a reduction of 33% year-over-year.
The remuneration paid to Bruce Ferguson,
Finance Director, was $1.6m compared to $2.1m
(restated), or a reduction of 24%.
The single figure total remuneration outcomes for
the executive Directors for 2025 are:
2025
2024
restated
Chief Executive
$4,828k
$7,213k
Finance Director
$1,571k
$2,138k
Details of all the remuneration outcomes are
provided in the Annual Report on Remuneration
on pages 133 to 143.
The Remuneration Committee, therefore,
believes that Hunting continues to exercise
strong stewardship over the current shareholder
approved Directors’ Remuneration Policy and
looks forward to support from shareholders at its
forthcoming Annual General Meeting.
Non-executive Directors fees
There were no changes to fees paid to the
non-executive Directors or the non-executive
Company Chair in the year.
2025 AGM result
At the Company’s AGM held on 16 April 2025,
the resolution to approve the 2024 Annual Report
on Remuneration was supported with 85% votes
in favour.
Terms of reference
The Committee reviewed its Terms of Reference
at its December meeting.
Internally facilitated performance review
In December 2025, the Board completed
an internally facilitated performance review,
which also gave consideration to each of the
sub-Committees operated by the Board. A
detailed description of this process is noted on
page 119, with the Remuneration Committee
concluding that it had been effective during 2025.
2024 Directors’ Remuneration Policy
The current Directors’ Remuneration Policy
was approved by shareholders at the Company’s
AGM in April 2024. The Policy is detailed on
pages 142 to 150 of the 2024 Annual Report
and Accounts.
The Policy contains details of the provisions
for the executive Directors’ compensation,
comprising: (i) base salary; (ii) benefits;
(iii) pension provisions; (iv) annual bonus;
and (v) long-term incentive arrangements.
The Policy includes details of malus and
clawback provisions, and the powers of
discretion available to the Remuneration
Committee, in line with the 2024 UK Corporate
Governance Code.
2024 UK Corporate Governance Code
As described throughout this report, the
remuneration paid to executive Directors remains
in accordance with the shareholder-approved
Directors’ Remuneration Policy, and has
operated in line with expectations, including
considerations in relation to the Company’s
performance and the level of pay awarded in
the year.
The Remuneration Committee continued to
engage strongly with shareholders throughout
the year, with an engagement letter sent in
March 2025 outlining the key decisions made
in 2024. Follow-on meetings with shareholders
occurred thereafter.
The Remuneration Committee has not
completed a consultation with the workforce in
the year as the current Directors’ Remuneration
Policy, which principles flow down through the
organisation, are believed to have remained
effective throughout the year and therefore
no consultation with the workforce was felt
necessary by the Remuneration Committee.
On behalf of the Board
Paula Harris
Chair of the Remuneration Committee
5 March 2026
Hunting PLC
Annual Report and Accounts 2025
130
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Remuneration at a glance
Remuneration paid to the executive Directors in the year was consistent
with the 2024 Directors’ Remuneration Policy. Base salaries for the executive
Directors were increased by 4%, in line with the wider workforce. The 2025
annual bonus award is 50% of the maximum bonus opportunity, which
reflects a “Target” performance. This reflects discretion applied by the
Remuneration Committee in the year to reduce the formulaic outcome.
The awards under the HPSP granted in 2023 will also vest at “Target”
or 55.8% on 6 March 2026 following additional discretion applied to the
Safety portion of the Strategic Scorecard.
Adjusted profit before tax*
$
79.7
m
(2024 – $75.6m)
Return on average capital employed*
10.35
%
(2024 – 8.86%)
Total shareholder return (three-year)
6.5
%
(2024 – 100.4%)
Safety: total recordable incident rate
(three-year average)
0.86
(2024 – 0.94)
Adjusted diluted earnings per share*
34.1
cents
(2024 – 31.4 cents)
Cumulative three-year FCF (pre-capex)
$
341.1
m
(2024 – $165.5m)
Quality: internal manufacturing reject rate
(three-year average)
0.24
%
(2024 – 0.21%)
Performance metrics
Total shareholder return
(rebased to 100 at 31 December 2015)
Hunting PLC
DJ US Oil Equipment & Services
31/12/15
31/12/17
31/12/16
31/12/19
31/12/18
31/12/21
31/12/20
31/12/23
31/12/22
31/12/25
31/12/24
250
200
150
100
50
0
2025 AGM voting results
The voting results, in respect of the 2024 Annual Report on Remuneration are noted below:
Annual Report on Remuneration
Date
% of votes in favour
% of votes cast in favour
16 April 2025
84.85
Link to strategy and KPIs
The Group’s key performance indicators (“KPIs”) are described in detail on pages 12 and 13, and
incorporate financial measures including:
Performance metrics
Annual bonus
HPSP
Rationale
Adjusted profit
before tax (“PBT”)
X
Reflects the achievements of the Group in a given
financial year and recognises sustained profitability
measured against an agreed annual budget.
Return on average capital
employed (“ROCE”)
X
X
Reflects the value created on funds invested in the
short and medium term.
Total shareholder return
(“TSR”)
X
Reflects the Group’s long-term goal to achieve
superior levels of shareholder return.
Adjusted diluted earnings
per share (“EPS”)
X
Encourages sustained levels of earnings growth
over the medium term.
Free cash flow (“FCF”)
X
Encourages sustained levels of cash generation to
fund growth and shareholder distributions.
Personal performance
objectives
X
Incentivises delivery of key strategic milestones
that contribute to long-term success.
* Non-GAAP measure, see pages 236 to 243.
Hunting PLC
Annual Report and Accounts 2025
131
Strategic Report
Corporate Governance
Financial Statements
Other Information
Total Fixed
Annual Bonus
PSP
RSP
Fixed
Target
Maximum
Maximum
Stretch
$1,097k
100%
24%
16%
12%
21%
35%
20%
26%
45%
13%
20%
53%
15%
$4,526k
$7,040k
$9,098k
0
3,000
2,000
1,000
5,000
4,000
6,000
9,000
8,000
7,000
Fixed
Target
Maximum
Maximum
Stretch
$547k
100%
36%
24%
20%
23%
25%
16%
32%
34%
10%
26%
41%
13%
$1,515k
$2,247k
$2,743k
0
1,500
1,000
500
2,000
3,000
2,500
Remuneration Committee Report
continued
Remuneration at a glance
continued
The base salaries of the executive Directors were
increased with effect from 1 January 2025 by 4%
in line with the wider workforce.
Base Salaries
$
914,386
(2024 – $879,217)
Jim Johnson
Chief Executive
$
914
k
(2024 – $1,213k)
555,035
shares
(2024 – 1,196,368 shares)
£
358,408
(2024 – £344,623)
Bruce Ferguson
Finance Director
£
269
k
(2024 – £357k)
131,983
shares
(2024 – 284,488 shares)
Annual Bonus
Hunting
Performance
Share Plan
Remuneration
scenarios for
executive Directors
In 2025, the financial targets set by the Board
within the Annual Budget were exceeded, with
increases in adjusted profit before tax and
average return on capital employed being
recorded. The Committee also reviewed the
delivery of the personal performance objectives by
the executive Directors. Overall, a 50% payout
of the Annual Bonus opportunity was recorded
following the exercise of discretion.
On this basis, Jim Johnson will receive a bonus
of $914k and Bruce Ferguson will receive a
bonus of £269k ($354k). The Annual Bonus will
be delivered in cash, as per the normal operation
of the annual bonus plan, with 25% of the
post-tax bonus to be utilised to purchase
Ordinary shares, to be retained for two years
from the award vesting date.
The Group’s 2023 HPSP grant’s performance
conditions incorporated ROCE, and adjusted
diluted EPS, measured for the year ended 31
December 2025, and FCF, relative TSR, and a
Strategic Scorecard measured over the three
financial years ending 31 December 2025.
Following measurement of the performance
conditions, the 2023 HPSP grant will vest at
55.8%. Dividend equivalents accrued over the
vesting period totalling 32.2 cents per vested
share will be added to this award.
Recorded
performance
Vesting
ROCE
10.35%
0%
Relative TSR*
71st percentile
17.8%
Adjusted diluted EPS
34.1 cents
10.5%
FCF (pre-capex)*
$341.1m
20%
Scorecard**
– Safety
Discretion
0%
– Quality
0.24%
7.5%
*
Cumulative FCF over the three-year vesting period.
**
Average over the three-year vesting period.
The remuneration scenarios of the executive
Directors for a fixed, target and maximum
performance are presented in the charts on the
right, based on the 2024 Directors’ Remuneration
Policy. Assumptions made for each scenario are
as follows:
• Fixed: latest salary, benefits or payment in lieu
of benefits, and normal pension contributions
or payments in lieu of pension contributions;
• Target: fixed remuneration plus half of
maximum annual cash bonus opportunity plus
50% vesting of awards under the PSP plus
100% vesting of awards under the RSP;
• Maximum: fixed remuneration plus maximum
annual cash bonus opportunity plus 100%
vesting of all long-term incentives; and
• Maximum Stretch: including the impact of a
hypothetical 50% increase in share price on
the value of the PSP and RSP in accordance
with the reporting regulations.
The Finance Director is paid in Sterling and the
equivalent total remuneration scenarios are as
follows – fixed £415k; target £1,150k, maximum
£1,706k and maximum stretch of £2,082k.
Hunting PLC
Annual Report and Accounts 2025
132
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Remuneration Committee Report
continued
Annual Report on Remuneration
Introduction
The principles set out in the Directors’ Remuneration Policy (the “Policy”) have been applied
throughout the year. As noted in the Letter from the Remuneration Committee Chair, the Directors’
Remuneration Policy and the 2024 Hunting Performance Share Plan were approved at the Company’s
Annual General Meeting (“AGM”) on 17 April 2024.
Compliance statement
The Directors’ Remuneration Policy and the 2025 Annual Report on Remuneration reflect the
Remuneration Committee’s reporting requirements under the Companies Act 2006 and the Large
and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (as amended),
the Shareholder Rights Directive II, as enacted on 10 June 2019, and also the 2024 UK Corporate
Governance Code, which became effective for the Company from 1 January 2025. The 2025 Annual
Report on Remuneration, which includes the Letter from the Chair of the Remuneration Committee
on pages 127 to 130, describes how the approved Directors’ Remuneration Policy was applied
during the year. This report was approved by the Remuneration Committee at its meeting on
Monday 2 March 2026.
Shareholder voting at the 2025 AGM
At the Company’s AGM held in April 2025, the resolution to approve the 2024 Annual Report on
Remuneration received the following votes from shareholders:
Annual Report on Remuneration
Number of votes cast
% of votes cast
For
101,647,039
84.9
Against
18,150,357
15.1
Total votes cast
119,797,396
100.0
Votes withheld
i
31,997
i.
A vote withheld is not a vote in law and is not included in the percentage for votes cast.
At the Company’s AGM held in April 2024, the resolution to approve the new Directors’ Remuneration
Policy received the following votes from shareholders:
Directors’ Remuneration Policy
Number of votes cast
% of votes cast
For
101,177,583
84.6
Against
18,392,295
15.4
Total votes cast
119,569,878
100.0
Votes withheld
i
5,549
i.
A vote withheld is not a vote in law and is not included in the percentage for votes cast.
Role
The Committee is responsible for developing and implementing the Policy and has direct oversight of
the remuneration of the executive Directors, Company Chair, and Company Secretary. The Company
Chair and Chief Executive are consulted on proposals relating to the remuneration of the Finance
Director and designated senior management. Where appropriate, the Company Chair and the other
Directors are invited by the Committee to attend meetings but are not present when their own
remuneration is considered.
The Committee also reviews and monitors the remuneration framework of the Company’s Executive
Committee and monitors base salary increases across the Company’s workforce. The remuneration
of the non-executive Directors is agreed by the Board as a whole and follows the Articles of
Association of the Company, which were last approved by shareholders on 18 April 2018. The full
scope of the role of the Committee is set out in its Terms of Reference, which are reviewed annually,
and can be found on the Group’s website at www.huntingplc.com.
Membership and attendance
The Committee consists entirely of independent non-executive Directors. Paula Harris, Cathy Krajicek
and Keith Lough have relevant energy sector expertise, while Carol Chesney has relevant financial
expertise. Margaret Amos has aviation sector and finance expertise. Annell Bay retired as a Director
on 1 February 2025 and stepped down from the Committee on the same date. Cathy Krajicek joined
the Committee on her appointment to the Board on 3 March 2025.
Paula Harris was appointed Committee Chair on 2 February 2025. Paula was first appointed to the
Committee when she was appointed a Director on 20 April 2022.
Carol Chesney and Keith Lough were reappointed as Directors on 23 April 2024 for a final three-year
term and both retain membership of the Committee.
The Committee met five times during 2025, and attendance details are shown on page 127. On
5 March 2026, being the date of signing the accounts, the members of the Committee and other
Directors and their respective unexpired terms of office were:
Director
Latest appointment date
Unexpired term as at
5 March 2026
months
Margaret Amos
10 January 2024
10
Stuart Brightman
3 January 2026
34
Carol Chesney
23 April 2024
14
Bruce Ferguson
i
15 April 2020
12
Paula Harris
20 April 2025
26
Jim Johnson
i
1 September 2017
12
Cathy Krajicek
3 March 2025
24
Keith Lough
23 April 2024
14
i
Messrs Ferguson and Johnson hold service contracts with the Company, which contain a 12-month notice period.
Hunting PLC
Annual Report and Accounts 2025
133
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Annual Report on Remuneration
continued
Single figure remuneration (audited)
$k
Fixed
Variable
Total Remuneration
Base Salary
i
Pension Provision
ii
Benefits
iii
Sub Totals
Annual Bonus
HPSP Awards
Sub Totals
2025
2024
2025
2024
2025
2024
2025
2024
2025
iv
2024
v
2025
vi
2024
vii
(restated)
2025
2024
(restated)
2025
2024
(restated)
Executive Directors
Jim Johnson
914
879
110
126
73
70
1,097
1,075
914
1,213
2,817
4,925
3,731
6,138
4,828
7,213
Bruce Ferguson
472
440
57
53
18
18
547
511
354
456
670
1,171
1,024
1,627
1,571
2,138
Non-executive Directors
Margaret Amos (from 10 January 2024)
99
89
–
–
–
–
99
89
–
–
–
–
–
–
99
89
Annell Bay (to 1 February 2025)
8
96
–
–
–
–
8
96
–
–
–
–
–
–
8
96
Stuart Brightman
296
226
–
–
–
–
296
226
–
–
–
–
–
–
296
226
Carol Chesney
99
96
–
–
–
–
99
96
–
–
–
–
–
–
99
96
Jay Glick (to 17 April 2024)
–
86
–
–
–
–
–
86
–
–
–
–
–
–
–
86
Paula Harris
97
82
–
–
–
–
97
82
–
–
–
–
–
–
97
82
Cathy Krajicek (from 3 March 2025)
70
–
–
–
–
–
70
–
–
–
–
–
–
–
70
–
Keith Lough
99
96
–
–
–
–
99
96
–
–
–
–
–
–
99
96
Total
2,154
2,090
167
179
91
88
2,412
2,357
1,268
1,669
3,487
6,096
4,755
7,765
7,167
10,122
The remuneration of the Finance Director and non-executive Directors is determined in UK Sterling, as shown in the table below:
£k
Fixed
Variable
Total Remuneration
Base Salary
i
Pension Provision
ii
Benefits
iii
Sub Totals
Annual Bonus
HPSP Awards
Sub Totals
2025
2024
2025
2024
2025
2024
2025
2024
2025
iv
2024
v
2025
vi
2024
vii
(restated)
2025
2024
(restated)
2025
2024
(restated)
Executive Directors
Bruce Ferguson
358
345
43
41
14
14
415
400
269
357
503
906
772
1,263
1,187
1,663
Non-executive Directors
Margaret Amos (from 10 January 2024)
75
70
–
–
–
–
75
70
–
–
–
–
–
–
75
70
Annell Bay (to 1 February 2025)
6
75
–
–
–
–
6
75
–
–
–
–
–
–
6
75
Stuart Brightman
225
177
–
–
–
–
225
177
–
–
–
–
–
–
225
177
Carol Chesney
75
75
–
–
–
–
75
75
–
–
–
–
–
–
75
75
Jay Glick (to 17 April 2024)
–
67
–
–
–
–
–
67
–
–
–
–
–
–
–
67
Paula Harris
74
64
–
–
–
–
74
64
–
–
–
–
–
–
74
64
Cathy Krajicek (from 3 March 2025)
53
–
–
–
–
–
53
–
–
–
–
–
–
–
53
–
Keith Lough
75
75
–
–
–
–
75
75
–
–
–
–
–
–
75
75
i.
The base salaries of the executive Directors were increased by 4%, with effect from 1 January 2025, in line with the wider workforce increase of 4%. Stuart Brightman’s fee was increased from 17 April 2024, following his appointment as Company Chair.
ii.
Mr Johnson’s single figure pension remuneration represents Company contributions payable to his US pension arrangements. Mr Ferguson’s pension figure represents a cash sum in lieu of a Company pension contribution, which is set at 12% of his annual base salary.
iii.
Benefits include the provision of healthcare insurance, subscriptions, and a company car with fuel benefits or allowance in lieu.
iv.
As noted in the Letter from the Chair of the Remuneration Committee, discretion has been applied to the 2025 Annual Bonus, reducing the vesting outcome to “Target” or a 50% vesting of the maximum opportunity. On this basis, Mr Johnson will receive a bonus payment of $914k, being
100% of his base salary paid in 2025, and Mr Ferguson will receive a bonus payment of $354k (£269k), being 75% of his base salary. The bonuses will be paid in March 2026 and, in line with the usual operation of the Annual Bonus Plan, 25% of the after-tax bonus will be utilised to
purchase Ordinary shares in the Company, to be retained for two years.
v.
In 2024, Mr Johnson’s Annual Bonus was $1,213k and Mr Ferguson’s Annual Bonus was $456k (£357k). The after-tax bonuses were utilised to purchase 48,172 and 15,083 Ordinary shares respectively in the Company, to be retained for two years.
vi.
The share awards granted in 2023 under the HPSP had a three-year performance period to 31 December 2025 and vest on 6 March 2026. The 2023 grant comprised the following five performance conditions: ROCE, EPS, FCF, TSR, and a Strategic Scorecard. The FCF performance
condition recording a maximum vesting of 20%, while TSR was 17.8%, ROCE was nil, EPS was 10.5%, and Quality was 7.5%. Following the application of discretion, the outcome of the Safety performance condition was nil. The total vesting was, therefore, 55.8%. On this basis,
Mr Johnson will receive 555,035 Ordinary shares and Mr Ferguson will receive 131,983 Ordinary shares. A cash payment of 32.2 cents per vested share, equating to the dividends paid on each vested share across the vesting period was added to the gross vested amount. In total, the
value of Mr Johnson’s vested 2023 long-term incentive was $2,817k and Mr Ferguson’s was $670k. The average mid-market closing price of £3.572 during Q4 2025 has been applied to the number of vested shares and converted to US Dollars using the average £/$ exchange during Q4
2025, being £1.3305. Further details of the vesting calculation are shown on page 138.
vii.
The share awards granted in 2022 at £2.195 under the HPSP had a three-year performance period to 31 December 2024 and incorporated five performance conditions. The awards were measured against the relevant performance conditions, with a 98.3% vesting. On this basis,
Messrs Johnson and Ferguson received 1,196,368 and 284,488 Ordinary shares, respectively. For the purposes of the single figure calculation, the average mid-market closing price of £2.955 was applied to the share awards vested on 7 March 2025, with the 2024 single figure table
being restated to reflect the actual vested amount. The £/$ exchange rate of £1.292 was also applied.
Hunting PLC
Annual Report and Accounts 2025
134
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Remuneration Committee Report
continued
Annual Report on Remuneration
continued
Malus and Clawback Provisions
The 2024 Directors’ Remuneration Policy was approved by shareholders at the AGM in April 2024
and contains malus and clawback provisions for both the annual bonus and long-term incentive:
Annual Bonus
• Malus and clawback provisions are incorporated and allow the Committee to reduce the bonus,
potentially down to zero, in cases of material financial misstatement, calculation error, corporate
failure, gross misconduct, or actions that cause reputational damage to the Company.
HPSP
• Awards are subject to malus and clawback provisions, for five years from grant, which cover
cases of material financial misstatement, calculation error, gross misconduct actions that cause
reputational damage to the Company, or corporate insolvency or failure.
Downward discretion has been applied to annual bonus and HPSP vestings in the year. Malus
and clawback was not applied in the year.
Salary and fees
Base salary increases of 4%, were awarded to the executive Directors in line with the workforce.
Mr Johnson’s base salary following this increase was $914,386 and Mr Ferguson’s was $472,131
(£358,408) during the year. In December 2025, the Committee reviewed base salary increases for
the workforce as part of the preparation of the 2026 Annual Budget. The Chief Executive proposed
a Group-wide average increase of 3.5%, which was implemented in January 2026. The Committee
will meet in April 2026 to discuss and agree the base salary increases for the executive Directors.
The non-executive Directors are paid an annual base fee of £64,000/$84,000, with an additional fee of
£11,000/$15,000 per annum for chairing a Committee or for the role of Senior Independent Director.
On appointment Stuart Brightman’s base fee as Company Chair was set at £225,000 following receipt
of benchmarked data from Mercer, the Remuneration Committee’s independent consultants.
Pensions (audited)
In line with other similarly long-tenured employees in the US, Jim Johnson is a member of a deferred
compensation scheme in the US, which is anticipated to provide a lump sum on retirement, and
also contributes to a US 401k matched deferred savings plan. Company contributions to the former
arrangement are $88,726 (2024 – $104,831) for the year. There are no additional benefits provided
on early retirement from this arrangement. In the year, the Group contributed to Mr Johnson’s 401k
matched savings plan, totalling $21,000 (2024 – $20,700).
Mr Ferguson receives a cash sum in lieu of pension contributions, representing 12% of his annual
base salary. This contribution level aligns with the UK workforce, as required by the 2024 UK
Corporate Governance Code. In the year, Mr Ferguson’s company contribution in lieu of pension was
$56,656/£43,009 (2024 – $52,843/£41,355).
Annual performance-linked bonus plan (audited)
The annual performance-linked bonus plan for 2025 was based on the following metrics:
Proportion of award
Performance metric
60%
Adjusted profit before tax
20%
Return on average capital employed
20%
Personal performance objectives
Delivery of financial objectives
The annual bonus targets are normally based on the Annual Budget agreed by the Board in
December of the prior financial year. The 2025 Annual Budget agreed by the Board in January 2025
contained financial targets of adjusted profit before tax of $73.6m and ROCE of 8.8%. The financial
performance targets for the 2025 Annual Bonus were thus set as follows:
Threshold
vesting
0%
payout
Target
vesting
50%
payout
Maximum
vesting
100%
payout
Actual
outcome
% vesting
Discretion
applied
% vesting
outcome
Adjusted profit
before tax (“PBT”)
$58.9m
$73.6m
$88.3m
$79.7m
42.4% (of 60%)
(12.4)%
30%
Return on average
capital employed
(“ROCE”)
7.0%
8.8%
10.6%
10.35%
18.8% (of 20%)
(8.8)%
10%
As noted in the table above, the formula driven vesting of the 2025 Annual Bonus was reduced,
following the application of discretion. The profit before tax vesting was reduced from a vesting of
42.4% (of a total of 60%) to the Target outcome of 30%, the return on capital employed vesting was
reduced from a vesting of 18.8% (of a total of 20%) to the Target outcome of 10% and the personal
performance objectives vested at 10%, as per the disclosure on the following page.
Hunting PLC
Annual Report and Accounts 2025
135
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Annual Report on Remuneration
continued
Delivery of personal performance objectives
The personal performance objectives agreed by the Committee with the executive Directors in early 2025 are summarised in the table below:
Objective
Jim Johnson
(Chief Executive)
Bruce Ferguson
(Finance Director)
Performance achieved
Outcome
Revenue
diversification
(35%)
• Continue to work with the OOR team to prepare
a business plan that will outline the path to US$100m
of revenue and 50% EBITDA margins by the end
of 2028.
• Accelerate and show improvement of non-oil and gas
diversification plan in Asia Pacific, Dearborn, and
Electronics organically and through acquisitions
and partnerships.
• Present analysis of consolidation options and
revenue generation options in the perforating
equipment market.
• Present increased analysis and opportunities
regarding potential merger or acquisition candidates
to enhance scale and profitability with a prime focus
on subsea and non-oil and gas.
• Support the initiatives of the energy transition
team and work with the OOR team to prepare
a business plan that will outline the path to
US$100m of revenue and 50% EBITDA margins
by the end of 2028.
• Accelerate and show improvement of non-oil and
gas diversification plan in Asia Pacific, Dearborn,
and Electronics organically and through
acquisitions and partnerships.
• Present analysis of consolidation options and
revenue generation options in the perforating
equipment market.
• Work with the Chief Executive to present analysis
regarding potential merger or acquisition
candidates to enhance scale and profitability with
a prime focus on subsea and non-oil and gas.
• With the acquisition of the OOR technology in March 2025,
Hunting now has control over the commercialisation of this
important technology. Progress on new sales opportunities
has continued in the year, particularly in North and
South America.
• An increase in non-oil and gas revenue has been reported,
predominantly driven by sales within the Trenchless
business unit which is located in the US. New premium
connections for energy transition markets have been
developed in readiness for this new market opportunity.
• At the December 2025 meeting of Directors, non-oil and
gas sales opportunities, as well as international growth
opportunities, were presented for each business unit.
• A number of bolt-on acquisition opportunities were
delivered to the Directors by executive management in the
year. This culminated in the purchase of the FES and OOR
businesses from their respective founding shareholders.
Target
Managing for
further
success (25%)
Leadership
• Present executive Director and Executive Committee
succession plans to the Directors. Update the Board
on external facilitated work regarding the first-tier
leadership team.
• Present succession and development of second and
third-tier leadership.
Processes and Products
• Work with Finance Director to continue to update
reporting dashboard with an increased focus on cost,
cash generation, inventory and receivables efficiency,
and operational efficiencies. Present updated tools
and explain how they are used to drive operational
and financial data deeper into the organisation.
• Enhance engineering synergies within the organisation
and continue supporting new product development.
Present the R&D priorities and the engineering
synergy plan.
• Continue to review the profitability of current units and
non-core business units. Evaluate and present global
footprint for efficiencies, synergies and cost savings.
Leadership
• Present Finance Director succession plan to
the Board including the developmental work
regarding the Finance Director successor and
Group Financial Controller (“GFC”) roles. Allocate
specific projects to current GFC to demonstrate
financial leadership to the Board.
Metrics and Processes
• Work with Chief Executive and Executive
Committee to improve reporting dashboard
with an increased focus on income statement,
balance sheet, cost, cash generation, inventory
and receivables efficiency, and operational
efficiencies. Present updated tools and explain
how they are used to drive operational and
financial data deeper into the organisation.
• Work with the Chief Executive to review the
profitability and return of current business units
and review real-time data to assess candidates
for divestment. Evaluate and present global
footprint for efficiencies, synergies and
cost savings.
• Detailed succession plans for the training, development
and succession of the executive Directors, Executive
Committee and each business unit management position
in the Group were presented in the year. This included
development initiatives for candidates for both the roles
of Chief Executive and Finance Director.
• Financial reporting continued to improve during the year
with additional information on working capital optimisation,
cash flow generation and other operational efficiencies
being presented.
• New technology R&D plans were presented at the June
2025 meeting of Directors.
• A deep-dive review of the financial performance of
each business unit within the Group was also presented
in June 2025 to enable the Directors to understand
which businesses were delivering on the 2030
financial objectives.
Target
Hunting PLC
Annual Report and Accounts 2025
136
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Remuneration Committee Report
continued
Annual Report on Remuneration
continued
Objective
Jim Johnson
(Chief Executive)
Bruce Ferguson
(Finance Director)
Performance achieved
Outcome
Market value
correction
(25%)
• Increase investor focus on the strategic details of
Hunting 2030 with an increase in investor meetings
and conference attendance.
• Zero market guidance issues in 2025.
• Increase investor focus on the strategic details of
the Hunting 2030 ambitions with increased
investor meetings and conference attendance.
• Zero market guidance issues in 2025.
• Increase investor interest, engagement, feedback
and investments with North American and
European investor base.
• The Group’s financial performance was monitored
throughout the year by the Directors, particularly in the
area of alignment with market guidance provided to
investors. No issues were noted during 2025.
• The Investors Relations function implemented additional
initiatives, including investor conferences and a Subsea
Technologies ‘Deep Dive’ for sell side analysts in London in
January 2026, which supported the understanding of the
Group’s strategy to develop more offshore/subsea revenue
out to 2030.
• Roadshows in Canada, Germany, Norway, UK and US
were completed in the year.
• The Directors noted the increased share price of the
Company at the year-end.
Target
ESG (15%)
• Present a detailed analysis of in-house solutions
implemented to improve energy efficiencies and
reduce carbon footprint.
• Continued employee engagement throughout the
group, coupled with an in-house and future focus on
diversity within the organisation, with data to represent
the annual improvement of diversity and annual
increase in employee engagement.
• Support and encourage more inter-business unit
employee assignments to broaden the knowledge
base of the third and fourth levels of leadership.
• Present a detailed analysis of in-house solutions
implemented to improve energy efficiencies and
reduce carbon footprint.
• Incorporate and update systems and processes,
to ensure progress towards compliance with the
UK Corporate Governance Code in the most
cost-effective and appropriate way.
• Present plan to improve cyber security resilience
and use dashboard to outline a decrease in
cyber security incidents.
• The Company started its journey to align its ESG and
Sustainability disclosures with the ISSB’s S1 and S2
sustainability accounting standards. Further progress
in this area is planned for 2026.
• The improvement in the Company’s Carbon Disclosure
Project (“CDP”) rating (increasing from a ‘C’ to a ‘B’) in the
year was also noted.
• Diversity and inclusion initiatives were delivered by the
Chief HR Officer in the year.
• The improvements to the Internal Controls environment for
the Group, to enable compliance reporting under Provision
29 of the UK Corporate Governance Code, was reported
by the Group Financial Controller throughout the year.
• Cyber security initiatives, including additional employee
training and penetration testing, were completed in the
year led by the Group’s Chief IT Officer.
Target
The Committee awarded a 10% outcome of the 20% vesting of the personal performance component of the Annual Bonus award.
Hunting PLC
Annual Report and Accounts 2025
137
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Annual Report on Remuneration
continued
Annual Bonus outcome (audited)
Based on this outcome of a vesting of 50%, the following bonus awards were made to the
executive Directors:
Proportion of award
Performance metric
Percentage of annual
bonus awarded
60%
Adjusted profit before tax
30%
20%
Return on average capital employed
10%
20%
Personal performance objectives
10%
Mr Johnson was, therefore, awarded a bonus for the year of $914k (2024 – $1,213k), and Mr Ferguson
was awarded a bonus of $354k (2024 – $456k). In line with the normal operation of the Annual Bonus,
and the Directors’ Remuneration Policy, 25% of the post-tax bonus is required to be utilised to
purchase Ordinary shares in the Company, to be retained for two years.
The threshold value of the annual bonus for the Chief Executive is $nil, with target being $914k, and
the maximum value being $1,829k. The threshold value of the annual bonus for the Finance Director
is $nil, the target being $354k and the maximum value being $708k.
2023 HPSP vesting (audited)
The 2023 awards under the PSP have been measured against the performance conditions following
completion of the three-year performance period ended 31 December 2025.
The 2023 awards were based on five performance conditions – ROCE (25%); adjusted diluted EPS
(20%); Free Cash Flow, pre-capex (20%); relative TSR (20%) and a Strategic Scorecard (15%)
comprising two sub-measures, being the Group’s safety and quality performance. Performance is
measured for the year ended 31 December 2025 for ROCE and adjusted diluted EPS and over three
financial years ending 31 December 2025 for Free Cash Flow, relative TSR and the Strategic
Scorecard.
A summary of the performance achieved is detailed below:
% of
award
Threshold
vesting target
25% payout
Maximum
vesting target
100% payout
Recorded
performance
% vesting
outcome
ROCE
25%
10.5%
13.0%
10.35%
0%
Relative TSR
20%
Median
Upper quartile
71st percentile
17.8%
Adjusted diluted EPS
20%
25.0 cents
50.0 cents
34.1 cents
10.5%
Free Cash Flow
20%
$200m
$250m
$341.1m
20%
Strategic Scorecard
– Safety
7.5%
2.00
<1.00
Discretion applied
0%
– Quality
7.5%
0.8%
0.5%
0.24%
7.5%
The Free Cash Flow component of the PSP under the 2023 grant recorded a 20% vesting based on
the performance of the Company across the three-year performance period to 31 December 2025.
The adjusted diluted EPS component recorded a 10.5% vesting, in the year ended 31 December
2025, while the ROCE performance condition recorded a nil vesting.
The Quality component of the Strategic Scorecard of the PSP grant, which is based on an average
of the past three years, has vested in full. The Committee has applied discretion to the Safety
component of the Scorecard and a nil vesting has been recorded. Assessment of the Strategic
Scorecard performance for the 2023 HPSP also requires threshold financial performance to be
achieved against at least one financial measure in order for this element to vest in full. Given that EPS
and FCF outcomes were both above threshold, this underpin was determined by the Committee to
have been met.
The Total Shareholder Return (“TSR”) performance condition was measured by Mercer in January 2026,
following completion of the three-year performance period. Hunting’s TSR performance against the 13
comparator companies was then ranked, resulting in a 71st percentile performance corresponding to
a 17.8% vesting of this portion of the grant. The comparator group comprised Akastor, Expro Group,
Flotek Industries, Forum Energy Technologies, Innovex International Inc, Nine Energy Services, NOV,
Oceaneering, Oil States International, Schoeller-Bleckmann, TechnipFMC, Tenaris and Vallourec.
Overall, the total vesting of the 2023 PSP award is 55.8%, following the application of discretion.
Mr Johnson will, therefore, receive 555,035 Ordinary shares and Mr Ferguson will receive 131,983
Ordinary shares on 6 March 2026, the vesting date of the 2023 PSP award. A cash equivalent of
dividends paid by the Company during the vesting period, totalling 32.2 cents per vested share, will
be added to the award on the vesting date.
The 2023 PSP vesting has been calculated as follows:
Number of
shares
granted in
2023
Vesting
%
Number of
shares
vested
Value of vested
shares at
31 December
2025
$*
Value of
dividends at
32.2 cents
per share
$
Total award
value
$
Value
attributable to
share price
growth
$**
Jim Johnson
994,687
55.8
555,035
2,637,829
178,721 2,816,550
555,332
Bruce Ferguson
236,529
55.8
131,983
627,255
42,499
669,754
132,053
*
As per the methodology for reporting the values of unvested awards, the average price of a Hunting PLC share during Q4 2025 of £3.572
has been applied and converted to US Dollars at an exchange rate of £1.3305 for the period.
**
The weighted average share price on the date of grant was £2.82.
In accordance with the Directors’ Remuneration Policy, these vested shares (net of tax) are to be held
for two years from the vesting date.
The threshold value of the HPSP award for the Chief Executive is $1,262k, with target being $2,524k,
and the maximum value being $5,048k. The threshold value of the HPSP award for the Finance
Director is $300k, the target being $600k and the maximum value being $1,200k.
Hunting PLC
Annual Report and Accounts 2025
138
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Remuneration Committee Report
continued
Annual Report on Remuneration
continued
2022 HPSP vesting (audited)
The 2022 awards under the HPSP were measured against the performance conditions, following
completion of the three-year performance period, resulting in the following outcome, with the vested
shares (net of tax) to be held for two years from the vesting date in accordance with the Directors’
Remuneration Policy:
Number of
shares
granted in
2022
Vesting
%
Number of
shares
vested
Value of vested
shares at
4 March 2025
$*
Value of
dividends at
28.5 cents
per share
$
Total award
value
$
Value
attributable to
share price
growth
$**
Jim Johnson
1,217,058
98.3 1,196,368
4,567,566
357,341 4,924,907
1,174,738
Bruce Ferguson
289,408
98.3
284,488
1,086,135
84,973 1,171,108
279,344
*
The value of awards have been restated at the market price of £2.955 per share with an FX rate of $1.292 on 7 March 2025. Further details
have been included under the share interests table.
**
The weighted average share price on the date of grant was £2.26.
2025 HPSP grant (audited)
On 3 March 2025, the Committee approved the grant of nil-cost share awards to Jim Johnson
and Bruce Ferguson under the rules of the 2024 Hunting Performance Share Plan (the “HPSP”),
which was approved by shareholders at the Company’s AGM on 17 April 2024. Under the HPSP,
performance-based (“PSP”) and time-based (“RSP”) awards have been granted to the executive
Directors, with a three-year vesting period. In line with the Policy, the Chief Executive received a grant
with a total face value of 450% of base salary (350% PSP and 100% RSP) and the Finance Director
received a grant with a total face value of 210% of base salary (160% PSP and 50%). The PSP
performance awards include a TSR performance metric, which is utilised to reflect shareholder
returns over the performance period. The other performance conditions and targets encourage
capital efficiency (ROCE), cash generation (FCF), and strong growth in earnings (EPS) in addition to
the important ESG metrics within the Strategic Scorecard, namely Quality and Safety performance.
The targets for each performance condition are as follows:
Performance condition
Proportion of award
%
Threshold
vesting target
Maximum
vesting target
Relative TSR
ii
30
Median
Upper Quartile
ROCE
i
25
11.5%
15.0%
FCF
ii
15
$200m
$270m
Adjusted diluted EPS
i
15
40.0 cents
60.0 cents
Strategic Scorecard
ii
– Safety
7.5
2.00
<1.00
– Quality
7.5
0.8%
0.5%
i. Measured for the year ended 31 December 2027.
ii. Measured across the three-year vesting period ended 31 December 2027.
The 2025 grant will vest on 7 April 2028, with the performance-based awards being subject to the
achievement of the performance metrics, and the time-based awards being subject to a holistic view
of performance across the performance period, including consideration of the TSR performance of
the Group and other matters. The ROCE and EPS vesting conditions have a 15% threshold vesting
while the other performance metrics have a 25% threshold vesting, therefore 21% of the PSP award
will vest if threshold performance is achieved.
Award as % of
base salary
Number of
shares under
grant
Face value of award
at threshold vesting
$
Face value of award
at maximum vesting
$
Jim Johnson
Performance-based awards (PSP)
350
884,906
640,185
3,048,501
Time-based awards (RSP)
100
252,830
870,999
870,999
Total
450
1,137,736
1,511,184
3,919,500
Bruce Ferguson
Performance-based awards (PSP)
160
206,130
149,125
710,118
Time-based awards (RSP)
50
64,415
221,910
221,910
Total
210
270,545
371,035
932,028
A two-year holding period will then be applied to the post-tax vested shares. The details of the
long-term arrangements of the executive Directors are contained in the Directors’ Remuneration Policy
on pages 142 to 150 of the 2024 Annual Report and Accounts.
The following quoted businesses comprise the TSR comparator group for the 2025 award:
Akastor
Innovex International
Petrofac
Cactus
Liberty Energy
SBO
Core Laboratories
Nine Energy Services
TechnipFMC
DMC Global
NOV
Tenaris
Expro Group Holdings
Oceaneering international
TETRA Technologies
Flotek Industries
Oil States International
Vallourec
Forum Energy Technologies
Patterson-UTI Energy
There have been no changes to the comparator group since it was last reviewed in 2024, with a
broadly similar comparator group used when the Company periodically benchmarks the remuneration
of the executive Directors. The time-based RSP awards are subject to an underpin based on holistic
company performance assessed by the Committee prior to vesting, taking account of both relative
business performance in terms of the Company’s financial KPIs, shareholder returns and key
ESG-related performance indicators, comprising sustainability, health and safety, quality assurance,
and reputation. The face value of the 2025 award, based on the closing mid-market share price on
7 April 2025, was 267.5 pence per share. The Committee notes that the prevailing share price at the
time the 2025 PSP awards were granted was around 25% lower than at the time the 2024 PSP
awards were granted, but that the 2025 share price was also broadly similar to prices used to
determine awards between 2021 and 2024. While the Committee does not, therefore, consider that
the reduction in share price between the 2024 and 2025 grants is likely to give rise to concerns about
a windfall gain on vesting, it has the discretion to adjust the vesting outcome should it become
apparent that a windfall has occurred.
Hunting PLC
Annual Report and Accounts 2025
139
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Annual Report on Remuneration
continued
Changes to Director and employee pay
The table below is presented in compliance with the Shareholder Rights Directive II. The changes to
the pay of the executive Directors includes base salaries, benefits in kind, and bonuses and excludes
pension contributions and share awards. If a Director has not served for the entire year, the change in
annual salary or fee is based on the date of appointment or retirement.
2020 to 2021
2021 to 2022
2022 to 2023
2023 to 2024
2024 to 2025
Executive Directors
Jim Johnson
Base salary
+1%
+4%
+5%
+8.5%
+4%
Annual cash bonus
+5%
+906%
-5%
-22%
-25%
Benefits
-7%
+1%
+6%
+3%
-4%
Bruce Ferguson
i
Base salary
+3%
+8%
+5%
+8.5%
+4%
Annual cash bonus
+55%
+913%
-5%
-17%
-25%
Benefits
+44%
0%
+8%
0%
0%
Average global employee
Base salary
+9%
+5%
+3%
+2%
+5%
Annual cash bonus
+9%
+726%
-21%
-11%
-30%
Benefits
+4%
-3%
+9%
+33%
-19%
Non-executive Directors (fees)
Margaret Amos
ii
–
–
–
0%
+7%
Annell Bay
iii
0%
0%
+6%
+1%
0%
Stuart Brightman
iv
–
–
–
+183%
+24%
Carol Chesney
0%
0%
+6%
+1%
0%
Jay Glick
v
0%
0%
+11%
0%
–
Paula Harris
vi
–
–
0%
0%
+17%
Cathy Krajicek
vii
–
–
–
–
0%
Keith Lough
0%
0%
+6%
+1%
0%
i.
Bruce Ferguson was appointed to the Board on 15 April 2020.
ii.
Margaret Amos was appointed to the Board on 10 January 2024.
iii.
Annell Bay retired from the Board on 1 February 2025.
iv. Stuart Brightman was appointed to the Board on 3 January 2023. He was appointed Company Chair on 17 April 2024.
v.
Jay Glick retired from the Board after the 2024 AGM on 17 April 2024.
vi. Paula Harris was appointed to the Board on 20 April 2022.
vii. Cathy Krajicek was appointed to the Board on 3 March 2025.
The average salary for employees in 2025 reflects a change in the average monthly global
employee headcount of 2,312 compared to the prior year of 2,423, coupled with base salary increases
applied to the existing workforce in January 2025. Hunting PLC, the parent Company, does not have
any employees.
Directors’ shareholdings, ownership policy and share interests (audited)
The beneficial interests of the Directors in the issued Ordinary shares of the Company are as follows:
Director
At 31 December
2025
i
At 31 December
2024
i
Executive Directors
Jim Johnson
iii
1,551,326
777,557
Bruce Ferguson
iii
429,870
266,439
Non-executive Directors
Margaret Amos
8,143
–
Annell Bay
ii
(to 1 February 2025)
21,347
21,347
Stuart Brightman
20,000
–
Carol Chesney
24,000
24,000
Paula Harris
3,300
3,300
Cathy Krajicek (from 3 March 2025)
18,000
–
Keith Lough
24,000
24,000
i.
Beneficial share interests are those Ordinary shares owned by the Director or spouse, which the Director is free to dispose of.
ii.
As at cessation date.
iii.
The shareholdings for Messrs Johnson and Ferguson include shares restricted from sale, in line with the rules of the Annual Bonus Plan
and Hunting Performance Share Plan. At 31 December 2025, 983,338 (2024 – 308,094) restricted-from-sale Ordinary shares are held by
Mr Johnson and 203,695 (2024 – 70,922) are held by Mr Ferguson.
There have been no further changes to the Directors’ share interests in the period 31 December 2025
to 5 March 2026. The Group operates a share ownership policy that requires Directors and certain
senior executives within the Group to build up a holding in shares equal in value to a certain multiple
of their base salary or annual fee. The multiple takes into account the post-tax value of vested but
unexercised share awards or options. The required shareholding of each Director expressed as
a multiple of base salary or annual fee as at 31 December 2025 is presented below:
Required holding
expressed as a multiple of
base salary or annual fee
Requirement met*
Jim Johnson
5
Y
Bruce Ferguson
2
Y
Margaret Amos
1
N
Stuart Brightman
1
N
Carol Chesney
1
Y
Paula Harris
1
N
Cathy Krajicek
1
Y
Keith Lough
1
Y
*
The value of the holding of the Directors has been determined using the value on purchase of Ordinary shares or the share price at
31 December 2025 of £3.705.
Hunting PLC
Annual Report and Accounts 2025
140
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Remuneration Committee Report
continued
Annual Report on Remuneration
continued
Executive Director remuneration and shareholder returns
The following chart compares the TSR of Hunting PLC between 2015 and 2025 to the DJ US Oil
Equipment and Services indices. In the opinion of the Directors, this index is the most appropriate
against which the shareholder return of the Company’s shares should be compared because it
comprises other companies in the oil and gas services sector. The accompanying table details
remuneration of the Chief Executive.
Total shareholder return
(rebased to 100 at 31 December 2015)
Hunting PLC
DJ US Oil Equipment & Services
31/12/15
31/12/17
31/12/16
31/12/19
31/12/18
31/12/21
31/12/20
31/12/23
31/12/22
31/12/25
31/12/24
250
200
150
100
50
0
Single figure
remuneration
$000
i
Annual cash
bonus
%
ii
HPSP vesting
%
iii
2025 – Jim Johnson
4,828
50
56
2024 – Jim Johnson
iv
7,213
69
98
2023 – Jim Johnson
3,561
91
34
2022 – Jim Johnson
2,710
100
8
2021 – Jim Johnson
1,165
10
8
2020 – Jim Johnson
1,179
10
16
2019 – Jim Johnson
2,229
39
66
2018 – Jim Johnson
3,715
100
75
2017 – Jim Johnson (from 1 September)
819
33
4
2017 – Dennis Proctor (to 1 September)
3,972
67
13
2016 – Dennis Proctor
941
Nil
Nil
i.
Single figure remuneration reflects the aggregate remuneration paid to the Chief Executive as defined within the Directors’ Remuneration
Policy.
ii.
Annual cash bonus percentages reflect the bonus received by the Chief Executive each year expressed as a percentage of maximum
bonus opportunity.
iii.
Percentage vesting reflects the percentage of the HPSP that vested in the financial year where a substantial portion of the performance
period was completed at the financial year-end. Messrs Johnson’s and Proctor’s awards have been pro-rated for their period of service
as Chief Executive in 2017.
iv.
Restated as per single figure table disclosure on page 134.
Directors’ shareholdings, ownership policy and share interests (audited) continued
The interests of the executive Directors in Hunting PLC Ordinary shares under the HPSP are set out below. The vesting of options and awards are subject to performance conditions set out within the Policy.
All share awards automatically vest and expire on the third anniversary of the grant, with the exception of options awarded to Mr Ferguson, which expire on the tenth anniversary of grant.
Director
Interests at
1 January
2025
Options/awards
granted in year
Options/awards
exercised in year
Options/awards
lapsed in year
Interests at
31 December
2025
Exercise price
p
Share price on
date of grant
p
Grant date
Date exercisable
Expiry date
Scheme
Jim Johnson
1,217,058
–
(1,196,368)
(20,690)
–
Nil
226.0
04.03.2022
04.03.2025
–
2014 HPSP
^
994,687
–
–
–
994,687
Nil
282.0
06.03.2023
06.03.2026
–
2014 HPSP~
665,858
–
–
–
665,858
Nil
354.0
18.04.2024
18.04.2027
–
2024 HPSP^
190,245
–
–
–
190,245
Nil
354.0
18.04.2024
18.04.2027
–
2024 HPSP
*
–
884,906
–
–
884,906
Nil
265.0
07.04.2025
07.04.2028
–
2024 HPSP^
–
252,830
–
–
252,830
Nil
265.0
07.04.2025
07.04.2028
–
2024 HPSP *
Total
3,067,848
1,137,736
(1,196,368)
(20,690)
2,988,526
Bruce Ferguson
289,408
–
(284,488)
(4,920)
–
Nil
226.0
04.03.2022
04.03.2025
04.03.2032
2014 HPSP
~
236,529
–
–
–
236,529
Nil
282.0
06.03.2023
06.03.2026
06.03.2033
2014 HPSP~
155,105
–
–
–
155,105
Nil
354.0
18.04.2024
18.04.2027
–
2024 HPSP^
48,470
–
–
–
48,470
Nil
354.0
18.04.2024
18.04.2027
–
2024 HPSP
*
–
206,130
–
–
206,130
Nil
265.0
07.04.2025
07.04.2028
–
2024 HPSP^
–
64,415
–
–
64,415
Nil
265.0
07.04.2025
07.04.2028
–
2024 HPSP *
Total
729,512
270,545
(284,488)
(4,920)
710,649
~
Nil-cost awards granted to Jim Johnson and options granted to Bruce Ferguson, which are not yet vested or exercisable, are subject to the following performance conditions: ROCE (25%); TSR (20%); EPS (20%); FCF (20%); and Strategic Scorecard (15%).
^
Nil-cost awards granted to Jim Johnson and Bruce Ferguson, which are not yet vested or exercisable, are subject to the following performance conditions: TSR (30%); ROCE (25%); EPS (15%); FCF (15%); and Strategic Scorecard (15%) .
*
Time based awards, which vest on the third anniversary of the grant, are subject to a financial underpin, with the vesting level to be determined by the Remuneration Committee.
Hunting PLC
Annual Report and Accounts 2025
141
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Annual Report on Remuneration
continued
Chief Executive workforce pay ratio
Year
Method
25th percentile
pay ratio
50th percentile
pay ratio
75th percentile
pay ratio
2020
Option A
22:1
18:1
10:1
Workforce Pay Quartiles
$51,239
$61,329
$107,314
2021
Option A
21:1
17:1
11:1
Workforce Pay Quartiles
$52,699
$63,718
$102,807
2022
Option A
55:1
43:1
26:1
Workforce Pay Quartiles
$48,736
$62,108
$105,704
2023
Option A
70:1
54:1
33:1
Workforce Pay Quartiles
$49,837
$64,467
$106,492
2024
Option A
143:1
107:1
66:1
Workforce Pay Quartiles
$52,689
$70,398
$114,493
2025
Option A
89:1
67:1
40:1
Workforce Pay Quartiles
$54,517
$72,019
$122,185
The Company has elected to voluntarily disclose the pay ratio of the Group’s Chief Executive and
workforce, in line with The Companies (Miscellaneous Reporting) Regulations 2018 and has adopted
Option A from the regulations as the basis for presenting the pay ratio.
Hunting is not required to present this information, given that its UK workforce is below the reporting
threshold, as detailed in the regulations. Option A has been selected by the Committee as it believes
this methodology aligns closely with the Chief Executive’s single figure remuneration calculation.
The Remuneration Committee believes that the compensation framework in operation across the
Group is appropriate and, in addition to a base salary and benefits appropriate to the relevant
jurisdiction of operation, can include annual bonuses and participation in long-term incentive
programmes.
External benchmarking is a regular feature of the Group’s overall pay framework to ensure Hunting
remains competitive in its chosen markets.
This data has been collated as at 31 December 2025 based on 244 UK employees (2024 – 223),
which represents 11% (2024 – 9%) of the Group’s total workforce. The basis of the workforce pay
calculations is aligned with the basis of preparation of the single figure table on page 134, comprising
fixed and variable emoluments and calculated on a full-time equivalent basis, in line with the
requirements of the regulations.
Further, the above disclosure assumes a maximum company pension contribution of 12% of base
salary. However, it is noted that not all UK employees elect to receive this level of contribution.
The changes to the Chief Executive pay ratios in the year mainly reflect a lower HPSP vesting
percentage of 55.8% compared to 98.3% in 2024. In addition, no annual bonuses were paid to
employees within the EMEA operating segment, given the losses recorded in the year, lowering
the overall compensation paid in the year to the workforce in this operating segment.
Relative importance of spend on pay
The table below shows the relative importance of spend on employee remuneration in relation to
corporate taxation, dividends and capital investment. These cash flows are chosen, given their
material impact on the Group’s cash flow profile, which continues to be a key performance indicator
monitored by investors.
2025
$m
2024
$m
Change
Employee remuneration
i
268.9
268.2
0.3%
Net tax paid
ii
8.7
3.5
149%
Dividends paid to Hunting PLC shareholders
ii
19.1
16.7
14%
Capital investment
ii
29.5
25.3
17%
i.
Includes staff costs for the year (note 7) plus benefits in kind of $36.2m (2024 – $39.7m), which primarily comprises US medical
insurance costs.
ii.
Please refer to the Consolidated Statement of Cash Flows on page 172.
Payments to past Directors (audited)
There were no payments to past Directors in the year.
Payments for loss of office (audited)
There were no payments for loss of office in the year.
External advisers
Mercer and Pearl Meyer are engaged by the Committee to provide remuneration consultancy
services. Their appointments were subject to formal tenders and both companies are regarded as
independent, having been appointed by and acting under direction of the Committee.
Mercer is a signatory to the UK Remuneration Consultants’ Group Code of Conduct and provides UK
governance advice and compensation benchmarking, while Pearl Meyer provides US remuneration
data for consideration by the Committee.
The total cost of advice to the Committee during the year to 31 December 2025 was $175,231
(2024 – $202,989) and includes fees paid in respect of review work in salary benchmarking, Policy
implementation, share plans, and remuneration reporting disclosure requirements. Fees are charged
on a time basis for consultancy services received. Fees paid to Mercer totalled $161,081 (2024 –
$190,214) in the year, while fees paid to Pearl Meyer were $14,150 (2024 – $12,775). Neither Mercer
nor Pearl Meyer have any other connection to the Company or any Director.
Hunting PLC
Annual Report and Accounts 2025
142
Strategic Report
Corporate Governance
Financial Statements
Other Information
Remuneration Committee Report
continued
Remuneration Committee Report
continued
Annual Report on Remuneration
continued
Implementation of policy in 2026
The remuneration policy for 2026 will be applied in line with those detailed on pages 142 to 150
of the 2024 Annual Report and Accounts.
Salary and fees
Base salary increases for the executive Directors for 2026 will be determined by the Committee
in April 2026. Any increase will be in line with the wider workforce.
Pension and benefits
Jim Johnson will continue to receive contributions towards a US deferred compensation scheme
and a US 401k matched deferred savings plan, in line with previous years. Bruce Ferguson will
continue to receive a cash sum in lieu of a pension contribution, which will be fixed at 12% of his base
salary. No changes are anticipated to the provision of benefits that will continue to include healthcare
insurance, a company car and fuel benefits or allowance in lieu.
Annual bonus
The annual performance-linked bonus for 2026 will operate in line with the 2024 Directors’
Remuneration Policy. The Committee will disclose details of performance against the pre-set financial
targets and personal performance objectives after the year-end in the 2026 Remuneration Committee
Report, as the Board believes that forward disclosure of the financial targets is commercially sensitive.
The annual performance-linked bonus plan for 2026 is based on the following metrics:
Proportion of award
Performance metric
60%
Adjusted profit before tax
20%
Return on average capital employed
20%
Personal performance objectives
Long-term incentive plan
In April 2026, an award under the 2024 HPSP will be granted to the executive Directors and wider
members of the Group. The performance-based awards (PSP) to the Chief Executive and Finance
Director will be granted over shares with a face value of 350% of base salary for Mr Johnson and
160% of base salary for Mr Ferguson.
The performance conditions to be adopted for these awards are expected to include relative TSR (30%);
ROCE (30%); adjusted diluted EPS (15%); Free Cash Flow (15%); and the Strategic Scorecard (10%).
The Remuneration Committee proposes to amend the weightings of the ROCE and Scorecard
performance conditions compared to previous grants following a review completed in February 2026.
The proposed TSR peer group will comprise: Akastor, Cactus, Core Laboratories, DMC Global, Expro
Group Holdings, Flotek Industries, Forum Energy Technologies, Innovex International, Liberty Energy,
NOV, Oceaneering International, Oil States International, Patterson-UTI Energy, SBO, TechnipFMC,
Tenaris, TETRA Technologies, and Vallourec.
Time-based awards (RSP) will also be granted to the executive Directors, being 100% of base salary
for the Chief Executive and 50% for the Finance Director, which are subject to an underpin based on
holistic company performance assessed by the Committee prior to vesting, taking account of both
relative business performance in terms of the Company’s financial KPIs and shareholder returns and
key ESG-related performance indicators, which include sustainability, health and safety, quality
assurance and reputation.
The performance targets will be detailed in the Stock Exchange announcement that accompanies the
award, which can be located at www.huntingplc.com.
On behalf of the Board
Paula Harris
Chair of the Remuneration Committee
5 March 2026
Hunting PLC
Annual Report and Accounts 2025
143
Strategic Report
Corporate Governance
Financial Statements
Other Information
Member
Invitation
Number of meetings held
4
Number of meetings attended
(actual/possible):
Margaret Amos
4/4
–
Annell Bay (to 1 February 2025)
0/0
–
Stuart Brightman
–
4/4
Carol Chesney (Committee Chair)
4/4
–
Bruce Ferguson
–
4/4
Paula Harris
4/4
–
Jim Johnson
i
–
3/4
Cathy Krajicek (from 3 March 2025)
4/4
–
Keith Lough
4/4
–
i.
Jim Johnson was unable to attend one meeting due to
unforeseen personal circumstances.
Carol Chesney
Chair of the Audit and Risk Committee
Introduction
Hunting reported solid financial results in the year,
including growth in earnings, cash flows and
returns to investors.
This was delivered against a backdrop of high
volatility in the global oil and gas industry,
especially in the US onshore market, which was
driven by lower global commodity prices and
lower rig counts across North America.
The OCTG operating segment was the top
performing segment in the year, as it executed
on the balance of the $231m KOC orders.
While Hunting’s OCTG product group performed
well during the year, the Perforating Systems
product group continued to experience
challenging markets. However, the benefits of
the restructuring programme commenced in
Q2 2024 were felt in the current year, with the
product group returning to profitability.
Management successfully completed two
acquisitions in the year, as part of the Group’s
strategic growth strategy, namely Flexible
Engineered Solutions (“FES”) and the Organic Oil
Recovery (“OOR”) businesses. In the year, the
Group also divested its interest in the Rival
Downhole Tools business.
The strong cash generation during the year
supported the $60m share buyback programme,
which commenced in August and is scheduled
to conclude in March 2026.
The year‑end total cash and bank/(borrowing)
position of $62.9m, following the payment of
dividends, the purchase of treasury shares and
Ordinary shares, and acquisitions, reflects a
robust balance sheet and continued strength in
cash flow.
To further secure the Group’s committed
borrowing facilities to execute our growth
strategy, the option to extend the $200m
committed RCF was exercised during the year.
Hunting has total liquidity of c.$405.2m, which
represents the combined cash and borrowing
capacity at 31 December 2025.
The Committee, and wider Board, believes that
Hunting remains in a solid position to deliver the
Hunting 2030 Strategy.
In April 2025, the Committee reviewed Deloitte’s
internal controls report and responded by
endorsing new procedures being implemented
in the year by management. Updates to the
implementation of these new controls were
presented at the August and December 2025
meetings of the Committee.
In the year, the Committee continued to review
the financial reporting, risk management, and
internal control framework in place across
the Group. During the year, enhanced risk
management procedures and assessments
were presented to the Committee.
Further, the Committee received briefings by
the central finance function on the actions that
management had taken to enhance the internal
control procedures and operating environment in
preparation for compliance with Provision 29 of
the 2024 UK Corporate Governance Code, which
requires the Board to make a declaration on the
robustness of the internal controls environment
in relation to the 2026 year‑end. For further
information on this, please see page 96.
The Group delivered a year of further
growth in earnings, cash flows and
returns against an uncertain macro-
economic environment. The Group
delivered on some of the key
milestones of the Hunting 2030
Strategy during the year, including
the successful completion and
delivery of the $231m KOC orders as
well as completing two acquisitions.
Hunting Titan improved its
performance in the year, despite
the flat US onshore market in 2025,
as noted in the Chief Executive’s
statement. Closer monitoring of the
operating segment was maintained
in 2025, with no further impairments
to goodwill recorded at the year-end.
The Committee received further
briefings throughout the year as the
Group prepares for compliance with
Provision 29 Internal Controls of the
2024 UK Corporate Governance
Code. A large amount of work was
covered in 2025 to ensure that the
Group is in a position to comply with
the provision from 2026.
Audit and Risk Committee Report
Hunting PLC
Annual Report and Accounts 2025
144
Strategic Report
Corporate Governance
Financial Statements
Other Information
Audit and Risk Committee Report
continued
Composition and frequency of meetings
The Committee currently comprises
five independent non‑executive Directors
(at 5 March 2026) and is chaired by
Carol Chesney.
Following her appointment to the Board on
3 March 2025, Cathy Krajicek joined the
Committee from that date.
Mrs Chesney is a qualified Chartered Accountant
and is considered to have recent and relevant
financial experience. Ms Harris (Chair of the
Remuneration Committee), Ms Krajicek and
Mr Lough have experience of the global energy
industry, with particular expertise in UK and US
oil and gas markets. Dr Amos brings accounting,
aviation and broader non‑oil and gas experience
to the Board.
Further details of the Committee’s experience
can be found in the biographical summaries
set out on pages 106 and 107.
The Committee usually meets four times a year
and operates under written terms of reference
approved by the Board, which are published on
the Company’s website at www.huntingplc.com.
During 2025, the Committee met four times, in
March, April, August, and December; and the
attendance record of the Committee members
and Board invitees is noted in the table on the
previous page.
All Directors and internal and external auditors
are normally invited to attend meetings.
Responsibilities
The principal responsibilities of the Audit and Risk
Committee are to:
• Monitor and review reports from the executive
Directors, including the Group’s financial
statements and Stock Exchange
announcements;
• Consider and approve any adjusting items
proposed by management;
• Provide the Board with a recommendation
regarding the Half Year and Annual Report
and Accounts, including whether they are fair,
balanced and understandable;
• Review the Company’s and Group’s Going
Concern and Viability Statement;
• Monitor, review and assess the Group’s
systems of risk management and internal
control;
• Review reports from the Group’s external
and internal auditors, including approving the
proposed audit plans, scope and resourcing;
and review whether the external and internal
auditors have met their respective audit plans;
• Consider and recommend to the Board the
appointment or reappointment of the external
auditor as applicable;
• Agree the scope and fees of the external audit;
• Monitor and approve engagement of the
external auditor for the provision of non‑audit
services to the Group in accordance with the
Group’s Non‑audit Services Policy;
• Review the external auditor’s independence
and objectivity as well as the effectiveness of
the external audit process; and review the
external auditor’s management letter;
• Monitor corporate governance and accounting
developments; and
• Monitor the reports from the Internal Controls
Committee.
Work undertaken by the Committee during 2025
Mar
Apr
Aug
Dec
Financial report
Annual Report and Full Year Results announcement
•
Going Concern basis
•
•
Viability Statement
•
Half Year Report and Half Year Results announcement
•
Review accounting policies
•
Internal controls and risk management
Risk management and internal controls report
•
•
•
•
Key risks and mitigating controls
•
Effectiveness of internal controls and internal audit function
•
Monitoring the proposed procedures and investments required
for the new UK Corporate Governance Code procedures
•
•
•
Internal audit report
•
•
•
•
Internal audit resourcing
•
•
•
•
Internal audit plan
•
•
External auditor
Auditor’s objectivity, independence, and appointment
•
Full Year and Half Year report to the Audit and Risk Committee
•
•
Final Management letter on internal controls
•
Auditor’s performance and effectiveness
•
Proposed year‑end audit plan including scope, fees and engagement letter
•
•
Other business
Non‑Audit Services Policy Review
•
Employment of Former Audit Staff Policy Review
•
Committee effectiveness and terms of reference
•
Review resourcing needs
•
Hunting PLC
Annual Report and Accounts 2025
145
Strategic Report
Corporate Governance
Financial Statements
Other Information
Audit and Risk Committee Report
continued
Review of the 2025 financial statements
The Committee reviews final drafts of the Group’s
Report and Accounts for both the half and full
year. As part of this process, the performance
of the Group’s major operating segments is
considered, with key judgements, estimates
and accounting policies being approved by
the Committee ahead of a recommendation to
the Board. The Committee reviews all material
information presented with the financial
statements, including the Strategic Report
and the corporate governance statements
relating to the audit and to risk management
and internal controls.
In addition to briefings and supporting reports
from the central finance team on significant
issues, the Committee engages in discussion
with Deloitte LLP, the Group’s external auditor.
As part of the year‑end audit process, the Audit
and Risk Committee ensured that the external
auditor had access to Company staff and
records and encouraged challenge to
management’s position.
Significant matters reviewed by the Committee
in connection with the 2025 Annual Report
and Accounts were as follows:
Impairment reviews
The Committee receives reports on the review
of impairment of goodwill and other assets held
on the consolidated balance sheet. A review
for impairment triggers was undertaken at the
half‑year and the year‑end. The impairment
models used by management to review
non‑current asset impairment indicated that
there were a small number of businesses that
had limited headroom over the carrying values
of goodwill. However, following the annual goodwill
impairment review, and review for impairment
triggers, management determined there was no
impairment to the carrying values of goodwill.
During the year, additional training was provided
to the regional finance functions to enhance their
understanding of the implementation of IFRS 15
‘Contracts with Customers’.
The Committee challenges management on
its procedures and were satisfied with the
improvement made to this area in the year.
Tax
The Committee continues to monitor both direct
and indirect tax risk, tax audits and provisions
held for taxation in view of the international
spread of operations. In 2023, the Company
recognised $81.3m of deferred tax assets
(“DTAs”) in respect of Hunting’s US businesses
on the consolidated balance sheet.
Following a briefing from the Group’s Head of
Tax, the Committee concluded that, given the
medium‑term projections of the Group’s US
businesses, it remained appropriate for the DTAs
to continue to be recognised on the Company’s
balance sheet.
Inventory valuation and provisioning
procedures
During 2025, inventory valuation and provisioning
procedures continued to be an area of close
review for the Committee.
The Committee approved management’s
proposal to revise the inventory provisioning
methodology, which was the revision of an
accounting estimate.
The Committee reviewed reports by both
management and the external auditor on
inventory valuation and was satisfied that the
revised model was being deployed appropriately
by management, that the judgements being
applied were balanced, and the carrying values
of inventories at the year‑end were appropriate.
Integration of acquisitions and adoption
of IFRS accounting
Following the acquisition of FES group of
businesses in June 2025, the Committee
received updates on the progress to integrate
these businesses into the Hunting Group. Areas
of focus included the integration of internal
control systems and processes, the adoption
of IFRS accounting standards, the start of the
implementation of D365, and the timely reporting
of accurate financial information.
The Committee also monitored the accounting
for and consolidation of the OOR and FES
acquisitions to ensure that the accounting
treatment applied was appropriate, including
for the ongoing royalties to be paid to the
OOR vendors.
Property, plant and equipment (“PPE”)
The year‑end balance sheet includes $250.9m
(2024 – $252.8m) for PPE. This represents
approximately 28% of the Group’s net assets
(2024 – 28%). The movement in PPE reflects
depreciation of $25.9m, impairment of $4.2m
and disposals, including held for sale assets, of
$5.2m, offset by additions of $29.6m, including
$4.7m on the new Dubai facility, and other items
totalling $3.8m. The Committee reviewed the
PPE impairment tests and, following discussion,
was satisfied that the assumptions and the
disclosures in the accounts were appropriate.
Inventory
At the year‑end, the Group held $237.5m
(2024 – $303.3m) of inventory. This represents
approximately 27% of the Group’s net assets
(2024 – 34%). Inventory levels have decreased at
the year‑end, in line with the decrease in activity
levels in the Group. At the end of 2024, the Group
had inventory on the balance sheet to fulfil
shipments in relation to the $231m KOC orders
that were ongoing.
As part of the restructuring of the EMEA
operating segment asset impairments were
recorded totalling $4.2m.
As part of the year‑end audit process, the
external auditor reviewed management’s
impairment models, in particular the goodwill
impairment model, and concluded that
management’s assessment at the year‑end
was appropriate.
The Committee challenged management on
the medium‑term revenue and margin forecasts
and the discount rates used to derive the fair
value of the assets. The Committee noted
that the Hunting Titan CGU had more limited
headroom for the carrying value of goodwill than
other CGUs, with this unit undergoing more
detailed modelling as part of the year‑end
process to support the value recorded.
The external auditor challenged management on
the assumptions used in the impairment models,
including the adopted growth and discount rates
and the cash flow projections.
Management continues to utilise independent
drilling and production projections published by
Spears & Associates to support its analysis, with
summaries presented in the Chief Executive’s
Report in the Strategic Report on pages 28 to 31.
Revenue recognition
Given that a material proportion of the Group’s
revenue originates from the OCTG, Subsea
Technologies and Advanced Manufacturing
products groups, revenue recognition remains
an area of focus for the Committee. In particular,
the “over time” or “at a point of time” revenue
recognition of key longer‑term contracts, and
revenue “cut‑off” remain key areas of review,
with work being completed within the Asia Pacific
operating segment and the Subsea Spring
business where this is more material.
Hunting PLC
Annual Report and Accounts 2025
146
Strategic Report
Corporate Governance
Financial Statements
Other Information
During the year, there was continued focus on
reducing inventory carried within Hunting Titan
and the Electronics business unit.
Other intangible assets
The year‑end balance sheet includes other
intangible assets of $100.6m (2024 – $39.4m).
This represents approximately 12% of the
Group’s net assets (2024 – 4%). Intangible assets
totalling $44.0m were recognised in relation to
the acquisition of FES and $18.1m in relation to
the OOR technology. Additions in the year were
$11.1m (2024 – $4.8m). The amortisation charge
recorded in the consolidated income statement
was $11.5m (2024 – $5.9m). The Committee
considered and confirmed the appropriateness
of the assumptions and factors used in the
impairment review process and were
comfortable with the recorded carrying values.
Goodwill
The year‑end balance sheet includes $65.1m
(2024 – $45.1m) of goodwill, which increased by
$19.6m following the acquisition of FES in June
2025. The year‑end carrying value represents
approximately 7% of the Group’s net assets
(2024 – 5%). The Committee considered and
challenged the discount rates and the other
assumptions used in the goodwill review
process. After discussion, it was satisfied that the
carrying values recorded and the disclosures in
the year‑end accounts were appropriate.
Right-of-use assets
The year‑end balance sheet includes right‑of‑use
assets of $28.9m (2024 – $28.3m). This
represents approximately 3% of the Group’s net
assets (2024 – 3%). The movement in the year is
predominantly attributed to additions of $4.4m
(2024 – $2.7m), lease modifications of $1.9m
(2024 – $7.0m) and leases recognised on the
acquisition of FES of $1.9m, offset by
depreciation of $7.8m (2024 – $7.2m).
The Committee reviewed the appropriateness
of the above changes and restatement to the
financial statements, and the adjusting items
recorded in the year, and following discussion,
approved the accounting treatment.
Viability Statement and Going Concern basis
The Committee monitored assumptions around
Going Concern at the half and full year, as well as
those around the Group’s Viability Statement for
the full year.
Driven by the improved profitability of the Group,
led by the performance of the North America and
Asia Pacific operating segments, the return to
profitability by Hunting Titan and the restructuring
in the EMEA operating segment, the Committee
concluded that good support for Hunting’s
medium‑term viability existed.
In particular, the Committee noted that the
total cash and bank/(borrowings) position at
31 December 2025 was strong following the two
acquisitions and the share buyback programme,
as working capital management remained an
area of focus for management, and also noted
that the consolidated balance sheet at the
year‑end was robust.
The Committee noted the extension to the
maturity of the Group’s committed $200m
revolving credit facility to October 2029. The RCF
in combination with the Group’s cash balances
provides Hunting with c.$405.2m of liquidity to
fund its medium‑term strategic objectives.
The Committee noted these positive
developments in the year and their impact on
going concern and viability.
As part of the Company’s 2025 half‑year and
full‑year procedures, management presented
various trading scenarios to support the Going
Concern assumption, which were reviewed
by the Committee and the external auditor.
This included a downside trading scenario.
The Going Concern review period covers a
period of at least 12 months after the date of
approval of these financial statements, and
the Directors consider that the Going Concern
assumption continues to be suitable for the
Company and the Group. The Directors have
reached their conclusion on Going Concern after
assessing the Company’s and Group’s principal
risks, as set out in detail on pages 91 to 95.
As part of Hunting’s Viability Statement
procedures, management prepared an Extended
Forecast that provided trading projections to
2030, and market data which extends to 2029.
However, the Committee believes that a
three‑year outlook remains appropriate for the
Group given the cyclicality of the oil and gas
sector; the reduced visibility beyond the
three‑year period as the Group’s revenue is
not materially covered by long‑term contracts;
and restructurings which can be put in place
within the three‑year period to reduce costs
to compensate for any significant fall in
Group revenue.
The Board approved the Extended Forecast
in February 2026, and it was used to support
the carrying values of assets held on the
consolidated balance sheet.
On 2 March 2026, the Committee approved the
Viability Statement, detailed on pages 99 and
100 of the Strategic Report, noting that it
presented a reasonable outlook for the Group
for the next three years.
The Committee reviewed the movement in the
carrying values of these items and confirmed the
appropriateness of the assumptions and factors
used in the review process and were comfortable
with the items, as recorded.
Adjusting items and presentation of financial
statements
The 2025 Annual Report and Accounts was
prepared on a consistent basis with the 2024
Annual Report and Accounts, with no significant
changes to accounting policies, except for
electing to apply a policy to expense variable
costs, rather than to capitalise them, in relation to
purchases of intangible assets, as described in
note 1. The Committee considered and approved
this change.
The Committee is responsible for reviewing
and approving any adjusting items proposed
by management. In January 2025, the Group
announced the restructuring of the EMEA
operating segment, with the Committee
approving the facility closure costs and related
employment costs associated with the reduction
in the European footprint as adjusting items.
In addition, the Committee approved the
presentation of acquisition and related costs as
adjusting items given the nature of these one‑off
costs incurred.
A new line item ‘Research and Development
costs’ has been presented on the face of the
income statement, with the 2024 income
statement restated to reflect this change
in presentation.
The Group revised its definition of Free Cash
Flow in the year to exclude proceeds from the
disposal of investments in businesses by the
Group, with no prior year restatement required.
Audit and Risk Committee Report
continued
Hunting PLC
Annual Report and Accounts 2025
147
Strategic Report
Corporate Governance
Financial Statements
Other Information
Audit and Risk Committee Report
continued
Fair, balanced and understandable
assessment
The Committee reviewed the financial
statements, together with the narrative contained
within the Strategic Report from the IFC to
page 102, and believes that the 2025 Annual
Report and Accounts, taken as a whole, is fair,
balanced and understandable and provides the
information necessary for shareholders to assess
the Company’s performance, Business Model
and Strategy. In arriving at this conclusion, the
Committee undertook the following:
• Review and dialogue in respect of the monthly
management accounts and supporting
narrative circulated to the Board;
• Review of early drafts of the Annual Report
and Accounts, providing relevant feedback to
the executive Directors;
• Regular review and discussion of the financial
results during the year, including briefings by
Group finance and operational management;
and
• Receipt and review of reports from the external
and internal auditors.
The Committee advised the Board of its
conclusion that the 2025 Annual Report and
Accounts, taken as a whole, was fair, balanced
and understandable at a Meeting of Directors on
2 March 2026.
Risk management and effectiveness
of internal controls
The Committee monitors the effectiveness of the
risk management and internal control systems
through various sources including reports from
the internal audit function, the external auditors
and from the central finance function.
On 2 March 2026, the Committee met and
considered the Company’s risk management
and internal controls environment in operation
throughout the year. Following discussion, the
Committee agreed that, overall, the Company’s
risk and control framework remained effective.
Fraud prevention and tax evasion
The Committee considered whether the internal
controls, processes and procedures that the
Company has in place are adequate to prevent
fraud. The Committee received briefings from
the central finance function, which covered the
risk assessment, the review of internal controls,
and mitigations that are in place to prevent fraud
and tax evasion.
The Committee was satisfied that the Company
has adequate processes and procedures in
place to prevent fraud and tax evasion.
Internal audit
An annual programme of internal audit
assignments in respect of 2025 was reviewed
and approved by the Committee in March 2025.
During the year, the Committee received reports
from the Internal Audit function. The Chair of the
Committee also had regular dialogue with the
function throughout the year. During the year,
eight field audits (2024 – 11) were completed in
line with the 2025 Internal Audit Plan.
Work undertaken during the year included
control effectiveness testing, post implementation
work on the D365 ERP, in addition to controls
mapping exercises in a number of business units
in support of the internal controls project
overseen by the finance function.
A more detailed review of one business unit was
undertaken during the year following control
deficiencies identified by the external auditor in
the 2024 year‑end audit. Further work on revenue
recognition was also carried out, given the
ongoing focus of this area of accounting.
The Committee also reviewed the remediation of
issues identified during the year, including those
relating to revenue recognition and the business
unit‑specific deficiencies noted in the prior
external audit. Internal Audit performed follow‑up
testing on these areas, and the results confirmed
that corrective actions had been implemented
and were operating effectively. Based on this
work, the Committee is satisfied that the
previously identified control deficiencies have
been resolved.
The Committee met with the Head of Internal
Audit, without the presence of the executive
Directors, on four occasions during the year.
The Committee reviews the internal audit process
and effectiveness as part of the Group’s internal
control and risk assessment programme.
Internal audit effectiveness
The effectiveness of the Internal Audit function
was considered by the Committee at its March
2026 meeting to satisfy itself that the quality,
expertise and experience of the function is
appropriate for the Group.
The assessment included a review of the scope
of work completed in the year against the annual
internal audit plan, a review of the internal reports
submitted to the Committee, the control
recommendations proposed and implemented
by management, and the speed of response by
management to reports agreed.
In determining its opinion on the effectiveness
of the risk management and internal financial
controls during 2025, the Committee reviewed
and considered the results of internal audit work,
the key risks and areas of judgement and
estimation uncertainty, issues identified by
management or reported through whistleblowing
arrangements (including the associated
investigations) and the output of the external
audit work, including the report on control
improvement recommendations.
The Group has an established risk management
framework and internal control environment,
which it continues to invest in, through
improvements to the general IT environment
and its people and processes. In assessing the
effectiveness of the internal control environment
in the current year, the Committee noted control
deficiencies in relation to revenue recognition and
General IT Controls.
During the year, a review of the Group’s risk
assessment, Group Manual and internal
control environment were undertaken as part
of the compliance procedures for the 2024
UK Corporate Governance Code, and due to
control deficiencies identified in the year.
The Committee also reviewed the remediation
of control deficiencies identified during the year,
specifically in relation to revenue recognition
and general IT controls.
Management implemented corrective actions,
which were subsequently tested by internal audit
and reviewed by the external auditors. Based on
these assessments, the Committee is satisfied
that the majority of previously noted deficiencies
have been resolved and that the relevant controls
are now operating effectively.
Hunting PLC
Annual Report and Accounts 2025
148
Strategic Report
Corporate Governance
Financial Statements
Other Information
Following this review, the Committee concluded
that the function remained effective and that it
had adequate resources to carry out its role.
External audit
Deloitte LLP was appointed by the Group’s
shareholders as external auditor in 2019,
following a formal tender process in 2017,
therefore, no tenders were undertaken in the
year due to their current tenure.
The external auditor presented reports at the
March, April, August and December meetings
of the Audit and Risk Committee during 2025.
Further, the Chair of the Committee also had
regular dialogue with the audit engagement
partner throughout the year. In April 2025,
Deloitte LLP presented its Management Controls
Report, which highlighted control improvements
that the auditor recommended be made by the
Group. On 2 March 2026, a full‑year report by
Deloitte LLP was considered ahead of
publication of the Group’s 2025 Annual Report
and Accounts.
The Committee normally meets with the external
auditor, without executive Directors present,
at the end of each formal meeting.
During the year, the Company complied with
the provisions of the Statutory Audit Services
for Large Companies Market Investigation
(Mandatory Use of Competitive Tender Process
and Audit Committee Responsibilities) Order
2014.
Materiality
The Committee discussed materiality with the
external auditor regarding both accounting errors
to be brought to the Audit and Risk Committee’s
attention and amounts to be adjusted such that
the financial statements give a true and fair view.
During 2024, the audit engagement partner
rotated off the Hunting account, and Thomas
Murray was appointed as lead audit partner for
the 2024 year‑end audit. As part of a broader
refresh of the Deloitte team, the senior audit
manager also rotated off following completion
of the 2025 half‑year review.
Having considered these factors, the Committee
concluded that Deloitte LLP was independent
from the Group throughout the year and to the
date of their audit report.
Audit effectiveness
The effectiveness of the external audit is
considered annually by the Committee. A formal
review of the effectiveness of the audit process
was undertaken by the Company at the April
meeting of the Committee. The assessment
summarises management feedback and
considers the performance of the external
auditor, including:
• The external auditor’s understanding of the
Group’s business and industry sector;
• The planning of the audit and execution of the
audit plan by the external auditor approved by
the Committee; and
• The communication between the Group and
audit engagement team.
In addition, the Committee reviewed and took
account of the reports from the Financial
Reporting Council (“FRC”) on Deloitte LLP and
reviewed the Transparency Report prepared by
Deloitte LLP.
After considering these matters, the Committee
was satisfied with the effectiveness of the
year‑end audit process and that Deloitte LLP
had applied appropriate professional scepticism
throughout the audit.
Auditor reappointment
Ahead of the Company’s Annual General
Meeting, the Audit and Risk Committee also
consider the objectivity and independence of
the external auditor, prior to recommending to
the Board of Directors the reappointment of the
auditor. Following discussion in March 2026, the
Committee approved the recommendation to
propose the reappointment of Deloitte LLP at
the Company’s 2026 Annual General Meeting.
Audit tender
The Audit Committee complied with the
requirements of the FRC’s Minimum Standard
for Audit Committees during the year, giving
consideration to the non‑audit relationships held
by the Company to ensure there is a fair choice
as and when an audit tender is undertaken. The
Committee last completed a competitive tender
process for the appointment of the Group’s
statutory auditor in 2017. Following shareholder
approval at the AGM in 2019, Deloitte’s first year
of audit responsibility was the 2019 year‑end,
with the 2025 year‑end audit being the firm’s
seventh year‑end. No tender was completed in
the year due to Deloitte LLP’s tenure, therefore
the requirements of the Minimum Standard on
appointment and remuneration are not relevant
in 2025. The next audit tender required by
regulations by 2027.
The Committee has, however, initiated a
competitive audit tender process in 2026 for
the appointment of the Group’s statutory auditor,
with the aim of making a recommendation to
the Board in the second half of the year.
The Committee appointed a tender panel
comprising the Audit and Risk Committee Chair,
one independent non‑executive Director, the
Group Finance Director and the Group Financial
Controller to oversee the process.
Overall, audit materiality was set at $4.5m
(2024 – $4.0m), which equates to 5.6% of
the adjusted profit before tax result, and
approximately 0.44% of the Group’s total
external revenue reported in 2025.
Furthermore, the auditor agreed to draw to
the Audit and Risk Committee’s attention all
identified, uncorrected misstatements greater
than $225,000 and any misstatements below
that threshold considered to be qualitatively
material.
Audit scope
The Audit and Risk Committee considered the
audit scope and materiality threshold. The audit
scope addressed Group‑wide risks and local
statutory reporting, enhanced by desktop
reviews for smaller, low‑risk entities. 86% of
the Group’s reported revenue and 87% of the
Group’s net assets were audited, covering 27
reporting units, including a number of investment
holding companies, across six countries.
Auditor independence
The external auditor’s full‑year report includes
a formal statement on its independence,
objectivity and its ability to perform an effective
audit.
On behalf of the Board, the Committee reviews
the level of fees paid, particularly for non‑audit
services. In addition, the Committee assesses
the level of challenge and professional scepticism
provided by Deloitte LLP and considers whether
any circumstances exist that could compromise
its independence or objectivity. This includes
confirming the absence of relationships between
Deloitte LLP and the Company, other than those
arising in the ordinary course of business.
Audit and Risk Committee Report
continued
Hunting PLC
Annual Report and Accounts 2025
149
Strategic Report
Corporate Governance
Financial Statements
Other Information
Audit and Risk Committee Report
continued
In determining the process for the audit services
tender, management will take into consideration
and follow the FRC’s guidance on audit
tendering, with the Audit Committee making
robust decisions to ensure that the requirements
of the FRC’s Minimum Standard for Audit
Committees are met.
Non-audit services
To preserve objectivity and independence, the
external auditor is asked not to provide other
services except those that are specifically
approved and permitted under the Group’s
Non‑audit Services Policy, which was revised
during the year. Non‑audit services are generally
not provided by the external auditor unless
specific circumstances mean that it is in the best
interests of the Group that these are provided
by Deloitte LLP rather than another supplier.
To ensure the continuing independence of the
external auditor, during the year the Committee
reviewed and approved a revised Non‑audit
Services Policy, which aligns with the 2024
ethical standard published.
The Committee considered Deloitte LLP to be
best placed to provide the European Single
Electronic Format (“ESEF”) assurance report on
the 2024 Annual Report and Accounts and the
2025 interim review. The Committee closely
monitors fees paid to the external auditor in
respect of non‑audit services. Fees totalled
$0.2m (2024 – $0.3m) in respect of these
services. There were no other non‑audit service
fees paid during the year (2024 – $nil).
The scope and extent of non‑audit work
undertaken by the external auditor was
monitored by, and required prior approval from,
the Committee to ensure that the provision of
such services did not impair the external auditor’s
independence or objectivity.
The Committee reviewed and recommended
for approval:
• The formal Delegation of Authority matrix;
• The Risk Appetite Framework;
• The Material Controls to be reported on
and monitored;
• The Control Framework;
• The Assurance Model; and
• The Risk Assessment and scoping for 2025.
The Group’s roadmap to compliance with
Provision 29 of the 2024 Code has been updated
and published on page 121, with the Committee
and wider Board targeting compliance with the
new Code provisions on appropriate Group‑level
policies, risk management and internal controls
during 2026.
The Committee also noted that management had
created an Internal Controls Committee of the
Executive Committee in the year to provide
additional governance procedures and oversight
to controls. In the year the Committee received
the minutes of this new Committee to increase
monitoring of the Group’s activities in this
important area.
Review of disclosures by the FRC
In October 2025, the Group received a letter from
the FRC’s Corporate Reporting Review team,
which confirmed that Hunting’s 2024 Annual
Report and Accounts had been reviewed as part
of a thematic review on IFRS 2 “Share‑based
Payments” disclosures. The Committee was
pleased to note that based on the limited scope
review, no questions or queries were raised nor
were any areas highlighted for improvement.
Internally facilitated performance review
In December 2025, the Committee reviewed its
performance, and the Committee Chair reported
its findings to the Board at the December 2025
Meeting of Directors. No issues were identified
as part of this review process.
Terms of reference
At its December 2025 meeting, the Committee
reviewed its terms of reference.
Schedule of work
In December 2025 the Committee also approved
a new schedule of work which incorporates the
additional procedures and timing to enable
compliance with Provision 29 to be achieved.
On behalf of the Board
Carol Chesney
Chair of the Audit and Risk Committee
5 March 2026
2024 UK Corporate Governance Code
In January 2024, the FRC issued a new version
of the UK Corporate Governance Code (“Code”),
which included a number of revisions that will
impact the work of the Audit and Risk Committee
in the coming years. The most significant change
in the new Code is the introduction of enhanced
Internal Control and Risk Management
procedures and reporting, with the requirement
that from 1 January 2026 UK public companies
would make a declaration in their external
reporting of the robustness and effectiveness of
material financial and non‑financial controls.
At each meeting of the Audit and Risk
Committee, the Committee received briefings on
the Group’s internal controls project, which was
designed to ensure that the Group would be in
a position to comply with the enhanced internal
control and risk management procedures and
reporting of the 2024 Code during 2026.
The briefings to the Committee included the
following areas:
• The risk appetite framework for key areas
including financial, operational, reporting and
compliance procedures;
• The Group’s identified material financial and
non‑financial controls and the proposed
assurance procedures;
• Revision of the Group Manual, including
additional policies;
• The new software purchased to assist in the
reporting of controls;
• The revisions being implemented in the
Group’s D365 ERP to improve the control
environment; and
• The formation of the Internal Controls
Committee, which would review and monitor
the control environment, to enhance
accountability and oversight.
Hunting PLC
Annual Report and Accounts 2025
150
Strategic Report
Corporate Governance
Financial Statements
Other Information
Executive Committee
Internal Controls Committee
Overview of Committee
The Hunting Executive Committee comprises the
senior leaders of the Group, including operational
and functional management and is chaired by
Jim Johnson, Hunting PLC’s Chief Executive.
The Committee meets monthly where updates
are provided by each member, including financial
performance, delivery of strategic initiatives and
short‑term trading outlooks.
Management reports are received and discussed
by the Committee, with the performance of each
operating segment and relevant product group
being presented by each manager.
QAHSE, HR and IT updates are provided at the
meeting, in addition to investor relations updates
being provided, to ensure comprehensive,
real‑time alignment between internal operations
and external stakeholder expectations.
Periodic updates are also received by other
members of management or advisers, including
legal and insurance updates, when relevant.
Key policies and procedures are also reviewed
and discussed where relevant.
At the November meeting of the Committee, the
annual budget proposals are discussed and
approved, ahead of being tabled to the Hunting
PLC Directors at its December meeting.
Terms of reference
The Hunting Executive Committee operates
under terms of reference which are approved
by the Hunting PLC Board of Directors.
Overview of Committee
The Internal Controls Committee is a
sub‑committee of the Hunting Executive
Committee and is chaired by Bruce Ferguson,
Hunting PLC’s Finance Director. The Committee
was established in 2025 as part of the
Company’s new procedures to report
compliance with Provision 29 of the 2024 UK
Corporate Governance Code, which becomes
effective from 1 January 2026.
The Committee comprises all members of the
Hunting Executive Committee, in addition to the
Group Financial Controller, the Head of Internal
Audit and the financial controllers of each
operating segment of the Company.
The Committee’s responsibilities include
reviewing the Group’s internal control
environment, monitoring the remediation of
control deficiencies identified during the year
from both external and internal auditors, and
assessing control reports and submissions from
each business unit across the Group.
The Committee meets twice a year. The
Committee met in April to review the year‑end
external audit management letter submitted by
the external auditor to the Audit and Risk
Committee and the wider Directors, and to agree
suitable remedial actions to address identified
control points; and in November to review the
current status of the Company’s internal controls
environment. From 2026, the Committee will also
review external reporting requirements under the
2024 Code and provide reports to support the
Board’s required attestation of the robustness
and effectiveness of material controls.
The Audit and Risk Committee receives and
reviews the minutes of each Internal Controls
Committee meeting as part of its oversight of
the Group’s internal control framework.
Jim Johnson
Chief Executive
Bruce Ferguson
Finance Director
Hunting PLC
Annual Report and Accounts 2025
151
Strategic Report
Corporate Governance
Financial Statements
Other Information
Directors’ Report
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the
Annual Report and the financial statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare
financial statements for each financial year. Under
that law the Directors are required to prepare the
group financial statements in accordance with
UK-adopted international accounting standards.
The Directors have chosen to prepare the parent
Company financial statements under FRS 101
“Reduced Disclosure Framework” whereby the
Company applies United Kingdom adopted
international accounting standards with a
reduced level of disclosure, with any necessary
amendments made to ensure compliance with
the Companies Act 2006. Under company law,
the Directors must not approve the financial
statements unless they are satisfied that they give
a true and fair view of the state of affairs of the
company and of the profit or loss of the company
for that period.
In preparing these financial statements,
International Accounting Standard 1 requires
that Directors:
• Properly select and apply accounting policies;
• Present information, including accounting
policies, in a manner that provides relevant,
reliable, comparable and understandable
information;
• Provide additional disclosures when
compliance with the specific requirements of
the financial reporting framework is insufficient
to enable users to understand the impact of
particular transactions, other events and
conditions on the entity’s financial position
and financial performance; and
• Make an assessment of the company’s ability
to continue as a going concern.
This responsibility statement was approved
by the Board of Directors at their meeting on
Tuesday 3 March 2026.
Directors
The Directors of the Company, as at the date
of signing these accounts, are listed on pages
106 and 107.
Powers of the Directors
Subject to the Articles, UK legislation, and
any directions prescribed by resolution at a
general meeting, the business of the Company
is managed by the Board. The Articles may only
be amended by special resolution at a general
meeting of shareholders. Where class rights are
varied, such amendments must be approved by
the members of each class of share separately.
The Directors have been authorised to allot and
issue Ordinary shares and to disapply statutory
pre-emption rights. These powers are exercised
under authority of resolutions of the Company
passed at its AGM. During the financial year
ended 31 December 2025, no Ordinary shares
were issued pursuant to the Company’s various
share plans or for any other reason.
The Company has authority, renewed annually,
to purchase up to 14.99% of the issued share
capital. Any shares purchased will either be
cancelled and the number of Ordinary shares
in issue reduced accordingly, held in treasury,
sold for cash, or (provided UK Listing Rule
requirements are met) transferred for the
purposes of, or pursuant to, an employee share
scheme. These powers are effective for 15 months
from the date of shareholder approval, or up to
the next general meeting where new authority
will be sought. During 2025, the Company
purchased 7,219,478 Ordinary shares for
cancellation at a total cost of $33.9m. The
Directors will be seeking a renewal for these
powers at the 2026 AGM.
Appointment and replacement of Directors
The rules about the appointment and
replacement of Directors are contained within
the Articles. On appointment, in accordance
with the Articles, Directors may be appointed by
a resolution of the Board but are then required
to be reappointed by ordinary resolution by
shareholders at the Company’s next AGM.
Directors’ interests
Details of Directors’ remuneration, service
contracts, interests in the Company’s shares,
and share options and awards are set out in the
Directors’ Remuneration Policy and Annual
Report on Remuneration, located at
www.huntingplc.com.
Further information regarding employee
long-term incentive schemes is given in note 37
of the financial statements.
Directors’ conflict of interest
All Directors have a duty under the Companies
Act 2006 to avoid a situation in which they have,
or could have, a direct or indirect conflict of
interest with the Company. The duty applies,
in particular, to the exploitation of any property,
information or opportunity, whether or not the
Company could take advantage of it. The Articles
provide a general power for the Board to
authorise such conflicts.
Directors are not counted in the quorum for the
authorisation of their own actual or potential
conflicts. Authorisations granted are recorded
by the Company Secretary in a register and
are noted by the Board. On an ongoing basis,
the Directors are responsible for informing the
Company Secretary of any new, actual or
potential conflicts that may arise, or if there are
any changes in circumstances that may affect
an authorisation previously given.
The Directors are responsible for keeping
adequate accounting records that are sufficient
to show and explain the company’s transactions
and disclose, with reasonable accuracy at any
time, the financial position of the company
and enable them to ensure that the financial
statements comply with the Companies Act
2006. They are also responsible for safeguarding
the assets of the company and hence for taking
reasonable steps for the prevention and
detection of fraud and other irregularities.
The Directors are responsible for the
maintenance and integrity of the corporate and
financial information included on the company’s
website. Legislation in the United Kingdom
governing the preparation and dissemination of
financial statements may differ from legislation in
other jurisdictions.
Responsibility Statement
We confirm that to the best of our knowledge:
• The financial statements, prepared in
accordance with the relevant financial
reporting framework, give a true and fair view
of the assets, liabilities, financial position and
profit or loss of the Company and the
undertakings included in the consolidation
taken as a whole;
• The Strategic Report includes a fair review
of the development and performance of the
business and the position of the Company and
the undertakings included in the consolidation
taken as a whole, together with a description
of the principal risks and uncertainties that
they face; and
• The Annual Report and Accounts, taken as a
whole, are fair, balanced and understandable
and provide the information necessary for
shareholders to assess the Company’s position,
performance, business model and strategy.
Hunting PLC
Annual Report and Accounts 2025
152
Strategic Report
Corporate Governance
Financial Statements
Other Information
Even when provided with authorisation, a
Director is not absolved from his or her statutory
duty to promote the success of the Company.
If an actual conflict arises post-authorisation,
the Board may choose to exclude the Director
from receipt of the relevant information and
participation in the debate, or suspend the
Director from the Board, or, as a last resort,
require the Director to resign.
As at 31 December 2025, no Director of the
Company had any beneficial interest in the
shares of Hunting’s subsidiary companies.
Auditors
A resolution for the reappointment of Deloitte LLP
as auditor to the Company and a resolution
which gives the Audit and Risk Committee the
authority to determine the remuneration of the
auditor will be proposed at the 2026 AGM.
Statement of disclosure of information
to auditors
In accordance with the Companies Act 2006,
all Directors in office as at the date of this report
have confirmed, so far as they are aware, there
is no relevant audit information of which the
Group’s auditors are unaware and each Director
has taken all reasonable steps necessary in order
to make themselves aware of any relevant audit
information and to establish that the Group’s
auditors are aware of that information. This
confirmation should be interpreted in accordance
with the provisions of Section 418 of the
Companies Act 2006.
Share capital
Hunting PLC is a listed public company limited by
shares, with its Ordinary shares quoted on the
London Stock Exchange in the Equity Shares
Commercial Company category.
Shareholders’ rights to transfer shares are
subject to the Articles. Transfers of uncertificated
shares must be carried out using CREST and the
Directors can refuse to register a transfer of an
uncertificated share in accordance with the
regulations governing the operation of CREST.
The Directors may decide to suspend the
registration of transfers, for up to 30 days a year,
by closing the register of shareholders. The
Directors cannot suspend the registration of
transfers of any uncertificated shares without
obtaining consent from CREST. There are no
restrictions on the transfer of Ordinary shares in
the Company other than:
• Certain restrictions that may, from time-to-time,
be imposed by laws and regulations, for
example insider trading laws;
• Pursuant to the Company’s share dealing code
whereby the Directors and certain employees
of the Company require approval to deal in the
Company’s shares; and
• Where a shareholder with at least a 0.25%
interest in the Company’s certificated shares
has been served with a disclosure notice
and has failed to provide the Company
with information concerning interests in
those shares.
Interests in voting rights
Other than as stated in the table on page 154,
the Company is not aware of any further
agreements between shareholders that may
result in restrictions on the transfer of Ordinary
shares or on voting rights.
Market capitalisation
The market capitalisation of the Company at
31 December 2025 was £0.6bn (2024 – £0.5bn).
Share price
2025
p
2024
p
At 1 January
289.0
295.5
At 31 December
370.5
289.0
High during the year
396.0
459.0
Low during the year
246.5
274.0
Dividends
The Company normally pays dividends semi-
annually. Details of the Company’s dividend
policy is set out within the Hunting 2030 Strategy,
on pages 6 and 8.
The Company paid the 2024 final dividend of
6.0 cents per share on 9 May 2025, which
absorbed $9.5m of cash.
At the Group’s 2025 half-year results, the Board
declared an interim dividend of 6.2 cents per
share, which was paid to shareholders on 31
October 2025, and absorbed $9.6m of cash.
The Board is recommending a final dividend
for 2025 of 6.8 cents per share, to be paid to
shareholders on 8 May 2026, subject to approval
by shareholders at the Company’s 2026 AGM.
Employee Benefit Trust
The Group operates an Employee Benefit Trust
(the “Trust”) as a vehicle to satisfy share options
and awards granted to employees who participate
in the Company’s share-based incentive schemes.
At 31 December 2025, the Trust held 6,716,928
Ordinary shares in the Company (2024 – 7,191,845).
The Trust has a policy to purchase shares in the
market or subscribe for new shares to partially
meet the future requirements of these incentive
schemes. The Trust has waived all dividends
payable by the Company and voting rights in
respect of the Ordinary shares held by it.
At 5 March 2026, the Company’s issued share
capital comprises a single class, which is divided
into 153,964,015 Ordinary shares of 25 pence
each. All of the Company’s issued Ordinary
shares are fully paid up and rank equally in all
respects. Details of the issued share capital of
the Company and the number of shares held in
treasury as at 31 December 2025 can be found
in note 33 to the financial statements.
Subject to applicable statutes, shares may be
issued with such rights and restrictions as the
Company may, by ordinary resolution, decide, or
(if there is no such resolution or so far as it does
not make specific provision) as the Board (as
defined in the Articles) may decide.
Voting rights and restrictions on transfer
of shares
Holders of Ordinary shares are entitled to
receive dividends (when declared), receive the
Company’s Annual Report and Accounts, attend
and speak at general meetings of the Company,
and appoint proxies or exercise voting rights.
On a show of hands at a general meeting of
the Company, every holder of Ordinary shares
present in person or by proxy and entitled to
vote has one vote and, on a poll, every member
present in person or by proxy and entitled to
vote has one vote for every Ordinary share held.
None of the Ordinary shares carry any special
rights with regard to control of the Company.
Proxy appointments and voting instructions must
be received by the Company’s Registrars no later
than 48 hours before a general meeting.
A shareholder can lose their entitlement to vote
at a general meeting where that shareholder has
been served with a disclosure notice and has
failed to provide the Company with information
concerning interests in those shares.
Directors’ Report
continued
Hunting PLC
Annual Report and Accounts 2025
153
Strategic Report
Corporate Governance
Financial Statements
Other Information
Major shareholders
The Company’s major shareholders, as at 31 December 2025, are listed in the table below:
Notes
Number of Ordinary shares
% of ISC
Franklin Templeton
12,525,733
7.94
Hunting Investments Limited
1/2/3
11,003,487
6.98
Aberdeen
8,804,058
5.58
Schroder Investment Management
4
8,459,407
5.36
UBS collateral account
8,293,843
5.26
BlackRock
7,847,233
4.98
Oasis Management Company
7,820,168
4.96
Orbis Investment Management
5
7,010,472
4.44
Hunting Employee Benefit Trust
6
6,716,928
4.26
Slaley Investments Limited
3
6,424,591
4.07
David R L Hunting
1/2/3/7/8
194,120
0.12
– as trustee
3,157,750
2.00
– other beneficial
1,875,950
1.19
James Trafford – as trustee
3
5,175,966
3.28
1.
Included in this holding are 9,437,743 Ordinary shares held by Huntridge Limited, a wholly owned subsidiary of Hunting Investments
Limited. Neither of these companies is owned by Hunting PLC either directly or indirectly.
2.
David RL Hunting is a director of Hunting Investments Limited.
3.
In 2014, Hunting Investments Limited, Slaley Investments Limited, certain Hunting family members, including Richard H Hunting and David
RL Hunting and the Hunting family trusts, to which James Trafford is a trustee (together known as “the Hunting Family Interests”), entered
into a voting agreement. The voting agreement has the legal effect of transferring all voting rights of Hunting PLC Ordinary shares held by
the Hunting Family Interests to a voting committee. The beneficial ownership of Hunting PLC Ordinary shares remains as per the table
shown above. At 5 March 2026, the Hunting Family Interests, party to the agreement, totalled 24,135,770 Ordinary shares in the Company,
representing 15.7% of the total voting rights.
4.
On 20 February 2026, Schroder Investment Management notified the Company that their shareholding had decreased to 4.96%, below
5% of the issued share capital.
5.
On 19 January 2026, Orbis Investment Management notified the Company that their shareholding had increased to 5.02%, above 5% of
the issued share capital.
6.
The Company has an agreement with the Employee Benefit Trust (“EBT”), whereby the EBT periodically purchases Hunting shares to cover
vestings under the Group’s long-term incentive plan.
7.
After elimination of duplicate holdings, the total Hunting family trustee interests shown above amount to 5,175,966 Ordinary shares.
8.
David RL Hunting and his children are or could become beneficiaries under the relevant family trusts of which Mr Hunting is also a trustee.
Political contributions
It is the Group’s policy not to make political
donations. Accordingly, there were no political
donations made during the year (2024 – $nil).
Payments to governments
Hunting PLC is no longer required to report
payments made to governments with respect to
relevant oil and gas activities, in accordance with
the UK’s Disclosure and Guidance Transparency
Rule 4.3A. In 2024, Hunting PLC disposed of all
of its oil and gas assets held within its wholly
owned subsidiary Tenkay Resources, Inc.
Research and development
Group subsidiaries undertake, where appropriate,
research and development to meet particular
market and product needs. The Group’s
research and development costs in the year
totalled $10.5m (2024 – $8.8m), with the
amount expensed in the year totalling $5.9m
(2024 – $6.6m).
Companies Act 2006 Section 415
In compliance with Section 415 of the Companies
Act 2006, the Directors present their report and
the audited financial statements of Hunting PLC
for the year ended 31 December 2025.
The Strategic Report incorporates the Hunting
2030 Strategy, Key Performance Indicators,
Company Chair’s Statement, Chief Executive’s
Review and Outlook, Business Model,
Stakeholders and Engagement protocols,
Product Review, Operating Segment Review,
Group Financial Review, ESG and Sustainability,
and Risk Management and Internal Controls and
is located from the IFC to page 102.
As permitted by legislation, the Board has
chosen to set out, within the Strategic Report
and Corporate Governance Report, some of the
matters required to be disclosed in the Directors’
Report, which it considers to be complementary
to communicating Hunting’s financial position
and performance, as follows:
• Changes in the Group and its interests
(pages 28 to 31);
• Dividends (page 5);
• Future developments (page 31);
• Risk management, objectives and policies
(pages 87 to 98);
• Bribery and corruption (pages 23, 26 and 61);
• Employment of disabled persons (pages 22
and 70);
• Ethnicity and diversity (pages 22 and 70); and
• Greenhouse gas emissions and environmental
matters (pages 25 and 64 to 68).
For further information, please see the
Shareholder and Statutory Information section
located on pages 245 and 246.
The Company’s Non-financial Information and
Sustainability Statement can be found on page 246.
The Companies (Miscellaneous Reporting)
Regulations 2018
As required by The Companies (Miscellaneous
Reporting) Regulations 2018 (the “Regulations”),
the Board of Hunting PLC has prepared a
Section 172(1) Statement, which can be found
on pages 101 and 102 and also on the Group’s
website www.huntingplc.com.
The Directors’ Stakeholder Engagement and
Decision Making disclosures are summarised
within the Strategic Report on pages 19 to 27,
and include cross references to the various
engagement activities across the Group’s
operations. Additional disclosures in respect of
customers, suppliers and other key business
relationships can also be found within the
Strategic Report.
Approval of accounts
The 2025 Annual Report and Accounts were
approved by the Directors at their meeting on
Tuesday 3 March 2026.
By order of the Board
Ben Willey
Company Secretary
5 March 2026
Other information
Significant agreements
The Company is party to the Revolving Credit
Facility and Term Loan in which the counterparties
can determine whether or not to cancel the
agreements where there has been a change of
control of the Company.
The service agreements of the executive Directors
include provisions for compensation for loss of
office or employment as a result of a change
of control.
Directors’ Report
continued
Hunting PLC
Annual Report and Accounts 2025
154
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to
the Members of Hunting PLC
156
Consolidated Income Statement
168
Consolidated Statement of
Comprehensive Income
169
Consolidated Balance Sheet
170
Consolidated Statement of Changes
in Equity
171
Consolidated Statement of Cash Flows
172
Notes to the Consolidated Financial
Statements
173
Company Balance Sheet
227
Company Statement of Changes in Equity
228
Notes to the Company Financial Statements
229
Financial statements
03
Hunting PLC
Annual Report and Accounts 2025
155
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
Report on the audit of the financial statements
1. Opinion
In our opinion:
• the financial statements of Hunting plc (the ‘parent Company’) and its subsidiaries (the ‘Group’)
give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at
31 December 2025 and of the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with United Kingdom
adopted international accounting standards;
• the parent Company financial statements have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 101
“Reduced Disclosure Framework”; and
• the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
We have audited the financial statements which comprise:
• the consolidated income statement;
• the consolidated statement of comprehensive income;
• the consolidated and parent Company balance sheets;
• the consolidated and parent Company statements of changes in equity;
• the consolidated cash flow statement; and
• the related notes 1 to 41 to the consolidated financial statements, and notes C1 to C15 to the parent
Company financial statements.
The financial reporting framework that has been applied in the preparation of the Group financial
statements is applicable law and United Kingdom adopted international accounting standards.
The financial reporting framework that has been applied in the preparation of the parent Company
financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101
“Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and
applicable law. Our responsibilities under those standards are further described in the auditor’s
responsibilities for the audit of the financial statements section of our report.
We are independent of the Group and the parent Company in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the UK, including the
Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public interest
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
The non-audit services provided to the Group for the year are disclosed in note 6 to the financial
statements. We confirm that we have not provided any non-audit services prohibited by the FRC’s
Ethical Standard to the Group or the parent Company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
3. Summary of our audit approach
Key audit matters
The key audit matters that we identified in the current year were:
• Impairment of goodwill and non-current assets of Titan’s Group of cash-
generating units (“CGU”);
• Revenue recognition on certain over time contracts; and
• Accounting for the acquisition of “Flexible Engineered Solutions” (“FES”)
Within this report, key audit matters are identified as follows:
Newly identified
Increased level of risk
Similar level of risk
Materiality
The materiality that we used for the group financial statements was $4.5 million
which was determined on the basis of adjusted profit before tax (PBT), adjusted
for the effect of EMEA restructuring and acquisition-related costs and revenue.
Scoping
The scope of our Group audit includes account balances of 27 reporting units
across six countries, including a number of head office entities. In aggregate
these account for 86% of the Group’s revenue, and 84% of profit before tax
and 87% of net assets.
Significant
changes in
our approach
The accounting for the acquisition of FES in the current year has been identified
as a key audit matter in FY25 due to the material nature of the acquisition and
the related audit effort.
Furthermore, the valuation of inventory in Titan US and pressure control
equipment is no longer identified as key audit matter due to maturity in
management’s processes as evidenced by consistency in modelling and
approach, and associated controls.
To determine materiality in the current year, we considered revenue in addition
to adjusted PBT due to relative instability in profit before tax in recent periods.
This provides a more stable and robust basis for materiality.
Hunting PLC
Annual Report and Accounts 2025
156
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
continued
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
Our evaluation of the Directors’ assessment of the Group’s and parent Company’s ability to continue
to adopt the going concern basis of accounting included:
• Enquiries as to the process followed by management and obtained an understanding of the
relevant controls over the preparation of budgets and forecasts covering the foreseeable future,
the assumptions on which the assessment is based and management’s plans for future actions;
• Evaluating the cash flow forecasts that drive the going concern assessment, including the reliability
of the underlying data and challenging management on the assumptions applied by comparing to
external industry data where relevant and considering how these have been sensitised to determine
reasonable downside scenarios including the impact of the profit warning;
• Assessing the terms of the term loan and revolving credit facility and reviewing and challenging
management’s forecasts for covenant compliance, to determine whether there is a risk of potential
breaches that impact the going concern assessment; and
• Assessing the appropriateness of the disclosures in the financial statements, and whether these
were sufficiently detailed.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the Group’s and
parent Company’s ability to continue as a going concern for a period of at least twelve months from
when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we
have nothing material to add or draw attention to in relation to the Directors’ statement in the financial
statements about whether the Directors considered it appropriate to adopt the going concern basis
of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are
described in the relevant sections of this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current period and include the most significant assessed
risks of material misstatement (whether or not due to fraud) that we identified. These matters included
those which had the greatest effect on: the overall audit strategy; the allocation of resources in the
audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Hunting PLC
Annual Report and Accounts 2025
157
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
continued
5.1. Impairment of goodwill and non-current assets of Titan’s group of cash generating units (“CGU”)
Key audit matter description
The Group recognises goodwill of $65.1 million (2024 – $45.1 million), which is tested annually for impairment. In 2024, the Group recognised an impairment for the
Titan CGU of $109.1 million. In 2025, management continued to closely monitor Titan CGU’s performance especially in the context of the prevailing macroeconomic
conditions. An annual goodwill impairment test was performed resulting in no additional impairment charge for 2025 and no indicators of impairment were identified
for the other non-current assets.
Testing goodwill and other non-current assets for impairment requires estimating its recoverable amount, which involves subjective judgement and estimation
uncertainty when forecasting future financial performance of the CGU, predicting future market conditions, performing market share analysis and determining relevant
terminal growth rates. All of these are at risk of management bias and as a result have been identified as a potential risk of fraud.
In addition, this key audit matter considers, as highlighted in note 15, the sensitivity of the recoverable amount to changes in:
• forecast revenue growth assumptions;
• forecast gross margin improvements; and
• discount rate applied in a calculating the present value of future cash flows.
Refer to the Key Sources of Estimation Uncertainty on page 173 in respect of the estimates of future cash flows. Refer to page 146 of the Audit and Risk Committee
Report and notes 1 and 15 to the financial statements.
How the scope of our audit
responded to the key audit
matter
We performed the following procedures to assess the impairment of goodwill and non-current assets of the Titan CGU:
• we obtained an understanding of relevant controls over the impairment assessment, including understanding management’s process and relevant controls over
forecasting future cash flows and determination of the key assumptions as detailed above;
• we challenged forecast revenue growth performance with reference to the recent and historical performance of Titan, market share analysis and a range of industry
outlook and competitor information;
• for forecast improvements in gross margins we conducted a site visit to the main manufacturing facility to assess improvements to the production environment and
engaged in dialogue with operational staff to understand the changes being made to the production process;
• challenged the ability for the business to reduce production variances based on recent and historical performance;
• in assessing the total value in use (and therefore recoverable amount), we considered observable enterprise value (EV) and EBITDA multiples for comparable listed
groups;
• in conjunction with our valuation specialists, we challenged the long-term growth rate and discount rate with reference to market, industry and economic data;
• tested the integrity of management’s impairment model used to derive the recoverable amount;
• leveraged the expertise of our fair value specialists to challenge the variables used and methodology deployed in determining the discount rate used to calculate the
present value of future cash flows;
• completed a search for potentially contradictory information by considering external, third party data and considered that in the context of the assumptions made; and
• reviewed the completeness and appropriateness of the disclosures provided in note 15 including the sensitivity analysis provided therein.
Key observations
We are satisfied that management’s assumptions are reasonable and supportable based on available evidence, both internal and external. As such, we consider
appropriate that no further impairment charge was recognised.
Hunting PLC
Annual Report and Accounts 2025
158
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
continued
5.2. Revenue recognition on certain over time contracts
Key audit matter description
The revenue recognised by the Group in 2025 is $1,018.8 million (2024 – $1,048.9 million).
The application of revenue recognition policies to the various contractual arrangements in place across the Group can be complex. This complexity arises most notably
in certain business units in contracts where revenue is recognised over time due to the judgement involved in estimating a contract’s costs to complete. Significant audit
effort and judgement is required in auditing these contracts. Refer to page 221 of the annual report where the revenue recognition policy is detailed.
Our revenue recognition key audit matter specifically relates to whether the group had appropriately estimated the forecast costs to complete, including material costs,
labour costs and outside services in their over time revenue for contracts in the Spring business unit. This included assessing the final outturn on contracts which were
part of this key audit matter in the prior year, as well as focusing on one new contract which contains material judgement in relation to the estimated costs to complete
at 31 December 2025.
The IFRS 15 revenue recognition assessment, which was identified as a Key Audit Matter in the prior year, has not been included as a Key Audit Matter in the current
year’s audit report, as the Group did not enter into any new contracts during the period that involved the same level of significant judgement regarding revenue
recognition.
Revenue recognised at a point in time around period end is no longer considered a key audit matter. This is due to the lower value of shipments around period end
compared to the prior year.
How the scope of our audit
responded to the key audit
matter
We performed the following procedures to assess the completeness and accuracy of the forecast costs to complete for specific over time contracts:
• we obtained an understanding of relevant controls over the revenue recognition process, including how management estimate cost to complete on individual
contracts;
• met with the project managers to understand progress on the projects and areas of risk or opportunity;
• on a sample basis, tested estimated cost line items and agreed them to supporting evidence, such as:
–
for estimated material costs, a committed purchase order or an equivalent purchase order incurred on a similar project;
–
for estimated labour hours, the relevant completed labour hours information from other similar projects; and
–
for outside services, the relevant equivalent costs incurred on other similar projects or services already incurred to date which will reoccur.
Performed a stand back analysis of the overall cost to complete estimates and how they compare to our knowledge of the contracts and the other information obtained
through our testing, including performing a lookback on estimates made in relation to contracts in the prior year and how those developed during the course of the
current year.
Key observations
The judgements and estimates taken in respect of estimated costs to complete, and the associated revenue recognised on contracts in Spring are appropriate.
Hunting PLC
Annual Report and Accounts 2025
159
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
continued
5.3. Accounting for the acquisition of “Flexible Engineered Solutions (Group) Holdings Limited” (“FES”)
Key audit matter description
As described in Note 40, on 23 June 2025, the Group completed the acquisition of FES, a specialist provider of fluid transfer solutions to the off-shore energy sector, for
a total cash consideration of £50 million ($61.8 million) on a cash free/debt free basis. The acquisition has been accounted for as a business combination in accordance
with “IFRS 3: Business Combinations”. Management, with the assistance of third-party valuation experts, performed a purchase price allocation exercise, recognising
among other assets and liabilities, separately identifiable intangible assets of $44.0 million (comprising of technology $33.0 million, customer relationships of $9.4 million
and order book of $1.6 million) and $19.6 million of goodwill. Contingent consideration of $3.0 million was also recognised.
The accounting for this acquisition involved management judgement and estimation in the following areas:
• Determining the appropriate valuation methodology to determine the fair value of the intangible assets acquired;
• Projecting the forward-looking revenue for FES, which is used as the basis for determining the fair value of individual intangible assets;
• Determining the forward-looking profit margins that would accrue to a market participant. This also forms the basis for determining the fair value of individual intangible
assets; and
• Determining the discount rate used to calculate the present value of future cash flows generated by FES.
Refer to page 146 of the Audit and Risk Committee report, and note 40 to the financial statements for more details.
How the scope of our audit
responded to the key audit
matter
To respond to the key audit matter identified, we performed the following procedures:
• Obtained an understanding of relevant controls, including management review controls, over the determination of valuation assumptions and methodologies used
in the fair value calculations.
• Inspecting the sale-purchase agreement and related transaction documents to understand the key terms and conditions, verify the consideration, and assess the
acquisition date determined by management.
• Assessed the competence, capabilities and objectivity of management’s experts used in performing the fair valuation of identifiable assets and liabilities acquired.
• Used the expertise of our internal fair value specialists to assess:
–
the completeness of identified assets and liabilities acquired, including the contingent consideration;
–
evaluate the appropriateness of the valuation methodologies used to determine the fair value of identified assets, specifically for acquired intangibles namely
patented technology, customer relationships and the order book; and
–
the key valuation assumptions used, including discount rate, long-term growth rates, methodology specific assumptions such as contributory asset charges (CACs)
and, the margin used in the distributor method.
• Challenged management’s key cash flow assumptions used in developing the fair value model:
–
challenged revenue projections with reference to FES’s existing order pipeline as of the acquisition date and further in the context of the broader macroeconomic
environment; and
–
challenged gross profit and EBITDA margins in the context of margins achieved by FES in prior years and on specific contracts.
• Evaluated the appropriateness of the relevant disclosures regarding the acquisition of FES within note 40.
• On a sample basis we evaluated the valuation and allocation of the contract assets and liabilities recognised on the balance sheet of FES as of the acquisition date.
• Obtained a bank confirmation for the cash acquired as part of the transaction.
Key observations
Based on our audit procedures, we concluded that the key judgements and estimates used in the acquisition accounting and the associated disclosures related to the
acquisition are materially correct.
Hunting PLC
Annual Report and Accounts 2025
160
Strategic Report
Corporate Governance
Financial Statements
Other Information
$4.5m
Group materiality
$4.5m
Component
performance
materiality range
$1.3m to $1.7m
Audit Committee
reporting threshold
$0.23m
Adjusted profit before tax $79.7m
Group materiality
Independent Auditor’s Report to the Members of Hunting PLC
continued
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it
probable that the economic decisions of a reasonably knowledgeable person would be changed
or influenced. We use materiality both in planning the scope of our audit work and in evaluating
the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as
a whole as follows:
Group
financial statements
Parent Company
financial statements
Materiality
$4.5 million (2024 – $4.0 million)
$3.8 million (2024 – $3.6 million)
Basis for
determining
materiality
Our primary benchmarks for
materiality are revenue and
adjusted PBT.
Our materiality is 5.65% of profit
before tax adjusted for effect of
EMEA restructuring and acquisition-
related costs and 0.4% of revenue
(Page 237 of the annual report,
non-GAAP measures, adjusted
profit before taxation).
In the prior year, 5.3% of adjusted
profit before tax was used as our
primary benchmark.
Parent Company materiality
determined based on 0.5% of net
assets (2024 – 0.5% of net assets),
which is capped at 90% of group
materiality.
Rationale for the
benchmark applied
Due to relative instability in profit
before tax in recent periods, we
have also incorporated revenue as a
primary benchmark, blending
adjusted profit before tax and
revenue. This provides a more
stable and robust basis for
materiality as revenue offers a
consistent measure of the group’s
operational scale which is equally
critical for users in assessing the
Group’s performance.
Given that the parent Company’s
balance sheet is mostly made up
of investments and intercompany
receivables, we consider net assets
to be the most relevant benchmark.
Hunting PLC
Annual Report and Accounts 2025
161
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
continued
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in
aggregate, uncorrected and undetected misstatements exceed the materiality for the financial
statements as a whole.
Group
financial statements
Parent Company
financial statements
Performance
materiality
67.5% (2024 – 67.5%) of Group
materiality
67.5% (2024 – 67.5%) of parent
Company materiality
Basis and rationale
for determining
performance
materiality
In determining performance materiality, we considered the following
factors:
• our risk assessment including our understanding of the Group’s
control environment;
• the level of corrected and uncorrected misstatements identified in the
prior years; and
• the reliability of the entity’s controls over financial reporting with
specific consideration given to the ongoing impact of control
deficiencies identified in the prior year that continued to affect the
current year’s financial reporting.
6.3. Error reporting threshold
We agreed with the Audit and Risk Committee that we would report to the Committee all audit
differences in excess of $225,000 (2024 – $200,000), as well as differences below that threshold
that, in our view, warranted reporting on qualitative grounds. We also report to the Audit and Risk
Committee on disclosure matters that we identified when assessing the overall presentation of the
financial statements.
Hunting PLC
Annual Report and Accounts 2025
162
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
continued
7. An overview of the scope of our audit
7.1. Identification and scoping of components
The Group has 59 (2024 – 57) reporting units and the financial statements reflect a consolidation of
entities covering centralised functions, operating units and non-trading legal entities. The reporting
units of the Group are diverse and operate across a number of geographies. The reporting units
do not share service centres and controls are designed and implemented at each reporting unit
independently. The parent Company is located in London and audited directly by the Group
audit team.
Our scoping consisted of performing a risk-based approach considering both quantitative and
qualitative factors to obtain sufficient appropriate audit evidence to address the risk of material
misstatement over the Group financial statements. Our audit work covered group operations in
six (2024 – six) countries, covering 27 (2024 – 20) reporting units, including a number of head office
entities. Ten (2024 – six) reporting units were audited by the Group engagement team, and included
overseas reporting units in the US, Netherlands and Norway. The other 16 (2024 – 14) were audited
by respective Deloitte component audit teams in the US, the UK, Saudi Arabia, UAE, Singapore
and China.
For the 27 reporting units, procedures on one or more classes of transactions, account balances
or disclosures were performed. Together, they represent 86% (2024 – 87%) of revenue, and
84% (2024 – 86%) of profit before tax and 87% (2024 – 85%) of net assets. Our audit work at the
27 reporting units were executed at levels of performance materiality applicable to each reporting
unit which were lower than group performance materiality and ranged from $1.4m to $2.4m
(2024: $1.2m to $2.4m). The remaining reporting units were subject to analytical procedures by the
Group engagement team. Further, specific audit procedures over the central functions and areas of
significant judgement including taxation, treasury and goodwill and non-current asset impairment
were performed by the Group audit team centrally. In addition, we also centralised the journal entry
testing for all reporting units except for China and Spring, which was performed still by the local
component audit teams.
[XX]
%
[XX]
%
[XX]
%
[XX]
%
[XX]
%
[XX]
%
Revenue
Specified audit
procedures
Review at group level
14%
86%
Net assets
Specified audit
procedures
Review at group level
13%
87%
Profit before tax
Specified audit
procedures
Review at group level
16%
84%
Hunting PLC
Annual Report and Accounts 2025
163
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
continued
7.2. Our consideration of the control environment
We identified the main Enterprise Resource Planning (“ERP”) system (“Microsoft D365”) and the
consolidation tool (“COGNOS” or “IBM Business Controller”) as the key IT elements relevant to our
audit. We involved our IT specialists to obtain an understanding of the associated general IT controls
(“GITCs”) for D365 and COGNOS.
The Group continues to invest in its IT landscape and there is a proactive programme of remediating
any control findings as and when they are identified. During the year under audit the Group
implemented its plan to remediate control findings identified in the prior years in relation to workflow
approvals within D365, which impacted a number of reporting units. The workflow issue is now
considered remediated.
During the year the Spring reporting unit migrated from their legacy ERP system to D365.
We assessed certain implementation controls over the data conversion and the data migration.
This included general IT controls (“GITCs”) and manual controls.
Where we were able to rely on relevant GITCs and automated controls within D365, controls were
tested in support of our control reliance approach across the revenue processes within certain three
reporting units. For certain other reporting units we were unable to adopt a controls reliance approach
to revenue in the current year due to the existence of manual revenue control deficiencies and the fact
that relevant control deficiencies were not remediated for the full year.
Across the Group, we also obtained an understanding of relevant manual controls within the
financial reporting processes, controls relevant to our significant risks, and any other controls we
deemed relevant.
7.3. Our consideration of climate-related risks
In planning our audit, we have considered the potential impact of climate change on the Group’s
business and its financial statement. The Group continues to develop its assessment of the potential
impacts of climate change with specific transitional and physical climate related risks identified in the
Strategic Report on pages 78 to 81.
As a part of our audit we obtained management’s climate-related risk assessment and held
discussions with management to understand the process of identifying climate-related risks,
the determination of mitigating actions and the impact on the Group’s financial statements.
As explained in note 1 on page 174, the Directors’ view is that the external long-term forecasts used in
preparing their forecasts incorporate climate change developments, supporting the view that there will
be a robust demand for the Group’s oil and gas products over the short and medium term. Estimates
made using these forecasts do not currently identify any concerns regarding the carrying values or
expected lives of longer-lived assets.
We performed our own qualitative risk assessment of the potential impact of climate change on the
Group’s account balances and classes of transaction and did not identify any reasonably possible
risks of material misstatement. Our procedures were performed with the involvement of our climate
change specialists and included evaluating whether appropriate climate-related disclosures have been
made in the financial statements and reading disclosures included in the Strategic Report to consider
whether they are materially consistent with the financial statements and our knowledge obtained in
the audit.
7.4. Working with other auditors
We directed and supervised our component audit teams through regular discussions and interactions
during the planning phase of our audit and throughout the year end process. The lead audit partner
along with other senior members of the team, visited our component teams in the US, Singapore,
China and the UK during the year.
We performed a detailed review of their work over areas including key judgements and significant
and higher risks, using technology to access component auditors’ working papers remotely, where
relevant. Underlying audit working papers were all prepared in English, except in China where we
utilised translation software, where appropriate, and Mandarin-speaking Deloitte UK resources to
review the underlying work.
Hunting PLC
Annual Report and Accounts 2025
164
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
continued
8. Other information
The other information comprises the information included in the annual report, other than the financial
statements and our auditor’s report thereon. The Directors are responsible for the other information
contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of Directors
As explained more fully in the Directors’ Responsibility Statement, the Directors are responsible for
the preparation of the financial statements and for being satisfied that they give a true and fair view,
and for such internal control as the Directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and
the parent Company’s ability to continue as a going concern, disclosing as applicable, matters related
to going concern and using the going concern basis of accounting unless the Directors either intend
to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative
but to do so.
10. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on
the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor’s report.
11. Extent to which the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below.
11.1. Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud
and non-compliance with laws and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance including the
design of the Group’s remuneration policies, key drivers for Directors’ remuneration, bonus levels
and performance targets;
• results of our enquiries of management, internal audit, the Directors and the audit committee about
their own identification and assessment of the risks of irregularities, including those that are specific
to the Group’s sector;
• any matters we identified having obtained and reviewed the Group’s documentation of their policies
and procedures relating to:
–
identifying, evaluating and complying with laws and regulations and whether they were aware of
any instances of non-compliance;
–
detecting and responding to the risks of fraud and whether they have knowledge of any actual,
suspected or alleged fraud; and
–
the internal controls established to mitigate risks of fraud or non-compliance with laws and
regulations, including the Group’s whistleblowing procedures; and
• the matters discussed among the audit engagement team including component audit teams and
relevant internal specialists, including tax, valuations, IT and fraud specialists regarding how and
where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within
the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue
recognition in relation to forecast cost to complete on over time contracts and sales made close to
period end for point in time contracts; and impairment assessment as it relates to the Titan cash-
generating unit. In common with all audits under ISAs (UK), we are also required to perform specific
procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates
in, focusing on provisions of those laws and regulations that had a direct effect on the determination
of material amounts and disclosures in the financial statements. The key laws and regulations we
considered in this context included the UK Companies Act, UK listing Rules, pensions legislation and
tax legislation.
Hunting PLC
Annual Report and Accounts 2025
165
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
continued
In addition, we considered provisions of other laws and regulations that do not have a direct effect
on the financial statements but compliance with which may be fundamental to the Group’s ability to
operate or to avoid a material penalty. These included employment legislation, health, safety and the
environment (“HSE”) regulations, international trading laws, patent law and environmental regulations.
11.2. Audit response to risks identified
As a result of performing the above, we identified impairment of goodwill and non-current assets of
Titan’s group of CGUs, revenue recognition on specific point in time and over time contracts as key
audit matters related to the potential risks of fraud. The key audit matters section of our report explains
the matters in more detail and also describes the specific procedures we performed in response to
those key audit matters.
In addition to the above, our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess
compliance with provisions of relevant laws and regulations described as having a direct effect
on the financial statements;
• enquiring of management and the Audit and Risk Committee concerning actual and potential
litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may
indicate risks of material misstatement due to fraud;
• reading minutes of meetings of those charged with governance, reviewing internal audit reports
and reviewing correspondence with HMRC;
• in addressing the fraud risk in relation to certain revenue shipments close to the year-end, we tested
a sample of the shipments to the relevant shipping documents made available and provided to the
customer prior to the year-end; and
•
in addressing the risk of fraud through management override of controls, testing the
appropriateness of journal entries and other adjustments; assessing whether the judgements
made in making accounting estimates are indicative of a potential bias; and evaluating the business
rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all
engagement team members including internal specialists and component audit teams, and remained
alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Report on other legal and regulatory requirements
12. Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the Directors’ remuneration report to be audited has been properly prepared
in accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic Report and the Directors’ Report for the financial year for
which the financial statements are prepared is consistent with the financial statements; and
• the Strategic Report and the Directors’ Report have been prepared in accordance with applicable
legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and their
environment obtained in the course of the audit, we have not identified any material misstatements
in the Strategic Report or the Directors’ Report.
13. Corporate Governance Statement
The Listing Rules require us to review the Directors’ statement in relation to going concern, longer-
term viability and that part of the Corporate Governance Statement relating to the Group’s compliance
with the provisions of the UK Corporate Governance Code specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the Corporate Governance Statement is materially consistent with the financial statements
and our knowledge obtained during the audit:
• the Directors’ statement with regards to the appropriateness of adopting the going concern basis of
accounting and any material uncertainties identified set out on page 100;
• the Directors’ explanation as to its assessment of the Group’s prospects, the period this
assessment covers and why the period is appropriate set out on page 99;
• the Directors’ statement on fair, balanced and understandable set out on page 152;
• the Board’s confirmation that it has carried out a robust assessment of the emerging and principal
risks set out on pages 87 to 98;
• the section of the Annual Report that describes the review of effectiveness of risk management
and internal control systems set out on page 148 and 150; and
• the section describing the work of the Audit and Risk Committee set out on page 145.
Hunting PLC
Annual Report and Accounts 2025
166
Strategic Report
Corporate Governance
Financial Statements
Other Information
Independent Auditor’s Report to the Members of Hunting PLC
continued
14. Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not received all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the parent Company, or returns adequate
for our audit have not been received from branches not visited by us; or
• the parent Company financial statements are not in agreement with the accounting records
and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of
Directors’ remuneration have not been made or the part of the Directors’ remuneration report to be
audited is not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the Audit and Risk committee, we were appointed by the Directors
on 17 April 2019 to audit the financial statements for the year ending 31 December 2019 and
subsequent financial periods. The period of total uninterrupted engagement including previous
renewals and reappointments of the firm is seven years, covering the years ending 31 December 2019
to 31 December 2025.
15.2. Consistency of the audit report with the additional report to the audit committee
Our audit opinion is consistent with the additional report to the Audit and Risk Committee we are
required to provide in accordance with ISAs (UK).
16. Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of
Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to
the Company’s members those matters we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule
(DTR) 4.1.15R – DTR 4.1.18R, these financial statements will form part of the Electronic Format Annual
Financial Report filed on the National Storage Mechanism of the FCA in accordance with DTR 4.1.15R
– DTR 4.1.18R. This auditor’s report provides no assurance over whether the Electronic Format Annual
Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R. We have been
engaged to provide assurance on whether the Electronic Format Annual Financial Report has been
prepared in compliance with DTR 4.1.15R – DTR 4.1.18R and will publicly report separately to the
members on this.
Thomas Murray, ACA
(Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
5 March 2026
Hunting PLC
Annual Report and Accounts 2025
167
Strategic Report
Corporate Governance
Financial Statements
Other Information
Consolidated Income Statement
For the year ended 31 December
Notes
2025
$m
2024
$m
Revenue
3
Cost of sales
(739.0 )
(777.0 )
Gross profit
Selling and distribution costs
(52.5 )
(53.5 )
Administrative expenses
(155.9 )
(127.9 )
Research and development costs
(5.9 )
(6.6 )
Net operating income and other expenses
4
Share of associates’ and joint venture’s results
16
(0.1 )
Impairment of goodwill
15
(109.1 )
Operating profit/(loss)
6
(21.1 )
Finance income
8
Finance expense
8
(19.3 )
(15.6 )
Profit/(loss) before tax
(33.5 )
Taxation
9
(22.7 )
Profit/(loss) for the year
(25.5 )
Attributable to:
Owners of the parent
(28.0 )
Non-controlling interests
(25.5 )
cents
cents
Earnings/(loss) per share
Basic
10
(17.6 )
Diluted
10
(17.6 )
The notes on pages 173 to 226 are an integral part of these consolidated financial statements.
Hunting PLC
Annual Report and Accounts 2025
168
Strategic Report
Corporate Governance
Financial Statements
Other Information
Consolidated Statement of Comprehensive Income
For the year ended 31 December
Notes
2025
$m
2024
$m
Profit/(loss) for the year
(25.5 )
Other comprehensive income/(expense), after tax:
Items that may subsequently be reclassified to profit or loss:
Exchange adjustments
(4.3 )
Fair value gains/(losses) arising on cash flow hedges during the year
(0.7 )
Fair value gains arising on cash flow hedges reclassified to profit or loss
(0.1 )
(0.1 )
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit pension schemes
32,35
(0.2 )
(0.1 )
Other comprehensive income/(expense), after tax
(5.2 )
Total comprehensive income/(expense) for the year
(30.7 )
Attributable to:
Owners of the parent
(32.9 )
Non-controlling interests
(30.7 )
Total comprehensive income/(expense) attributable to owners of the parent arises from the Group’s continuing operations.
Hunting PLC
Annual Report and Accounts 2025
169
Strategic Report
Corporate Governance
Financial Statements
Other Information
Notes
2025
$m
2024
$m
ASSETS
Non-current assets
Property, plant and equipment
11
Right-of-use assets
12
Goodwill
13
Other intangible assets
14
Investments in associates and joint ventures
16
Investments
17
Trade, contract and other receivables
18
Deferred tax assets
19
Current assets
Inventories
20
Trade, contract and other receivables
18
Cash and cash equivalents
21
Current tax assets
Assets held for sale
11,16
Consolidated Balance Sheet
At 31 December
Notes
2025
$m
2024
$m
LIABILITIES
Current liabilities
Trade, contract and other payables
22
(139.3 )
(208.5 )
Lease liabilities
24
(7.9 )
(7.4 )
Borrowings
25
(38.9 )
(11.3 )
Provisions
27
(15.4 )
(12.6 )
Current tax liabilities
(8.6 )
(9.0 )
(210.1 )
(248.8 )
Net current assets
Non-current liabilities
Trade, contract and other payables
22
(5.5 )
(5.5 )
Lease liabilities
24
(23.0 )
(22.7 )
Borrowings
25
(47.6 )
(94.5 )
Provisions
27
(1.2 )
(1.7 )
Deferred tax liabilities
19
(6.1 )
(3.7 )
(83.4 )
(128.1 )
Net assets
Equity attributable to owners of the parent
Share capital
33
Share premium
33
Other components of equity
34
Retained earnings
35
Total attributable to owners of the parent
Non-controlling interests
Total equity
The notes on pages 173 to 226 are an integral part of these consolidated financial statements. The
financial statements on pages 168 to 226 were approved by the Board of Directors on 5 March 2026
and were signed on its behalf by:
Jim Johnson
Bruce Ferguson
Director
Registered number: 00974568
Hunting PLC
Annual Report and Accounts 2025
170
Strategic Report
Corporate Governance
Financial Statements
Other Information
Notes
Share
capital
$m
Share
premium
$m
Other
components
of equity
i
$m
Retained
earnings
$m
Total
attributable
to owners of
the parent
$m
Non-
controlling
interests
$m
Total
equity
$m
At 1 January 2024
(Loss)/profit for the year
(28.0 )
(28.0 )
(25.5 )
Other comprehensive expense
(4.8 )
(0.1 )
(4.9 )
(0.3 )
(5.2 )
Total comprehensive (expense)/income
(4.8 )
(28.1 )
(32.9 )
(30.7 )
Transfer of cash flow hedging gains to the initial carrying value of hedged items, after tax
(0.2 )
(0.2 )
(0.2 )
Dividends paid to Hunting PLC shareholders
36
(16.7 )
(16.7 )
(16.7 )
Treasury shares:
– purchase of treasury shares
35
(14.2 )
(14.2 )
(14.2 )
– disposal of treasury shares
Share options and awards:
– value of employee services
– discharge
(9.6 )
(0.6 )
(0.6 )
– taxation
At 31 December 2024
Profit for the year
Other comprehensive income/(expense)
(0.2 )
Total comprehensive income
Transfer of cash flow hedging losses to the initial carrying value of hedged items, after tax
Dividends paid to Hunting PLC shareholders
36
(19.1 )
(19.1 )
(19.1 )
Share buyback
33
(2.9 )
(39.9 )
(40.4 )
(40.4 )
Treasury shares:
35
– purchase of treasury shares
(19.3 )
(19.3 )
(19.3 )
– disposal of treasury shares
Share options and awards:
– value of employee services
– discharge
(15.2 )
(1.4 )
(1.4 )
– taxation
At 31 December 2025
i.
An analysis of other components of equity is provided in note 34.
Consolidated Statement of Changes in Equity
For the year ended 31 December
Hunting PLC
Annual Report and Accounts 2025
171
Strategic Report
Corporate Governance
Financial Statements
Other Information
Consolidated Statement of Cash Flows
For the year ended 31 December
Notes
2025
$m
2024
$m
Operating activities
Operating profit/(loss)
(21.1 )
Adjusting items (NGM A)
Depreciation, amortisation and impairment (NGM C)
EBITDA (NGM C)
Share-based payment expense
37
Decrease in inventories
Decrease/(increase) in receivables
(11.4 )
(Decrease)/increase in payables
(93.1 )
Decrease in provisions
(0.4 )
(2.0 )
Net taxation paid
(8.7 )
(3.5 )
Net gain on disposal of property, plant and equipment
(0.6 )
(0.9 )
Net loss on disposal of other intangible assets
Proceeds from disposal of property, plant and equipment
held for rental
Purchase of property, plant and equipment
held for rental (NGM N)
(2.6 )
(1.7 )
Gain on disposal of assets classified as held for sale
16
(0.9 )
Acquisition-related costs presented as adjusting items
5
(4.8 )
Restructuring costs presented as adjusting items
5
(6.1 )
Fair value adjustment of contingent consideration
40
(0.9 )
Share of associates’ and joint venture’s results
(3.5 )
Payment of US pension scheme liabilities
32
(0.2 )
Other non-cash items
Net cash inflow from operating activities
Investing activities
Interest received
Proceeds from disposal of property, plant and equipment
Proceeds from disposal of other intangible assets
Proceeds from disposal of investments
Loans issued to associates and joint ventures
(0.4 )
Investment in associates and joint ventures
16
(0.9 )
Proceeds from disposal of associates
16
Purchase of property, plant and equipment (NGM N)
(26.9 )
(23.6 )
Purchase of intangible assets
14
(11.1 )
(4.8 )
Acquisition of subsidiaries, net of cash acquired
40
(61.8 )
Acquisition of assets
40
(18.2 )
Net cash outflow from investing activities
(90.2 )
(25.5 )
Notes
2025
$m
2024
$m
Financing activities
Interest and bank fees paid
(14.6 )
(15.3 )
Payment of lease liabilities, principal and interest
(9.7 )
(8.9 )
Increase in bank borrowings
Repayments of bank borrowings
(18.8 )
(44.5 )
Settlement of contingent consideration
40
(1.3 )
Dividends paid to Hunting PLC shareholders
36
(19.1 )
(16.7 )
Purchase of own shares
33
(33.9 )
Purchase of treasury shares
35
(19.3 )
(14.2 )
Proceeds on disposal of treasury shares
Net cash (outflow)/inflow from financing activities
(115.6 )
Net (decrease)/increase in cash and cash equivalents
(66.9 )
Cash and cash equivalents at the beginning of the year
Effect of foreign exchange rates
(2.7 )
Cash and cash equivalents at the end of the year
Cash and cash equivalents at the end of the year comprise:
Cash and cash equivalents included in current assets
21
Bank overdrafts included in borrowings
25
(1.0 )
(1.5 )
Hunting PLC
Annual Report and Accounts 2025
172
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting PLC
173
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
Shares in Commercial Companies (ESCC) category. Hunting PLC was incorporated in the United Kingdom
under the Companies Act and is registered in England and Wales. The address of the Company’s
registered office is 30 Panton Street, London, SW1Y 4AJ , United Kingdom. The principal activities of the
referred to as the “Group”), including the Group’s interests in associates and joint ventures and are
adopted international accounting standards and in conformity with the requirements of the Companies
cost convention as modified by the revaluation of the US deferred compensation plan and those
financial assets and financial liabilities held at fair value (note 29). The Board’s consideration of the
The material accounting policies applied in the preparation of these financial statements are set out
in note 41. These policies have been consistently applied to all the years presented.
Critical accounting judgements are those that the Directors have made in the process of applying the
Group’s accounting policies and that have the most significant effect on the amounts recognised in
the Group’s financial statements. Key estimates are those concerning future expectations and other
key sources of estimation uncertainty at the end of the reporting period and which may have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year. Critical accounting judgements were made in the following areas:
• In determining the point in time at which control is transferred to customers and revenue is
recognised, as described in note 41(b). In the majority of Hunting’s contracts this is straightforward.
However, the determination can become more complex in contracts where goods are shipped
and confirming shipping documentation, indicating transfer of legal title and an ability to direct the
goods, can take a short period of time to be produced and provided to the customer, which can
be after the ship has departed port and the transfer of risk has occurred. In applying the Group’s
revenue recognition policy, in these instances, the Group’s judgement is to recognise revenue at the
point in time when the confirming shipping documentation is provided to the customer which could
potentially be in a different accounting period to when the goods are loaded onto the ship and risk
transfers, in accordance with incoterms. At 31 December 2024, there was a shipment at sea
containing goods with a revenue value of c.$32m. Risk had transferred to the customer per the
stated incoterms; however, the confirming shipping documentation had not been produced and,
therefore, the Group still had the ability to direct the goods. Management considered the different
indicators of control in accordance with IFRS 15 and concluded that Hunting retained control
of the goods at 31 December 2024 and, therefore, revenue was recognised in 2025;
• In determining if the contractual terms for various significant customer contracts met the
requirements for over time revenue recognition, as described in note 41(b);
• In considering whether the conditions were appropriate to recognise deferred tax assets
(see note 9);
• In electing to apply a policy to expense variable costs, rather than capitalise them, in relation to
purchases of intangible assets, as described in note 40(b); and
• In establishing the fair value of intangible assets recognised at acquisition and their estimated useful
lives (see note 40(a)). Valuation estimates are used to determine the fair values of intangible assets
and this includes estimation of future cash flows, discount factors and useful lives.
The key estimates used in the preparation of the accounts were:
• The estimates of future cash flows in the budget and extended forecasts considered in the
impairment test for cash-generating units and the recoverable amounts (see note 15); and
• Estimates of future turn rates by inventory line item in determining inventory provisions (see note 20).
The Directors believe that there are no other critical accounting judgements or key estimates applied
New and amended standards adopted by the Group
There are no new standards that came into effect for the current financial year. The amendments
to IAS 21: Lack of Exchangeability came into effect for the current financial year. The Group did not
have to change its accounting policies or make retrospective adjustments as a result of adopting
the amendments.
Future standards, amendments and interpretations
The following standards, amendments and interpretations are effective subsequent to the year-end,
and have not been early adopted. The Directors do not expect that the adoption of the standards and
amendments listed below will have a material impact on the financial statements of the Group in future
periods, except for IFRS 18, which is discussed on the following page.
• IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
i
• IFRS S2 Climate-related Disclosures
i
• IFRS 18 Presentation and Disclosures in Financial Statements
iii
• IFRS 19 Subsidiaries without Public Accountability: Disclosures
iii
• Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures
iii
• Amendments to IFRS 9 and IFRS 7 regarding the classification and measurement of financial
instruments
ii
• Annual Improvements to IFRS Accounting Standards – Volume 11
ii
i.
Not yet endorsed by the UK as at the date of authorisation of the financial statements.
ii.
Mandatory adoption date and effective date for the Company is 1 January 2026.
iii. Mandatory adoption date and effective date for the Company is 1 January 2027.
Hunting PLC
174
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
1. Basis of preparation
continued
IFRS 18 Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which
replaces IAS 1 Presentation of Financial Statements. The new standard is effective for reporting
periods beginning on or after 1 January 2027.
IFRS 18 introduces new requirements for presentation within the income statement, requiring entities
to classify all income and expenses into five categories: operating, investing, financing, income tax
and discontinued operations, and introduces defined subtotals, including operating profit and profit
before financing and income taxes. The Group expects results from equity-accounted investees
(i.e. associates and joint ventures) to be presented below operating profit, within the investing category.
The standard requires disclosure of management-defined performance measures (MPMs) –
subtotals of income and expenses not specified by IFRS that are used in public communications to
communicate management’s view of an aspect of a company’s financial performance. A reconciliation
between the MPMs and the most directly comparable totals or subtotals specified by IFRS is also
required to provide transparency on the entity-specific performance measures.
The standard introduces new aggregation and disaggregation principles to help a company provide
useful information, and narrow scope amendments to IAS 7 Statement of Cash Flows by using
operating profit as the starting point for the indirect method and removing optionality in the
classification of interest and dividends.
The Group has commenced its IFRS 18 impact assessment and is considering the impact of MPMs
and the enhanced disaggregation requirements. In 2026, the Group will continue to assess the impact
of IFRS 18.
Climate change
The impact of climate change is presented in the Strategic Report on pages 74 to 86.
The Directors have considered the potential impact that climate change could have on the financial
statements of the Group and recognise that climate change is a principal risk that the Group will
monitor and react to appropriately. In the judgement of the Directors, the external mid- and long-term
forecasts used by the Company incorporate climate change developments, and support the view that
there will be robust demand for the Group’s oil- and gas-based products for a significant time span.
The Group utilises mid-term forecasts to consider whether there are any concerns regarding the
carrying values or expected lives of longer-lived assets, including goodwill. Climate-related risks are
not expected to have a significant adverse impact on the Group’s revenue or EBITDA in the medium-
term. The Directors also believe there is significant operational adaptability in the Group’s asset base
to move into other non-hydrocarbon product lines, if required.
Presentation
to present the costs separately from ‘Net operating income and other expenses’. This presentation
reflects the growth in R&D spend and the requirement to present material categories of cost by nature
under IAS 1. The comparative amounts in the Group’s Income Statement have also been amended to
For the year ended 31 December 2025 , the Group has been reporting on five operating segments
in its internal management reports, which are used to make strategic decisions by the Hunting PLC
Board, the Group’s Chief Operating Decision Maker. The Hunting PLC Board examines the Group’s
performance mainly from a geographic perspective, based on the location of the operating activities,
as well as by product group, in order to understand the drivers of Group performance and trends.
Due to their size and/or nature of their operations, Hunting Titan and Subsea Technologies are
reported separately. There is no aggregation of operating segments.
The Board assesses the performance of the operating segments based on revenue and adjusted
operating results. Adjusted operating result is reported operating profit excluding adjusting items
(see NGM A).
Finance income and finance expense are not allocated to operating segments as this type of activity
is overseen by the Group’s central treasury function which manages the funding position of the Group.
Inter-segment sales are priced in line with the transfer pricing policy on an arm’s length basis and are
eliminated on consolidation. Costs and overheads are apportioned to the operating segments on the
basis of level of activity and time attributed to those operations by senior executives.
Accounting policies used for segmental reporting reflect those used for the Group. The domicile
Hunting PLC
175
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
2. Segmental reporting
continued
(a) Segment revenue and profit
| 2025 | ||||||
Total | Inter- | Total | Adjusted | Reported | ||
segment | segment | external | operating | Adjusting | operating | |
revenue | revenue | revenue | result | items i | result | |
$m | $m | $m | $m | $m | $m | |
Hunting Titan | 228.7 | (6.9) | 221.8 | 3.4 | – | 3.4 |
North America | 389.5 | (26.2) | 363.3 | 50.7 | – | 50.7 |
Subsea Technologies | 139.3 | (1.1) | 138.2 | 14.4 | – | 14.4 |
EMEA | 73.5 | (1.2) | 72.3 | (11.0) | (9.3) | (20.3) |
Asia Pacific | 226.7 | (3.5) | 223.2 | 33.0 | – | 33.0 |
Adjusting items not apportioned to operating segments | – | – | – | – | (4.9) | (4.9) |
Total | 1,057.7 | (38.9) | 1,018.8 | 90.5 | (14.2) | 76.3 |
Net finance expense | (10.8) | – | (10.8) | |||
Profit before tax | 79.7 | (14.2) | 65.5 | |||
| 2024 | ||||||
Total | Inter- | Total | Adjusted | Reported | ||
segment | segment | external | operating | Adjusting | operating | |
revenue | revenue | revenue | result | items i | result | |
$m | $m | $m | $m | $m | $m | |
Hunting Titan | 230.3 | (9.8) | 220.5 | (8.3) | (109.1) | (117.4) |
North America | 388.4 | (31.1) | 357.3 | 45.5 | – | 45.5 |
Subsea Technologies | 147.1 | – | 147.1 | 25.6 | – | 25.6 |
EMEA | 87.7 | (1.1) | 86.6 | (12.4) | – | (12.4) |
Asia Pacific | 240.6 | (3.2) | 237.4 | 37.6 | – | 37.6 |
Total | 1,094.1 | (45.2) | 1,048.9 | 88.0 | (109.1) | (21.1) |
Net finance expense | (12.4) | – | (12.4) | |||
Profit/(loss) before tax | 75.6 | (109.1) | (33.5) | |||
i.
Adjusting items are disclosed in note 5.
Hunting PLC
176
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
2. Segmental reporting
continued
(a) Segment revenue and profit
continued
A breakdown of external revenue by products and services is presented below:
2025 | 2024 | |
$m | $m | |
Perforating Systems | 221.1 | 222.7 |
OCTG | 467.5 | 463.7 |
Advanced Manufacturing | 112.4 | 126.9 |
Subsea | 138.1 | 147.1 |
Other Manufacturing | 79.7 | 88.5 |
Total | 1,018.8 | 1,048.9 |
Revenue from products is further analysed between: | ||
Oil and gas | 935.9 | 973.8 |
Non-oil and gas | 82.9 | 75.1 |
Total | 1,018.8 | 1,048.9 |
(b) Other segment items
| 2025 | 2024 | |||||||
Impairment | Impairment | Impairment | Impairment | |||||
of non-current | of current | of non-current | of current | |||||
Depreciation i | Amortisation | assets ii | assets iii | Depreciation i | Amortisation | assets ii | assets iii | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Hunting Titan | 7.1 | 2.6 | – | 1.5 | 7.2 | 1.7 | 109.1 | 2.6 |
North America | 16.7 | 1.7 | – | (1.3) | 15.7 | 1.0 | – | 3.4 |
Subsea Technologies | 2.9 | 6.0 | – | 0.9 | 2.3 | 2.1 | – | 0.4 |
EMEA | 3.6 | 0.4 | 4.5 | 2.7 | 3.9 | 0.6 | – | 2.0 |
Asia Pacific | 3.4 | 0.8 | – | 1.4 | 3.3 | 0.5 | – | 0.6 |
Total | 33.7 | 11.5 | 4.5 | 5.2 | 32.4 | 5.9 | 109.1 | 9.0 |
i.
Depreciation in 2025 comprises depreciation of property, plant and equipment of $25.9m (2024 – $25.2m) and depreciation of right-of-use assets of $7.8m (2024 – $7.2m).
ii.
Impairment of non-current assets comprises impairment of property, plant and equipment of $4.2m (2024 – $nil), impairment of goodwill of $nil (2024 – $109.1m) and impairment of right-of-use assets of $0.3m (2024 – $nil). In 2025, the impairment of property, plant and equipment of
$4.2m and impairment of right of use assets of $0.3m (2024 – $109.1m impairment of goodwill) are presented as adjusting items, see note 5.
iii.
Impairment of current assets comprises the net impairment of inventories of $3.1m (2024 – $8.2m) and the net impairment of trade and other receivables of $2.1m (2024 – $0.8m).
Hunting PLC
177
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
2. Segmental reporting
continued
(c) Geographical segment information
Information on the physical location of non-current assets is presented below. The allocated non-current assets below exclude deferred tax assets.
2025 |
2024 |
|
$m |
$m |
|
Hunting Titan – US |
64.8 |
67.9 |
Hunting Titan – Canada |
1.4 |
1.8 |
Hunting Titan – Other |
1.7 |
2.0 |
Hunting Titan |
67.9 |
71.7 |
North America – US |
202.3 |
199.7 |
North America – Canada |
1.4 |
1.5 |
North America |
203.7 |
201.2 |
Subsea Technologies – US |
60.0 |
39.4 |
Subsea Technologies – UK i |
83.4 |
20.2 |
Subsea Technologies |
143.4 |
59.6 |
EMEA – UK i |
14.1 |
20.6 |
EMEA – Rest of Europe |
0.2 |
4.4 |
EMEA – Middle East |
11.1 |
4.3 |
EMEA |
25.4 |
29.3 |
Asia Pacific – China |
11.0 |
10.8 |
Asia Pacific – Indonesia |
4.3 |
3.4 |
Asia Pacific – Singapore |
11.1 |
9.0 |
Asia Pacific |
26.4 |
23.2 |
Unallocated assets: |
||
Deferred tax assets |
88.5 |
108.5 |
Total non-current assets |
555.3 |
493.5 |
i.
The value of non-current assets located in the UK, the Group’s country of domicile, is $97.5m (2024 – $40.8m).
Revenue from external customers attributable to the UK, the Group’s country of domicile, included in the Subsea Technologies and EMEA operating segments, is $58.3m (2024 – $41.3m). Revenue
attributable to foreign countries totalled $960.5m (2024 – $1,007.6m). Revenue attributable to the US, the Group’s largest individual foreign country where revenue is earned, is $636.5m (2024 – $646.2m),
which represents 62% (2024 – 62%) of the Group’s revenue from external customers. Revenue attributed to an individual country is based on where the invoice is raised; however, customers can either be
domestic or international customers.
(d) Major customer
Included in external revenue is revenue of $139.0m (2024 – $140.7m) which arose from sales to our distributor for orders to Kuwait Oil Company, the Group’s largest customer. This represents 14% (2024 –
Hunting PLC
178
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
In the following tables, a breakdown of the Group’s different revenue streams by segment has been
given, including the disaggregation of revenue from contracts with customers.
| 2025 | |||
Revenue | Total | ||
from contracts | Rental | external | |
with customers | revenue | revenue | |
$m | $m | $m | |
Hunting Titan | 221.2 | 0.6 | 221.8 |
North America | 361.5 | 1.8 | 363.3 |
Subsea Technologies | 138.2 | – | 138.2 |
EMEA | 67.4 | 4.9 | 72.3 |
Asia Pacific | 223.2 | – | 223.2 |
Total | 1,011.5 | 7.3 | 1,018.8 |
| 2024 | |||
Revenue | Total | ||
from contracts | Rental | external | |
with customers | revenue | revenue | |
$m | $m | $m | |
Hunting Titan | 220.0 | 0.5 | 220.5 |
North America | 355.1 | 2.2 | 357.3 |
Subsea Technologies | 147.1 | – | 147.1 |
EMEA | 82.8 | 3.8 | 86.6 |
Asia Pacific | 237.2 | 0.2 | 237.4 |
Total | 1,042.2 | 6.7 | 1,048.9 |
Revenue is typically recognised for products when the product is shipped or made available to
customers for collection, or over time as control of the product is transferred to customers, and for
services either on completion of the service or, at a minimum, monthly for services covering more than
one month. Rental revenue is earned from the rental of tools, see note 24(d).
Of the revenue from contracts with customers, $723.9m (restated 2024 – $799.4m) was recognised
at a point in time and $287.6m (restated 2024 – $242.8m) was recognised over time. The Group’s
revenue recognised over time is predominantly within the North America and Subsea Technologies
operating segments.
The amount of consideration is not adjusted for the effects of a significant financing component as,
at contract inception, the period between when the entity transfers a promised good or service to
2025 | 2024 | |
$m | $m | |
Operating income from leasing assets (note 24) | 1.2 | 1.4 |
Gain on disposal of property, plant and equipment i | 1.0 | 1.3 |
Gain on disposal of assets held for sale (note 16) | 0.9 | – |
Government grants | – | 0.1 |
Foreign exchange gains ii | 2.6 | 2.6 |
Other income iii | 4.0 | 2.4 |
Total operating income | 9.7 | 7.8 |
Loss on disposal of property, plant and equipment | (0.4) | (0.4) |
Foreign exchange losses iv | (1.9) | (3.1) |
Other operating expenses v | (0.1) | (0.1) |
Total other operating expenses | (2.4) | (3.6) |
Net operating income and other expenses | 7.3 | 4.2 |
i.
Excludes gains on disposal of property, plant and equipment of $4.7m (2024 – $nil), which are presented in adjusting items (note 5).
ii.
Includes fair value gains on derivatives designated in a fair value hedge of $0.2m (2024 – $0.2m in a cash flow hedge).
iii.
Includes fair value gains on derivatives not designated in a hedge of $0.1m (2024 – $0.1m) and fair value gains on contingent consideration
of $0.9m (2024 – $nil).
iv.
Includes fair value losses on derivatives designated in a fair value hedge of $nil (2024 – $0.7m).
v.
Due to their size and nature, the following items have been disclosed separately, as required by IAS 1.
2025 | ||
Gross | Tax | |
amount | impact | |
$m | $m | |
Restructuring costs | (9.3) | (1.7) |
Acquisition-related costs | (4.9) | 0.1 |
Total | (14.2) | (1.6) |
During the period, the Group incurred $9.3m of costs associated with restructuring the EMEA
operating segment. The restructuring programme will result in the consolidation of OCTG threading
and accessories manufacturing and geothermal activity into one site in the UK, and has resulted in the
consolidation and increase in well intervention manufacturing activities into the Dubai operating site
and the closures of the OCTG operating sites in the Netherlands and Norway. The programme is
ongoing and will continue into 2026. The charge comprised employee severance and separation
costs of $6.9m, impairment of property, plant and equipment of $4.2m, inventory impairment
provisions of $1.7m, impairments of right-of-use assets of $0.3m and consultancy, legal and other
costs of $0.9m, offset by gains on the disposal of property, plant and equipment of $4.7m.
Hunting PLC
179
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
5. Adjusting items
continued
An associated deferred tax charge of $1.7m has been recognised reflecting the release of previously
recognised deferred tax assets of $3.0m in respect of UK streamed tax losses relating to OCTG
activity, net of $1.3m deferred tax credits largely in relation to deductible restructuring costs.
During the period, the Group completed the acquisition of FES, incurring direct transaction related
costs of $3.6m (note 40), and also continued to explore other potential acquisitions, incurring advisory
costs of $1.3m. These costs are central costs and therefore are not apportioned to operating
segments. An associated deferred tax credit of $0.1m has been recognised in relation to the
acquisition-related costs. All directly attributable transaction related costs were treated as non-
deductible for tax purposes.
The adjusting items were presented within administrative expenses in the consolidated income
statement in 2025.
There will be a total cash outflow of $6.1m in respect of adjusting items charged during the year,
$4.3m of which was paid during 2025. The total cash outflow in respect of adjusting items is reported
within cash flows from operating activities in the consolidated statement of cash flows.
2024 | ||
Gross | Tax | |
amount | impact | |
$m | $m | |
Impairment of goodwill | (109.1) | 27.8 |
Following the annual review of goodwill in 2024, an impairment charge of $109.1m was recognised
in relation to Hunting Titan (note 15). The impairment charge related entirely to goodwill and was
presented separately on the face of the consolidated income statement. An associated deferred tax
credit of $27.8m was recognised, reflecting the reduction in the book value for deferred tax purposes
2025 | 2024 | |
$m | $m | |
Staff costs (note 7) | 232.5 | 228.1 |
Depreciation of property, plant and equipment (note 11) | 25.9 | 25.2 |
Amortisation of intangible assets (included in cost of sales | ||
and administrative expenses) (note 14) | 11.5 | 5.9 |
Impairment of property, plant and equipment (note 11) | 4.2 | – |
Impairment of goodwill (note 13) | – | 109.1 |
Impairment of trade and other receivables (note 18) | 2.1 | 0.8 |
Net gain on disposal of property, plant and equipment (note 4) | (0.6) | (0.9) |
Gain on disposal of assets held for sale (note 16) | (0.9) | – |
Fair value adjustment of contingent consideration (note 40) | (0.9) | – |
Net lease charges included in operating profit (note 24) | 10.2 | 9.3 |
2025 | 2024 | |
$m | $m | |
The audit of these financial statements | 3.6 | 3.1 |
The audit of the financial statements of the Company’s subsidiaries | 0.7 | 0.7 |
Total audit | 4.3 | 3.8 |
Audit-related assurance services | 0.2 | 0.3 |
Total audit and audit-related services | 4.5 | 4.1 |
2025 | 2024 | |
$m | $m | |
Wages and salaries (including annual cash bonuses) | 193.9 | 189.9 |
Social security costs | 16.1 | 14.8 |
Share-based payments (note 37) | 12.7 | 14.1 |
Pension costs: | ||
– defined contribution schemes (note 32) | 9.6 | 9.3 |
– unfunded defined benefit schemes – US and Middle East (note 32) | 0.6 | 0.5 |
Net gains on the unfunded defined benefit schemes included | ||
in net finance expense (note 32) | (0.2) | (0.1) |
Staff costs for the year | 232.7 | 228.5 |
Hunting PLC
180
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
7. Employees
continued
Staff costs for the year included in the financial statements are as follows:
2025 | 2024 | |
$m | $m | |
Total staff costs included in operating profit (note 6) | 232.5 | 228.1 |
Net gains on the unfunded defined benefit schemes included | ||
in net finance expense (note 32) | (0.2) | (0.1) |
Staff costs capitalised as R&D | 0.4 | 0.5 |
232.7 | 228.5 |
the year was:
2025 | 2024 | |
Number | Number | |
North America | 1,565 | 1,661 |
Europe | 275 | 286 |
Asia Pacific | 349 | 365 |
Central America, Middle East and Africa | 123 | 111 |
2,312 | 2,423 |
The average monthly number of employees by operating segment (including executive Directors)
during the year was:
2025 | 2024 | |
Number | Number | |
Hunting Titan | 519 | 565 |
North America | 841 | 911 |
Subsea Technologies | 273 | 217 |
EMEA | 242 | 276 |
Asia Pacific | 349 | 365 |
Central | 88 | 89 |
2,312 | 2,423 |
acted during the year (2024 – ten). Their aggregate remuneration in the year was:
2025 | 2024 | |
$m | $m | |
Salaries, annual cash bonuses and short-term employee benefits | 9.3 | 9.5 |
Post-employment benefits | 0.8 | 0.8 |
Share-based payments | 6.1 | 6.7 |
16.2 | 17.0 |
Remuneration of the Board, included as part of key management compensation, can be found in the
Annual Report on Remuneration on pages 133 to 143. The Annual Report on Remuneration disclosures
do not include Executive Committee members who are not part of the Board and disclose share
scheme remuneration on a vested rather than an accruals basis.
Short-term employee benefits comprise healthcare insurance, company cars and fuel benefits.
Post-employment benefits comprise employer pension contributions. Share-based payments
comprise the charge to the consolidated income statement.
The total amounts for Directors’ remuneration in accordance with Schedule 5 to the Accounting
Regulations were as follows:
Restated | ||
2025 | 2024 i | |
$m | $m | |
Salaries, annual cash bonuses and short-term employee benefits | 3.5 | 3.9 |
Gains on exercise of share awards | 3.5 | 6.1 |
Post-employment benefits | 0.2 | 0.2 |
7.2 | 10.2 |
i. The gain on exercise of share awards has been restated from $6.5m to $6.1m to reflect the actual vested amount.
The Group contributes on behalf of the Chief Executive to a US 401k deferred savings plan and an
additional deferred compensation scheme. The Finance Director receives an annual cash sum in lieu
Hunting PLC
181
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
2025 | 2024 | |
$m | $m | |
Finance income: | ||
Interest received on bank balances and deposits | 2.5 | 0.5 |
Foreign exchange gains i | 1.6 | 0.6 |
Fair value gains on money market funds | 2.2 | 0.9 |
Fair value gains on non-hedging derivative financial instruments | 1.8 | 0.9 |
Other finance income | 0.4 | 0.3 |
8.5 | 3.2 | |
Finance expense: | ||
Interest on lease liabilities | (1.5) | (1.4) |
Bank fees and commissions | (4.0) | (3.4) |
Interest on bank borrowings | (6.4) | (4.9) |
Foreign exchange losses ii | (0.9) | (1.2) |
Fair value losses on non-hedging derivative financial instruments | (2.4) | (0.5) |
Other finance expense iii | (4.1) | (4.2) |
(19.3) | (15.6) | |
Net finance expense | (10.8) | (12.4) |
i.
ii.
Foreign exchange losses include losses of $0.1m (2024 – $nil) in relation to lease liabilities.
iii.
Other finance expense includes fair value losses on derivatives designated in a cash flow hedge of $0.4m (2024 – $1.7m) and in a fair value
hedge of $nil (2024 – $0.6m), losses on derecognition of financial assets recognised at amortised cost arising on letter of credit discounting
and interest incurred in respect of trade receivable purchasing programmes of $2.9m (2024 – $1.7m) and fair value losses on the Wells Data
2025 | 2024 | |
$m | $m | |
Current tax: | ||
Current year charge | (8.2) | (8.7) |
Adjustments in respect of prior years | 0.3 | (0.1) |
(7.9) | (8.8) | |
Deferred tax: | ||
Origination and reversal of temporary differences | (8.9) | 15.9 |
Adjustments in respect of prior years | 0.8 | 0.9 |
Change in tax rates | (1.3) | – |
Derecognition of previously recognised deferred tax assets | (5.4) | – |
(14.8) | 16.8 | |
Taxation (charge)/credit | (22.7) | 8.0 |
The tax charge for the year was $22.7m (2024 – $8.0m credit) and the effective tax rate (“ETR”) was
35% (2024 – 24%). The Group’s ETR is higher (2024 – broadly in line) with what might be expected
from prevailing jurisdictional rates and the difference arises from distortion caused when deferred tax
is not fully recognised in loss-making jurisdictions.
When adjusting items are excluded, the Group’s adjusted ETR is 26% (2024 – 26%). The calculation
of the adjusted tax charge and adjusted effective tax rate can be found in NGM D.
The adjustments in respect of prior years within both current tax and deferred tax, totalling a credit
of $1.1m (2024 – $0.8m) mainly relate to true-ups of prior year balances.
The table below reconciles the tax on the Group’s profit/(loss) before tax to a weighted average tax
rate for the Group based on the tax rates applicable to each entity in the Group. A weighted average
applicable rate for the year of 20.5% (2024 – 29%) was used as this reflects the applicable rates for
the countries applied to their respective profits/losses in the year. The total tax charge for the year
(2024 – credit) is different to the weighted average rate of tax of 20.5% (2024 – 29%) for the
following reasons:
2025 | 2024 | |
$m | $m | |
Profit/(loss) before tax | 65.5 | (33.5) |
Tax at 20.5% (2024 – 29%) | (13.4) | 9.8 |
Permanent differences including tax credits | (0.4) | (0.2) |
Current year deferred tax not recognised | (2.1) | (2.3) |
Derecognition of previously recognised deferred tax assets | (5.4) | – |
Difference in tax rates | (2.5) | (0.1) |
Adjustments in respect of prior years | 1.1 | 0.8 |
Taxation (charge)/credit | (22.7) | 8.0 |
Hunting PLC
182
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
9. Taxation
continued
| 2025 |
2024 |
|||||
Tax (charged)/ |
||||||
Before tax |
credited |
After tax |
Before tax |
Tax credited |
After tax |
|
$m |
$m |
$m |
$m |
$m |
$m |
|
Exchange adjustments |
6.5 |
– |
6.5 |
(4.3) |
– |
(4.3) |
Fair value gains/(losses) arising on cash flow hedges during the year |
1.2 |
(0.2) |
1.0 |
(0.8) |
0.1 |
(0.7) |
Fair value gains reclassified to profit or loss |
(0.2) |
0.1 |
(0.1) |
(0.2) |
0.1 |
(0.1) |
Remeasurement of defined benefit pension schemes |
(0.2) |
– |
(0.2) |
(0.1) |
– |
(0.1) |
7.3 |
(0.1) |
7.2 |
(5.4) |
0.2 |
(5.2) |
|
The tax relating to the components of other comprehensive income comprises a deferred tax charge of $0.1m (2024 – $0.2m credit).
Tax-related judgements
The Group is subject to income taxes in numerous jurisdictions and significant judgement is required in determining the worldwide provision for those taxes, as tax legislation can be complex and open
to different interpretation. Deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available, against which the temporary differences can be utilised. The
recoverability of deferred tax assets is supported by deferred tax liabilities against which the reversal can be offset as well as the expected level of future profits. This is considered by jurisdiction, or by entity,
dependent on the tax laws of the jurisdiction. Where there is both a history of loss making and continued loss making in the year, stronger supporting evidence is required to meet recognition policy criteria.
Supporting evidence reviewed includes: whether actual results, when excluding non-recurring items, meet or exceed budget; the level of taxable profits generated in the base case and downside case of
longer-term forecasts; and the nature of how the deferred tax assets arose and how this relates to the ongoing activities of the business.
The recognition of deferred tax assets as at 31 December 2025 has been based on the forecast accounting profits in the 2026 and 2027 budgets and the extended forecast period as presented to the Board.
This is the same forecast that is used to derive cash flows for the impairment testing of non-current assets, per note 15. For periods beyond the extended forecast period, profits have been assumed to grow
in a manner consistent with the terminal growth rate assumptions used for impairment testing. In addition, a risk factor has been applied to reduce future profits for the extended forecast period and beyond.
These adjustments are to reflect the potential decrease in reliability of forecasts for future periods beyond the Board-approved budget period.
Historical tax losses make up the majority of the deductible temporary differences. These losses mainly arose from varying factors including non-recurring events such as losses arising at the start of
newly-formed businesses and losses arising from periods of economic downturn, such as during the COVID-19 pandemic. The majority of the deferred tax not recognised in the Group relates to deferred tax
arising in the Netherlands and UK primarily relating to tax losses for trades affected by the EMEA restructuring in the year, where there is uncertainty as to the profitability and/or reduction in the trade expected
in the future. Management will continue to monitor the position in those jurisdictions where deferred tax is not recognised.
The Group is within the scope of the OECD Pillar Two model rules. The UK Pillar Two legislation was introduced in the Finance (No. 2) Act 2023 for accounting periods beginning after 31 December 2023. The
year ended 31 December 2025 is the first period that the Group has met the threshold requirements for the rules to apply. Based on a preliminary assessment using the Group’s country-by-country reporting
(CbCR) data, the Group expects to qualify for the Pillar 2 Transitional Safe Harbour exemptions in the jurisdictions in which it operates. Consequently, no material Pillar Two top-up tax is anticipated. The Group
Basic earnings/(loss) per share (“EPS/(LPS)”) is calculated by dividing earnings/(loss) attributable to Ordinary shareholders by the weighted average number of Ordinary shares outstanding during the year.
For diluted earnings/(loss) per share, the weighted average number of outstanding Ordinary shares was adjusted to assume conversion of all dilutive potential Ordinary shares. Dilution arises through
the possible issue of shares to satisfy awards made under the Group’s long-term incentive plans.
Hunting PLC
183
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
10. Earnings/(loss) per share
continued
Reconciliations of the earnings/(loss) and weighted average number of Ordinary shares used in the calculations are set out below:
| 2025 |
2024 |
|||||
Earnings attributable |
Basic weighted |
Loss attributable |
Basic weighted |
|||
to Ordinary |
average number of |
Earnings |
to Ordinary |
average number of |
Loss |
|
shareholders |
Ordinary shares |
per share |
shareholders |
Ordinary shares |
per share |
|
$m |
millions |
cents |
$m |
millions |
cents |
|
Basic EPS/(LPS) |
41.1 |
156.8 |
26.2 |
(28.0) |
159.1 |
(17.6) |
Effect of dilutive long-term incentive plans i |
– |
10.1 |
(1.6) |
– |
10.4 |
– |
Diluted EPS/(LPS) |
41.1 |
166.9 |
24.6 |
(28.0) |
169.5 |
(17.6) |
i.
For the year ended 31 December 2024, the Group reported a loss, therefore, the effect of dilutive long-term incentive plans was anti-dilutive. As such, they were disregarded in the calculation of diluted loss per share.
| 2025 |
||||
Plant, machinery |
||||
Land and |
and motor |
|||
buildings |
vehicles |
Rental tools |
Total |
|
$m |
$m |
$m |
$m |
|
Cost: |
||||
At 1 January 2025 |
252.4 |
359.5 |
26.8 |
638.7 |
Exchange adjustments |
2.7 |
(3.8) |
(0.1) |
(1.2) |
Additions |
9.9 |
17.1 |
2.6 |
29.6 |
Acquisition of subsidiaries (note 40) |
– |
0.2 |
– |
0.2 |
Acquisition of assets (note 40) |
– |
0.1 |
– |
0.1 |
Disposals |
(4.7) |
(23.2) |
(0.6) |
(28.5) |
Reclassification as held for sale |
(2.9) |
– |
– |
(2.9) |
Reclassification from inventories (note 20) |
– |
– |
1.0 |
1.0 |
Reclassifications |
– |
(0.2) |
0.2 |
– |
At 31 December 2025 |
257.4 |
349.7 |
29.9 |
637.0 |
Accumulated depreciation and impairment: |
||||
At 1 January 2025 |
(86.3) |
(281.9) |
(17.7) |
(385.9) |
Exchange adjustments |
(1.9) |
4.8 |
0.8 |
3.7 |
Depreciation charge for the year |
(6.4) |
(17.2) |
(2.3) |
(25.9) |
Impairment charge for the year |
(4.2) |
– |
– |
(4.2) |
Disposals |
2.6 |
21.7 |
0.5 |
24.8 |
Reclassification as held for sale |
1.4 |
– |
– |
1.4 |
At 31 December 2025 |
(94.8) |
(272.6) |
(18.7) |
(386.1) |
Net book amount |
162.6 |
77.1 |
11.2 |
250.9 |
Hunting PLC
184
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
11. Property, plant and equipment
continued
| 2024 | ||||
Plant, machinery | ||||
Land and | and motor | |||
buildings | vehicles | Rental tools | Total | |
$m | $m | $m | $m | |
Cost: | ||||
At 1 January 2024 | 258.3 | 345.3 | 26.3 | 629.9 |
Exchange adjustments | (0.8) | (1.7) | (0.4) | (2.9) |
Additions | 1.4 | 22.1 | 1.7 | 25.2 |
Disposals | (6.8) | (6.6) | (1.8) | (15.2) |
Reclassification from inventories (note 20) | – | – | 1.7 | 1.7 |
Reclassifications | 0.3 | 0.4 | (0.7) | – |
At 31 December 2024 | 252.4 | 359.5 | 26.8 | 638.7 |
Accumulated depreciation and impairment: | ||||
At 1 January 2024 | (85.5) | (271.6) | (18.3) | (375.4) |
Exchange adjustments | 0.5 | 1.6 | 0.2 | 2.3 |
Depreciation charge for the year | (6.2) | (17.3) | (1.7) | (25.2) |
Disposals | 4.9 | 5.8 | 1.7 | 12.4 |
Reclassifications | – | (0.4) | 0.4 | – |
At 31 December 2024 | (86.3) | (281.9) | (17.7) | (385.9) |
Net book amount | 166.1 | 77.6 | 9.1 | 252.8 |
The net book amount of property, plant and equipment at 1 January 2024 was $254.5m.
Included in the net book amount is expenditure relating to assets in the course of construction of $0.7m (2024 – $0.2m) for buildings, $0.9m (2024 – $0.8m) for plant and machinery, leased building
improvement costs of $0.5m (2024 – $nil) and rental tools of $1.4m (2024 – $nil).
The net book amount of land and buildings of $162.6m (2024 – $166.1m) comprises freehold land and buildings of $159.5m (2024 – $163.1m) and capitalised leasehold improvements of $3.1m (2024 – $3.0m).
Hunting PLC
185
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
| 2025 | |||
Land and | Plant, machinery and | ||
buildings | motor vehicles | Total | |
$m | $m | $m | |
Cost: | |||
At 1 January 2025 | 64.0 | 3.0 | 67.0 |
Exchange adjustments | 1.5 | 0.1 | 1.6 |
Additions | 1.5 | 2.9 | 4.4 |
Acquisition of subsidiaries (note 40) | 1.3 | – | 1.3 |
Acquisition of assets (note 40) | 0.6 | – | 0.6 |
Lease cessations | (13.1) | (1.3) | (14.4) |
Modifications | 2.0 | (0.1) | 1.9 |
At 31 December 2025 | 57.8 | 4.6 | 62.4 |
Accumulated depreciation and impairment: | |||
At 1 January 2025 | (36.9) | (1.8) | (38.7) |
Exchange adjustments | (1.0) | (0.1) | (1.1) |
Depreciation charge for the year | (6.9) | (0.9) | (7.8) |
Impairment charge for the year | (0.3) | – | (0.3) |
Lease cessations | 13.1 | 1.3 | 14.4 |
At 31 December 2025 | (32.0) | (1.5) | (33.5) |
Net book amount | 25.8 | 3.1 | 28.9 |
| 2024 | |||
Land and | Plant, machinery and | ||
buildings | motor vehicles | Total | |
$m | $m | $m | |
Cost: | |||
At 1 January 2024 | 65.0 | 3.0 | 68.0 |
Exchange adjustments | (1.5) | – | (1.5) |
Additions | 2.6 | 0.1 | 2.7 |
Lease cessations | (9.1) | (0.1) | (9.2) |
Modifications | 7.0 | – | 7.0 |
At 31 December 2024 | 64.0 | 3.0 | 67.0 |
Accumulated depreciation and impairment: | |||
At 1 January 2024 | (40.3) | (1.5) | (41.8) |
Exchange adjustments | 0.9 | 0.2 | 1.1 |
Depreciation charge for the year | (6.6) | (0.6) | (7.2) |
Lease cessations | 9.1 | 0.1 | 9.2 |
At 31 December 2024 | (36.9) | (1.8) | (38.7) |
Net book amount | 27.1 | 1.2 | 28.3 |
The net book amount of right-of-use assets at 1 January 2024 was $26.2m.
The Group sub-leases certain right-of-use assets under operating leases. The net book amount
of items that are sub-leased included in the table to the left is $0.8m (2024 – $1.4m) for land and
buildings.
In 2025, land and buildings additions included $1.1m relating to a new lease in the US, and plant,
machinery and motor vehicles additions included $1.3m relating to a new laser cutting machine and
$1.3m for other machinery and vehicles at Hunting Titan.
In 2025, lease cessations in land and buildings related to facilities in the EMEA operating segment
vacated as part of the restructuring as well as fully depreciated leases in the US. Lease modifications
related to a property lease extended in the US.
Included in land and buildings in 2024 were lease cessations relating to facilities in Canada, the US
and Singapore that were fully depreciated and lease modifications in Hunting Titan and the US where
2025 | 2024 | |
$m | $m | |
Cost: | ||
At 1 January | 526.9 | 529.1 |
Exchange adjustments | 3.0 | (2.2) |
Acquisition of subsidiaries (note 40) | 19.6 | – |
At 31 December | 549.5 | 526.9 |
Accumulated impairment: | ||
At 1 January | (481.8) | (374.7) |
Exchange adjustments | (2.6) | 2.0 |
Impairment of assets (note 15(b)) | – | (109.1) |
At 31 December | (484.4) | (481.8) |
Net book amount | 65.1 | 45.1 |
The net book amount of goodwill at 1 January 2023 was $154.4m.
Details of the allocation of goodwill by cash-generating unit (“CGU”), the impairment testing of goodwill
Hunting PLC
186
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
14. Other intangible assets
| 2025 | ||||||
Patented | ||||||
Customer | technology and | Unpatented | ||||
relationships | trademarks | technology | Software | Other | Total | |
$m | $m | $m | $m | $m | $m | |
Cost: | ||||||
At 1 January 2025 | 7.4 | 75.0 | 86.8 | 24.5 | 4.7 | 198.4 |
Exchange adjustments | 0.5 | 0.8 | 0.3 | 0.4 | 0.2 | 2.2 |
Additions | – | 0.4 | 4.9 | 5.7 | 0.1 | 11.1 |
Acquisition of subsidiaries (note 40) | 9.4 | 33.0 | – | – | 1.6 | 44.0 |
Acquisition of assets (note 40) | – | – | 18.1 | – | – | 18.1 |
Disposals | – | (0.5) | (0.4) | – | (0.6) | (1.5) |
Reclassification | – | 1.9 | 0.6 | – | (2.5) | – |
At 31 December 2025 | 17.3 | 110.6 | 110.3 | 30.6 | 3.5 | 272.3 |
Accumulated amortisation and impairment: | ||||||
At 1 January 2025 | (3.6) | (64.8) | (75.6) | (12.5) | (2.5) | (159.0) |
Exchange adjustments | (0.3) | (0.5) | (0.2) | (0.3) | (0.2) | (1.5) |
Amortisation charge for the year | (1.2) | (3.2) | (2.4) | (3.7) | (1.0) | (11.5) |
Disposals | – | – | – | – | 0.3 | 0.3 |
Reclassification | – | – | (0.9) | – | 0.9 | – |
At 31 December 2025 | (5.1) | (68.5) | (79.1) | (16.5) | (2.5) | (171.7) |
Net book amount | 12.2 | 42.1 | 31.2 | 14.1 | 1.0 | 100.6 |
| 2024 | ||||||
Patented | ||||||
Customer | technology and | Unpatented | ||||
relationships | trademarks | technology | Software | Other | Total | |
$m | $m | $m | $m | $m | $m | |
Cost: | ||||||
At 1 January 2024 | 7.5 | 75.2 | 84.8 | 23.1 | 4.6 | 195.2 |
Exchange adjustments | (0.1) | (0.2) | (0.2) | (0.1) | (0.1) | (0.7) |
Additions | – | 0.4 | 2.2 | 1.9 | 0.3 | 4.8 |
Disposals | – | (0.4) | – | (0.4) | (0.1) | (0.9) |
At 31 December 2024 | 7.4 | 75.0 | 86.8 | 24.5 | 4.7 | 198.4 |
Accumulated amortisation and impairment: | ||||||
At 1 January 2024 | (2.9) | (63.6) | (75.0) | (10.7) | (2.2) | (154.4) |
Exchange adjustments | 0.1 | 0.1 | 0.1 | 0.1 | – | 0.4 |
Amortisation charge for the year | (0.8) | (1.7) | (0.7) | (2.3) | (0.4) | (5.9) |
Disposals | – | 0.4 | – | 0.4 | 0.1 | 0.9 |
At 31 December 2024 | (3.6) | (64.8) | (75.6) | (12.5) | (2.5) | (159.0) |
Net book amount | 3.8 | 10.2 | 11.2 | 12.0 | 2.2 | 39.4 |
Hunting PLC
187
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
14. Other intangible assets
continued
The net book amount of other intangible assets at 1 January 2024 was $40.8m.
All intangible assets are regarded as having a finite life and are amortised accordingly. Amortisation
charges relating to intangible assets were charged to cost of sales and administrative expenses
in the consolidated income statement.
Internally generated intangible assets have been included within patented and unpatented technology
as shown in the table below:
2025 |
2024 |
|||
Internally |
Internally |
Internally |
Internally |
|
generated |
generated |
generated |
generated |
|
patented |
unpatented |
patented |
unpatented |
|
technology |
technology |
technology |
technology |
|
$m |
$m |
$m |
$m |
|
Cost: |
||||
At 1 January |
13.3 |
33.4 |
13.0 |
31.4 |
Exchange adjustments |
0.2 |
0.3 |
(0.1) |
(0.2) |
Additions |
0.4 |
4.9 |
0.4 |
2.2 |
Disposals |
(0.5) |
(0.4) |
– |
– |
Reclassification |
1.9 |
(1.9) |
– |
– |
At 31 December |
15.3 |
36.3 |
13.3 |
33.4 |
Accumulated amortisation |
||||
and impairment: |
||||
At 1 January |
(7.8) |
(22.2) |
(7.2) |
(21.6) |
Exchange adjustments |
(0.2) |
(0.2) |
0.1 |
0.1 |
Amortisation charge for the year |
(1.0) |
(1.3) |
(0.7) |
(0.7) |
At 31 December |
(9.0) |
(23.7) |
(7.8) |
(22.2) |
Net book amount |
6.3 |
12.6 |
5.5 |
11.2 |
(a) Impairment testing process
(i) Cash-generating units (“CGUs”)
The Group has an annual impairment testing date of 30 September.
In Hunting, CGUs are generally separate business units. In certain cases, combinations of business
units that are tightly integrated through inter-company trading, shared management or cost base are
treated as a CGU. In addition, certain CGUs are aggregated into groups of CGUs for goodwill
impairment testing, as this represents the lowest level at which goodwill is monitored for internal
management purposes. During 2025, two new CGUs were added to the Group to reflect the
acquisitions that occurred, see note 40.
The recoverable amount of each CGU was determined using a value-in-use method which uses
discounted cash flow projections. The key assumptions for the value-in-use calculations are revenue
growth rates, taking into account the impact these have on margins, terminal growth rates and the
discount rates applied.
For 2026 and 2027, cash flows are based on the latest detailed budget, as approved by the Board.
For 2028 to 2030, management made revenue projections using Spears & Associates Drilling
& Production Outlook independent reports, as a default basis, selecting the most appropriate
geographic markets and drivers (rig count, footage drilled or exploration and production spend) for
each CGU. Management applied judgemental changes to revenue growth expectations, if appropriate,
to reflect circumstances specific to the CGU.
Having determined the projected revenues, management modelled the expected impact on margins
and cash flow from the resulting revenue projections. This process can give a diverse range of
outcomes depending on market or business specific conditions. Compound annual growth rates
(“CAGR”) for revenue for the CGUs from 2025 to 2030 vary between 3.4% and 80.2% (2024 – CAGR
from 2024 to 2029 vary between (3.2)% and 22.2%). The weighted average growth rate for revenue
from 2025 to 2030 was 12.4% (2024 – from 2024 to 2029 was 4.2%). After 2030, a terminal value was
calculated assuming CGU-specific growth rates of between 1.5% and 2.3% (2024 – 2.2% across all
CGUs). Fundamentally, this long-term growth is based on a proxy for global long-term inflation taking
into consideration more developed and developing markets.
Cash flows were discounted using nominal pre-tax rates between 9.7% and 15.5% (2024 – 9.5% and
13.6%). The discount rates reflected current market assessments of the equity market risk premiums,
the volatility of returns, the risks associated with the cash flows, the likely external borrowing rate of
the CGU and expected levels of leverage. Consideration was also given to other factors such as a size
premium, currency risk, operational risk and country risk. Required returns on equity were determined
using the capital asset pricing model, which is then incorporated into a weighted average cost of
capital calculation. Risk free rates are determined using long-dated government borrowing
instruments.
Management have also considered indicators of impairment in the carrying value of the assets,
including the excess of the value calculated under the value-in-use methodology described above,
compared to the Group’s market capitalisation, and any changes after the impairment testing date
(ii) Impairment tests for individual assets
For individual assets, an impairment test is conducted if there are indicators of impairment. Impairment
arises when the carrying value of the asset is greater than the higher of either its fair value less costs
of disposal, or its value-in-use. The fair value less costs of disposal or the value-in-use is a Level 3
measurement per the fair value hierarchy as defined within IFRS 13 due to unobservable inputs used
in the valuation. If the cash flows of an asset cannot be assessed individually, then the asset or a group
of assets are aggregated into a CGU and tested as described above.
Hunting PLC
188
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
15. Impairment of non-current assets
continued
(i) Allocation
Goodwill is allocated to the Group’s CGUs as follows:
Operating |
2025 |
2024 |
|
CGU |
segment |
$m |
$m |
Hunting Titan |
Hunting Titan |
5.8 |
5.7 |
Subsea Stafford |
Subsea Technologies |
15.0 |
15.0 |
Enpro |
Subsea Technologies |
4.6 |
4.3 |
Flexible Engineered Solutions |
Subsea Technologies |
19.6 |
– |
Dearborn |
North America |
7.6 |
7.6 |
US Manufacturing and US Connections |
North America |
12.5 |
12.5 |
At 31 December |
65.1 |
45.1 |
Goodwill is tested at least annually for impairment. No charge was recognised in 2025 (2024 – $109.1m
for the Hunting Titan CGU). The impairment charge in 2024 related solely to goodwill and was
presented separately on the face of the consolidated income statement. Goodwill of $19.6m has been
recognised on the acquisition of FES (see note 40).
(ii) Hunting Titan
The trading performance at Hunting Titan has continued to be impacted by the subdued activity in
the North America end-markets. However, improved production efficiencies and a focus on stronger
margin work has enhanced the profitability of the CGU. The latest outlook is underpinned by modest
growth in the US onshore market, with improvements in margins due to ongoing production
efficiencies in gun systems and continued operating cost benefits from actions taken over the last two
years. The compound annual growth rate for revenue for Hunting Titan from 2025 to 2030 was 3.4%
(31 December 2024 – 2024 to 2029 was 3.0%). After 2030, a terminal value was calculated assuming
a growth rate of 2.2% (31 December 2024 – 2.2%). EBITDA margin is expected to reach low double
digits by 2030.
The projected cash flows for Hunting Titan were discounted using a nominal pre-tax rate of 12.0%
(31 December 2024 – 11.4%). The resulting recoverable amount was in excess of the carrying value
and there was no impairment.
Management is of the view that the impact of climate change to Hunting Titan is minimal given the
outlook for demand for oil and gas related products in the medium term and the ability of Hunting to
pivot to non-oil and gas in this timescale. Further details on climate-related risks and opportunities are
disclosed on pages 78 to 83.
(iii) Other CGUs
The recoverable amounts were in excess of the carrying values for the other CGUs and there were
no indicators of impairment in the period to 31 December 2025.
(c) CGU sensitivities
(i) Hunting Titan
At 31 December 2025, the Group was carrying $5.8m (2024 – $5.7m) of goodwill and $12.0m
(2024 – $13.0m) of other intangible assets in respect of the Hunting Titan CGU.
The following changes to key assumptions would, in isolation, lead to an impairment charge at
Hunting Titan:
Increase/ |
|
(decrease) |
|
Pre-tax discount rate |
0.4% |
Terminal value growth rate |
(0.4%) |
Revenue growth rates (CAGR from 2025 to 2030) |
(0.7%) |
EBITDA margin (reduction in 2030 and into perpetuity) |
(0.5%) |
The following reasonably possible changes to key assumptions would, in isolation, lead to the below
impairment charges in the year ended 31 December 2025:
Additional |
||
impairment |
||
Sensitivity |
$m |
|
Pre-tax discount rate |
Increase of 1.0% |
(11.1) |
Terminal value growth rate |
Decrease of 0.5% |
(1.2) |
Revenue growth rates (CAGR from 2025 to 2030) |
Decrease of 1.0% |
(3.1) |
EBITDA margin (reduction in 2030 and into perpetuity) |
Decrease of 1.0% |
(9.4) |
(ii) Other CGUs
For the other CGUs that carry goodwill, management has concluded that there are no reasonably
(d) Impairment of other non-current assets
During 2025, indicators of impairment were identified for the Hunting Energy Services Limited (UK
OCTG) CGU, which does not hold any goodwill. These indicators arose primarily from the EMEA
restructuring programme and the consolidation of activities in the UK into one site. In accordance with
IAS 36, the Group assessed individual assets within the CGU for impairment. This review identified
that the carrying value of certain assets exceeded their recoverable amount, determined using
a fair value less costs of disposal method. As a result, impairment charges of $4.2m in relation to
the Fordoun OCTG facility in the UK (note 11) and $0.3m relating to right-of-use assets impacted
by the programme (note 12) were recognised in 2025. The total impairment of $4.5m was charged
to administrative expenses in the consolidated income statement and presented within adjusting
items (note 5).
Hunting PLC
189
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
15. Impairment of non-current assets
continued
(d) Impairment of other non-current assets
continued
Following these asset-specific impairments, the Group performed an impairment test for the CGU.
The value-in-use of the CGU was determined to be lower than its carrying value, indicating a potential
further impairment. However, after consideration of the recoverable amounts for individual assets
on a fair value less costs of disposal basis, it was concluded that the carrying amounts of the
remaining assets did not exceed their respective recoverable amounts. Therefore, no further
impairment was required.
Movement on investments in associates and joint ventures:
2025 | 2024 | |
$m | $m | |
At 1 January | 9.2 | 20.5 |
Additions | – | 0.9 |
Share of associates’ and joint venture’s results for the year | 3.5 | (0.1) |
Transferred to held for sale | – | (12.1) |
At 31 December | 12.7 | 9.2 |
During 2024, the Group invested a further $0.9m in Cumberland, increasing its share of equity to
30.7%.
At 31 December 2024, the Group’s investment in Rival met the criteria to be classified as held for sale,
in accordance with IFRS 5. Accordingly, the investment of $12.1m was presented within current assets
on the face of the consolidated balance sheet. During 2025, the Group sold it’s investment in Rival for
$13.0m, recognising a gain on sale of $0.9m.
The investments in associates and joint ventures, including the name, country of incorporation and
proportion of ownership interest, are disclosed in note C14.
Cumberland is a contract manufacturer which specialises in metal and polymer 3D printing and
computer numerical control machining to support the aerospace, defence, space and energy
markets. The joint venture with Jindal SAW, leaders in pipe manufacturing, is to deliver OCTG products
The investments in associates and joint ventures are individually immaterial. The Group’s share of the
results and its aggregated assets and liabilities, are as follows:
2025 | 2024 | |
$m | $m | |
Aggregate carrying amount of associates | 5.4 | 5.2 |
Aggregate carrying amount of joint ventures | 7.3 | 4.0 |
Share of associates’ and joint venture’s results for the year | 3.5 | 0.9 |
The share of associates’ and joint venture’s results in 2024 excluded a net $1.0m loss relating to Rival
2025 | 2024 | |
$m | $m | |
Listed equity investments and mutual funds | 3.3 | 2.6 |
Well Data Labs convertible financing | 1.5 | 2.2 |
4.8 | 4.8 |
The listed equity investments and mutual funds are held in relation to the US defined benefit scheme
(note 32).
In February 2021, the Group entered into a strategic alliance with Wells Data Labs, a data analytics
business focused on the onshore drilling market, through the provision of $2.5m in convertible
Hunting PLC
190
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
2025 | 2024 | |
$m | $m | |
Non-current: | ||
Prepayments | 2.5 | 3.0 |
Other receivables | 1.3 | 2.4 |
3.8 | 5.4 |
Other receivables includes finance lease receivables of $1.2m (2024 – $2.3m), see note 24 for
| 2025 | ||||
Contracts with | Rental | Other | ||
customers | receivables | receivables | Total | |
$m | $m | $m | $m | |
Current: | ||||
Trade receivables | 185.7 | 0.4 | – | 186.1 |
Accrued revenue | 3.4 | – | – | 3.4 |
Gross receivables | 189.1 | 0.4 | – | 189.5 |
Less: provisions for impairment | (5.3) | (0.3) | – | (5.6) |
Net receivables | 183.8 | 0.1 | – | 183.9 |
Prepayments | – | – | 16.9 | 16.9 |
Other receivables | – | – | 7.6 | 7.6 |
Total trade and other receivables | 183.8 | 0.1 | 24.5 | 208.4 |
Contract assets (note 23) | 30.1 | – | – | 30.1 |
Trade, contract and other receivables | 213.9 | 0.1 | 24.5 | 238.5 |
2024 | ||||
Contracts with | Rental | Other | ||
customers | receivables | receivables | Total | |
$m | $m | $m | $m | |
Current: | ||||
Trade receivables | 193.1 | 1.9 | – | 195.0 |
Accrued revenue | 2.8 | 0.4 | – | 3.2 |
Gross receivables | 195.9 | 2.3 | – | 198.2 |
Less: provisions for impairment | (3.4) | (0.3) | – | (3.7) |
Net receivables | 192.5 | 2.0 | – | 194.5 |
Prepayments | – | – | 36.9 | 36.9 |
Other receivables | – | – | 6.4 | 6.4 |
Total trade and other receivables | 192.5 | 2.0 | 43.3 | 237.8 |
Contract assets (note 23) | 23.7 | – | – | 23.7 |
Trade, contract and other receivables | 216.2 | 2.0 | 43.3 | 261.5 |
activities of the Group and comprise receivables from tax (VAT, GST, franchise taxes, and sales and
use taxes) of $3.0m (2024 – $3.5m), derivative financial assets of $0.1m (2024 – $0.5m), finance lease
receivables of $2.0m (2024 – $2.6m) (note 24) and other receivables of $3.8m (2024 – $2.2m). Finance
During the year, the Group sold trade receivables amounting to $69.2m (2024 – $59.2m) to third
parties under trade receivables purchasing programmes in order to accelerate collections. Upon sale,
the receivables were derecognised from the balance sheet.
contract assets and certain other receivables upon their initial recognition. Each entity within the
Group uses provision matrices for recognising ECLs on its receivables, which are based on actual
credit loss experience over the past two years, as a minimum. Receivables are appropriately grouped
by geographical region, product type or type of customer, and separate calculations produced, if
historical or forecast credit loss experience shows significantly different loss patterns for different
customer segments. Actual credit loss experience is then adjusted to reflect differences in economic
conditions over the period the historical data was collected, current economic conditions, forward-
looking information based on macroeconomic information and the Group’s view of economic
conditions over the expected lives of the receivables. The contract assets relate to unbilled work in
progress and have substantially the same risk characteristics as the trade receivables and accrued
revenue for the same types of contracts. It has therefore been concluded that the expected loss rates
Hunting PLC
191
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
18. Trade, contract and other receivables
continued
Impairment of trade, contract and other receivables
continued
At 31 December 2025, the ageing of the Group’s gross financial assets, based on days overdue, is as follows:
Not |
1 – 30 |
31 – 60 |
61 – 90 |
91 – 120 |
More than |
Total gross |
|
overdue |
days |
days |
days |
days |
120 days |
financial assets |
|
$m |
$m |
$m |
$m |
$m |
$m |
$m |
|
Trade receivables – contracts with customers |
109.3 |
35.4 |
9.2 |
5.6 |
5.2 |
21.0 |
185.7 |
Trade receivables – rental receivables |
0.3 |
– |
0.1 |
– |
– |
– |
0.4 |
Total trade receivables |
109.6 |
35.4 |
9.3 |
5.6 |
5.2 |
21.0 |
186.1 |
Accrued revenue – contracts with customers |
3.4 |
– |
– |
– |
– |
– |
3.4 |
Other receivables i |
5.3 |
0.3 |
0.2 |
– |
– |
– |
5.8 |
Contract assets |
30.1 |
– |
– |
– |
– |
– |
30.1 |
148.4 |
35.7 |
9.5 |
5.6 |
5.2 |
21.0 |
225.4 |
i.
Other receivables excludes $3.0m in relation to receivables from tax as these are not considered financial assets and $0.1m in relation to derivative assets as these are not subject to the impairment requirements of IFRS 9.
Since 31 December 2024, there has been an increase in the ageing of trade receivables with trade receivables not overdue at the year-end comprising 59% of gross trade receivables compared to 62%
at 31 December 2024. Overdue debts arise due to a number of different factors, including the time taken in resolving any disputes, a culture of slow/late payment in some jurisdictions and some debtors
experiencing cash flow difficulties.
At 31 December 2024, the ageing of the Group’s gross financial assets, based on days overdue, is as follows:
Not |
1 – 30 |
31 – 60 |
61 – 90 |
91 – 120 |
More than |
Total gross |
|
overdue |
days |
days |
days |
days |
120 days |
financial assets |
|
$m |
$m |
$m |
$m |
$m |
$m |
$m |
|
Trade receivables – contracts with customers |
118.8 |
28.4 |
18.6 |
6.2 |
7.3 |
13.8 |
193.1 |
Trade receivables – rental receivables |
1.5 |
0.2 |
0.1 |
0.1 |
– |
– |
1.9 |
Total trade receivables |
120.3 |
28.6 |
18.7 |
6.3 |
7.3 |
13.8 |
195.0 |
Accrued revenue – contracts with customers |
2.8 |
– |
– |
– |
– |
– |
2.8 |
Accrued revenue – rental receivables |
0.4 |
– |
– |
– |
– |
– |
0.4 |
Other receivables i |
4.7 |
– |
0.1 |
– |
– |
– |
4.8 |
Contract assets |
23.7 |
– |
– |
– |
– |
– |
23.7 |
151.9 |
28.6 |
18.8 |
6.3 |
7.3 |
13.8 |
226.7 |
i.
Other receivables excludes $3.5m in relation to receivables from tax as these are not considered financial assets and $0.5m in relation to derivative assets as these are not subject to the impairment requirements of IFRS 9.
Concentrations of credit risk with respect to trade receivables are limited due to the Group’s wide and unrelated customer base. The maximum exposure to credit risk is the carrying amount of each class
Hunting PLC
192
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
18. Trade, contract and other receivables
continued
Impairment of trade, contract and other receivables
continued
under the terms of the debt are more than 90 days overdue. Usually, no further deliveries are made
or services provided to customers that are more than 90 days overdue unless there is a valid reason
to do so, such as billing issues that have prevented the customer from settling the invoice. Permission
from the local financial controller can be obtained to continue trading with customers with debts that
are more than 90 days overdue, and the outstanding debts may also be rescheduled with the
While a proportion, 14% (2024 – 11%), of the Group’s trade receivables are more than 90 days
overdue, the majority of these have not been impaired. Some of these debts have become overdue
due to billing and other issues or due to general slow payment by the customer. Where there is no
history of bad debts and there are no indicators that the debts will not be settled, the receivables
have not been impaired. These customers are monitored very closely for any indicators of impairment.
receivables are generally not recoverable include the failure of the debtor to engage in a repayment
plan, failure to make contractual payments for a period greater than 180 days past due and the debtor
being placed in administration. Where receivables have been written off, the Group will continue to try
to recover the outstanding receivable. Impairment losses on receivables are presented net of unused
provisions released to the consolidated income statement within administrative expenses. Subsequent
Credit risk arises on accrued revenue where goods or services have been provided to a customer but
the amount is yet to be invoiced. The accrued revenue balance is short term and relates to customers
with a strong credit history. Therefore, the ECLs on this balance are immaterial and no provision for
impairment has been recognised.
During the year, the movements on the provisions for impairment were as follows:
| 2025 | |||
Contracts | |||
with | Rental | ||
customers | receivables | Total | |
$m | $m | $m | |
At 1 January 2025 | (3.4) | (0.3) | (3.7) |
Charge to the consolidated income statement | |||
– lifetime expected credit losses | (2.7) | – | (2.7) |
Utilised against receivables written off | 0.2 | – | 0.2 |
Unused provisions released to the | |||
consolidated income statement | 0.6 | – | 0.6 |
At 31 December 2025 | (5.3) | (0.3) | (5.6) |
The provision for the impairment of trade and other receivables has increased by $1.9m to $5.6m at
31 December 2025. However, management is of the view that the credit risk is largely unchanged
during the year as the increase is due to a one-off instance with a specific customer.
| 2024 | |||
Contracts | |||
with | Rental | ||
customers | receivables | Total | |
$m | $m | $m | |
At 1 January 2024 | (3.2) | (0.3) | (3.5) |
Charge to the consolidated income statement | |||
– lifetime expected credit losses | (1.1) | – | (1.1) |
Utilised against receivables written off | 0.6 | – | 0.6 |
Unused provisions released to the | |||
consolidated income statement | 0.3 | – | 0.3 |
At 31 December 2024 | (3.4) | (0.3) | (3.7) |
Deferred income tax assets and liabilities are only offset when there is a legally enforceable right
to offset, when the deferred income taxes relate to the same fiscal authority and there is an intention
to settle the balance net. The offset amounts are as follows:
2025 | 2024 | |
$m | $m | |
Deferred tax assets | 88.5 | 108.5 |
Deferred tax liabilities | (6.1) | (3.7) |
82.4 | 104.8 |
The movement in the total deferred tax shown in the balance sheet is as follows:
2025 | 2024 | |
$m | $m | |
At 1 January | 104.8 | 86.8 |
Exchange adjustments | 0.4 | (0.4) |
(Charge)/credit to the consolidated income statement (note 9) | (14.8) | 16.8 |
Taken direct to equity | 1.0 | 1.6 |
Acquisition of subsidiaries (note 40) | (11.0) | – |
Transfer from current tax | 2.0 | – |
At 31 December | 82.4 | 104.8 |
Hunting PLC
193
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
19. Deferred tax
continued
Deferred tax assets of $85.9m gross and $14.5m tax (2024 – $65.1m gross and $9.4m tax) have not been recognised as the assessment of recoverability at 31 December 2025 is that it is uncertain and
therefore does not meet the criteria for recognition under IAS 12. This includes $85.6m gross and $14.4m tax (2024 – $64.7m gross and $9.3m tax) in respect of trading losses. A deferred tax asset of $73.1m
(2024 – $65.3m) has been recognised in respect of tax losses in various locations where recognition assessment has provided support that sufficient future taxable profits will be available against which the tax
losses could be utilised. See note 9 for further details on the recognition assessment performed at each balance sheet date.
The movements in deferred tax assets and liabilities, prior to taking into consideration the offsetting of balances within the same tax jurisdictions, are shown below:
Credit/(charge) |
At 31 |
|||||||||
At 1 January |
Exchange |
to income |
Taken direct |
Acquisition of |
Change in tax |
Transfer from |
December |
Net deferred |
Net deferred |
|
2025 |
adjustments |
statement |
to equity |
subsidiaries i |
rates |
current tax |
2025 |
tax assets |
tax liabilities |
|
$m |
$m |
$m |
$m |
$m |
$m |
$m |
$m |
$m |
$m |
|
Tax losses |
65.3 |
0.3 |
4.2 |
1.7 |
– |
(0.4) |
2.0 |
73.1 |
64.1 |
9.0 |
Inventory |
13.4 |
– |
(0.4) |
– |
– |
(0.2) |
– |
12.8 |
12.8 |
– |
Goodwill and intangibles |
7.4 |
(0.1) |
(12.7) |
– |
(11.0) |
(0.2) |
– |
(16.6) |
1.7 |
(18.3) |
Interest deductible in future periods |
17.9 |
– |
(4.4) |
– |
– |
(0.4) |
– |
13.1 |
13.1 |
– |
Property, plant and equipment |
(16.0) |
(0.1) |
– |
– |
– |
0.2 |
– |
(15.9) |
(14.5) |
(1.4) |
Share-based payments |
6.1 |
– |
0.7 |
(0.5) |
– |
(0.1) |
– |
6.2 |
5.1 |
1.1 |
Other |
10.7 |
0.3 |
(0.9) |
(0.2) |
– |
(0.2) |
– |
9.7 |
6.2 |
3.5 |
104.8 |
0.4 |
(13.5) |
1.0 |
(11.0) |
(1.3) |
2.0 |
82.4 |
88.5 |
(6.1) |
i.
See note 40.
(Charge)/credit |
At 31 |
|||||||||
At 1 January |
Exchange |
to income |
Taken direct |
Acquisition of |
Change in tax |
Transfer from |
December |
Net deferred |
Net deferred |
|
2024 |
adjustments |
statement |
to equity |
subsidiaries |
rates |
current tax |
2024 |
tax assets |
tax liabilities |
|
$m |
$m |
$m |
$m |
$m |
$m |
$m |
$m |
$m |
$m |
|
Tax losses |
69.4 |
(0.3) |
(3.8) |
– |
– |
– |
– |
65.3 |
64.8 |
0.5 |
Inventory |
13.8 |
– |
(0.4) |
– |
– |
– |
– |
13.4 |
13.4 |
– |
Goodwill and intangibles i |
(11.5) |
– |
18.9 |
– |
– |
– |
– |
7.4 |
10.2 |
(2.8) |
Interest deductible in future periods |
17.1 |
– |
0.8 |
– |
– |
– |
– |
17.9 |
17.9 |
– |
Property, plant and equipment |
(15.9) |
– |
(0.1) |
– |
– |
– |
– |
(16.0) |
(14.8) |
(1.2) |
Share-based payments |
4.6 |
– |
0.1 |
1.4 |
– |
– |
– |
6.1 |
6.1 |
– |
Other |
9.3 |
(0.1) |
1.3 |
0.2 |
– |
– |
– |
10.7 |
10.9 |
(0.2) |
86.8 |
(0.4) |
16.8 |
1.6 |
– |
– |
– |
104.8 |
108.5 |
(3.7) |
i.
Hunting PLC
194
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
2025 | 2024 | |
$m | $m | |
Raw materials | 85.1 | 110.9 |
Work in progress | 67.4 | 78.3 |
Finished goods | 85.0 | 114.1 |
Net inventories | 237.5 | 303.3 |
2025 | 2024 | |
$m | $m | |
Gross inventories: | ||
At 1 January | 360.4 | 380.9 |
Exchange adjustments | 3.5 | (2.9) |
Additions | 615.9 | 713.9 |
Acquisition of subsidiaries (note 40) | 1.9 | – |
Charged to cost of sales in the consolidated income statement | (688.6) | (729.8) |
Reclassification to property, plant and equipment (note 11) | (1.0) | (1.7) |
At 31 December | 292.1 | 360.4 |
Provisions for impairment: | ||
At 1 January | (57.1) | (52.5) |
Exchange adjustments | (0.9) | 0.5 |
Charged to the consolidated income statement | (7.3) | (10.2) |
Provisions utilised against inventories written off | 6.5 | 3.1 |
Provisions released to the consolidated income statement | 4.2 | 2.0 |
At 31 December | (54.6) | (57.1) |
Net inventories | 237.5 | 303.3 |
The Group’s inventory is highly durable and it can hold its value well with the passing of time.
The nature of our market is that demand for products depends on the technical requirements of
the projects being developed. For some markets and product lines there may be a limited number
of sales, or even no sales, to form a benchmark in the current year. Management looks at relevant
historical activity levels and has to form a judgement as to likely future demand in light of market
forecasts and likely competitor activities.
Within gross inventories charged to cost of sales is $0.3m (2024 – $4.2m) relating to inventory written
off in the year.
During 2025, inventory provisions decreased by $2.5m to $54.6m at 31 December 2025, which
represents 19% of gross cost balances (2024 – 16%). The decreased provision in the year reflects
the utilisation of provisions and the reversal of unutilised provisions exceeding new charges. Of the
inventory provisions charged to the consolidated income statement during the year of $7.3m (2024 –
$10.2m), amounts totalling $5.6m (2024 – $10.2m) were charged to cost of sales and amounts totalling
$1.7m (2024 – $nil) were charged to administrative expenses and presented as adjusting items
(note 5). Management has considered the judgements and estimates made in each of the Group’s
businesses and, other than pressure control equipment, has not identified any individual estimates,
which in the event of a change, would lead to a material change in the next financial period. Provisions
for inventories held at NRV are subject to change if expectations change.
Inventories of $172.2m are expected to be realised within 12 months of the balance sheet date
(2024 – $225.7m) and $65.3m after 12 months (2024 – $77.6m). Inventories of $213.5m (2024 – $279.1m)
2025 | 2024 | |
$m | $m | |
Cash at bank and in hand | 84.1 | 78.1 |
Money market funds | 36.0 | 76.7 |
Short-term deposits with less than three months to maturity | 25.4 | 51.8 |
Cash and cash equivalents | 145.5 | 206.6 |
Cash at bank and in hand and short-term deposits are carried at amortised cost. Money market funds
are financial assets carried at fair value through profit or loss. The maximum exposure to credit risk is
the carrying amount. Please see note 30(c)(i) for further disclosures on credit risk.
As shown in note 26, cash and cash equivalents for cash flow statement purposes also includes bank
overdrafts presented within borrowings in note 25.
At 31 December 2025, the Group held cash balances totalling $35.1m (2024 – $44.1m) within China.
As such, this cash was subject to the usual exchange controls and other regulatory restrictions that
Hunting PLC
195
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
2025 | 2024 | |
$m | $m | |
Non-current: | ||
US deferred compensation plan obligation (note 32(b)(i)) | 3.3 | 2.6 |
Social security and other taxes | 0.7 | 0.3 |
Other payables | 1.5 | 2.6 |
5.5 | 5.5 |
2025 | 2024 | |
$m | $m | |
Current: | ||
Trade payables | 48.4 | 41.4 |
Accruals | 54.3 | 47.1 |
Social security and other taxes | 8.2 | 8.3 |
Other payables i | 11.3 | 98.4 |
Total trade and other payables | 122.2 | 195.2 |
Contract liabilities (note 23) | 17.1 | 13.3 |
Trade, contract and other payables | 139.3 | 208.5 |
i.
Other payables includes derivative financial liabilities of $nil (2024 – $3.4m).
Within other payables in 2025 is a financial liability for $6.5m in relation to an obligation for Hunting to
purchase its own shares (note 33) and contingent consideration of $0.8m arising on the acquisition of
FES (note 40).
Within other payables in 2024 are amounts totalling $92.4m in relation to payments due to financial
The following table provides information about receivables, accrued income, contract assets and
contract liabilities arising from contracts with customers.
2025 | 2024 | 2023 | |
$m | $m | $m | |
Contract assets (note 18) | 30.1 | 23.7 | 17.5 |
Contract liabilities (note 22) | (17.1) | (13.3) | (39.6) |
Trade receivables – contracts with customers (note 18) | 185.7 | 193.1 | 202.7 |
Provisions for impairment (note 18) | (5.3) | (3.4) | (3.2) |
Net trade receivables – contracts with customers | 180.4 | 189.7 | 199.5 |
Accrued revenue – contracts with customers (note 18) | 3.4 | 2.8 | 2.5 |
(a) Significant changes in contract assets and contract liabilities
Contract assets increased from $23.7m at 31 December 2024 to $30.1m at 31 December 2025 due
to an increase in bespoke customer work-in-progress at Subsea Technologies invoiced in arrears,
mainly resulting from the acquisition of FES, see note 40.
Contract liabilities represent deposits received from customers (or amounts presently due under
non-cancellable contracts) in excess of the value of the work completed to date at Subsea
Technologies, as well as deposits received from customers for the purchase of goods in other
business units.
(b) Revenue recognised in relation to contract liabilities
During the year, $13.3m of revenue was recognised in relation to amounts that were included
in the contract liabilities balance at the beginning of the year (2024 – $39.6 m). There was no revenue
recognised from performance obligations satisfied or partially satisfied in previous years (2024 – none).
(c) Unsatisfied performance obligations
The Group applies the practical expedient in paragraph 121 of IFRS 15 and does not disclose
information about remaining performance obligations that are part of contracts that have original
expected durations of one year or less. This is the vast majority of Hunting’s contracts with customers.
For the contracts that have original expected durations of greater than one year, the aggregate
amount of the transaction price allocated to partially or fully unsatisfied performance obligations as
at the year-end is $105.1m (2024 – $203.7m). It is expected that $23.1m of the transaction price
allocated to unsatisfied performance obligations as of 31 December 2025 will be recognised as
revenue in 2026 (2024 – $184.5m in 2025) and the remaining $82.0m in future years (2024 – $19.2m
Hunting PLC
196
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
The Group leases various offices, warehouses, equipment and vehicles. Rental contracts for offices
and warehouses are typically made for fixed periods of between three and ten years, but may have
extension options as described below. Rental contracts for equipment and vehicles are typically made
for fixed periods of between three and seven years. The Group also has short-term leases and leases
of low-value assets. Lease terms are negotiated on an individual basis and contain a wide range of
different terms and conditions. The lease agreements do not impose any covenants. As at 31 December
2025, the Group did not have any commitments for leases that were due to commence in 2026 or
Extension and termination options are included in a number of property and equipment leases across
the Group. These terms are used to maximise operational flexibility in terms of managing contracts.
For extension and termination options that are exercisable only by the Group and not by the respective
lessor, management considers all facts and circumstances that create an economic incentive for the
Group to exercise an extension option, or not exercise a termination option, in determining the lease
term. The lease term is determined according to management’s expectation of exercising any available
extension and termination options. Extension or termination options are only adjusted in the lease term
if the lease option is reasonably certain to be exercised.
(a) Amounts recognised in the consolidated balance sheet
The analysis of right-of-use assets is presented in note 12.
2025 | 2024 | |
$m | $m | |
Lease liabilities | ||
Current | 7.9 | 7.4 |
Non-current | 23.0 | 22.7 |
30.9 | 30.1 |
(b) Amounts recognised in the consolidated income statement
2025 | 2024 | |
$m | $m | |
Depreciation of right-of-use assets (note 12) | (7.8) | (7.2) |
Expense relating to short-term leases and leases of low-value assets | (2.1) | (2.1) |
Impairment of right-of-use assets (note 12) | (0.3) | – |
Lease charges (included in operating profit) (note 6) | (10.2) | (9.3) |
Interest on lease liabilities (included in finance expenses) (note 8) | (1.5) | (1.4) |
Foreign exchange (losses)/gains on lease liabilities (note 8) | (0.1) | 0.1 |
Lease charges included in profit/(loss) before tax | (11.8) | (10.6) |
(c) Amounts recognised in the consolidated statement of cash flows
2025 | 2024 | |
$m | $m | |
Payments for short-term and low-value leases | (2.1) | (2.1) |
Payment of lease liabilities, principal and interest | (9.7) | (8.9) |
(11.8) | (11.0) |
Payments for short-term leases, payments for leases of low-value assets and variable lease payments
that are not included in the measurement of the lease liabilities are presented within cash flows from
operating activities. Payments for the principal and interest elements of lease liabilities and proceeds
on disposal of lease liabilities are presented within cash flows from financing activities.
The analysis of the contractual, undiscounted cash flows relating to lease liabilities is shown
in note 30(d)(iii).
Hunting PLC
197
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
24. Leases
continued
(d) The Group as lessor
A number of the Group’s properties included within property, plant and equipment and right-of-use
assets are leased to third parties under operating lease agreements. Income from leasing these assets
during the year was $1.2m (2024 – $1.4m) and is included within operating income (note 4). The Group
also earns revenue from the rental of tools, which are items of property, plant and equipment (note 11).
Rental revenue during the year was $7.3m (2024 – $6.7m) (note 3).
The table below shows the maturity analysis of the undiscounted future lease payments expected
to be received in relation to non-cancellable operating leases:
Property | Property | |
2025 | 2024 | |
$m | $m | |
Year one | 0.2 | 1.4 |
Year two | 0.1 | 0.2 |
Year three | – | 0.1 |
Total lease income receivable | 0.3 | 1.7 |
The Group also leases a property in the US to a third party under a finance lease arrangement. The
net investment in the lease amounted to $2.0m at 31 December 2025 (restated 31 December 2024 –
$2.6m) and is presented within other receivables (note 18). Additional disclosures for the finance lease
2025 | 2024 | |
$m | $m | |
Non-current: | ||
Bank borrowings secured (note 30(d)(i)) | 43.7 | 90.6 |
Shareholder loan from non-controlling interest | 3.9 | 3.9 |
47.6 | 94.5 | |
Current: | ||
Bank borrowings secured (note 30(d)(i)) | 37.9 | 9.8 |
Bank overdrafts secured | 1.0 | 1.5 |
38.9 | 11.3 | |
Total borrowings | 86.5 | 105.8 |
All of the borrowings are financial liabilities measured at amortised cost and are denominated
Hunting PLC
198
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
Hunting operates a centralised treasury function that manages all cash and borrowing positions throughout the Group and ensures funds are used efficiently through the use of cash concentration account
structures and other such measures. Net cash/(debt) (NGM L) is a non-GAAP measure; however, management and the Group treasury function monitor total cash and bank/(borrowings) (NGM K) to ensure
there is sufficient liquidity to meet business requirements. As the Group manages funding on a total cash and bank/(borrowings) basis, internal reporting focuses on changes in total cash and bank/(borrowings)
and this is presented in the Strategic Report. The net cash/(debt) reconciliation below provides an analysis of the movement in the year for each component of net cash/(debt) split between cash and non-cash
items. Net cash/(debt) comprises total cash and bank less total lease liabilities and the shareholder loan from a non-controlling interest.
At | Non-cash | At | |||
1 January | movements on | Exchange | 31 December | ||
2025 | Cash flow | lease liabilities i | movements | 2025 | |
$m | $m | $m | $m | $m | |
Cash and cash equivalents (note 21) | 206.6 | (67.4) | – | 6.3 | 145.5 |
Bank overdrafts secured (note 25) | (1.5) | 0.5 | – | – | (1.0) |
Cash and cash equivalents – per cash flow statement | 205.1 | (66.9) | – | 6.3 | 144.5 |
Total lease liabilities (note 24) | (30.1) | 9.7 | (9.6) | (0.9) | (30.9) |
Shareholder loan from non-controlling interest (note 25) | (3.9) | – | – | – | (3.9) |
Total bank borrowings (note 25) | (100.4) | 18.8 | – | – | (81.6) |
Liabilities arising from financing activities | (134.4) | 28.5 | (9.6) | (0.9) | (116.4) |
Total net cash | 70.7 | (38.4) | (9.6) | 5.4 | 28.1 |
i.
Non-cash movements on lease liabilities comprise new leases of $4.3m, leases from acquisitions of subsidiaries of $1.3m, leases from acquisitions of assets of $0.6m, lease modifications of $1.9m and interest expense of $1.5m.
In addition to the liabilities arising from financing activities in the table above, the Group has recognised a financial liability of $6.5m in relation to an obligation to purchase its own shares (see note 22).
During the year, $1.2m of bank borrowing facility fees were amortised (2024 – $2.1m) and $nil (2024 – $4.3m) was paid in respect of arrangement fees for the new facility. The fees for the borrowing facility were
capitalised in prepayments and amortised over the expected useful life of the facility.
At | Non-cash | At | |||
1 January | movements on | Exchange | 31 December | ||
2024 | Cash flow | lease liabilities i | movements | 2024 | |
$m | $m | $m | $m | $m | |
Cash and cash equivalents (note 21) | 45.5 | 163.8 | – | (2.7) | 206.6 |
Bank overdrafts secured (note 25) | (1.4) | (0.1) | – | – | (1.5) |
Cash and cash equivalents – per cash flow statement | 44.1 | 163.7 | – | (2.7) | 205.1 |
Total lease liabilities (note 24) | (28.7) | 8.9 | (11.0) | 0.7 | (30.1) |
Shareholder loan from non-controlling interest (note 25) | (3.9) | – | – | – | (3.9) |
Total bank borrowings (note 25) | (44.9) | (55.5) | – | – | (100.4) |
Liabilities arising from financing activities | (77.5) | (46.6) | (11.0) | 0.7 | (134.4) |
Total net (debt)/cash | (33.4) | 117.1 | (11.0) | (2.0) | 70.7 |
i.
Hunting PLC
199
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
(a) Provisions
Import |
||||
Restructuring |
tax |
Other |
Total |
|
$m |
$m |
$m |
$m |
|
At 1 January 2025 |
0.3 |
8.6 |
5.4 |
14.3 |
Exchange adjustments |
0.1 |
0.6 |
0.2 |
0.9 |
Charged to the consolidated income |
||||
statement |
8.5 |
– |
1.1 |
9.6 |
Charged other |
– |
– |
0.1 |
0.1 |
Provisions utilised |
(6.1) |
(0.3) |
– |
(6.4) |
Unutilised amounts reversed |
(1.0) |
(0.2) |
(0.7) |
(1.9) |
At 31 December 2025 |
1.8 |
8.7 |
6.1 |
16.6 |
Provisions are due as follows:
2025 |
2024 |
|
$m |
$m |
|
Current |
15.4 |
12.6 |
Non-current |
1.2 |
1.7 |
16.6 |
14.3 |
Other provisions include provisions for onerous contracts, asset decommissioning and remediation,
a provision for a pension fund for officers and ratings in the mercantile marine industry from a legacy
subsidiary, warranties and tax indemnities, litigation costs and various other items.
The provision for import tax of $8.7m (2024 – $8.6m) relates to a tax authority’s audit which
commenced in July 2024 into an EMEA business unit, contesting that they had not followed the
tax authority’s interpretation of the correct processes for importing goods, under specific contracts,
in their jurisdiction and thus had not paid amounts which would have been due based on the tax
authority’s guidance in place at the time. The review by the tax authority was completed in November
2025 and a final assessment for $8.7m was issued. Hunting requested a review of the assessment
and post balance sheet date, received confirmation that our challenge to overturn the tax authority’s
position was unsuccessful. Accordingly, the liability was paid in February 2026. Hunting (supported
by professional advisors) continues to disagree with the tax authority’s interpretation of the law and is
seeking to challenge this through Appeal.
The restructuring provisions are largely for employee severance and separation costs in relation to
the EMEA restructuring programme, outlined in note 5. The opening balance relating to restructuring
provisions of $0.3m was included in other provisions at 31 December 2024, therefore, this has been
The Group recognises provisions for liabilities when it is more likely than not a settlement will be
required and the value of the economic outflow can be estimated reliably. Liabilities that are not
provided for in the financial position of the Group are disclosed, unless the probability of an economic
outflow is considered to be remote.
The Group has entered into a number of guarantee and performance bond arrangements arising in
the normal course of business which have not been provided for as any significant liability is considered
Hunting PLC
200
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
The Group uses derivatives for economic hedging purposes and there are no speculative positions
entered into by the Group. However, where derivatives do not meet the hedge accounting criteria, they
are classified as “held for trading” for accounting purposes and are accounted for at fair value through
profit or loss. The Group has used spot and forward foreign exchange contracts to hedge its exposure
to exchange rate movements during the year. Foreign exchange outright contracts are used to
manage exposures, with funding swaps being used to produce required currencies when needed.
The fair values of outstanding derivative financial instruments are set out below:
2025 |
2024 |
|||
Total |
Total |
Total |
Total |
|
assets |
liabilities |
assets |
liabilities |
|
$m |
$m |
$m |
$m |
|
Forward foreign exchange contracts |
||||
– cash flow hedges |
– |
– |
0.1 |
(2.6) |
Forward foreign exchange contracts |
||||
– fair value hedges |
– |
– |
– |
(0.7) |
Foreign exchange swaps – not in a hedge |
0.1 |
– |
0.4 |
(0.1) |
0.1 |
– |
0.5 |
(3.4) |
|
Derivative financial assets are presented within current other receivables (note 18) and derivative financial
liabilities are presented within current other payables (note 22).
Net fair value losses on contracts that are not designated in a hedge relationship of $0.6m (2024 – $0.4m
gains) were recognised in the consolidated income statement during the year, within net operating
(b) Fair value hedge
Forward foreign exchange contracts have also been designated in a fair value hedge to hedge
the foreign exchange movement in foreign currency trade receivables and payables during the year.
The value of the forward foreign exchange contract matches the value of the trade receivables and
payables and they move in opposite directions as a result of movements in the CNY/USD exchange
rates, being the hedged risk. Fair value gains of $0.2m (2024 – $1.3m losses) were recognised in the
consolidated income statement in net operating income and other expenses (note 4) and net finance
expenses (note 8) during the year. At the year-end, the fair value of derivative liabilities designated
in a fair value hedge was $nil (2024 – $0.7m).
(c) Cash flow hedge
The Group entered into contracts to purchase materials from suppliers in a currency other than
the relevant subsidiary’s functional currency. Certain of these highly probable forecast transactions
have been designated in a cash flow hedge relationship and hedged using forward foreign exchange
contracts during the year. The value of the forward foreign exchange contract matches the value of
the forecast inventory purchase and they move in opposite directions as a result of movements in the
CAD/USD, EUR/USD, EUR/GBP and the CNY/USD exchange rates, being the hedged risk. This will
effectively result in recognising inventory at the fixed foreign currency rate for the hedged purchases. It
is anticipated that the materials will be sold within 12 months after purchase, at which time the amount
previously deferred in equity and included as part of the cost of inventory, will impact profit or loss as
part of the cost of inventories sold.
The Group also entered into forward foreign exchange contracts to hedge certain receipts from
customers as well as payroll expenses, and these highly probable forecast transactions have been
designated in a cash flow hedge relationship. The value of the forward foreign exchange contract
matches the value of the forecast cash flow and they move in opposite directions as a result of
movements in the GBP/USD, USD/EUR and SGD/USD exchange rates, being the hedged risk. It is
anticipated that the trade receivables will be collected within 12 months after the invoice is issued,
at which time the amount previously deferred in equity, will be taken to profit or loss.
The Group’s cash flow hedge reserve, which is disclosed as part of other components of equity
in note 34, relates to the spot component of forward foreign exchange contracts. The movements
in the hedging reserve during the year are shown in note 34.
Fair value losses of $0.4m (2024 – $1.5m) were recognised in the consolidated income statement in
net operating income and other expenses (note 4) and net finance expenses (note 8) during the year.
Hunting PLC
201
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
28. Derivatives and hedging
continued
(c) Cash flow hedge
continued
The effects of outstanding forward foreign exchange contracts on the Group’s financial position
and performance are as follows:
2025 | 2024 | ||
Carrying amount of the forward foreign | |||
exchange contracts (net) | $m | – | (2.5) |
Notional amount of the forward | |||
foreign exchange contracts | $m | 5.6 | 90.7 |
Maturity date | 2 January 2026 to | 2 January 2025 to | |
15 June 2026 | 30 July 2025 | ||
Hedge ratio i | 1:1 | 1:1 | |
Change in value of hedged item used | |||
to determine hedge effectiveness | $m | – | (2.5) |
i.
The forward foreign exchange contracts are denominated in the same currency as the highly probable forecast transactions to match the
exposed currency risk, therefore the hedge ratio is 1:1.
Immaterial changes in the forward points, the differential between the forward rate and the market spot
rate, have been recognised in the consolidated income statement during the year and previous year.
Hedge effectiveness is determined at the inception of the hedge relationship and through periodic
prospective effectiveness assessments to ensure that an economic hedge relationship exists between
the hedged item and the hedging instrument.
For hedges of foreign currency purchases, the Group enters into hedge relationships where the
critical terms of the hedging instrument match exactly with the terms of the hedged item. The Group,
therefore, performs a qualitative assessment of effectiveness. If changes in circumstances affect the
terms of the hedged item such that the critical terms no longer match exactly with the critical terms
of the forward foreign exchange contract, then the Group uses the hypothetical derivative method
to assess effectiveness. Ineffectiveness may arise if there is a change in the timing of the forecast
transaction from what was originally estimated or from a change in the US Dollar amount charged
and invoiced. A possible source of ineffectiveness is also a change in credit risk of either party to
29. Financial instruments
This note provides information about the Group’s financial instruments, including an overview of all
financial instruments held by the Group; specific information about each type of financial instrument;
and information about determining the fair value of the instruments, including judgements and
estimation uncertainty involved.
The Group’s exposure to various risks associated with the financial instruments is disclosed in note 30.
The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each
class of financial asset. Contract assets are not financial assets; however, they are explicitly included
in the scope of IFRS 7 for the purpose of the credit risk disclosures in note 30.
(a) Financial instruments at amortised cost
2025 | 2024 | |
$m | $m | |
Financial assets at amortised cost: | ||
Trade and other receivables (note 18): | ||
Trade receivables | 186.1 | 195.0 |
Accrued revenue | 3.4 | 3.2 |
Other receivables – non-current | 1.3 | 2.4 |
Other receivables – current i | 4.5 | 2.4 |
Less: provisions for impairment | (5.6) | (3.7) |
Cash and cash equivalents (note 21): | ||
Cash at bank and in hand | 84.1 | 78.1 |
Short-term deposits with less than three months to maturity | 25.4 | 51.8 |
299.2 | 329.2 | |
Financial liabilities at amortised cost: | ||
Trade and other payables ii (note 22): | ||
Trade payables | (48.4) | (41.4) |
Accruals – current iii | (25.4) | (22.8) |
Other payables – current iv | (9.2) | (94.8) |
Lease liabilities – current and non-current (note 24) | (30.9) | (30.1) |
Borrowings (note 25): | ||
Shareholder loan from non-controlling interest | (3.9) | (3.9) |
Bank borrowings secured | (81.6) | (100.4) |
Bank overdrafts secured | (1.0) | (1.5) |
(200.4) | (294.9) |
i.
ii. Excludes non-current payables of $1.5m (2024 – $2.6m) as these are non-financial liabilities.
iii.
Excludes accruals of $28.9m (2024 – $24.3m) recognised under IAS 19 and IFRS 2 that are outside the scope of IFRS 7.
iv. Excludes non-financial liabilities of $1.3m (2024 – $0.2m) and financial liabilities measured at fair value of $0.8m (2024 – $3.4m).
Hunting PLC
202
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
29. Financial instruments
continued
(a) Financial instruments at amortised cost
continued
Included within current other payables is a financial liability for $6.5m measured at amortised cost,
in relation to an obligation for Hunting to purchase its own shares, see note 33 for further details.
2025 | 2024 | |
$m | $m | |
Net foreign exchange gains/(losses) included in operating income | ||
and other operating expenses (note 4) | 0.7 | (0.5) |
Net foreign exchange gains/(losses) included in net finance expense | ||
(note 8) | 0.7 | (0.6) |
Interest received on bank balances and deposits (note 8) | 2.5 | 0.5 |
Bank fees and commissions (note 8) | (4.0) | (3.4) |
Other finance expense (note 8) | (2.9) | (1.7) |
(i) Valuation techniques used to determine fair values
There have been no changes to the valuation techniques used during the year.
Money market funds are debt instruments measured at fair value through profit or loss (“FVTPL”), with
the fair value based on their current bid prices in an active market, which is considered to be the most
representative of fair value, at the balance sheet date. The listed equity investments and mutual funds
(note 17) are equity instruments measured at FVTPL, with the fair value based on their current bid
prices in an active market, which is considered to be the most representative of fair value, at the
balance sheet date.
The fair value of the convertible financing provided to Wells Data Labs was determined by considering
the probability weighted average discounted cash flows of the different scenarios using a discount
rate of 12% (2024 – 13%). The most significant unobservable inputs to the fair value calculation are
the probabilities of a conversion to equity and change of control assumptions. The fair value at
31 December 2025 was $1.5m (2024 – $2.2m) (note 17), with a fair value loss of $0.7m (2024 – $nil)
recognised in net finance expense during the year (note 8). At 31 December 2025, management
considers there to be no reasonable changes in unobservable inputs that would result in a significant
change in fair value.
The following instruments do not qualify for measurement at either amortised cost or at fair value
through other comprehensive income (“FVTOCI”). Therefore, they are financial instruments that have
mandatorily been measured at FVTPL:
• The fair value of forward foreign exchange contracts is determined by comparing the cash flows
generated by the contract with the coterminous cash flows potentially available in the forward
foreign exchange market on the balance sheet date. Details of the fair value gains and losses
recognised during the year on derivative contracts are given in note 28; and
• The fair value of foreign currency swaps is determined by calculating the present value of the estimated
future cash flows in each currency for both legs of the swap based on observable yield curves.
One leg’s present value is converted into the other currency using the current spot exchange rate.
The following tables present the Group’s net financial assets and liabilities that are measured and
recognised at fair value at the year-end and show the level in the fair value hierarchy in which the fair
value measurements are categorised. There were no transfers between levels during the year.
Fair value at | ||||
31 December | ||||
2025 | Level 1 | Level 2 | Level 3 | |
$m | $m | $m | $m | |
Equity instruments at FVTPL | ||||
Listed equity investments and mutual funds | 3.3 | 3.3 | – | – |
Debt instruments at FVTPL | ||||
Wells Data Labs convertible financing | 1.5 | – | – | 1.5 |
Money market funds | 36.0 | 36.0 | – | – |
Financial liabilities measured at FVTPL | ||||
Contingent consideration (note 40) | (0.8) | – | – | (0.8) |
Current derivatives held for trading | ||||
Derivative financial assets | 0.1 | – | 0.1 | – |
Derivative financial liabilities | – | – | – | – |
40.1 | 39.3 | 0.1 | 0.7 |
Hunting PLC
203
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
29. Financial instruments
continued
(b) Financial instruments measured at fair value
continued
(ii) Fair value hierarchy
continued
Fair value at | ||||
31 December | ||||
2024 | Level 1 | Level 2 | Level 3 | |
$m | $m | $m | $m | |
Equity instruments at FVTPL | ||||
Listed equity investments and mutual funds | 2.6 | 2.6 | – | – |
Debt instruments at FVTPL | ||||
Wells Data Labs convertible financing | 2.2 | – | – | 2.2 |
Money market funds | 76.7 | 76.7 | – | – |
Current derivatives in a hedge | ||||
Derivative financial assets | 0.1 | – | 0.1 | – |
Derivative financial liabilities | (3.3) | – | (3.3) | – |
Current derivatives held for trading | ||||
Derivative financial assets | 0.4 | – | 0.4 | – |
Derivative financial liabilities | (0.1) | – | (0.1) | – |
78.6 | 79.3 | (2.9) | 2.2 |
The fair value hierarchy has the following levels:
Level 1 – inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability.
Level 3 – unobservable inputs used in the valuation.
• The fair values of non-US Dollar denominated financial instruments are translated into US Dollars
using the year-end exchange rate.
• The inputs used to determine the fair value of derivative financial instruments are inputs other than
quoted prices that are observable and so the fair value measurement is categorised in Level 2 of the
fair value hierarchy.
• The fair value of listed equities and mutual funds and money market funds are based on quoted
market prices and therefore the fair value measurements are categorised in Level 1 of the fair value
hierarchy.
• Due to unobservable inputs used in the valuation, the fair value of the Wells Data Labs convertible
(iii) Amounts recognised in profit or loss
During the year, the following gains and losses were recognised in relation to financial instruments
measured at FVTPL:
2025 | 2024 | |
$m | $m | |
Fair value gains on the listed equity investments and mutual funds (note 8) | 0.3 | 0.2 |
Fair value losses on Wells Data Labs convertible financing (note 8) | (0.7) | – |
Fair value gains on money market funds (note 8) | 2.2 | 0.9 |
Fair value gains on contingent consideration (note 4) | 0.9 | – |
Fair value gains on financial instruments mandatorily measured at FVTPL: | ||
Net fair value gains/(losses) on derivative financial instruments (note 4) | 0.2 | (0.5) |
Net fair value losses on derivative financial instruments (note 8) | (1.0) | (1.9) |
The fair value gains on the listed investments and mutual funds and the Wells Data Labs convertible
financing are unrealised gains recognised in profit or loss attributable to balances held at the end
of the reporting period.
Due to their short-term nature, the carrying values of trade receivables, accrued revenue, other
receivables considered to be financial assets, cash and cash equivalents, trade payables, accruals,
other payables considered to be financial liabilities, lease liabilities, bank overdrafts and bank
Hunting PLC
204
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
The Group’s activities expose it to certain financial risks, namely market risk (including foreign exchange risk and interest rate risk), as well as credit risk and liquidity risk. The Group’s risk management strategy
seeks to mitigate potential adverse effects on its financial performance. As part of its strategy, both primary and derivative financial instruments are used to hedge certain risk exposures.
There are clearly defined objectives and principles for managing financial risks established by the Board of Directors, with policies, parameters and procedures covering the specific areas of funding, banking
relationships, foreign exchange and interest rate exposures and cash management, together with the investment of surplus cash. The Group’s treasury function is responsible for implementing the policies and
for providing a centralised service to the Group for funding, foreign exchange and interest rate management and counterparty risk management. It is also responsible for identifying, evaluating and hedging
financial risks in close cooperation with the Group’s operating companies.
The Group’s international base is exposed to foreign exchange risk from its investing, financing and operating activities, particularly in respect of Sterling, Chinese Renminbi, Saudi Arabia Riyal and Canadian
Dollars. Foreign exchange risks arise from future commercial transactions and cash flows, and from recognised monetary assets and liabilities that are not denominated in the functional currency of the
Group’s local operations.
Foreign exchange rates that the Group has the largest exposures to are:
Sterling | Chinese Renminbi | Saudi Arabia Riyal | Canadian Dollars | |||||
Restated | Restated | Restated | ||||||
2025 | 2024 i | 2025 | 2024 i | 2025 | 2024 | 2025 | 2024 i | |
Average exchange rate to US Dollars | 0.76 | 0.78 | 7.19 | 7.19 | 3.75 | 3.75 | 1.40 | 1.37 |
Year-end exchange rate to US Dollars | 0.74 | 0.80 | 7.00 | 7.30 | 3.75 | 3.75 | 1.37 | 1.44 |
i.
The average exchange rate to US Dollars in 2024 have been restated.
(i) Transactional risk
The exposure to exchange rate movements in significant future commercial transactions and cash flows is hedged by using forward foreign exchange contracts. Certain forward foreign exchange contracts
have been designated as hedging instruments of highly probable forecast transactions. Treasury engages with business units to help identify transactional exposures. External hedging activity is then
performed by treasury on behalf of the business units to ensure that transactional risk is managed appropriately and in accordance with treasury policy. Exposures are also identified and hedged, if necessary,
on an ad hoc basis, such as when a purchase order in a foreign currency is placed. Currency exposures arise where the cash flows are not in the functional currency of the entity. Exposures arising from
committed long-term projects beyond a 12-month period are also identified and subsequently hedged in accordance with treasury risk management policy.
Hunting PLC
205
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
30. Financial risk management
continued
(a) Market risk: foreign exchange risk
continued
(i) Transactional risk
continued
The table below shows the carrying values of the Group’s financial instruments at 31 December, including derivative financial instruments, on which exchange differences would potentially be recognised in the
consolidated income statement in the following year.
| Currency of denomination | |||||||
US | UAE | Singapore | Chinese | Other | |||
Sterling | Dollars | Dirham | Dollars | Renminbi | currencies | Total | |
At 31 December 2025 | $m | $m | $m | $m | $m | $m | $m |
Functional currency of Group’s entities: | |||||||
Sterling | – | (1.5) | – | – | – | 3.3 | 1.8 |
US Dollars | (9.4) | – | (3.6) | 0.4 | 0.4 | 1.4 | (10.8) |
Saudi Riyals | (0.1) | 0.5 | – | – | – | – | 0.4 |
Euro | – | (0.5) | – | – | – | – | (0.5) |
Other currencies | – | (0.3) | – | – | – | – | (0.3) |
(9.5) | (1.8) | (3.6) | 0.4 | 0.4 | 4.7 | (9.4) | |
| Currency of denomination | |||||||
US | UAE | Singapore | Chinese | Other | |||
Sterling | Dollars | Dirham | Dollars | Renminbi | currencies | Total | |
At 31 December 2024 | $m | $m | $m | $m | $m | $m | $m |
Functional currency of Group’s entities: | |||||||
Sterling | – | 2.5 | – | – | – | 0.2 | 2.7 |
US Dollars | (1.3) | – | (3.7) | 0.5 | (40.5) | 1.3 | (43.7) |
Saudi Riyals | (0.3) | (2.0) | (0.1) | – | – | – | (2.4) |
Euro | (0.2) | 3.9 | – | – | – | (0.2) | 3.5 |
Other currencies | – | (1.0) | – | – | – | – | (1.0) |
(1.8) | 3.4 | (3.8) | 0.5 | (40.5) | 1.3 | (40.9) | |
Financial instruments comprise cash balances, trade and other receivables, accrued revenue, trade and other payables, accrued expenses, finance lease liabilities and intra-Group balances. Derivatives
designated in a cash flow hedge are excluded as fair value gains and losses arising on these are recognised in other comprehensive income.
(ii) Translational risk
Foreign exchange risk also arises from financial assets and liabilities not denominated in the functional currency of an entity’s operations. Forward foreign exchange contracts are used to manage the exposure
to changes in foreign exchange rates. Where appropriate, hedge accounting is applied to the forward foreign exchange contracts and the hedged item to remove any accounting mismatch.
Foreign exchange risk also arises from the Group’s investments in foreign operations. This has previously been hedged using foreign exchange swaps that have been designated in a net investment hedge
to hedge the foreign currency translation risk. The foreign exchange exposure arising from the translation of its net investments in foreign operations into the Group’s presentation currency of US Dollars
has also previously been managed by designating any borrowings that are not US Dollar denominated as a hedge of the net investment in foreign operations. The foreign exchange exposure primarily arises
from Sterling and Canadian Dollar denominated net investments. The accumulated foreign exchange net pre-tax gains included in the currency translation reserve in respect of net investment hedges at the
beginning and end of the year is $25.0m.
Hunting PLC
206
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
30. Financial risk management
continued
(b) Market risk: interest rate risk
Variable interest rates on cash at bank, short-term deposits, overdrafts and borrowings expose the
Group to cash flow interest rate risk, and fixed interest rates on loans and short-term deposits expose
the Group to fair value interest rate risk. The Group’s treasury function manages the Group’s exposure
The Group’s credit risk arises from its cash at bank and in hand, money market funds, short-term
deposits, investments, derivative financial instruments, accrued revenue, outstanding trade
receivables, other receivables and contract assets.
At the year-end, the Group had credit risk exposure to a wide range of counterparties. Credit risk
exposure is continually monitored, and no individual exposure is considered significant in the context
of the ordinary course of the Group’s activities whether through exposure to individual customers,
specific industry sectors and/or regions.
(i) Credit risk: total cash and bank
Hunting PLC’s Board approves the treasury policies that determine which counterparties can be used.
Due diligence is carried out prior to the authorisation of a bank or financial institution as an approved
counterparty. For banks and financial institutions, exposure limits are set for each approved
counterparty, as well as the types of transactions that may be entered into. Approved institutions that
the Group’s treasury function can invest surplus cash with must all have a minimum A2, P2 or F2
short-term rating from Standard & Poor’s, Moody’s or Fitch rating agencies, respectively.
(2024 – $63.6m) deposited with banks with Fitch short-term ratings of F1 to F1+. Of the remaining
$30.7m (2024 – $14.5m), $28.0m (2024 – $5.3m) was held with three (2024 – one) financial institutions
within mainland China which, given the Group’s operations in this jurisdiction, were deemed
necessary. Despite not having formal credit ratings from any of the ratings agencies mentioned above,
an internal assessment determined that the banks’ credit profiles were appropriate for the amounts
held on deposit. There are no formal restrictions on this cash as such; however, prior approval would
be required from various state authorities in China before any cash could be paid offshore. This cash
balance could be used by the Group to service intercompany loans, which totalled $1.7m at the
year-end. In order for the Group to access the balance of $26.3m, a dividend would need to be
During the year, the treasury function invested surplus cash in line with its cash management and
investment policies in short-term deposits, money market funds and fixed-term funds. The use of
these deposits and funds enables the treasury function to diversify its counterparty concentration risk by
depositing funds with various financial institutions and improve the yields on a portion of its surplus cash.
The credit ratings of the financial institutions where the Group’s total cash and bank balances have been
invested are listed in the following table:
2025 |
2024 |
|||
Credit rating |
$m |
$m |
||
Cash at bank and in hand |
Fitch |
F1 to F1+ |
53.4 |
63.6 |
Cash at bank and in hand |
n/a |
30.7 |
14.5 |
|
Short-term deposits with less than |
||||
three months to maturity |
Fitch |
F1 to F1+ |
25.4 |
51.8 |
Money market funds |
Fitch |
AAAmmf |
36.0 |
76.7 |
Derivative financial assets |
Fitch |
AA-(dcr) |
0.1 |
0.4 |
Derivative financial assets |
Fitch |
A+(dcr) |
– |
0.1 |
The credit risk of foreign exchange contracts is calculated before the contract is acquired and
compared to the credit risk limit set for each counterparty. Credit risk is calculated as a fixed
percentage of the nominal value of the instrument.
(ii) Credit risk: receivables
The Group makes sales to a large number of different customers; however a significant proportion of
sales are made to service companies in the oil and gas sector. The majority of the Group’s customers
are based in North America. On a quarterly basis, the Group’s entities submit information to the head
office on individual receivables balances greater than $0.2m, on individual receivable balances that
are both greater than $32,500 and 60 days overdue, and on quarterly average receivables balances.
At the year-end, trade receivables of $166.5m (2024 – $137.7m) comprised individual balances greater
than $0.2m, with no individual customer balance representing more than 6% (2024 – 8%) of the
year-end receivables balance of $186.1m (2024 – $195.0m).
The risk of customer default for outstanding trade receivables, accrued revenue and contract assets is
continuously monitored. Credit account limits are set locally by management and are primarily based
on the credit quality of the customer taking into account past experience through trading relationships
and the customer’s financial position. The probability that a customer would default has remained
broadly flat in 2025. The Group used Credit Benchmark software to monitor the creditworthiness and
changing credit profiles of its customers. Credit Benchmark uses a similar ratings framework to the
main credit ratings agencies for classifying the credit quality of a business. However, Credit Benchmark
ratings are based on contributed risk views from leading global financial institutions, including
15 Global Systemically Important Banks domiciled in the US, Continental Europe, Switzerland,
UK, Japan, Canada, Australia and South Africa. The contributions are anonymised, aggregated
and published twice monthly in the form of Credit Consensus Ratings and Aggregate Analytics.
Although in most cases the Credit Benchmark consensus rating of a business is based on a number
of contributing views, there are instances where there is only a single source on which the rating is
based. During 2025, 41% of sales, which is more than $417m (2024 – 44%/$463m) of the Group’s
revenue, was made to customers with a Credit Benchmark investment-grade rating of bbb or higher,
as shown in the table below. This includes customers with a single-source rating, whereby the rating is
based on only a single source rather than a consensus rating which has been derived from a number
of contributing views.
Hunting PLC
207
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
30. Financial risk management
continued
(c) Credit risk
continued
(ii) Credit risk: receivables
continued
% of Revenue |
||
Credit Benchmark – credit consensus ratings |
2025 |
2024 |
aa |
1 |
1 |
a |
38 |
39 |
bbb |
3 |
4 |
bb |
10 |
8 |
b |
– |
3 |
No rating |
48 |
45 |
To reduce credit risk exposure from outstanding receivables, the Group has taken out credit insurance
with an external insurer, subject to certain conditions. Details of the impairment of trade and other
receivables can be found in note 18.
(iii) Credit risk: other financial assets
The Group operates a defined benefit pension scheme in the US, which is unfunded. Contributions
are paid into a separate investment vehicle and invested in a wide portfolio of US mutual funds.
Investments at the year-end amounted to $3.3m (2024 – $2.6m) and are expected to be fully recovered.
The Group has provided Wells Data Labs with $2.5m in convertible financing, the fair value of which
was $1.5m at 31 December 2025 (2024 – $2.2m). The investment is considered to have a low credit
risk, although the credit risk of the debt instrument has increased since the loan was advanced.
(i) Bank facilities
The Group’s treasury function ensures that there are sufficient committed facilities available to the
Group, with an appropriate maturity profile, to provide operational flexibility and to support investment
in key Group projects.
The Group has sufficient credit facilities to meet both its long- and short-term requirements. The
Group’s treasury function ensures flexibility in funding by maintaining availability under committed
credit facilities. The Group’s credit facilities are provided by a variety of funding sources and total
$395.8m (2024 – $432.4m) at the year-end.
The Group’s undrawn facilities at the year-end were as follows:
2025 |
2024 |
|
$m |
$m |
|
Secured committed facilities |
200.0 |
200.0 |
Unsecured uncommitted facilities |
95.8 |
40.1 |
295.8 |
240.1 |
Secured committed facilities: term loan and revolving credit facility (“RCF”)
In October 2024, the Group entered into $300m of committed borrowing facilities to finance
the ongoing working capital requirements of the existing business and to support Hunting’s growth
strategy. The funding arrangements comprise a $200m RCF and a $100m term loan. A conventional
earnings-based covenant regime governs the new facilities and includes a leverage test (being the
ratio of total net debt to adjusted EBITDA not exceeding 3.0:1) and an interest cover test (being the
ratio of consolidated EBITDA to consolidated net finance charges not being less than 4.0:1).
The RCF had been arranged with an initial tenor of four years, expiring on 16 October 2028. However,
the option that allowed the Group to extend the contracted maturity date by an additional 12-month
term was exercised by treasury on behalf of the Group and approved by the participating lenders
during 2025, thereby extending the maturity date to 16 October 2029. The RCF also contains an
accordion feature that allows the Group to increase the facility quantum by an additional $100m
(subject to further credit approval from the relevant lenders) enabling an increase of the total RCF
to $300m.
The $100m term loan was arranged with a three-year tenor and pursuant to the conditions of the
facility agreement, was fully drawn on signing of the facilities. Following an initial twelve-month grace
period, the term loan is repayable with eight quarterly instalments of $9.4m, with two such payments
made during 2025 on 30 September and 31 December, and a final payment of $25.0m in September
2027. On signing of the facilities, the previous ABL facility was repaid and cancelled, with drawings
under the new term loan used in part for this purpose.
Management has detailed the wider considerations regarding going concern and future covenant
compliance in the Viability Statement and Going Concern on page 100.
In order to support the sizable orders from Kuwait Oil Company received during 2024, the Group
utilised letter of credit discounting arrangements and bank acceptance drafts with financial institutions
throughout 2024 and 2025 to assist with the management of working capital and cash conversion
cycles.
Unsecured uncommitted facilities
the Bank of Jiangsu for CNY120.0m, ICBC for CNY200.0m, HSBC China for CNY165.0m and
a final facility with China Merchants Bank for CNY150.0m. All of these facilities mature in 2026. These
facilities, totalling CNY635.0m ($90.8m; 31 December 2024 – $127.4m), have all been arranged on an
uncommitted, unsecured basis and are only available to the Group’s Chinese subsidiary. Utilisation
of the facilities can occur through cash borrowing or trade finance, including bank acceptance drafts.
Hunting PLC
208
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
30. Financial risk management
continued
(d) Liquidity risk
continued
(ii) Management of cash
The Group needs to ensure that it has sufficient liquid funds available to support its working capital
and capital expenditure requirements and that adequate liquidity levels are maintained. All subsidiaries
submit weekly cash forecasts to the treasury function to enable it to monitor the Group’s requirements.
A consolidated 12-week forecast, produced weekly, is maintained by the Group’s treasury function,
which monitors long- and short-term liquidity requirements of the Group and also identifies any
unexpected variances week-on-week.
Treasury’s cash management objective is to centrally manage and, where possible, to concentrate
the Group’s cash and bank balances back to the treasury function to ensure that funds are managed
in the best interests of the Group. Short-term cash balances, together with undrawn facilities, enable
the treasury function to manage the Group’s day-to-day liquidity requirements. Any short-term surplus
is invested in accordance with Board-approved treasury policy. This strategy is subject to legislative
and regulatory constraints in certain jurisdictions such as exchange control restrictions and minimum
capital requirements. Where cash concentration cannot be applied, Group treasury approves all local
banking arrangements, including the opening and closing of bank accounts and the investment of
surplus cash via bank deposits.
Cash management arrangements
In respect of the UK business units and head office companies, the treasury function has arranged
a cash concentration structure with HSBC Bank UK whereby, at the close of each business day, any
surplus balances held in certain subsidiaries’ bank accounts are swept to treasury-owned accounts
(“pool header” accounts), with a corresponding adjustment to the intercompany loan receivable, or
payable, between that subsidiary and treasury. Similarly, any end-of-day deficit in the same group
of subsidiary accounts is funded by a cash sweep from the treasury-owned pool header accounts,
and the corresponding intercompany loan is adjusted accordingly. This arrangement enables more
efficient utilisation of UK-based entities’ surplus cash and at the same time allows the treasury function
to meet any short-term funding needs of the UK business units in a more coordinated fashion and
from one single pool of liquidity.
A similar cash concentration structure has been organised with Wells Fargo Bank, N.A. in the US,
whereby surplus and deficit cash balances are swept to and from a single pool header account,
held by one central US subsidiary, with a corresponding movement in the respective companies’
intercompany loan balance. Treasury has systems in place that allow for same-day centralisation
of net surplus cash balances in the US to the UK, or to fund any net cash deficit in the US cash
concentration structure. As above, this arrangement allows treasury to efficiently repatriate surplus
operational cash from the US to the UK daily, if deemed cost effective to do so, and the most
appropriate application of that cash can then be decided upon by treasury. This arrangement also
allows treasury to meet any short-term funding needs of the Group’s US-based business units from
cash resources held in, or borrowing facilities that have been arranged by, treasury in the UK.
For other regions, such as Canada and Singapore, while formal sweeping arrangements are not in
place, treasury monitors balances daily and periodically transfers surplus cash to the centre using
similar intercompany loan arrangements as described above. The Group’s interests in China are
subject to the most highly regulated environment of all the Group’s active jurisdictions, with regards
to cash management operations. The free movement of cash both to and from China is a highly
restricted activity, therefore, treasury is currently unable to arrange intercompany loans in the same
way as it does for the rest of the Group. Treasury has organised banking arrangements with HSBC in
China on behalf of the Group’s Chinese business units which enables visibility of any cash balances
held with HSBC and transaction data for these accounts via HSBC’s proprietary online banking
system. For balances held at other Chinese banks, treasury has visibility either via its SWIFT
connection or from information supplied by Hunting’s Chinese entities.
Deposits and investments of surplus cash
Short-term deposits and money market funds are held for the purpose of meeting short-term cash
commitments, minimising counterparty concentration risk and improving cash investment returns.
Short-term deposits of surplus cash are made for varying periods of between one day and three
months, depending on the immediate cash requirements of the Group. These deposits earn interest at
the respective short-term deposit rates. The Group has invested surplus cash in money market funds
as they are considered to be highly liquid since cash can be redeemed from each fund on a same-day
basis. The yield on the funds is calculated on the daily performance of the various instruments held
within a particular fund.
At 31 December 2025, the treasury function has invested surplus cash in short-term deposits ($25.4m)
and money market funds ($36.0m) in line with its cash management and investment policies returning
a fair yield, while maintaining the ability to access the cash easily. The use of these deposits and funds
enables the treasury function to diversify its counterparty concentration risk by depositing funds with
various financial institutions and improve the yields on a portion of its surplus cash. The interest
received and gains made during the year are disclosed in note 8.
Cash at bank earns interest at floating rates based on daily bank deposit rates.
The following tables analyse the expected timings of cash outflows for each of the Group’s non-
derivative financial liabilities. The tables analyse the cash outflows into relevant maturity groupings
based on the remaining period at the balance sheet date to the contractual maturity dates of the
financial liabilities. The amounts disclosed in the tables are the contractual, undiscounted cash flows
and include interest cash flows and other contractual payments, where applicable, so will not always
reconcile with the amounts disclosed in the consolidated balance sheet. The carrying values are the
amounts in the consolidated balance sheet and are the discounted amounts. Balances due within one
year have been included in the maturity analysis at their carrying amounts, as the impact of
discounting is not significant.
Hunting PLC
209
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
30. Financial risk management
continued
(d) Liquidity risk
continued
(iii) Future cash flows of financial liabilities
continued
2025 | |||||
On demand | Between | ||||
or within | one and | After | Carrying | ||
one year | five years | five years | Total | value | |
$m | $m | $m | $m | $m | |
Non-derivative | |||||
financial liabilities: | |||||
Trade payables | 48.4 | – | – | 48.4 | 48.4 |
Accruals | 25.4 | – | – | 25.4 | 25.4 |
Other payables | 9.2 | – | – | 9.2 | 9.2 |
Lease liabilities | 8.0 | 20.2 | 7.4 | 35.6 | 30.9 |
Bank borrowings secured | 43.7 | 50.3 | – | 94.0 | 81.6 |
Bank overdrafts secured | 1.0 | – | – | 1.0 | 1.0 |
Shareholder loan from | |||||
non-controlling interest | – | – | 3.9 | 3.9 | 3.9 |
Total | 135.7 | 70.5 | 11.3 | 217.5 | 200.4 |
2024 | |||||
On demand | Between | ||||
or within | one and | After | Carrying | ||
one year | five years | five years | Total | value | |
$m | $m | $m | $m | $m | |
Non-derivative | |||||
financial liabilities: | |||||
Trade payables | 41.4 | – | – | 41.4 | 41.4 |
Accruals | 22.8 | – | – | 22.8 | 22.8 |
Other payables | 94.8 | – | – | 94.8 | 94.8 |
Lease liabilities | 7.7 | 19.9 | 8.2 | 35.8 | 30.1 |
Bank borrowings secured | 18.2 | 108.5 | – | 126.7 | 100.4 |
Bank overdrafts secured | 1.5 | – | – | 1.5 | 1.5 |
Shareholder loan from | |||||
non-controlling interest | – | – | 3.9 | 3.9 | 3.9 |
Total | 186.4 | 128.4 | 12.1 | 326.9 | 294.9 |
The Group had no net settled financial liabilities at the year-end (2024 – none).
The following table analyses the Group’s derivative financial instruments, which will be settled on a
gross basis, into maturity groupings based on the period remaining from the balance sheet date to the
contractual maturity date.
The amounts disclosed in the table are the contractual, undiscounted cash flows.
| 2025 | 2024 | |||||
On demand | Between | On demand | Between | |||
or within | one and | or within | one and | |||
one year | five years | Total | one year | five years | Total | |
$m | $m | $m | $m | $m | $m | |
Currency | ||||||
derivatives: | ||||||
Inflows | 39.8 | – | 39.8 | 276.3 | – | 276.3 |
Outflows | (39.7) | – | (39.7) | (279.7) | – | (279.7) |
The Group’s objectives, policies and processes for managing capital are outlined in the Strategic
Report within the Group Funding section on page 53. Within this section, the Group provides a
definition of capital, provides details of the external financial covenants imposed, key measures for
managing capital and the objectives for managing capital. Quantitative disclosures are made together
The following sensitivity analysis is intended to illustrate the sensitivity to changes in market variables
on the Group’s financial instruments and show the impact on profit or loss and shareholders’ equity.
Financial instruments affected by market risk include cash at bank and in hand, trade and other
receivables, trade and other payables, lease liabilities, borrowings and derivative financial instruments.
The sensitivity analysis relates to the position as at 31 December 2025. The analysis excludes the
impact of movements in market variables on the carrying value of pension and other post-retirement
obligations, provisions and non-financial assets and liabilities of foreign operations.
The following assumptions have been made in calculating the sensitivity analysis:
• Foreign exchange rate and interest rate sensitivities have an asymmetric impact on the Group’s
results, that is an increase in rates does not result in the same amount of movement as a decrease
in rates;
• For floating rate assets and liabilities, the amount of asset or liability outstanding at the balance
sheet date is assumed to be outstanding for the whole year;
• Fixed-rate financial instruments that are carried at amortised cost are not subject to interest rate risk
for the purpose of this analysis; and
• The carrying values of financial assets and liabilities carried at amortised cost do not change
as interest rates change.
Positive figures represent an increase in profit or equity.
Hunting PLC
210
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
31. Financial instruments: sensitivity analysis
continued
(a) Interest rate sensitivity
(i) UK interest rates
The sensitivity rate of 1.0% (2024 – 1.0%) for UK interest rates represents management’s assessment
of a reasonably possible change, based on historical volatility and a review of analysts’ research and
banks’ expectations of future interest rates.
The impact on the consolidated income statement, with all other variables held constant, in applying
the sensitivity above results in a $0.4m (2024 – $0.5m) increase or decrease in post-tax profit for an
increase or decrease in UK interest rates. There is no impact on other comprehensive income (“OCI”)
for a change in UK interest rates.
(ii) Other interest rates
For all other interest rates, there is an immaterial impact on post-tax profit or loss for any reasonably
possible changes in other interest rates, based on historical volatility and a review of analysts’ research
and banks’ expectations of future interest rates. There is no impact on OCI for a change in other
interest rates.
(b) Foreign exchange rate sensitivity
Management has considered the impact of changes to the various foreign exchange rates on the
exposed financial assets and liabilities disclosed in note 30(a)(i). The sensitivity rates selected range
between 3% and 13% and represent management’s assessment of a reasonably possible change,
based on historical volatility and a review of analysts’ research and banks’ expectations of future
foreign exchange rates. There is an immaterial impact on post-tax profit or loss and on OCI for
A number of defined contribution arrangements, which are open to current employees, are operated
across the Group. Employer contributions to these arrangements are charged directly to profit and
(b) Unfunded defined benefit schemes
(i) US defined benefit scheme
The Group operates a cash balance arrangement in the US for certain executives. Members build up
benefits in this arrangement by way of notional contributions and notional investment returns. Actual
contributions are paid into an entirely separate investment vehicle held by the Group, which is used
to pay benefits due from the arrangement when a member retires. Under IAS 19, the cash balance
arrangement is accounted for as an unfunded defined benefit scheme.
The net amount charged to the consolidated income statement during the year was $nil
(2024 – $0.1m) reflecting the employer’s current service cost of $0.2m (2024 – $0.2m) charged to
administrative expenses and a net $0.2m credit (2024 – $0.1m) relating to fair value gains on the listed
equities and mutual funds and interest charged on the benefit obligations.
Movements in the present value of the obligation for the unfunded defined benefit US deferred
compensation plan
2025 | 2024 | |
$m | $m | |
Present value of the obligation at the start of the year | 2.6 | 2.2 |
Current service cost (equal to the notional contributions) | 0.2 | 0.2 |
Contributions by plan participants | 0.2 | 0.2 |
Remeasurement – excess of notional investment returns | ||
over interest cost | 0.2 | 0.1 |
Interest on benefit obligations | 0.1 | 0.1 |
Benefits paid | – | (0.2) |
Present value of the obligation at the end of the year | 3.3 | 2.6 |
The obligation of $3.3m (2024 – $2.6m) is presented in the consolidated balance sheet in non-current
payables (note 22).
(ii) Middle East defined benefit schemes
The Group operates two unfunded defined benefit pension schemes in Dubai and Saudi Arabia,
whereby local law requires payment to be made to an employee when they leave their employment
with the business unit based on their salary and number of years of service. The combined obligation
at the year-end was $1.5m (2024 – $1.1m), with $0.4m (2024 – $0.3m) recognised in the consolidated
income statement during the year. The obligation is presented in non-current and current other
The Company’s share capital comprises a single class of Ordinary shares, which are classified as equity.
Ordinary | Ordinary | ||
shares of | shares of | Share | |
25p each | 25p each | premium | |
Number | $m | $m | |
At 1 January 2024 | 164,940,082 | 66.5 | 153.0 |
Disposal of treasury shares | – | – | 0.1 |
At 31 December 2024 | 164,940,082 | 66.5 | 153.1 |
Share buyback | (7,219,478) | (2.9) | – |
At 31 December 2025 | 157,720,604 | 63.6 | 153.1 |
There are no restrictions attached to any of the Ordinary shares in issue and all Ordinary shares
carry equal voting rights. The rights attached to the Company’s Ordinary shares are summarised
on page 153. All of the Ordinary shares in issue are fully paid.
Benefit Trust. Details of the carrying amount are set out in note 35.
Hunting PLC
211
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
33. Share capital and share premium
continued
Share buyback
On 28 August 2025, the Group commenced a share buyback programme to purchase up to $40m of its Ordinary shares of 25p each. The Company engaged three separate brokers to perform the
programme across three tranches of $15m, $15m and $10m, respectively. Between 28 August and 17 December 2025, the Company purchased 7,219,478 shares for a total consideration of $33.9m, inclusive
of associated costs. Shares purchased under the programme were cancelled and, as a result, have reduced the Company’s issued share capital with a corresponding entry to the capital redemption reserve.
The increase in the capital redemption reserve is different to the reduction in share capital due to foreign exchange differences of $0.5m, which were credited to retained earnings.
At 31 December 2025, the third tranche was incomplete, with $6.5m of purchases remaining. The Company has considered whether there is an obligation to purchase its own equity instruments that would
give rise to a financial liability. The Company has reviewed the contract with the broker and determined it was non-cancellable at 31 December and has therefore recognised a financial liability of $6.5m, with
a corresponding entry to retained earnings. The financial liability is presented within other payables (note 22). The total amount debited to retained earnings from the share buyback programme is therefore
Share-based | Currency | Capital | |||
payments reserve | translation reserve | redemption reserve | Hedge reserve | Total | |
$m | $m | $m | $m | $m | |
At 1 January 2024 | 19.9 | (12.1) | 0.8 | 0.1 | 8.7 |
Exchange adjustments | – | (4.0) | – | – | (4.0) |
Share options and awards: | |||||
– value of employee services | 12.3 | – | – | – | 12.3 |
– discharge | (9.6) | – | – | – | (9.6) |
Fair value gains and losses: | |||||
– losses arising on cash flow hedges during the year | – | – | – | (0.8) | (0.8) |
– gains arising on cash flow hedges transferred to initial carrying value of hedged items | – | – | – | (0.2) | (0.2) |
– gains arising on cash flow hedges reclassified to profit or loss | – | – | – | (0.2) | (0.2) |
– taxation | – | – | – | 0.2 | 0.2 |
At 31 December 2024 | 22.6 | (16.1) | 0.8 | (0.9) | 6.4 |
Exchange adjustments | – | 6.0 | – | – | 6.0 |
Share options and awards: | |||||
– value of employee services | 10.8 | – | – | – | 10.8 |
– discharge | (15.2) | – | – | – | (15.2) |
Share buyback (note 33) | – | – | 2.4 | – | 2.4 |
Fair value gains and losses: | |||||
– gains arising on cash flow hedges during the year | – | – | – | 1.2 | 1.2 |
– losses arising on cash flow hedges transferred to initial carrying value of hedged items | – | – | – | 0.2 | 0.2 |
– gains arising on cash flow hedges reclassified to profit or loss | – | – | – | (0.2) | (0.2) |
– taxation | – | – | – | (0.2) | (0.2) |
At 31 December 2025 | 18.2 | (10.1) | 3.2 | 0.1 | 11.4 |
The share-based payments reserve represents the Group’s obligation to settle share-based awards issued to its employees. When employees exercise their awards, the portion of the share-based payments
reserve which represents the share-based payment charge for those awards is transferred to retained earnings and the Group discharges its obligation.
The currency translation reserve contains the accumulated foreign exchange differences that arise from the translation of the financial statements of the Group’s foreign operations into US Dollars when the
Group’s entities are consolidated, together with exchange differences arising on foreign currency loans used to finance foreign currency net investments. The currency translation reserve also includes the
accumulated foreign exchange net gains in respect of net investment hedges, which will be released to the income statement on the disposal or dissolution of the relevant subsidiary.
Hunting PLC
212
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
34. Other components of equity
continued
The capital redemption reserve is a statutory, non-distributable reserve into which amounts are
transferred following the purchase of the Company’s own shares out of distributable profits.
The hedge reserve represents the accumulated fair value gains and losses in relation to the spot
component of forward foreign exchange contracts designated in a cash flow hedge that were taken
out to hedge the purchase of an asset, such as property, plant and equipment or inventory, in a
foreign currency. The fair value gain or loss accumulated in the hedge reserve is transferred to the
35. Retained earnings
2025 | 2024 | |
$m | $m | |
At 1 January | 670.8 | 718.6 |
Profit/(loss) for the year | 41.1 | (28.0) |
Remeasurement of defined benefit pension schemes net of tax (note 32) | (0.2) | (0.1) |
Dividends paid to Hunting PLC shareholders | (19.1) | (16.7) |
Share buyback (note 33) | (39.9) | – |
Treasury shares: | ||
– purchase of treasury shares | (19.3) | (14.2) |
– proceeds on disposal of treasury shares | 1.1 | 0.2 |
Share options and awards: | ||
– discharge | 13.8 | 9.0 |
– taxation | 1.2 | 2.0 |
At 31 December | 649.5 | 670.8 |
2025 | 2024 | |
$m | $m | |
Cost: | ||
At 1 January | (28.5) | (22.2) |
Purchase of treasury shares | (19.3) | (14.2) |
Cost of treasury shares disposed | 21.7 | 7.9 |
At 31 December | (26.1) | (28.5) |
At 31 December 2025, 6,716,928 Ordinary shares were held by the Employee Benefit Trust
(2024 – 7,191,845). The Company purchased 5,019,609 (2024 – 2,917,742) additional treasury shares
during the year for $19.3m (2024 – $14.2m). The loss on disposal of treasury shares during the year,
2025 | 2024 | |||
Cents | Cents | |||
per share | $m | per share | $m | |
Ordinary dividends: | ||||
2024 final dividend | 6.0 | 9.5 | – | – |
2025 interim dividend | 6.2 | 9.6 | – | – |
2023 final dividend | – | – | 5.0 | 8.0 |
2024 interim dividend | – | – | 5.5 | 8.7 |
19.1 | 16.7 | |||
A final dividend for 2025 of 6.8 cents per share has been proposed by the Board, amounting to
an estimated distribution of $10.0 m. The proposed final dividend is subject to approval by the
shareholders at the Annual General Meeting to be held on 15 April 2026 and has not been provided
for in these financial statements. If approved, the dividend will be paid in Sterling on 8 May 2026,
to shareholders on the register on 10 April 2026, and the Sterling value of the dividend payable per
share will be fixed, and announced approximately two weeks prior to the payment date, based on
the average spot exchange rate over the three business days preceding the announcement date.
Guidance on the Company’s position on declaring and paying future dividends is provided within the
Hunting PLC
213
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
(a) 2014 Hunting Performance Share Plan (“HPSP”)
The Company granted share awards annually to executive Directors and senior employees under
the rules of the 2014 HPSP between 2014 and 2023. Awards were granted as either performance
or time-based options or awards at nil cost under the HPSP and can only be exercised by the
employees to whom they were granted. Share options, which are subject to tax on exercise, are
granted to UK employees. Share option holders have seven years in which to exercise their vested
awards. Share awards, which are subject to tax on vesting, are granted to employees resident in
some other tax jurisdictions.
(i) Performance-based awards
The performance-based HPSP awards, which were granted to the executive Directors and senior
employees, are divided into five tranches of differing proportions. Each tranche is subject to a
three-year vesting period and Company performance is measured against various performance
metrics, as shown in the table below.
The award weightings for the 2022 and 2023 awards are in the table below.
Award |
Award |
|
weighting |
weighting |
|
2023 |
2022 |
|
Performance measure |
% |
% |
Total Shareholder Return (“TSR”) |
||
of a bespoke comparator group |
20 |
25 |
Adjusted diluted earnings per share (“EPS”) |
20 |
20 |
Return on average capital employed (“ROCE”) |
25 |
20 |
Free cash flow (“FCF”) |
20 |
20 |
Balanced strategic scorecard – non-financial KPIs |
||
comprising Quality and Safety performance |
15 |
15 |
Details of the performance-based HPSP award movements during the year are set out below:
2025 |
2024 |
|
Number of |
Number of |
|
shares |
shares |
|
Outstanding at the beginning of the year |
5,425,311 |
7,829,492 |
Vested and exercised during the year |
(3,063,883) |
(755,432) |
Lapsed during the year |
(60,345) |
(1,648,749) |
Outstanding at the end of the year |
2,301,083 |
5,425,311 |
Details of the performance-based HPSP awards outstanding at 31 December 2025 are as follows:
2025 |
2024 |
|||
Number of |
Number of |
Normal |
||
shares |
shares |
vesting date |
Expiry date |
|
Date of grant: |
||||
4 March 2022 – options |
24,422 |
505,420 |
4 March 2025 |
4 March 2032 |
4 March 2022 – awards |
– |
2,636,297 |
4 March 2025 |
– |
6 March 2023 – options |
418,296 |
425,229 |
6 March 2026 |
6 March 2033 |
6 March 2023 – awards |
1,858,365 |
1,858,365 |
6 March 2026 |
– |
Outstanding at the end |
||||
of the year |
2,301,083 |
5,425,311 |
||
Exercisable at the end |
||||
of the year |
24,422 |
– |
||
Weighted average remaining |
||||
contractual life of options |
||||
outstanding at the end |
||||
of the year |
8.13 years |
7.64 years |
In 2025, a total of 3,063,883 awards were exercised (2024 – 755,432). The weighted average share
price at the date of exercise during 2025 was 296.0 pence (2024 – 310.8 pence).
(ii) Time-based awards
The Company also granted time-based share awards annually to senior employees under the 2014
HPSP, which are subject to a three-year vesting period. There are no performance conditions
attached. Details of the time-based HPSP award movements during the year are set out below:
2025 |
2024 |
|
Number of |
Number of |
|
shares |
shares |
|
Outstanding at the beginning of the year |
3,927,855 |
5,698,418 |
Vested and exercised during the year |
(2,120,174) |
(1,492,105) |
Lapsed during the year |
(43,774) |
(278,458) |
Outstanding at the end of the year |
1,763,907 |
3,927,855 |
In 2025, a total of 2,120,174 awards were exercised (2024 – 1,492,105). The weighted average share
price at the date of exercise during 2025 was 297.4 pence (2024 – 316.1 pence).
Hunting PLC
214
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
37. Share-based payments
continued
(a) 2014 Hunting Performance Share Plan (“HPSP”)
continued
(ii) Time-based awards
continued
Details of the time-based HPSP awards outstanding at 31 December 2025 are as follows:
2025 | 2024 | |||
Number of | Number of | Normal | ||
shares | shares | vesting date | Expiry date | |
Date of grant: | ||||
19 April 2018 – options | 2,816 | 2,816 | 19 April 2021 | 19 April 2028 |
21 March 2019 – options | 5,719 | 5,719 | 21 March 2022 | 21 March 2029 |
3 March 2020 – options | 13,855 | 19,429 | 3 March 2023 | 3 March 2030 |
4 March 2021 – options | 25,821 | 31,895 | 4 March 2024 | 4 March 2031 |
4 March 2021 – awards | 2,105 | 2,105 | 4 March 2024 | – |
4 March 2022 – options | 35,836 | 347,465 | 4 March 2025 | 4 March 2032 |
4 March 2022 – awards | 3,377 | 1,698,214 | 4 March 2025 | – |
6 March 2023 – options | 292,111 | 342,346 | 6 March 2026 | 6 March 2033 |
6 March 2023 – awards | 1,382,267 | 1,477,866 | 6 March 2026 | – |
Outstanding at the end | ||||
of the year | 1,763,907 | 3,927,855 | ||
Exercisable at the end | ||||
of the year | 91,040 | 131,012 | ||
Weighted average remaining | ||||
contractual life of options | ||||
outstanding at the end | ||||
of the year | 7.74 years | 7.51 years |
(b) 2014 HPSP cash conditional share awards
The Company granted cash conditional awards annually to employees in certain overseas tax
jurisdictions. These awards are aligned with the rules of the 2014 HPSP and are subject to employees’
continued employment during the vesting period. Awards are granted at nil cost and are settled at the
closing mid-market price of a Hunting PLC Ordinary share on the third anniversary of the date of grant.
(i) Performance-based awards
The performance-based cash conditional awards to senior employees are divided into five tranches
of differing proportions. Each tranche is subject to a three-year vesting period and Company
performance is measured against various performance measures as shown in the following table.
The award weightings for the 2022 and 2023 awards were the same as those in the table on
page 213.
Details of the cash conditional performance-based award movements during the year are set
out below:
2025 | 2024 | |
Number of | Number of | |
shares | shares | |
Outstanding at the beginning of the year | 350,458 | 540,150 |
Vested and exercise during the year | (198,797) | (60,501) |
Lapsed during the year | (3,438) | (129,191) |
Outstanding at the end of the year | 148,223 | 350,458 |
The weighted average share price at the date of exercise during 2025 was 295.5 pence
(2024 – 303.4 pence).
Details of the cash conditional performance-based awards outstanding at 31 December 2025
are as follows:
2025 | 2024 | ||
Number of | Number of | Normal | |
shares | shares | vesting date | |
Date of grant: | |||
4 March 2022 | – | 202,235 | 4 March 2025 |
6 March 2023 | 148,223 | 148,223 | 6 March 2026 |
Outstanding at the end of the year | 148,223 | 350,458 |
Hunting PLC
215
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
37. Share-based payments
continued
(b) 2014 HPSP cash conditional share awards
continued
(ii) Time-based awards
The Company also granted time-based cash conditional awards annually, which are subject to a
three-year vesting period. There are no performance conditions attached.
Details of the cash conditional time-based award movements during the year are set out below:
2025 | 2024 | |
Number of | Number of | |
shares | shares | |
Outstanding at the beginning of the year | 564,892 | 706,822 |
Vested and exercised during the year | (337,135) | (116,097) |
Lapsed during the year | (2,767) | (25,833) |
Outstanding at the end of the year | 224,990 | 564,892 |
The weighted average share price at the date of exercise during 2025 was 294.5 pence
(2024 – 318.1 pence).
Details of the cash conditional time-based awards outstanding at 31 December 2025 are as follows:
2025 | 2024 | ||
Number of | Number of | Normal | |
shares | shares | vesting date | |
Date of grant: | |||
4 March 2021 | – | 7,043 | 4 March 2024 |
4 March 2022 | – | 313,596 | 4 March 2025 |
6 March 2023 | 224,990 | 244,253 | 6 March 2026 |
Outstanding at the end of the year | 224,990 | 564,892 | |
Exercisable at the end of the year | – | 40,319 |
(c) 2024 Hunting Performance Share Plan (“HPSP”)
The Company grants share awards annually to executive Directors and senior employees under the
rules of the 2024 HPSP, following shareholder approval at the Annual General Meeting (“AGM”) of the
Company on 17 April 2024. Awards are granted as either performance or time-based awards at nil
cost under the HPSP and can only be exercised by the employees to whom they were granted.
(i) Performance-based awards
The performance-based HPSP awards granted to the executive Directors and senior employees
are divided into five tranches of differing proportions. Each tranche is subject to a three-year vesting
period and Company performance is measured against various performance metrics, as shown
in the following table. The performance period for awards granted on 7 April 2025 under the HPSP
is 1 January 2025 to 31 December 2027. The vesting date of the 2025 award is 7 April 2028.
The award weightings for the 2024 and 2025 awards are as follows:
Award | Award | |
weighting | weighting | |
2025 | 2024 | |
Performance measure | % | % |
Total Shareholder Return (“TSR”) | ||
of a bespoke comparator group | 30 | 30 |
Return on average capital employed (“ROCE”) | 25 | 25 |
Adjusted diluted earnings per share (“EPS”) | 15 | 15 |
Free cash flow (“FCF”) | 15 | 15 |
Strategic scorecard – non-financial KPIs | ||
comprising Quality and Safety performance | 15 | 15 |
Details of the performance-based HPSP award movements during the year are set out below:
2025 | 2024 | |
Number of | Number of | |
shares | shares | |
Outstanding at the beginning of the year | 1,757,384 | – |
Granted during the year to executive Directors | 1,091,036 | 820,963 |
Granted during the year to senior employees | 1,421,608 | 1,085,471 |
Lapsed during the year | (16,596) | (149,050) |
Outstanding at the end of the year | 4,253,432 | 1,757,384 |
Details of the performance-based HPSP awards outstanding at 31 December 2025 are as follows:
2025 | 2024 | ||
Number of | Number of | Normal | |
shares | shares | vesting date | |
Date of grant: | |||
18 April 2024 – awards | 1,740,788 | 1,757,384 | 18 April 2027 |
7 April 2025 – awards | 2,512,644 | – | 7 April 2028 |
Outstanding at the end of the year | 4,253,432 | 1,757,384 | |
Exercisable at the end of the year | – | – |
In 2025, no awards were exercised (2024 – none).
Hunting PLC
216
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
37. Share-based payments
continued
(c) 2024 Hunting Performance Share Plan (“HPSP”)
continued
(ii) Time-based awards
The Company also grants time-based share awards annually to senior employees under the HPSP,
which are subject to a three-year vesting period and to the employees’ continued employment during
the vesting period. There are no performance conditions attached. Details of the time-based HPSP
award movements during the year are set out below:
2025 | 2024 | |
Number of | Number of | |
shares | shares | |
Outstanding at the beginning of the year | 1,831,623 | – |
Granted during the year | 2,625,632 | 1,993,209 |
Vested and exercised during the year | (25,345) | (3,662) |
Lapsed during the year | (127,972) | (157,924) |
Outstanding at the end of the year | 4,303,938 | 1,831,623 |
In 2025, a total of 25,345 awards were exercised (2024 – 3,662). The weighted average share price
at the date of exercise during 2025 was 312.3 pence (2024 – 392.2 pence).
Details of the time-based HPSP awards outstanding at 31 December 2025 are as follows:
2025 | 2024 | ||
Number of | Number of | Normal | |
shares | shares | vesting date | |
Date of grant: | |||
18 April 2024 – awards | 1,747,733 | 1,831,623 | 18 April 2027 |
7 April 2025 – awards | 2,556,205 | – | 7 April 2028 |
Outstanding at the end of the year | 4,303,938 | 1,831,623 | |
Exercisable at the end of the year | 1,917 | 1,991 |
(iii) Fair value of HPSP awards
The fair value of awards granted under the HPSP is calculated using two separate models:
(1) The fair value of awards subject to a market-related performance condition, specifically Company
performance against the TSR of a bespoke peer group, has been calculated using the Stochastic
pricing model (also known as the “Monte Carlo” model). Where the awards are subject to post-
vesting restrictions, the fair value of share-based payments to employees is impacted, but only to
the extent that the post-vesting restrictions affect the price that a knowledgeable, willing market
participant would pay for that share.
The assumptions used in this model were as follows:
2025 | 2025 | 2025 | |
US award | UK award | excluding | |
two-year | two-year | two-year | |
holding | holding | holding | |
period | period | period | |
Date of grant/valuation date | 7 April 2025 | 7 April 2025 | 7 April 2025 |
Weighted average share price at grant | 265.0p | 265.0p | 265.0p |
Exercise price | nil | nil | nil |
Expected dividend yield | 3.28% | 3.28% | nil |
Expected volatility | 45.18% | 45.18% | 47.60% |
Risk-free rate | 3.79% | 3.79% | 3.83% |
Expected life | 3 years | 3 years | 3 years |
Weighted average fair value at grant | 170.3p | 172.3p | 186.0p |
(2) The fair value of performance-based awards not subject to a market-related performance
condition include the EPS, ROCE, FCF and balanced strategic scorecard performance targets,
and the time-based HPSP awards, with the fair value being calculated using the Black-Scholes
pricing model.
The assumptions used in this model were as follows:
2025 | 2025 | 2025 | |
US award | UK award | excluding | |
two-year | two-year | two-year | |
holding | holding | holding | |
period | period | period | |
Date of grant/valuation date | 7 April 2025 | 7 April 2025 | 7 April 2025 |
Weighted average share price at grant | 265.0p | 265.0p | 265.0p |
Exercise price | nil | nil | nil |
Expected dividend yield | 3.28% | 3.28% | nil |
Expected volatility | 45.18% | 45.18% | 47.60% |
Risk-free rate | 3.79% | 3.79% | 3.83% |
Expected life | 3 years | 3 years | 3 years |
Weighted average fair value at grant | 242.6p | 245.4p | 265.0p |
Hunting PLC
217
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
37. Share-based payments
continued
(c) 2024 Hunting Performance Share Plan (“HPSP”)
continued
(iii) Fair value of HPSP awards
continued
The methods to calculate the assumptions for both models are:
• The expected volatility was calculated using historic weekly volatility, equal in length to the remaining
portion of the performance period at the date of grant;
• The expected life of the award has been calculated commensurate with the vesting period;
• The risk-free rate is based on the zero coupon UK government bond yield commensurate with
the vesting period prevailing at the date of grant, or, for awards with a two-year post-vesting holding
period, based on a zero coupon UK government bond yield which takes into account the holding
period;
• Participants are entitled to a dividend equivalent over the number of shares that make up their
award. It is accumulated over the vesting period and released subject to the achievement of the
performance conditions. This is factored into the fair value calculation and as a result the dividend
yield assumption is set to zero. However, where there is a two-year holding period, dividends are
assumed to be received during the holding period and therefore a dividend yield assumption is
included; and
• The initial accounting charge of the performance-based HPSP awards granted under the HPSP
incorporates an estimate of the number of shares that are expected to lapse for those participants
who cease employment during the vesting period. The estimate of the expected forfeiture rate is
5% per annum. The subsequent accounting charge includes an adjustment to the initial accounting
charge to allow for actual lapses rather than estimated lapses.
(d) 2024 HPSP cash conditional share awards
The Company also grants cash conditional awards annually to employees in certain overseas tax
jurisdictions. These awards are aligned with the rules of the 2024 HPSP and are subject to employees’
continued employment during the vesting period. Awards are granted at nil cost and are settled at the
closing mid-market price of a Hunting PLC Ordinary share on the third anniversary of the date of grant.
(i) Performance-based awards
The performance-based cash conditional awards to senior employees are divided into five tranches of
differing proportions. Each tranche is subject to a three-year vesting period and Company performance
is measured against various performance measures as shown in the following table. The performance
period for the 2025 awards is 1 January 2025 to 31 December 2027.
The award weightings for the 2025 awards are shown in the table below:
Performance measure
Award | Award | |
weighting | weighting | |
2025 | 2024 | |
% | % | |
Total Shareholder Return (“TSR”) | ||
of a bespoke comparator group | 30 | 30 |
Return on average capital employed (“ROCE”) | 25 | 25 |
Adjusted diluted earnings per share (“EPS”) | 15 | 15 |
Free cash flow (“FCF”) | 15 | 15 |
Balanced strategic scorecard – non-financial KPIs | ||
comprising Quality and Safety performance | 15 | 15 |
Details of the cash conditional performance-based award movements during the year are set out below:
2025 | 2024 | |
Number of | Number of | |
shares | shares | |
Outstanding at the beginning of the year | 109,458 | – |
Granted during the year | 159,939 | 126,120 |
Lapsed during the year | – | (16,662) |
Outstanding at the end of the year | 269,397 | 109,458 |
Details of the cash conditional performance-based awards outstanding at 31 December 2025
are as follows:
2025 | 2024 | ||
Number of | Number of | Normal | |
shares | shares | vesting date | |
Date of grant: | |||
18 April 2024 | 109,458 | 109,458 | 18 April 2027 |
7 April 2025 | 159,939 | – | 7 April 2028 |
Outstanding at the end of the year | 269,397 | 109,458 |
The fair value of the cash conditional performance-based awards is calculated at the date of grant
using the same assumptions and model as the fair value of the performance-based awards (see
37(c)(iii) above). The weighted average fair value of the award at 31 December 2025 was 370.5 pence
(2024 – 289.0 pence).
Hunting PLC
218
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
37. Share-based payments
continued
(d) 2024 HPSP cash conditional share awards
continued
(ii) Time-based awards
The Company also grants time-based cash conditional awards annually, which are subject to a
three-year vesting period and to the employees’ continued employment during the vesting period.
There are no performance conditions attached. Details of the cash conditional time-based award
movements during the year are set out below:
2025 |
2024 |
|
Number of |
Number of |
|
shares |
shares |
|
Outstanding at the beginning of the year |
200,212 |
– |
Granted during the year |
261,541 |
223,353 |
Vested and exercised during the year |
(11,891) |
(1,419) |
Lapsed during the year |
(16,891) |
(21,722) |
Outstanding at the end of the year |
432,971 |
200,212 |
The weighted average share price at the date of exercise during 2025 was 330.5 pence
(2024 – 406.0 pence).
Details of the cash conditional time-based awards outstanding at 31 December 2025 are as follows:
2025 |
2024 |
||
Number of |
Number of |
Normal |
|
shares |
shares |
vesting date |
|
Date of grant: |
|||
18 April 2024 |
177,179 |
200,212 |
18 April 2027 |
7 April 2025 |
255,792 |
– |
7 April 2028 |
Outstanding at the end of the year |
432,971 |
200,212 |
|
Exercisable at the end of the year |
– |
3,407 |
The fair value of the cash conditional awards is calculated at the date of grant using the same
assumptions and model as the fair value of performance-based awards (see 37(c)(iii) above). The
weighted average fair value of the award at 31 December 2025 was 370.5 pence (2024 – 289.0
pence).
(e) Amounts included in the accounts
The charge to the consolidated income statement attributable to the cash conditional share awards
is $1.9m (2024 – $1.8m) and the total charge attributable to the equity-settled awards is $10.8m
(2024 – $12.3m). The total charge to the consolidated income statement for the year for share-based
payments is $12.7m (2024 – $14.1m), see note 7. The total liability in relation to the cash-settled awards
included in accruals at the year-end is $2.4m (2024 – $2.8m), of which $nil (2024 – $nil) related to
The following related-party transactions took place between wholly-owned subsidiaries of the Group
and associates and joint ventures during the year:
2025 |
2024 |
|
$m |
$m |
|
Additional investment in Cumberland (note 16) |
– |
(0.9) |
Revenue from sales to joint ventures |
2.2 |
4.2 |
Year-end balances: |
||
Receivables outstanding from associates |
0.4 |
– |
Shareholder loan from non-controlling interest (note 25) |
(3.9) |
(3.9) |
The outstanding balances at the year-end are unsecured and have no fixed date for repayment.
During the year, revenue of $0.1m (2024 – $4.3m) was generated from sales to BestLink Tube Pte.
Ltd., the minority interest holder in Hunting Energy Services (China) Pte. Ltd. Additionally, revenue
of $nil (2024 – $2.1m) was recognised from sales to Jindal SAW, the Indian joint venture partner.
interests in associates, joint ventures and subsidiaries are set out in notes C14 and C15 of the
Committee. Details of their compensation are disclosed in note 7. The Hunting PLC Directors and the
members of the Executive Committee had no material transactions other than as a result of their
Hunting PLC is the parent company of the Hunting PLC Group. The Company is listed on the London
Stock Exchange, with none of the shareholders owning more than 20% of the issued share capital
of the Company (see page 154). Accordingly, the Directors do not consider there to be an ultimate
Hunting PLC
219
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
On 16 December 2025, the Group announced that it intended to extend the share buyback
programme, which commenced in August 2025, by up to an additional $20m, resulting in a total
maximum aggregate consideration of up to $60m. Accordingly, on conclusion of the existing
(a) Acquisition of subsidiaries
Flexible Engineered Solutions (Group) Holdings Limited
On 23 June 2025, Hunting acquired 100% of the issued share capital of Flexible Engineered Solutions
(Group) Holdings Limited (“FES”), a company based in the UK, for an initial cash consideration of
$89.1m ($61.8m net of cash acquired). Additionally, there are amounts of up to $3.0m payable, based
on the collection of certain outstanding trade receivables. The transaction was funded from Hunting’s
existing cash resources. FES qualifies as a business as defined in IFRS 3.
FES owns proprietary subsea fluid transfer technologies and system solutions for the offshore oil and
gas and renewable energy industries, which are well aligned to Hunting’s current customer base.
FES’s portfolio of fluid transfer solutions are used in Floating Production Storage and Offloading
vessels (“FPSOs”) and Subsea Distribution Systems (“SDSs”) and provides significant product
bundling and cross-selling opportunities for Hunting’s other subsea businesses across key offshore
regions. The business has been incorporated into the Subsea Technologies operating segment.
The amounts due to the seller based on the collection of certain outstanding trade receivables are
payable if the applicable invoices are collected within one year of the acquisition date. These amounts
have been included as contingent consideration on acquisition and a liability recorded. On acquisition
date, the fair value of the contingent consideration was estimated at $3.0m. At 31 December 2025,
following amounts paid to the seller of $1.3m and a fair value adjustment downwards of $0.9m, the
fair value of the contingent consideration was $0.8m. The liability is presented within other payables
(note 22).
The fair values of identifiable net assets acquired and the consideration are set out below:
Fair value |
|
$m |
|
Property, plant and equipment (note 11) |
0.2 |
Right-of-use assets (note 12) |
1.3 |
Other intangible assets (note 14) |
44.0 |
Inventories (note 20) |
1.9 |
Trade, contract and other receivables |
16.5 |
Cash and cash equivalents |
27.3 |
Trade, contract and other payables |
(6.4) |
Lease liabilities |
(1.3) |
Deferred tax liabilities (note 19) |
(11.0) |
Total identifiable net assets |
72.5 |
Goodwill on acquisition (note 13) |
19.6 |
Net assets acquired |
92.1 |
Satisfied by: |
|
Initial cash consideration |
89.1 |
Contingent consideration accrued |
3.0 |
92.1 |
$m |
|
Cash flows: |
|
Initial cash consideration |
89.1 |
Cash acquired |
(27.3) |
61.8 |
The fair value adjustments arose in relation to the recognition of acquired other intangible assets of
$44.0m, net of the associated deferred tax liability of $11.0m. The trade and other receivables were
mainly trade receivables due from customers and contract assets, and the book value on the
acquisition date approximated the fair value. At the acquisition date, all of the receivables acquired
were expected to be collected.
Hunting PLC
220
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
40. Acquisitions
continued
(a) Acquisition of subsidiaries
continued
Flexible Engineered Solutions (Group) Holdings Limited
continued
The other intangible assets recognised and their assigned useful economic lives are as follows:
Useful | ||
economic | ||
Fair value | life | |
$m | years | |
Patented technology | 33.0 | 15 |
Customer relationships | 9.4 | 10 |
Order book | 1.6 | 0.9 |
The goodwill arising of $19.6m represents the value of the assembled workforce at the time of
acquisition and is not expected to be deductible for income tax purposes. No deferred tax has been
recognised on the goodwill due to the application of the Initial Recognition Exemption.
Direct acquisition-related costs of $3.6m have been expensed to administrative expenses within the
income statement and presented as adjusting items (note 5).
From the date of acquisition to 31 December 2025, FES contributed revenue of $10.0m and a loss
before tax of $0.6m to the Group, before charging $3.6m of acquisition-related costs and $2.5m of
acquired other intangible asset amortisation. If the acquisition had occurred at the beginning of the
financial year, revenue of $21.3m and profit before tax of $3.0m would have been included in the
Group result, before charging $3.6m of acquisition-related costs and $4.7m of acquired other
intangible asset amortisation.
Titan Oil Recovery, Inc.
On 7 March 2025, Hunting completed the acquisition of the Organic Oil Recovery (OOR) technology
from its founding shareholders, for a consideration of $17.5m. Hunting also agreed to pay a 15%
royalty to the seller on revenue earned for a period of 15 years, post-completion. The transaction was
funded from Hunting’s existing cash resources. The technology was acquired from Titan Oil Recovery,
Inc., a company incorporated in the US. The OOR technology has been presented within the Other
Manufacturing product group in 2025. From 1 January 2026, it will be presented within the Subsea
product group.
Hunting acquired the entire portfolio of intellectual property, comprising over 25 discreet patents,
the distribution rights for the technology, and the laboratory located in California, US. Following the
acquisition, the Group holds the global rights for the OOR technology and is well placed to further
accelerate commercialisation across North America and the rest of the world.
The acquisition does not meet the definition of a business combination due to the assets acquired
not meeting the definition of a business, therefore, IFRS 3 does not apply. Accordingly, acquisition
accounting has not been applied and the transaction has been accounted for as an asset acquisition
with the identifiable assets acquired and liabilities assumed recognised based on their relative fair
values at the date of purchase. Additionally, direct acquisition-related costs are capitalised as part
of the cost of the assets acquired.
Given the significant variability and uncertainty relating to the royalty agreement, the Group has
elected to recognise a liability and associated expense for the variable costs arising from this when
incurred, instead of including it within the cost of the intangible asset recognised on initial acquisition.
The intangible assets acquired represent unpatented technology and have been assigned a useful
economic life of 15 years, aligned with the royalty agreement. The consideration of $18.2m includes
initial cash consideration of $17.5m and capitalised acquisition costs of $0.7m.
The relative fair values of net assets acquired are as follows:
Relative | |
fair values | |
$m | |
Property, plant and equipment (note 11) | 0.1 |
Right-of-use assets (note 12) | 0.6 |
Other intangible assets (note 14) | 18.1 |
Lease liabilities | (0.6) |
Net assets acquired | 18.2 |
Hunting PLC
221
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
The Group’s material accounting policies are described below:
• The Group’s financial statements include the results of the Company and its subsidiaries, together
with its share of associates and joint ventures.
• Subsidiaries are consolidated from the date on which control is transferred to the Group and are
deconsolidated from the date control ceases.
• The Group uses the acquisition method of accounting for business combinations. Consequently,
the consideration is determined as the fair value of the net assets transferred to the vendor and
includes an estimate of any contingent consideration. The net assets acquired are also measured
at their respective fair values for initial recognition purposes on the acquisition date, unless stated as
an exception to this in IFRS 3.
• Acquisition-related costs arising on business combinations are expensed to the consolidated
(i) Revenue from contracts with customers
• Revenue is recognised as performance obligations are satisfied when control of promised goods
or services is transferred to the customer and is measured at the amount that reflects the
consideration to which the Group expects to be entitled in exchange for those goods or services.
• For each performance obligation within a contract, the Group determines whether it recognises revenue:
1. Wholly at a single point in time when the Group has completed its performance obligation; or
2. Piecemeal over time during the period that control incrementally transfers to the customer while
the goods are being manufactured or the service is being performed.
• Hunting’s activities that require revenue recognition over time comprise:
1. The supply of goods that are specifically designed for, and restricted to, the use of a particular
customer, and for which Hunting has an enforceable right to payment for the work completed to
date, for example, the design and manufacture of bespoke products such as titanium stress joints;
2. The provision of services in which Hunting creates or enhances an asset that the customer controls
as the asset is created or enhanced, such as the lathing of a thread onto the ends of customer-owned
plain-end pipe and assembling or welding components that are owned by the customer; and
3. The provision of services in which the customer obtains the benefit while the service is being
performed, such as the storage and management services of customer-owned products.
• In respect of revenue that is recognised over time, Hunting uses an input method for measuring the
progress towards completion of its performance obligations and consequently for measuring the
amount of revenue that is recognised. Specifically, revenue is recognised in proportion to the total
expected consideration that mirrors the costs incurred to date relative to the total expected costs
to complete the performance obligation. This method is considered to be the most appropriate
as the inclusion of all costs, being materials, labour and direct overheads, best reflects the activities
required in performing the promise to the customer.
• Hunting’s activities that require revenue recognition at a point in time comprise:
1. The sale of goods that are not specifically designed for use by one particular customer. These
products include tubulars acquired by Hunting as plain-end pipe on which lathing work has been
applied and which are resold as threaded pipe; and
2. The manufacture of goods that are specifically designed for one particular customer but for which
Hunting does not have an enforceable right to payment for the work completed to date.
• In determining the point in time in which control is transferred to customers and revenue is
recognised, the Group evaluates all relevant facts and circumstances.
• The events that trigger the recognition of revenue at a point in time are most commonly:
(i) delivery of the product in accordance with the contractual terms, or (ii) when confirming shipping
documents, which indicate transfer of legal title and an ability to direct the goods, are made
available to a customer, before which the Group retains the ability to direct the use of, and obtain,
substantially all of the remaining benefits from the goods, or (iii) when the product is made available
to the customer for collection.
• When revenue from a customer is recognised, the amount is reported on the balance sheet as a
contract asset if the performance obligation is incomplete as this asset reflects that it is conditional
upon Hunting completing the work. The revenue is recognised on the balance sheet as a trade
receivable if a sales invoice has been issued as this asset reflects that it is unconditional other than
the passage of time. The revenue is reported on the balance sheet as accrued income if the
performance obligation has been completed but a sales invoice has not yet been issued. Accrued
income is a sub-category of trade receivables, where receipt of cash is dependent only upon the
passage of time. The Group recognises a contract liability on the balance sheet when amounts
received and receivable from the customer exceed the value of the work done to date, reflecting
that the Group is obligated to transfer goods or services in order to settle the prepayment from
the customer.
(ii) Rental revenue
• Rental revenue from operating leases, being leases in which Hunting does not transfer substantially
all of the risks and rewards of the leased asset to the customer, is recognised as the income is earned.
For Hunting this comprises the leases of properties to third parties and tools to customers.
• Revenue from finance leases, being leases in which Hunting, as a manufacturer/dealer-lessor,
transfers substantially all of the risks and rewards of the leased asset to the customer, is measured
as the fair value of the underlying asset or, if lower, the present value of the lease payments. The
carrying value of the leased asset minus the unguaranteed residual value is charged to cost of sales
Hunting PLC
222
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
41. Material accounting policies
continued
• Interest income and expense is recognised in the consolidated income statement using the effective
• The financial statements for each of the Group’s subsidiaries, associates and joint ventures are
denominated in their respective functional currencies.
• The functional currency is the currency of the primary economic environment in which the entity
• Transactions denominated in currencies other than the functional currency are translated into the
functional currency at the exchange rate ruling at the date of the transaction.
• Monetary assets and liabilities, except borrowings designated as a hedging instrument in a net
investment hedge, denominated in non-functional currencies are retranslated at the exchange rate
ruling at the balance sheet date and exchange differences are taken to the consolidated income
statement.
• Borrowings designated as a hedging instrument in a net investment hedge are retranslated at the
(ii) Group consolidated financial statements
• The presentation currency of the Group is US Dollars.
• The net assets of non-US Dollar denominated subsidiaries, associates and joint ventures
are translated into US Dollars at the exchange rates ruling at the balance sheet date.
• The income statements of subsidiaries, associates and joint ventures are translated into US Dollars
at the average exchange rates for the year.
• Exchange differences are recognised directly in equity in the currency translation reserve (“CTR”),
together with exchange differences arising on foreign currency loans used to finance foreign
currency net investments.
• Upon adoption of IFRS on 1 January 2004, accumulated exchange differences arising on
consolidation prior to 31 December 2003 were reset to zero and the CTR recommenced under
IFRS on 1 January 2004.
• The balance on the CTR represents the exchange differences arising on the retranslation of non-US
Dollar amounts into US Dollars since 1 January 2004.
• On the disposal of a business, the cumulative exchange differences previously recognised in the
CTR relating to that business are transferred to the consolidated income statement as part of the
• The taxation recognised in the consolidated income statement comprises current tax and deferred
tax arising on the current year’s result before tax and adjustments to tax arising on prior years’ results.
• Current tax is the expected tax payable or receivable arising in the current year on the current year’s
result before tax, using tax rates enacted or substantively enacted at the balance sheet date, plus
adjustments to tax in respect of prior years’ results.
Group’s consolidated balance sheet are realised, using tax rates enacted or substantively enacted at
the balance sheet date that are expected to apply when the asset is realised or the liability is settled.
• Full provision is made for deferred tax, using the liability method, on all taxable temporary
differences. Deferred tax assets and liabilities are recognised separately in the consolidated balance
sheet and are reported as non-current assets and liabilities.
• Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred
tax assets are recognised to the extent that it is probable that the unwind of taxable temporary
differences, and/or future suitable and sufficient taxable profits, will be available against which
deductible temporary differences can be utilised. Such assets and liabilities are not recognised if
the temporary difference arises from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting
profit and at the time of transaction does not give rise to equal amounts of taxable and deductible
temporary differences. In addition, a deferred tax liability is not recognised if the temporary
difference arises from the initial recognition of goodwill.
• Deferred tax liabilities are recognised for taxable temporary differences arising on investments in
subsidiaries and associates, except where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with such investments
are only recognised to the extent that it is probable that there will be sufficient taxable profits against
which to utilise the benefits of the temporary differences and they are expected to reverse in the
foreseeable future. The recoverability of deferred tax assets is reviewed at each balance sheet date
and deferred tax assets are recognised to the extent that sufficient taxable profit is expected to be
available to allow the deferred tax asset to be utilised.
• When items of income and expense are recognised in other comprehensive income, the current
Hunting PLC
223
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
41. Material accounting policies
continued
• Property, plant and equipment is stated at cost less accumulated depreciation and accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition and
installation of the asset.
• Land and assets under construction are not depreciated.
• Assets are depreciated using the straight-line method at the following rates:
Freehold buildings | – 2% to 10% |
Leasehold buildings | – life of lease |
Plant, machinery and motor vehicles | – 6% to 331⁄ 3 % |
Rental tools | – 3% to 25% |
• The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end
• Lessees:
With regard to lessee contracts, the Group recognises a lease obligation as a liability and a
right-of-use asset at the inception of the contract, except with regard to the two exemptions
noted below.
In measuring the lease liability, the Group takes account of all fixed payments and the known
amount of variable payments which depend on an index or rate. Management also assesses
the likelihood of the Group exercising extension options, early termination options and purchase
options when contractually offered, and incorporates the relevant assumed cash flows in the initial
measurement. These future gross cash flows are then discounted using the incremental borrowing
rate (“IBR”) that is relevant to each lease. The interest rate implicit in the lease is not used as the
Group is unable to access the specific financials of the lessor that would be required in order to
determine that rate. The IBR is determined by reference to: (i) the weighted average period of the
lease term; (ii) the risk-free rate of the currency of the lease, adjusted for country-specific
government bond yields for contracts denominated in the Euro; (iii) the market risk premium
associated with the currency of denomination of the contract; (iv) a financing spread associated with
the financial status and country of location of the lessee entity; and (v) an asset-specific adjustment
associated with the perceived security that each type of asset provides to the lessor.
The right-of-use asset is usually initially measured as equal to the initial measurement of the lease
liability plus any contracted remediation work that would be required at the end of the lease term as
there are usually no initial direct costs or lease payments made prior to the inception of the contract.
Whenever circumstances change post-inception, for example when the judged likelihood of
whether an option will or will not be exercised, or indices relevant to the measurement of variable
payments change, or the lease term is extended with regard to a contract that does not offer an
extension option, the lease liability is remeasured and the right-of-use asset is correspondingly
amended. Remeasurement of the lease liability is typically based on a revised IBR as the change
in circumstances has most commonly resulted from a change in the lease term.
charged on the lease liability and as depreciation charged on the right-of-use asset. Depreciation is
charged on a straight-line basis over the lease term; to date the Group has not and is not expected
Hunting has adopted the two exemptions that permit lessees to charge the cost of certain leases
directly to the consolidated income statement on a straight-line basis over the lease term. The two
exemptions apply to:
–
leases that have a duration of one year or less; and
–
leases of assets that would have cost $5,000 or less, when new, to acquire if the asset had been
purchased rather than leased.
• Lessors:
Hunting enters into lease arrangements as a lessor with respect to some of its owned and leased
land and buildings and where it leases equipment to customers in the capacity of a manufacturer/
dealer lessor.
Leases for which Hunting is a lessor are classified as finance leases or operating leases. Whenever
the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the
contract is classified as a finance lease. All other leases are classified as operating leases. Rental
income from operating leases is recognised on a straight-line basis over the term of the relevant
lease. Amounts due from lessees/customers under finance leases are recognised as receivables at
the amount of the Group’s net investment in the leases, after derecognition of the underlying asset.
Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of
Hunting PLC
224
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
41. Material accounting policies
continued
• Goodwill arises when the fair value of the consideration paid for a business exceeds the fair value
of the Group’s share of the net assets acquired.
• Goodwill is recognised as an asset and is carried at cost less accumulated impairment losses.
• Goodwill is allocated to cash-generating units (“CGUs”) for the purpose of impairment testing. The
allocation is made to the CGUs or groups of CGUs that are expected to benefit from the business
combination in which the goodwill arose. Goodwill is not allocated to a CGU or CGU group larger
than an operating segment.
• A CGU is the smallest identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or groups of assets.
• On the disposal of a business, goodwill relating to that business that remains in the consolidated
• Other intangible assets, whether obtained through acquisition or internal development, are
capitalised when it is probable that the future economic benefits that are attributable to the asset
will be generated, provided the cost of the asset can be measured reliably.
• Capitalisation occurs from the point when technical and commercial feasibility of the asset has been
established. Prior to this, costs are expensed. For internally generated assets, only costs directly
attributable to the development of the asset are capitalised. This typically includes employee
remuneration and the cost of materials and services, such as testing, consumed in generating the
intangible asset.
• Variable costs arising on purchases of intangible assets, which depend on a future event and
therefore cannot be measured reliably due to uncertainty, are excluded from the initial
measurement. The obligation for such variable payments is recognised as a liability when incurred
and subsequent changes to the liability are accounted for by recognising them in profit or loss in the
period in which they arise.
• Other intangible assets are stated at cost less accumulated amortisation and any impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset.
• These assets have a finite life and are amortised in accordance with the pattern of expected future
economic benefits, or when this cannot be reliably estimated, by using the straight-line method.
• Intangible assets are amortised over the following periods:
Customer relationships |
– eight to ten years |
Unpatented technology |
– eight to fifteen years |
Patents |
– eight to fifteen years |
Trademarks and domain names |
– one to five years |
Software |
– three to eight years |
• An associate is an entity over which the Group has significant influence but not control or joint
control. A joint venture is a joint arrangement whereby the parties that have joint control have rights
to the net assets of the arrangement.
• The Group’s interests in these investments are accounted for using the equity method of accounting.
• Upon initial recognition as at the date of acquisition, the interests are recognised in the balance
sheet at cost plus directly incurred acquisition-related expenses. The excess of cost above the
share of net assets is ascribed to goodwill and other intangible assets, as appropriate. The
intangible assets are subsequently amortised and presented in the consolidated income statement
as part of the post-tax share of the acquiree’s results.
• Subsequently, the carrying amount of the investment is adjusted to include the Group’s share of
the net assets after the date of acquisition and is assessed for impairment as a single asset at each
balance sheet date. The Group recognises its share of the acquiree’s net profit or loss after taxation
as a separate line in the consolidated income statement. The Group’s share of the acquiree’s net
assets plus direct acquisition expenses, goodwill and other acquisition-related intangible assets is
• The Group assesses at least annually whether there is any indication that an asset is impaired,
and undertakes an assessment for an impairment if such an indication exists.
• In addition, the Group undertakes an annual impairment assessment of goodwill, whether or not
an indication of impairment actually exists.
• Where assets do not generate their own independent cash flows, they are tested at a CGU level
and, if impairment is identified, the carrying amount of the CGU is reduced to its recoverable
amount. For assets that generate independent cash flows, the specific asset is impaired to its
recoverable amount if an impairment is identified.
• Where an impairment exists, an asset or CGU is written down to its recoverable amount being
the higher of: (a) its fair value less costs to sell; and (b) its value-in-use. Details of how value-in-use
is determined are given in note 15.
• Impairments are recognised immediately in the consolidated income statement.
• An impairment of goodwill is never reversed. When applicable, an impairment of any other asset
or CGU is reversed, but only to the extent that the consequent carrying value does not exceed
• Inventories are stated at the lower of cost and net realisable value.
• Cost is determined using the first-in-first-out method and net realisable value is the estimated selling
price less costs of disposal in the ordinary course of business. The cost of inventories includes
Hunting PLC
225
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
41. Material accounting policies
continued
• Cash and cash equivalents comprise cash at bank and in hand, short-term deposits, qualifying
fixed-term funds and money market funds, with a maturity of less than three months from the date
of deposit.
• Short-term deposits, fixed-term funds and money market funds have been classified as cash and
cash equivalents as they are short-term, highly liquid, are readily convertible to a known amount of
cash, and are subject to an insignificant risk of change in value. These instruments are held for the
purpose of settling current or potential cash commitments in the short term by the treasury function.
• At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss (“FVTPL”), transaction costs. Transaction costs
of financial assets at FVTPL are expensed immediately to the consolidated income statement.
• Subsequent measurement of debt instruments depends on each Group entity’s business model for
managing the asset in order to generate cash flows and the cash flow characteristics of the financial
asset. The Group’s debt instruments are classified into amortised cost or FVTPL.
• Debt instruments that are held for the collection of contractual cash flows, where those cash flows
represent solely payments of principal and interest, are subsequently measured at amortised cost.
Interest income from these financial assets is included in finance income using the effective interest
method. If collection is expected in one year or less they are classified as current assets, otherwise
they are presented as non-current assets. Debt instruments held for collection of contractual cash
flows include contract assets, trade receivables, accrued revenue and other receivables.
• Any other debt instruments, including the convertible financing, fixed-term funds and money market
funds, which are subsequently not measured at amortised cost have been measured at FVTPL.
• The Group’s financial assets that are equity instruments, or debt instruments that are convertible
into equity, are subsequently measured at FVTPL. Changes in the fair value of these instruments
are recognised in other operating income, operating expenses, finance income or finance expense,
as appropriate. Financial assets that are equity instruments comprise listed equity investments and
mutual funds. The convertible debt instrument is currently a loan on which interest is earned prior to
its potential conversion into equity, the conversion of which is dependent upon events outside of the
Group’s control.
• The Group applies lifetime expected credit losses (“ECLs”) to trade receivables, accrued revenue,
the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the
risks and rewards of ownership and continues to control the transferred asset, the Group recognises
its retained interest in the asset and an associated liability for amounts it may have to pay. If the
Group retains substantially all the risks and rewards of ownership of a transferred financial asset,
the Group continues to recognise the financial asset and also recognises a collateralised borrowing
• Financial liabilities are initially recognised at fair value at the trade date, which is normally the
consideration received less, in the case of financial liabilities that are not measured at FVTPL,
transaction costs. The Group subsequently remeasures all of its non-derivative financial liabilities,
including trade payables, at amortised cost.
• Payables are classified as current liabilities if payment is due within one year, otherwise they are
and other payables as they represent payments to suppliers for materials and form part of the
working capital used in the Group’s normal operating cycle. Such amounts are presented as other
• Transaction costs in relation to the arrangement of borrowing facilities are capitalised and
subsequently amortised on a straight-line basis over the expected life of the facility. The charge
is recognised within finance expense in the consolidated income statement. Capitalised costs are
• Derivatives are initially recognised at fair value on the date the derivative contract is entered into
and are subsequently remeasured to their fair value at the end of each reporting period.
• The full fair value of a derivative is classified as a non-current asset or liability when the remaining
maturity of the derivative is more than 12 months from the balance sheet date.
• The accounting for subsequent changes in fair value depends on whether the derivative is
designated as a hedging instrument, and if so, the nature of the item being hedged.
• Where the derivatives are not designated in a hedge and accounted for using hedge accounting,
they are classified as “held for trading” and are accounted for at FVTPL, with changes in the fair
value recognised immediately within the consolidated income statement.
• The Group designates certain derivatives as:
i. hedges of the fair value of recognised assets and liabilities; or
ii.
hedges of a particular risk associated with the cash flows of highly probable forecast transactions; or
iii. a hedge of the net investment in a foreign operation.
• The Group has not disclosed the accounting polices relating to fair value hedges and cash flow
Hunting PLC
226
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Consolidated Financial Statements
continued
41. Material accounting policies
continued
• Provisions are recognised when the Group has a present obligation as a result of a past event
and it is probable that an outflow of resources will be required to settle the obligation.
• The measurement of a provision is based on the most likely amount and timing of the expenditures.
Payments that are expected to arise after more than one year are discounted to their present
value using a risk-free interest rate that is relevant to the region in which the past event occurred.
• Payments to defined contribution retirement schemes are charged to the consolidated income
• The Group issues equity-settled and cash-settled share-based payments (HPSP awards) to
certain employees as consideration for services received from the employees. The fair value of
the employees’ services is recognised as an expense in the consolidated income statement on
a straight-line basis over the vesting period, and in the case of non-market based vesting conditions,
based on the Group’s estimate of awards that will ultimately vest. The obligation to settle the equity
awards is recognised within other components of equity; the obligation to settle the cash-settled
• Incremental costs directly attributable to the issue of new shares are charged to equity as a deduction
• Dividends to the Group’s shareholders are recognised as liabilities in the Group’s financial statements
in the period in which the dividends are approved by shareholders. Interim dividends are recognised
• The Hunting PLC Employee Benefit Trust (“EBT”) holds treasury shares, which are shares in Hunting
PLC, for the purpose of issuing shares to employees of the Group under share-based remuneration
schemes. The EBT is consolidated in accordance with note 41(a) above.
• The cost of treasury shares is presented as a deduction from retained earnings in the consolidated
balance sheet.
(x) Share buyback
• When the Group purchases its own shares, the consideration paid, including any directly
attributable incremental costs, is recognised as a deduction from equity.
• Where shares are cancelled, the nominal value of the shares is transferred from share capital to a
Notes
2025
$m
2024
$m
ASSETS
Non-current assets
Investments in subsidiaries
C4
205.3
205.3
Other receivables
C5
572.5
609.5
Deferred tax asset
0.1
–
777.9
814.8
Current assets
Other receivables
C5
1.0
0.6
Current tax asset
–
0.1
1.0
0.7
LIABILITIES
Current liabilities
Other payables
C6
(11.2)
(3.4)
Provisions
(0.9)
(0.1)
Current tax liability
(0.2)
–
(12.3)
(3.5)
Net current liabilities
(11.3)
(2.8)
Non-current liabilities
Provisions
–
(0.7)
Net assets
766.6
811.3
Equity attributable to owners of the parent
Share capital
C9
63.6
66.5
Share premium
C9
153.1
153.1
Other components of equity
C10
2.2
4.2
Retained earnings
C11
547.7
587.5
Total equity
766.6
811.3
The Company has elected to take the exemption under Section 408 of the Companies Act 2006 from presenting its own income statement and statement of comprehensive income. Profit and total
comprehensive income for the year of $23.6m (2024 – $26.9m) has been accounted for in the financial statements of the Company.
The notes on pages 229 to 234 are an integral part of these financial statements. The financial statements on pages 227 to 234 were approved by the Board of Directors on 5 March 2026 and were signed on
its behalf by:
Jim Johnson
Bruce Ferguson
Director
Director
Registered number: 00974568
Company Balance Sheet
At 31 December
Hunting PLC
Annual Report and Accounts 2025
227
Strategic Report
Corporate Governance
Financial Statements
Other Information
Share
capital
$m
Share
premium
$m
Other
components
of equity
i
$m
Retained
earnings
$m
Total
equity
$m
At 1 January 2024
66.5
153.0
1.5
582.3
803.3
Profit for the year and total comprehensive income
–
–
–
26.9
26.9
Dividends paid to Hunting PLC shareholders
C12
–
–
–
(16.7)
(16.7)
Treasury shares:
– purchase of treasury shares
C11
–
–
–
(14.2)
(14.2)
– disposal of treasury shares
C9, C11
–
0.1
–
0.2
0.3
Share options and awards:
– value of employee services
C10
–
–
12.3
–
12.3
– discharge
C10, C11
–
–
(9.6)
9.0
(0.6)
At 31 December 2024
66.5
153.1
4.2
587.5
811.3
Profit for the year and total comprehensive income
–
–
–
23.6
23.6
Dividends paid to Hunting PLC shareholders
C12
–
–
–
(19.1)
(19.1)
Share buyback
C9
(2.9)
–
2.4
(39.9)
(40.4)
Treasury shares:
– purchase of treasury shares
C11
–
–
–
(19.3)
(19.3)
– disposal of treasury shares
C11
–
–
–
1.1
1.1
Share options and awards:
– value of employee services
C10
–
–
10.8
–
10.8
– discharge
C10, C11
–
–
(15.2)
13.8
(1.4)
At 31 December 2025
63.6
153.1
2.2
547.7
766.6
i.
An analysis of other components of equity is provided in note C10.
Company Statement of Changes in Equity
For the year ended 31 December
Hunting PLC
Annual Report and Accounts 2025
228
Strategic Report
Corporate Governance
Financial Statements
Other Information
C1. Basis of preparation
Hunting PLC is a public company limited by shares, quoted on the London Stock Exchange in the
Equity Shares in Commercial Companies (ESCC) category. Hunting PLC was incorporated in the
United Kingdom under the Companies Act and is registered in England and Wales. The address of the
Company’s registered office is 30 Panton Street, London, SW1Y 4AJ, United Kingdom. The Company
acts as a holding company for the Hunting PLC Group. Details of the Company’s associates and joint
ventures are given in note C14 and details of subsidiaries are given in note C15.
The Company meets the definition of a qualifying entity under Financial Reporting Standard 100
“Application of Financial Reporting Requirements” (FRS 100). Accordingly, these financial statements
have been prepared in accordance with FRS 101 “Reduced Disclosure Framework” (FRS 101).
In preparing these financial statements, the Company applies the recognition and measurement
requirements of United Kingdom adopted international accounting standards, with a reduced level of
disclosure, but makes amendments where necessary to comply with the Companies Act 2006.
As permitted by FRS 101, the Company has taken advantage of the following disclosure exemptions,
and not disclosed:
• A cash flow statement and related notes;
• Disclosures in respect of capital management;
• The effects of new but not yet effective IFRS; and
• Disclosures in respect of the compensation of key management personnel.
As the consolidated financial statements include the equivalent disclosures, the Company has also
taken the FRS 101 exemptions available for the following disclosures:
• IFRS 2 “Share-based Payment” in respect of Group settled share-based payments; and
• The disclosures required by IFRS 7 ‘Financial Instruments: Disclosures’ and certain disclosures
required by IFRS 13 ‘Fair Value Measurement’.
The financial statements have been prepared on a going concern basis under the historical cost
convention. The Board’s consideration of going concern is detailed further in the Strategic Report on
page 100. The financial statements are presented in US Dollars, the currency of the primary economic
environment in which the Company operates.
Notes to the Company Financial Statements
From the perspective of the Company, the principal risks and uncertainties are integrated with
the principal risks of the Hunting PLC Group and are not managed separately. The principal risks
and uncertainties of the Hunting PLC Group, which include those of the Company, are discussed
on pages 91 to 95 in the Risk Management section of the Annual Report.
The Company’s material accounting policies applied in the preparation of these financial statements
are the same as those set out in note 41 of the Group’s financial statements, except for investments
in subsidiaries that are stated at cost, which is the fair value of the consideration paid, less provision
for impairment. These policies have been consistently applied to all the years presented.
Critical accounting judgements and key sources of estimation uncertainty
Critical accounting judgements are those that the Directors have made in the process of applying the
Company’s accounting policies and have the most significant effect on the amounts recognised in the
Company’s financial statements. Key estimates are those concerning future expectations and other
key sources of estimation uncertainty at the end of the reporting period, that may have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year.
Management believes that there are no critical accounting judgements or key sources of estimation
uncertainty applied in the preparation of the Company’s financial statements.
C2. Employees
The Company had no employees during the current or prior year.
C3. Auditor’s remuneration
2025
$m
2024
$m
Fees payable to the Company’s independent auditor
and its associates are for:
The audit of these financial statements
0.5
0.5
Hunting PLC
Annual Report and Accounts 2025
229
Strategic Report
Corporate Governance
Financial Statements
Other Information
C4. Investments in subsidiaries
2025
$m
2024
$m
Cost:
At 1 January and 31 December
436.8
436.8
Impairment:
At 1 January and 31 December
(231.5)
(231.5)
Net book amount
205.3
205.3
The Company’s subsidiaries are detailed in note C15. Investments in subsidiaries are recorded at cost,
which is the fair value of the consideration paid, less impairment.
(a) Impairment tests
In respect of the carrying value of the Company’s investments in subsidiaries, assessments
are undertaken at least annually to determine whether there have been any events or changes
in circumstances that indicate that the carrying value may be impaired. An impairment review
is carried out when such indicators are present by comparing the carrying value of a subsidiary
to its recoverable amount. The recoverable amount for the investments are determined using a
value-in-use method which uses discounted cash flow projections.
For the investment in Hunting Energy Holdings Limited, the Company has utilised the recoverable
amounts determined by the Group impairment review. The Group impairment testing process and the
key assumptions are outlined on page 187. Following the impairment review, the recoverable amount
of the investment held in Hunting Energy Holdings Limited is in excess of the carrying value and,
as a result, no impairment charge has been recognised in 2025. In 2024, the impairment charge
recognised in the Group accounts relating to the Hunting Titan CGU did not impact the Company’s
investment in Hunting Energy Holdings Limited, as the recoverable amount of the US Group was
greater than the investment carrying value and therefore there was no impairment charge.
(b) Sensitivities
Management has reviewed various downside sensitivities versus the base case assumptions used
in the projections. These covered revenue growth rates, terminal revenue growth rates, discount rates
and foreign exchange rates. Management has concluded that there are no reasonably foreseeable
changes in key assumptions that would give rise to an impairment charge.
C5. Other receivables
2025
$m
2024
$m
Non-current:
Loans receivable from a subsidiary – interest-bearing
572.4
609.4
Prepayments
0.1
0.1
572.5
609.5
Current:
Receivables from subsidiaries
0.3
0.1
Prepayments
0.4
0.4
Other receivables
0.3
0.1
1.0
0.6
Receivables from subsidiaries’ current accounts are unsecured, interest free and repayable on
demand. The Company does not hold any collateral as security and no assets have been acquired
through the exercise of any collateral previously held.
(a) Impairment of receivables
Default on a financial asset is usually considered to have occurred when any contractual payments
under the terms of the debt are more than 90 days overdue. Receivables are written off when there
is no reasonable expectation of recovery. Indicators that receivables are generally not recoverable
include the failure of the debtor to engage in a repayment plan, failure to make contractual payments
for a period greater than 180 days past due and the debtor being placed in administration. Where
receivables have been written off, the entity will continue to try to recover the outstanding receivable.
(b) Impairment of loan receivable
The Company assesses on a forward-looking basis the expected credit losses (“ECLs”) at each
balance sheet date associated with its loan receivable from a subsidiary company carried at
amortised cost. The impairment methodology applied, following the adoption of the general model
under IFRS 9, will depend upon whether there has been a significant increase in credit risk.
To assess whether there has been a significant increase in credit risk, the risk of default occurring as
at 31 December 2025 is compared with the risk of default occurring at the date of initial recognition.
Indicators of a significant increase in credit risk include events that have a negative impact on the
estimated future cash flows and if any payments under the terms of the debt are more than 30 days
overdue. Macroeconomic information is also considered.
At 31 December 2025, the Company’s loan receivable was not overdue and the Company does
not consider it necessary to provide for any impairment. The loan receivable is expected to be fully
recovered, as there is no recent history of default or any indications that the contractual payments will
not be made. The Company’s maximum exposure to credit risk is the fair value of the loan receivable.
Notes to the Company Financial Statements
continued
Hunting PLC
Annual Report and Accounts 2025
230
Strategic Report
Corporate Governance
Financial Statements
Other Information
(c) Impairment of receivables from subsidiaries and other receivables
None of the Company’s receivables from subsidiaries and other receivables (2024 – none) were overdue
at the year-end and the Company does not consider it necessary to provide for any impairments as
there is no recent history of default or any indications that the contractual payments will not be made.
The Company’s maximum exposure to credit risk is the fair value of each class of receivable.
C6. Other payables
2025
$m
2024
$m
Current:
Payables to subsidiaries
2.3
2.0
Accruals
2.0
1.2
Other payables
6.9
0.2
11.2
3.4
Current payables due to subsidiaries are unsecured, interest free and repayable on demand.
Within other payables in 2025 is a financial liability for $6.5m in relation to an obligation for Hunting
to purchase its own shares, see note 33 of the Group’s financial statements for further details.
C7. Derivatives and hedging
The Company has used forward foreign exchange contracts to hedge its exposure to exchange
rate movements during the year. At 31 December 2025, the Company had no outstanding forward
foreign exchange contracts (2024 – none). Gains and losses on contracts that are not designated in
a hedge relationship are taken directly to the income statement. Changes in the fair value of currency
derivatives not designated in a hedge relationship amounting to a loss of $0.2m (2024 – $nil) were
recognised in the income statement during the year.
C8. Post-employment benefits
The Company has no employees and therefore does not participate in any of the post-employment
benefit schemes shown in note 32 of the Group’s financial statements, although it does guarantee
the contributions due by the participating employers.
C9. Share capital and share premium
Please see note 33 of the Group’s financial statements.
C10. Other components of equity
Share-based
payments
reserve
$m
Currency
translation
reserve
$m
Capital
redemption
reserve
$m
Total
$m
At 1 January 2024
19.9
(19.2)
0.8
1.5
Share options and awards:
– value of employee services
12.3
–
–
12.3
– discharge
(9.6)
–
–
(9.6)
At 31 December 2024
22.6
(19.2)
0.8
4.2
Share buyback (note C9)
–
–
2.4
2.4
Share options and awards:
– value of employee services
10.8
–
–
10.8
– discharge
(15.2)
–
–
(15.2)
At 31 December 2025
18.2
(19.2)
3.2
2.2
The share-based payments reserve represents the Company’s obligation to settle share-based
awards issued to employees of the Hunting PLC Group. When employees exercise their awards,
the portion of the share-based payments reserve which represents the share-based payment
charge for those awards is transferred to retained earnings and the Group discharges its obligation.
The currency translation reserve contains the accumulated foreign exchange differences arising on
foreign currency loans used to finance foreign currency net investments and also foreign exchange
differences arising on the Company’s change in presentational currency from Sterling to US Dollars
on 1 January 2013.
The capital redemption reserve is a statutory, non-distributable reserve into which amounts are
transferred following the purchase of the Company’s own shares out of distributable profits.
Notes to the Company Financial Statements
continued
C5. Other receivables
continued
Hunting PLC
Annual Report and Accounts 2025
231
Strategic Report
Corporate Governance
Financial Statements
Other Information
Notes to the Company Financial Statements
continued
C11. Retained earnings
2025
$m
2024
$m
At 1 January
587.5
582.3
Profit for the year
23.6
26.9
Dividends paid to Hunting PLC shareholders (note C12)
(19.1)
(16.7)
Share buyback (note C9)
(39.9)
–
Treasury shares:
– purchase of treasury shares
(19.3)
(14.2)
– proceeds on disposal of treasury shares
1.1
0.2
Share options and awards:
– discharge
13.8
9.0
At 31 December
547.7
587.5
Retained earnings include the following amounts in respect of the carrying amount of treasury shares:
2025
$m
2024
$m
Cost:
At 1 January
(28.5)
(22.2)
Purchase of treasury shares
(19.3)
(14.2)
Cost of treasury shares disposed
21.7
7.9
At 31 December
(26.1)
(28.5)
At 31 December 2025, 6,716,928 Ordinary shares were held by the Employee Benefit Trust (2024 –
7,191,845). The Company purchased 5,019,609 (2024 – 2,917,742) additional treasury shares during
the year for $19.3m (2024 – $14.2m). The loss on disposal of treasury shares during the year, which is
recognised in retained earnings, was $20.6m (2024 – $7.7m).
C12. Dividends paid to Hunting PLC shareholders
Please see note 36 of the Group’s financial statements.
C13. Related-party transactions
The following related-party transactions took place between the Company and subsidiaries of the
Group during the year:
2025
$m
2024
$m
Transactions:
Royalties receivable
9.7
10.0
Management fees payable
(11.7)
(11.2)
Recharges of share options and awards and administrative expenses
13.6
14.5
Loans to subsidiary
–
(10.0)
Loans to subsidiary repaid
37.0
–
Interest receivable on intercompany loans
41.4
43.6
Payables to subsidiaries
(2.3)
(2.0)
Receivables from subsidiaries
0.3
0.1
Loans owed by subsidiaries
572.4
609.4
All balances between the Company and its subsidiaries are unsecured.
The Company serves as the intermediary for certain Group insurances and is also the head of the VAT
group for the UK central companies and Enpro Subsea Limited, which joined in 2024.
Hunting PLC is the parent company of the Hunting PLC Group. The Company is listed on the London
Stock Exchange, with none of the shareholders owning more than 20% of the issued share capital
of the Company (see page 154). Accordingly, the Directors do not consider there to be an ultimate
controlling party.
Hunting PLC
Annual Report and Accounts 2025
232
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting PLC
233
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Company Financial Statements
continued
Associates are entities over which the Group has significant influence but not control or joint control.
This is generally the case where the Group holds between 20% and 50% of the voting rights.
Joint ventures are entities where the Group has joint control over the entity.
Changes during the year
(a) Rival downhole tools
The Group divested its 23.0% investment in Rival Downhole Tools LC on 3 March 2025.
Associates and joint ventures i/ii | Registered address iii |
Cumberland Additive Holdings LLC (30.7%) | 3813 Helios Way, Suite B200, Pflugerville, Texas, |
78660, USA | |
Jindal Hunting Energy Services Limited (49.0%) | A-1, UPSIDC Industrial Area, Nand Gaon Road, |
Kosi Kalan, Mathura, Uttar Pradesh, 281403, | |
India |
i.
All interests are in the Ordinary equity shares of those companies.
ii.
Interest in company is held indirectly by Hunting PLC.
iii. Associates and joint ventures are incorporated and operate in the countries indicated.
C15. Subsidiaries
Changes to the Group
(a) Hunting Energy Services Production Technology, Inc.
Hunting Energy Services Production Technology, Inc. was incorporated in January 2025.
(b) Hunting do Brasil Ltda
Hunting do Brasil Ltda was incorporated in May 2025.
(c) Flexible Engineered Solutions (Group) Holdings Limited
Flexible Engineered Solutions (Group) Holdings Limited and its subsidiary, Flexible Engineered
Solutions Holdings Limited were acquired in June 2025 (see note 40 of the Group financial
statements).
All companies listed below are wholly owned by the Group, except where otherwise indicated.
Subsidiaries i/ii | Registered address |
Operating activities | |
Hunting Energy Services (Australia) Pty Ltd | Level 40, Governor Macquarie Tower, 1 Farrer |
Place, Sydney, NSW, 2000, Australia | |
Hunting Energy Services (Canada) Ltd. | Suite 200, 7326 10th Street NE, Calgary, Alberta, |
T2E8W1, Canada | |
Hunting Energy Services (Wuxi) Co., Ltd (70%) | Plot 48, Phase 5, Shuofang Industrial Park, Wuxi |
New District, Jiangsu Province, China, 214142 | |
Hunting Energy Completion Equipment | Plot 48, Phase 5, Shuofang Industrial Park, Wuxi |
(Wuxi) Co., Ltd. | New District, Jiangsu Province, China, 214142 |
Hunting Energy Services (UK) Limited iv | 30 Panton Street, London SW1Y 4AJ, England |
Enpro Subsea Limited | Badentoy Avenue, Badentoy Industrial Estate, |
Portlethen, Aberdeen, AB12 4YB, Scotland | |
Enpro Subsea Operations Limited | Badentoy Avenue, Badentoy Industrial Estate, |
Portlethen, Aberdeen, AB12 4YB, Scotland | |
Enpro Subsea Group Limited | Badentoy Avenue, Badentoy Industrial Estate, |
Portlethen, Aberdeen, AB12 4YB, Scotland | |
Enpro Subsea Ghana Ltd (83%) | House No. F676/1, Angola Road, Kuku Hill, Osu, |
Accra, Ghana | |
Enpro Subsea Group Ghana Limited | House No. F676/1, Angola Road, Kuku Hill, Osu, |
Accra, Ghana | |
Flexible Engineered Solutions (Group) Holdings | 30 Panton Street, London SW1Y 4AJ, England |
Limited | |
Flexible Engineered Solutions Holdings Limited | 30 Panton Street, London SW1Y 4AJ, England |
PT Hunting Energy Asia | Complex Dragon Industrial Park, Block D, Jalan |
Pattimura, Kabil Batam, 29467, Indonesia | |
Hunting Alpha (EPZ) Limited (60%) v | Block XLVIII/150, Off Mbaraki Road, P.O. Box |
83344-80100, Mombasa, Kenya | |
Hunting Energy de Mexico | Avenida Los Olmos #105, Parque Industrial |
El Sabinal, Apodaca, Nuevo Leon, Monterrey, | |
Mexico | |
Hunting Energy Services B.V. | Th. van Doesburgweg 6 C, 1703DL |
Heerhugowaard, Netherlands | |
Hunting Energy Services (Norway) AS | Arabergveien 6, 4050 Sola, Norway |
Hunting Energy Saudi Arabia LLC (65%) | Dhahran, Building No: 7612, P.O. Box: 3104, Zip |
Code: 34521, Saudi Arabia | |
Hunting Energy Services Limited | Badentoy Avenue, Badentoy Park, Portlethen, |
Aberdeen, AB12 4YB, Scotland | |
Hunting Energy Services Pte. Ltd. | 16E Tuas Avenue 1, #01-61, Singapore, 639537 |
Hunting Energy Services (China) Pte. Ltd. (70%) | 16E Tuas Avenue 1, #01-61, Singapore, 639537 |
Hunting PLC
234
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual Report and Accounts 2025
Notes to the Company Financial Statements
continued
C15. Subsidiaries
continued
Subsidiaries i/ii | Registered address |
Hunting Energy Services India Private Limited | Innov8 CP2 44, Backary Portion, 2nd Floor, |
Regal Building, New Delhi, Delhi 110001, India | |
Hunting Energy Services FZE | S40432, Jebel Ali Freezone, Dubai, UAE |
Hunting do Brasil Ltda | Avenida das Americas, 4200, Bloco 02, Sala 301, |
Barra da Tijuca, Rio de Janeiro, RJ, 22640-907, | |
Brazil | |
National Coupling Company, Inc. | 1316 Staffordshire Road, Staffordshire, Texas, |
77477, USA | |
Hunting Energy Services, LLC | 16825 Northchase Drive, Suite 600, Houston, |
Texas, 77060, USA | |
Premium Finishes, Inc. | 16825 Northchase Drive, Suite 600, Houston, |
Texas, 77060, USA | |
Hunting Dearborn, Inc. | 6 Dearborn Drive, Fryeburg, Maine, 04037, USA |
Hunting Energy Services (Drilling Tools), Inc. | 16825 Northchase Drive, Suite 600, Houston, |
Texas, 77060, USA | |
Hunting Innova, Inc. | 8383 North Sam Houston Parkway West, |
Houston, Texas, 77064, USA | |
Hunting Specialty Supply, Inc. | 100 E. Wally Wilkerson Parkway, Conroe, Texas, |
77303, USA | |
Hunting Titan, Inc. | 16825 Northchase Drive, Suite 600, Houston, |
Texas, 77060, USA | |
Tenkay Resources, Inc. | 16825 Northchase Drive, Suite 600, Houston, |
Texas, 77060, USA | |
Hunting Energy Services Production | 16825 Northchase Drive, Suite 600, Houston, |
Technology, Inc. | Texas, 77060, USA |
Subsidiaries i/ii | Registered address |
Corporate activities | |
Hunting Energy Holdings Limited iii | 30 Panton Street, London SW1Y 4AJ, England |
Hunting Energy Services (International) Limited iv | 30 Panton Street, London SW1Y 4AJ, England |
Hunting Energy Services Overseas Holdings | 30 Panton Street, London SW1Y 4AJ, England |
Limited iv | |
Hunting Oil Holdings Limited iii/iv | 30 Panton Street, London SW1Y 4AJ, England |
Hunting Knightsbridge Holdings Limited | 30 Panton Street, London SW1Y 4AJ, England |
Huntaven Properties Limited iv | 30 Panton Street, London SW1Y 4AJ, England |
HG Management Services Ltd | 30 Panton Street, London SW1Y 4AJ, England |
Huntfield Trust Limited iv | 30 Panton Street, London SW1Y 4AJ, England |
Stag Line Limited iv | 30 Panton Street, London SW1Y 4AJ, England |
Hunting U.S. Holdings, Inc. | 16825 Northchase Drive, Suite 600, Houston, |
Texas, 77060, USA |
i.
Except where otherwise stated, companies are wholly owned, have been incorporated and are operating in the countries indicated.
All subsidiary undertakings have been included in the consolidated financial statements.
ii.
All interests in subsidiaries are in the Ordinary equity shares of those companies. The proportion of voting rights is represented by the
interest in the Ordinary equity shares of those companies.
iii. Interest in company is held directly by Hunting PLC.
iv.
Hunting Energy Services (UK) Limited (registered number 00908371), Hunting Energy Services (International) Limited (registered number
01678668), Hunting Energy Services Overseas Holdings Limited (registered number 03532045), Hunting Oil Holdings Limited (registered
number 01103530), Huntaven Properties Limited (registered number 00841865), Huntfield Trust Limited (registered number 00372215)
and Stag Line Limited (registered number 00151320) are dormant companies that are exempt from being audited, are exempt from the
requirements to prepare individual accounts under section 394A of the Companies Act 2006 and are exempt from filing individual accounts
under section 448A of the Companies Act 2006.
v.
Other Information
04
Non-GAAP Measures
236
Financial Record
244
Shareholder and Statutory Information
245
Glossary
247
Professional Advisers
251
Hunting PLC
Annual Report and Accounts 2025
235
Strategic Report
Corporate Governance
Financial Statements
Other Information
The performance of the Group is assessed by the Directors using a number of measures, which
are not defined under IFRS, and are therefore considered to be non-GAAP measures (“NGMs”).
The measures used by the Group may not be comparable with similarly described measures
presented by other businesses.
The Group presents adjusted profitability measures below, which exclude adjusting items (see NGM A).
The adjusted results, when considered together with results reported under IFRS, provide investors,
analysts and other stakeholders with complementary information which aids comparison of the
Group’s financial performance from one period to the next. These adjusted measures are used by
management for planning, reporting and performance management purposes. The adjusted
profitability measures are reconciled to unadjusted IFRS results presented on the face of the income
statement, with details of the adjusting items provided in NGM A. Adjusted results can be higher or
lower than the IFRS results as they often exclude significant items and should not be regarded as a
complete picture of the Group’s financial performance, which is presented by the IFRS results in the
income statement.
In addition, the Group’s results and financial position are analysed using certain other measures that
are not defined under IFRS and are, therefore, considered to be NGMs. These measures are used
by management to monitor ongoing business performance. This section provides a definition of each
NGM presented in this report, the purpose for which the measure is used and a reconciliation of the
NGM to the reported IFRS numbers.
The auditors are required to consider whether these non-GAAP measures are prepared consistently
with the financial statements.
Income statement non-GAAP measures
A. Adjusting items
Due to their size and nature, the following items are considered to be adjusting items and have been
presented separately.
2025
$m
2024
$m
Restructuring costs
(9.3)
–
Acquisition related costs
(4.9)
–
Impairment of goodwill
–
(109.1)
Total adjustments to operating profit
(14.2)
(109.1)
Tax impact of adjusting items (note 5)
(1.6)
27.8
Adjusting items after tax
(15.8)
(81.3)
Adjusting items after tax attributable to owners of the parent
(15.8)
(81.3)
Adjusting items after tax attributable to non-controlling interests
–
–
(15.8)
(81.3)
Non-GAAP Measures
Hunting PLC
Annual Report and Accounts 2025
236
Strategic Report
Corporate Governance
Financial Statements
Other Information
B. Adjusted profitability measures
Certain reported profit and loss measures are adjusted for the items described in NGM A. This is the
basis used by the Directors in assessing performance.
2025
$m
2024
$m
Operating profit/(loss) – consolidated income statement
76.3
(21.1)
Add back adjusting items (NGM A)
14.2
109.1
Adjusted operating profit
90.5
88.0
Profit/(loss) before tax – consolidated income statement
65.5
(33.5)
Add back adjusting items (NGM A)
14.2
109.1
Adjusted profit before tax
79.7
75.6
Profit/(loss) for the year attributable to owners of the parent
– consolidated income statement
41.1
(28.0)
Add back adjusting items after tax attributable to owners of the parent
(NGM A)
15.8
81.3
Adjusted profit for the year attributable to owners of the parent
56.9
53.3
cents
cents
Adjusted earnings per share:
Adjusted basic EPS
36.3
33.5
Adjusted diluted EPS
34.1
31.4
Non-GAAP Measures
continued
Income statement non-GAAP measures
continued
C. EBITDA
Purpose:
This profit measure is used as a simple proxy for pre-tax cash flows from operating activities.
EBITDA is frequently used by analysts, investors and other interested parties.
Calculation definition:
Adjusted results before interest, tax, depreciation, impairment of non-current
assets and amortisation.
2025
$m
2024
$m
Operating profit/(loss) – consolidated income statement
76.3
(21.1)
Add back adjusting items (NGM A)
14.2
109.1
Adjusted operating profit (NGM B)
90.5
88.0
Add back:
Depreciation of property, plant and equipment (note 11)
25.9
25.2
Depreciation of right-of-use assets (note 12)
7.8
7.2
Amortisation of other intangible assets (note 14)
11.5
5.9
45.2
38.3
EBITDA
135.7
126.3
In 2025, the impairment of property, plant and equipment of $4.2m and impairment of right of
use assets of $0.3m (2024 – $109.1m impairment of goodwill) are presented as adjusting items,
see note 5.
Hunting PLC
Annual Report and Accounts 2025
237
Strategic Report
Corporate Governance
Financial Statements
Other Information
C. EBITDA
continued
EBITDA by operating segment
2025
Hunting
Titan
$m
North
America
$m
Subsea
Technologies
$m
EMEA
$m
Asia
Pacific
$m
Unapportioned
adjusting items
$m
Total
$m
Operating profit/(loss) (note 2)
3.4
50.7
14.4
(20.3)
33.0
(4.9)
76.3
Add back adjusting items (NGM A)
–
–
–
9.3
–
4.9
14.2
Adjusted operating profit/(loss) (NGM B)
3.4
50.7
14.4
(11.0)
33.0
–
90.5
Add back:
Depreciation of property, plant and equipment and right-of-use assets (note 2)
7.1
16.7
2.9
3.6
3.4
–
33.7
Amortisation of other intangible assets (note 2)
2.6
1.7
6.0
0.4
0.8
–
11.5
9.7
18.4
8.9
4.0
4.2
–
45.2
EBITDA
13.1
69.1
23.3
(7.0)
37.2
–
135.7
2024
Hunting
Titan
$m
North
America
$m
Subsea
Technologies
$m
EMEA
$m
Asia
Pacific
$m
Unapportioned
adjusting items
$m
Total
$m
Operating (loss)/profit (note 2)
(117.4)
45.5
25.6
(12.4)
37.6
–
(21.1)
Add back adjusting items (NGM A)
109.1
–
–
–
–
–
109.1
Adjusted operating (loss)/profit (NGM B)
(8.3)
45.5
25.6
(12.4)
37.6
–
88.0
Add back:
Depreciation of property, plant and equipment and right-of-use assets (note 2)
7.2
15.7
2.3
3.9
3.3
–
32.4
Amortisation of other intangible assets (note 2)
1.7
1.0
2.1
0.6
0.5
–
5.9
8.9
16.7
4.4
4.5
3.8
–
38.3
EBITDA
0.6
62.2
30.0
(7.9)
41.4
–
126.3
Non-GAAP Measures
continued
Income statement non-GAAP measures
continued
Hunting PLC
Annual Report and Accounts 2025
238
Strategic Report
Corporate Governance
Financial Statements
Other Information
D. Adjusted tax charge and effective tax rate
Purpose:
The weighted average effective tax rate represents the level of tax, both current and deferred,
being borne by operations on an adjusted basis.
Calculation definition:
The adjusted taxation charge divided by adjusted profit before tax, expressed
as a percentage.
2025
$m
2024
$m
Taxation (charge)/credit – consolidated income statement
(22.7)
8.0
Add back/(deduct) tax impact of adjusting items (NGM A)
1.6
(27.8)
Adjusted taxation charge
(21.1)
(19.8)
Adjusted profit before tax for the year (NGM B)
79.7
75.6
Adjusted effective tax rate
26%
26%
Adjusting items are taxed on an item-by-item basis as shown in NGM A.
Balance sheet non-GAAP measures
E. Working capital
Purpose:
Working capital is a measure of the Group’s liquidity identifying whether the Group has
sufficient assets to cover liabilities as they fall due.
Calculation definition:
Trade, contract and other receivables excluding receivables from associates and
joint ventures, derivative financial assets not in a hedge and deferred bank fees, plus inventories less
trade, contract and other payables excluding payables due to associates and joint ventures, derivative
financial liabilities not in a hedge and retirement plan obligations.
2025
$m
2024
$m
Trade, contract and other receivables – non-current (note 18)
3.8
5.4
Trade, contract and other receivables – current (note 18)
238.5
261.5
Inventories (note 20)
237.5
303.3
Trade, contract and other payables – current (note 22)
(139.3)
(208.5)
Trade, contract and other payables – non-current (note 22)
(5.5)
(5.5)
Add: non-working capital US deferred compensation plan obligation
(note 22)
3.3
2.6
Less: non-working capital current other receivables and other payables
(2.4)
(3.3)
Working capital
335.9
355.5
Revenue for the last three months of the year
253.8
301.8
Working capital as a percentage of annualised revenue
33%
29%
For the purposes of the above calculation, annualised revenue is calculated as revenue for the last
three months of the year multiplied by four.
F. Inventory days
Purpose:
This is a working capital efficiency ratio that measures inventory balances relative
to business activity levels.
Calculation definition:
Inventory at the year-end divided by cost of sales for the last three months
of the year multiplied by the number of days in the last quarter, adjusted for the impact of acquisitions
and disposals when applicable.
2025
$m
2024
$m
Inventories (note 20)
237.5
303.3
Cost of sales for the last three months of the year
185.3
227.1
Inventory days
118 days
123 days
Non-GAAP Measures
continued
Income statement non-GAAP measures
continued
Hunting PLC
Annual Report and Accounts 2025
239
Strategic Report
Corporate Governance
Financial Statements
Other Information
G. Trade receivables days
Purpose:
This is a working capital efficiency ratio that measures receivable balances relative
to business activity levels.
Calculation definition:
Trade receivables, accrued revenue and contract assets at the year-end,
less provisions for impairment, divided by revenue for the last three months of the year multiplied
by the number of days in the last quarter, adjusted for the impact of acquisitions and disposals
when applicable.
2025
$m
2024
$m
Trade receivables (note 18)
186.1
195.0
Accrued revenue (note 18)
3.4
3.2
Contract assets (note 18)
30.1
23.7
Less: provisions for impairment (note 18)
(5.6)
(3.7)
Trade and contract receivables
214.0
218.2
Revenue for the last three months of the year
253.8
301.8
Trade receivables days
78 days
67 days
H. Trade payables days
Purpose:
This is a working capital efficiency ratio that measures payables balances relative to business
activity levels.
Calculation definition:
Trade payables, bank acceptance drafts and accrued goods received not
invoiced (“accrued GRN”) at the year-end divided by purchased materials and cash costs for the last
three months of the year multiplied by the number of days in the last quarter, adjusted for the impact
of acquisitions and disposals when applicable.
2025
$m
2024
$m
Trade payables (note 22)
48.4
41.4
Bank acceptance drafts (note 22)
–
92.4
Accrued GRN
5.0
6.9
Total payables
53.4
140.7
Purchased materials and cash costs for the last three months of the year
119.8
159.4
Trade payables days
41 days
81 days
I. Other net assets
Purpose:
Provides an analysis of other net assets in the Summary Group Balance Sheet in the
Strategic Report.
2025
$m
2024
$m
Non-current investments (note 17)
4.8
4.8
Non-working capital US deferred compensation plan obligation (NGM E)
(3.3)
(2.6)
Non-working capital current other receivables and other payables (NGM E)
2.4
3.3
3.9
5.5
J. Capital employed
Purpose:
Used in the calculation of the return on average capital employed (see NGM S).
Calculation definition:
Capital employed is total equity excluding net (cash)/debt as applicable.
The Group’s capital comprised:
2025
$m
2024
$m
Total equity – consolidated balance sheet
885.3
902.3
Net cash (note 26)
(28.1)
(70.7)
857.2
831.6
Non-GAAP Measures
continued
Balance sheet non-GAAP measures
continued
Hunting PLC
Annual Report and Accounts 2025
240
Strategic Report
Corporate Governance
Financial Statements
Other Information
K. Total cash and bank/(borrowings)
Purpose:
Total cash and bank/(borrowings) is a key metric for management and for the Group treasury
function, which monitors this balance on a daily basis and reviews weekly forecasts to ensure there is
sufficient liquidity to meet business requirements. As the Group manages funding on a total cash and
bank/(borrowings) basis, internal reporting focuses on changes in total cash and bank/(borrowings)
and this is presented in the Strategic Report.
Calculation definition:
Cash and cash equivalents, comprising cash at bank and in hand, short-term
deposits of less than three months to maturity from the date of deposit and money market funds; and
short-term deposits of more than three months to maturity from the date of deposit; less bank overdrafts
and bank borrowings.
The Group’s total cash and bank/(borrowings) comprised:
2025
$m
2024
$m
Cash and cash equivalents (note 21)
145.5
206.6
Bank overdrafts secured – current borrowings (note 25)
(1.0)
(1.5)
Cash and cash equivalents – consolidated statement of cash flows
144.5
205.1
Bank borrowings – current borrowings (note 25)
(37.9)
(9.8)
Bank borrowings – non-current borrowings (note 25)
(43.7)
(90.6)
62.9
104.7
L. Net cash/(debt)
Purpose:
Net cash/(debt) is a measure of the Group’s liquidity and reflects the Group’s cash and liquid
assets that would remain if all of its debts were to be immediately paid off.
Calculation definition:
Net cash/(debt) comprises total cash and bank/(borrowings) (NGM K) less total
lease liabilities and the shareholder loan from a non-controlling interest.
The Group’s net cash/(debt) comprised:
2025
$m
2024
$m
Total cash and bank (NGM K)
62.9
104.7
Total lease liabilities (note 24)
(30.9)
(30.1)
Shareholder loan from non-controlling interests – non-current borrowings
(note 25)
(3.9)
(3.9)
28.1
70.7
Cash flow non-GAAP measures
M. Cash flow working capital movements
Purpose:
Reconciles the working capital movements in the Summary Group Cash Flow
in the Strategic Report.
2025
$m
2024
$m
Working capital – opening balance
355.5
415.9
Foreign exchange
(1.6)
(1.7)
Adjustments:
Transfer to property, plant and equipment (note 11)
(1.0)
(1.7)
Impairment presented as adjusting items (note 5)
(1.7)
–
Acquisition of subsidiaries (note 40)
12.0
–
Capital investment receivables/payables cash flows
(0.1)
0.1
Asset disposals receivables/payables cash flows
(0.5)
2.1
Share buyback
(6.5)
–
Other movements
(2.2)
(5.9)
Working capital – closing balance (NGM E)
(335.9)
(355.5)
Cash flow
18.0
53.3
Non-GAAP Measures
continued
Balance sheet non-GAAP measures
continued
Hunting PLC
Annual Report and Accounts 2025
241
Strategic Report
Corporate Governance
Financial Statements
Other Information
N. Capital investment
Purpose:
Capital investment identifies the cash resources being absorbed organically within
the business to maintain or enhance operating activity levels.
Calculation definition:
Capital investment is the cash paid on tangible non-current assets to maintain
existing levels of operating activity and to grow the business from current operating levels and
enhance operating activity.
2025
$m
2024
$m
Property, plant and equipment additions (note 11)
29.6
25.2
Capital investment receivables/payables cash flows (NGM M)
(0.1)
0.1
Cash flow
29.5
25.3
Per the consolidated statement of cash flows:
Purchase of property, plant and equipment held for rental
– operating activities
2.6
1.7
Purchase of property, plant and equipment – investing activities
26.9
23.6
Cash flow
29.5
25.3
Capital investment by operating segment:
Hunting Titan
2.2
3.3
North America
13.4
10.3
Subsea Technologies
4.4
4.3
EMEA
7.3
2.0
Asia Pacific
2.1
4.7
Central
0.1
0.7
Cash flow
29.5
25.3
O. Other operating cash and non-cash movements
Purpose:
Reconciles other operating cash and non-cash movements in the Summary Group Cash
Flow in the Strategic Report.
2025
$m
2024
i
$m
Decrease in provisions – consolidated statement of cash flows
(0.4)
(2.0)
Share of associates’ and joint venture’s results
(3.5)
0.1
Net gains on asset and investment disposals
(0.6)
(0
(0.9)
Payment of US pension scheme liabilities
–
(0.2)
Fair value adjustment of contingent consideration
(0.9)
–
Other non-cash flow items
0.1
2.7
(5.3)
(0.3)
i. Other operating cash and non-cash movements in 2024 have been re-presented to include net gains on asset and investment disposals.
P. Free cash flow
Purpose:
Free cash flow is a measure of financial performance and represents the cash that the
Group is able to generate. Free cash flow represents the amount of cash the Group has available
to either retain for investment, or to return to shareholders and is a KPI used by management.
Calculation definition:
All cash flows before transactions with shareholders and investment by way
of acquisition. All the below items appear in the consolidated statement of cash flows, unless stated.
2025
$m
2024
$m
EBITDA (NGM C)
135.7
126.3
Add: share-based payment charge (note 37)
12.7
14.1
148.4
140.4
Working capital movements (NGM M)
18.0
53.3
Payment of lease liabilities, principal and interest
(9.7)
(8.9)
Net interest and bank fees paid
(9.3)
(12.9)
Net taxation paid
(8.7)
(3.5)
Purchase of property, plant and equipment
(26.9)
(23.6)
Purchase of property, plant and equipment held for rental
(2.6)
(1.7)
Purchase of intangible assets
(11.1)
(4.8)
Proceeds from asset disposals
9.9
1.7
Restructuring costs classified as adjusting items
(6.1)
–
Other operating cash and non-cash movements
i
(NGM O)
(5.3)
(0.3)
Free cash flow
96.6
139.7
Reconciliation to the consolidated statement of cash flows:
Net cash inflow from operating activities
138.9
188.5
Net interest and bank fees paid
(9.3)
(12.9)
Proceeds from disposal of property, plant and equipment
9.6
1.2
Proceeds from disposal of intangibles
0.3
–
Proceeds from disposal of investments
–
0.2
Purchase of property, plant and equipment
(26.9)
(23.6)
Purchase of intangible assets
(11.1)
(4.8)
Payment of lease liabilities, principal and interest
(9.7)
(8.9)
Acquisition related costs presented as adjusting items
4.8
–
Free cash flow
96.6
139.7
i. Other operating cash and non-cash flow movements in 2024 have been re-presented to include net gains on asset and investment
disposals.
Non-GAAP Measures
continued
Cash flow non-GAAP measures
continued
Hunting PLC
Annual Report and Accounts 2025
242
Strategic Report
Corporate Governance
Financial Statements
Other Information
Other non-GAAP measures
Q. Dividend per share declared
Purpose:
Identifies the total amount of dividend declared in respect of a period. This is also used
in the calculation of dividend cover (see NGM R).
Calculation definition:
The amount in cents returned to Ordinary shareholders.
2025
cents
2024
cents
Interim dividend
6.2
5.5
Final dividend
6.8
6.0
13.0
11.5
R. Dividend cover
Purpose:
An indication of the Company’s ability to maintain the level of its dividend and indicates
the proportion of earnings being retained in the business for future investment versus that returned
to shareholders.
Calculation definition:
Earnings/(loss) per share attributable to Ordinary shareholders divided
by the cash dividend per share to be returned to Ordinary shareholders, on an accruals basis.
2025
2024
Adjusted
cents
Reported
cents
Adjusted
cents
Reported
cents
Earnings/(loss) per share
Basic (NGM B/note 10)
36.3
26.2
33.5
(17.6)
Diluted (NGM B/note 10)
34.1
24.6
31.4
(17.6)
Dividend
(NGM Q)
13.0
13.0
11.5
11.5
Dividend cover
Basic
2.8x
2.0x
2.9x
(1.5)x
Diluted
2.6x
1.9x
2.7x
(1.5)x
S. Return on average capital employed (“ROCE”)
Purpose:
Measures the levels of return the Group is generating from its capital employed.
Calculation definition:
Adjusted profit before interest and tax as a percentage of average gross
capital employed. Average gross capital employed is a monthly average of capital employed based
on 13 balance sheets from the closing December balance in the prior year to the closing December
balance in the current year.
2025
$m
2024
$m
Average monthly gross capital employed (13-point average)
874.6
992.8
Adjusted operating profit (NGM B)
90.5
88.0
Return on average capital employed
10%
9%
T. Sales order book
Purpose:
The sales order book comprises the value of all unsatisfied orders from customers and
is expected to be recognised as revenue in future periods. It is presented by operating segment and
product group. Where amounts are not fixed in the contract, the Group exercises judgement on the
amount of the order that is booked.
Calculation definition:
Opening sales order book, add new orders booked, less amounts recognised
as revenue, adjusted for any order modifications/variations and foreign exchange impacts.
2025
$m
2024
$m
Operating segment
Hunting Titan
19.1
16.7
North America
174.7
207.3
Subsea Technologies
120.7
72.5
EMEA
27.1
50.2
Asia Pacific
36.1
186.9
Inter-segment elimination
(19.7)
(25.0)
358.0
508.6
2025
$m
2024
$m
Product group
Perforating Systems
23.4
16.5
OCTG
76.7
249.7
Advanced Manufacturing
116.2
130.0
Subsea
120.7
72.5
Other Manufacturing
21.0
39.9
358.0
508.6
The sales order book does not agree to the total transaction price allocated to unsatisfied and partially
satisfied performance obligations as defined by IFRS 15, disclosed in note 23(c), due to the practical
expedient that was applied and the Group’s assessment of contract enforceability.
Non-GAAP Measures
continued
Hunting PLC
Annual Report and Accounts 2025
243
Strategic Report
Corporate Governance
Financial Statements
Other Information
Financial Record
Income statement line items are presented after the impact of adjusting items.
2025
$m
2024
$m
2023
$m
Restated
i
2022
$m
Restated
i
2021
$m
Revenue
1,018.8
1,048.9
929.1
725.8
521.6
EBITDA (NGM C)
135.7
126.3
102.4
49.3
(0.4)
Depreciation and non-adjusting amortisation and impairment
(45.2)
(38.3)
(42.0)
(37.4)
(38.2)
Operating profit/(loss)
90.5
88.0
60.4
11.9
(38.6)
Net finance expense
(10.8)
(12.4)
(10.4)
(1.7)
(2.0)
Profit/(loss) before tax
79.7
75.6
50.0
10.2
(40.6)
Taxation (NGM D)
(21.1)
(19.8)
(14.1)
(1.3)
(4.9)
Profit/(loss) for the year
58.6
55.8
35.9
8.9
(45.5)
cents
cents
cents
cents
cents
Basic earnings/(loss) per share (NGM B)
36.3
33.5
21.4
5.0
(27.1)
Diluted earnings/(loss) per share (NGM B)
34.1
31.4
20.3
4.7
(27.1)
Dividend per share
ii
13.0
11.5
10.0
9.0
8.0
$m
$m
$m
$m
$m
Balance sheet
Property, plant and equipment
250.9
252.8
254.5
256.7
274.4
Right-of-use assets
28.9
28.3
26.2
26.0
24.7
Goodwill and other intangible assets
165.7
84.5
195.2
191.2
200.3
Working capital (NGM E)
335.9
355.5
415.9
362.8
278.0
Associates and joint ventures
12.7
9.2
20.5
20.1
19.4
Assets held for sale
1.5
12.1
–
–
–
Taxation (current and deferred)
74.3
98.0
84.8
4.0
1.4
Provisions
(16.6)
(14.3)
(16.6)
(8.9)
(8.1)
Other net assets (NGM I)
3.9
5.5
3.0
4.3
2.7
Capital employed (NGM J)
857.2
831.6
983.5
856.2
792.8
Total cash and bank/(borrowings) (NGM K)
62.9
104.7
(0.8)
24.5
114.2
Lease liabilities
(30.9)
(30.1)
(28.7)
(30.6)
(31.8)
Other borrowings
(3.9)
(3.9)
(3.9)
(3.9)
(3.9)
Net cash/(debt)
28.1
70.7
(33.4)
(10.0)
78.5
Net assets
885.3
902.3
950.1
846.2
871.3
Non-controlling interests
(7.7)
(5.5)
(3.3)
(1.6)
(1.4)
Equity attributable to owners of the parent
877.6
896.8
946.8
844.6
869.9
cents
cents
cents
cents
cents
Net assets per share
561.4
547.2
576.2
513.2
528.4
i.
Comparative EBITDA balances as presented in the respective years have been restated to include share of associates’ and joint venture’s results. EBITDA for 2022 has been restated to include a $2.7m loss and 2021 has been restated to include a $3.5m loss.
ii.
Dividend per share is stated on a declared basis.
Hunting PLC
Annual Report and Accounts 2025
244
Strategic Report
Corporate Governance
Financial Statements
Other Information
Shareholder and Statutory Information
Registered office
30 Panton Street
London
SW1Y 4AJ
Company Number: 00974568 (Registered in England and Wales)
Telephone: +44 (0)20 7321 0123
Email: lon.ir@hunting-intl.com
LinkedIn: https://www.linkedin.com/company/hunting-energy-services/
Financial calendar
The Company’s 2026 financial calendar is as follows:
Date
Event
5 March 2026
2025 Full Year Results Announcement
5 March 2026
2025 Final Dividend – Announcement date
12 March 2026
Publication of Annual Report and Notice of AGM
9 April 2026
Final Dividend – Ex-dividend date
10 April 2026
Final Dividend – Record date
15 April 2026
Trading Statement
15 April 2026
AGM and Proxy Voting Results of AGM
8 May 2026
Final Dividend – Payment date
14 July 2026
Trading Statement
21 August 2026
2026 Half Year Results Announcement
21 August 2026
2026 Interim Dividend – Announcement date
1 October 2026
Interim Dividend – Ex-dividend date
2 October 2026
Interim Dividend – Record date
22 October 2026
Trading Statement
30 October 2026
Interim Dividend – Payment date
Financial reports
The Company’s 2025 Annual Report and Accounts is available on the Company’s website from
the date of publication. Shareholders may elect to receive a copy by contacting the Registrar.
Copies of previous financial reports are available at www.huntingplc.com. In common with many
public companies in the UK, the Company no longer publishes a printed version of its half-year report.
The half-year report is only available online from the Company’s website at www.huntingplc.com.
Registrar
The Company’s Registrar, Equiniti, offers a range of shareholder information and dealing services
at www.shareview.co.uk. The address and contact details of Equiniti are as follows:
Equiniti Limited
Aspect House
Spencer Road, Lancing
West Sussex BN99 6DA
Telephone: +44 (0) 371 384 2173
Equiniti is also the Company’s single alternative inspection location where, with prior appointment,
individuals can inspect the register of members.
Analysis of Ordinary shareholders
At 31 December 2025, the Company had 1,203 Ordinary shareholders (2024 – 1,237) who held
157.7m (2024 – 164.9m) Ordinary shares analysed as follows:
2025
2024
% of total
shareholders
% of total
shares
% of total
shareholders
% of total
shares
Size of holdings
1 – 4,000
69.9
0.5
69.6
0.4
4,001 – 20,000
10.8
0.8
11.3
0.8
20,001 – 40,000
4.2
0.9
3.6
0.7
40,001 – 200,000
7.2
5.1
7.7
5.1
200,001 – 500,000
3.5
8.7
3.5
8.0
500,001 and over
4.4
84.0
4.3
85.0
Hunting PLC
Annual Report and Accounts 2025
245
Strategic Report
Corporate Governance
Financial Statements
Other Information
Annual General Meeting 2026
The AGM of the Company will take place on Wednesday 15 April 2026 at the Royal Automobile Club,
89 Pall Mall, London SW1Y 5HS, commencing at 10.30 a.m.
Format and business of meeting
The 2026 AGM is planned to be an open meeting, with shareholders welcome to attend.
The formal business of the AGM will involve putting to the meeting a number of ordinary and special
resolutions. Details of the resolutions will be communicated to shareholders ahead of the meeting in
a formal “Notice of AGM”. The Notice will also contain explanatory notes that will provide details to
shareholders on how to lodge their vote. Those shareholders who have elected to continue to receive
hard copy documentation will also receive a proxy form, which will contain details of how to lodge a
vote by proxy.
The AGM is to be broadcast via the internet. Details of the weblink will be included in the Notice of
AGM. Prior to the formal business of the AGM, a presentation will be delivered by the Chief Executive.
The Directors have made available to shareholders the ability to submit questions ahead of the AGM.
These questions will be answered during the presentation noted above. Shareholders are, therefore,
asked to submit all questions in relation to the business to be considered at the AGM by Monday
13 April 2026 to the Company’s registered office for the attention of the Company Secretary.
Alternatively, questions can be submitted via email at lon.agm@hunting-intl.com.
Shareholder voting procedures follow the provisions of the Articles of Association of the Company
(the “Articles”) and the UK Corporate Governance Code, including a separate resolution on each
material item of business, the availability of voting via proxy, and the offer of a “vote withheld”.
Voting on all resolutions at the AGM will be completed via a poll. Shareholders may submit proxy
voting instructions in advance of the meeting by completing a proxy form, alternatively via the internet
at www.shareview.co.uk, or shares held in CREST may be voted through the CREST Proxy Voting
Service, or for Institutional Investors via the Proximity platform. To be valid, all votes must be received
no later than 10:30 a.m. on Monday 13 April 2026.
As part of the routine business to be considered at the AGM, all Directors will submit themselves
for reappointment.
Documents on display
Copies of the executive Directors’ service contracts and letters of appointment of non-executive
Directors will be available for inspection at the Company’s registered office from the date the Notice
of AGM is issued (being 21 clear days’ notice ahead of the meeting) until the time of the AGM and
at the Royal Automobile Club, 89 Pall Mall, London SW1Y 5HS from 15 minutes before the AGM
starts until it ends.
Non-financial information and sustainability statement
In accordance with section 414CA of the Companies Act 2006, the Company is required to provide a
non-financial information statement. The Company has chosen to present this information throughout
the Strategic Report as follows:
• Environmental matters, including the impact of the Company’s business on the environment
(pages 25 and 56 to 86);
• Employees (pages 21, 22 and 69 to 71);
• Social matters (pages 26, 27 and 69 to 71);
• Respect for human rights (pages 22 and 62); and
• Anti-bribery and corruption matters (pages 23 and 61).
Included within these disclosures are details of policies, outcomes, risk factors and related key
performance indicators.
A description of the Group’s business model is provided on pages 14 to 27, non-financial
key performance indicators are on page 13, and the Group’s principal risks can be found on
pages 89 to 95.
In compliance with The Companies (Strategic Report) (Climate-related Financial Disclosure)
Regulations 2022, the Company has disclosed information that covers the eight areas required under
section 414CB of the Companies Act 2006. These disclosures form part of the Company’s TCFD
reporting for 2025, which can be found on pages 74 to 86 of this report. Hunting has reported against
all four pillars and 12 reporting areas as required by TCFD.
Shareholder and Statutory Information
continued
Hunting PLC
Annual Report and Accounts 2025
246
Strategic Report
Corporate Governance
Financial Statements
Other Information
Glossary
A
ABC
Anti-Bribery and Corruption.
ADIPEC
Abu Dhabi International Petroleum Exhibition
and Conference.
Adjusted*
Results for the year, as reported under IFRS,
adjusted for certain items as determined by
management, is the basis used by the Directors
in assessing performance and aids a more
effective comparison of the Group’s financial
performance from one period to the next.
AGM
Annual General Meeting.
AI
Artificial Intelligence.
ARC
Audit and Risk Committee.
B
Basic EPS/(LPS)*
Basic earnings/(loss) per share – calculated
by dividing the earnings/(loss) attributable
to Ordinary shareholders by the weighted
average number of Ordinary shares in issue
during the year.
bbl
Barrel of crude oil – one barrel of oil equals
159 litres or 42 US gallons.
BEIS
The UK Government’s Department for Business,
Energy & Industrial Strategy.
bn
Billion.
bopd
Barrels of Oil per Day.
C
c
Cents.
c.
Circa.
°C
The degree Celsius is a unit commonly used
to measure temperature. The Celsius scale is
created by defining 0°C as the freezing point of
water and 100°C as the boiling point of water.
CAD
Canadian Dollar.
CAGR
Compound Annual Growth Rate.
Capital employed*
See NGM J.
Capital investment – “Capex”*
See NGM N.
CCUS
Carbon Capture, Usage and Storage.
CDP
Carbon Disclosure Project.
CEO
Chief Executive Officer.
CFD
Climate-related Financial Disclosure.
CFO
Chief Financial Officer.
CGU
Cash-Generating Unit.
CMD
Capital Markets Day.
CNY
Chinese Yuan Renminbi.
CO
2
Carbon Dioxide.
CO
2
e
Carbon Dioxide Equivalent.
CO
2
e intensity factor
Scope 1 and 2 carbon dioxide equivalent metric,
reported as kilogrammes per $’000 of revenue.
COSO
Committee of Sponsoring Organisations of the
Treadway Commission.
CTR
Currency Translation Reserve.
D
D365
Enterprise Risk Management Software.
DBSC
Diverless Bend Stiffener Connector.
DESNZ
UK Government’s Department for Energy
Security and Net Zero.
Diluted EPS/(LPS)*
Diluted earnings/(loss) per share – calculated
by dividing earnings/(loss) attributable to Ordinary
shareholders by the weighted average number
of Ordinary shares in issue during the year, as
adjusted to assume conversion of all dilutive
potential Ordinary shares. Dilution arises through
the potential issue of shares to satisfy awards
made under the Group’s long-term incentive
plans. When the effect of dilutive share options
and long-term incentive plans is anti-dilutive,
they are not included in the calculation of diluted
earnings/(loss) per share.
Dividend Cover*
See NGM R.
Dividend Per Share Declared*
See NGM Q.
DNS
Domain Name System security, this refers to the
technique of defending DNS infrastructure from
cyber attacks.
Downhole
Downhole refers to something that is located
within the wellbore.
DTA
Deferred Tax Asset.
E
EBITDA*
See NGM C.
EBITDA margin*
EBITDA, as defined in NGM C, divided by
revenue, expressed as a percentage.
Hunting PLC
Annual Report and Accounts 2025
247
Strategic Report
Corporate Governance
Financial Statements
Other Information
Glossary
continued
EBT
Employee Benefit Trust.
ECL
Expected Credit Losses.
ELC
Entity Level Control.
EMEA
Europe, Middle East and Africa.
EPS
Earnings Per Share.
ERM
Enterprise Risk Management.
ERP
Enterprise Resource Planning.
EPS
Earnings Per Share.
ESCC
Equity Shares in Commercial Companies.
ESEF
European Single Electronic Format.
ESG
Environmental, Social and Governance.
ETR
Effective Tax Rate.
EUR
Euro.
Exajoules
A unit used to measure energy. One exajoule is
equivalent to approximately 163.46 million barrels
of oil equivalent.
F
5G
Fifth generation of cellular network technology.
FCA
Financial Conduct Authority.
FCF
Free Cash Flow.
FES
Flexible Engineered Solutions.
FPSO
Floating Production, Storage and Offloading.
FRC
Financial Reporting Council.
Free cash flow*
See NGM P.
FRS
Financial Reporting Standard.
FVTOCI
Fair Value Through Other Comprehensive
Income.
FVTPL
Fair Value Through Profit or Loss.
G
GAAP
Generally Accepted Accounting Principles.
GBP
British Pound Sterling.
GFC
Group Financial Controller.
GHG
Greenhouse Gas.
GITC
General IT Controls.
GOT
Gyroscopic Orientation Tool.
GRN
Goods Received Note.
GST
Goods and Services Tax.
GWh
Gigawatt hour – 1 billion watt hours.
H
H1
The first half of the year, comprising the first
and second quarter.
H2
The second half of the year, comprising the
third and fourth quarter.
HPSP
Hunting Performance Share Plan.
HR
Human Resources.
HSE
Health, Safety and Environment.
I
IAS
International Accounting Standards.
IBR
Incremental Borrowing Rate.
ICBC
Industrial and Commercial Bank of China.
ICFR
Internal Controls over Financial Reporting.
IEA
International Energy Agency.
IFRS
International Financial Reporting Standards
as adopted by the United Kingdom.
Incident rate
An OSHA recordable incident rate (or incident
rate) is calculated by multiplying the number
of recordable incidents by 200,000 and then
dividing that number by the number of labour
hours worked.
Intensity factor
The total controlled scope 1 and scope 2
emissions divided by the total revenue of
the Group.
Internal manufacturing reject rate
Percentage of parts rejected during
manufacturing processes.
Hunting PLC
Annual Report and Accounts 2025
248
Strategic Report
Corporate Governance
Financial Statements
Other Information
Inventory days*
See NGM F.
ISO
International Organization for Standardization.
ISSB
International Sustainability Standards Board.
IT
Information Technology.
J
JV
Joint Venture.
K
k
Thousand.
KOC
Kuwait Oil Company.
KPI
Key Performance Indicator.
Kyoto Protocol
International agreement between nations
to mandate country-by-country reductions
in greenhouse gas emissions.
L
Lean
A production practice that eliminates wasteful
processes, thereby reducing production time
and costs, and improving efficiency.
LNG
Liquified Natural Gas.
M
m
Million.
m3
Cubic Metre.
M&A
Mergers and Acquisitions.
mmBtu
One million British Thermal Units.
MWD/LWD
Measurement-While-Drilling/Logging-While-
Drilling.
N
Net cash/(debt)*
See NGM L.
NGM
Non-GAAP Measure – see pages 236 to 243.
Near-Miss Frequency Rate
Near-Miss Frequency Rate is calculated by
multiplying the number of near-miss incidents
by 200,000 and then dividing that number
by the number of labour hours worked.
Non-GAAP Measure
The performance of the Group is assessed by
the Directors using a number of measures, which
are not defined under IFRS, and are therefore
considered to be non-GAAP measures
(see pages 236 to 243).
O
OCI
Other Comprehensive Income.
OCTG
Oil Country Tubular Goods – pipe and tubular
goods and products used in the oil and gas
industry, such as drill pipe, pipe casing and
production pipes.
OEM
Original Equipment Manufacturer.
OOR
Organic Oil Recovery.
OPEC
The Organization of the Petroleum Exporting
Countries. Comprises 12 member countries.
OPEC+
Comprises the OPEC 12 member countries plus
an additional ten oil-producing countries.
OSHA
The US Occupational Safety and Health
Administration.
P
p
Pence.
p.a.
Per Annum.
PBT
Profit Before Tax.
PPE
Property, Plant and Equipment.
PSP
Performance Share Plan.
Q
Q1
The first quarter of the year, comprising January,
February and March.
Q2
The second quarter of the year, comprising April,
May and June.
Q3
The third quarter of the year, comprising July,
August and September.
Q4
The fourth quarter of the year, comprising
October, November and December.
QAHSE
Quality Assurance, Health, Safety and
Environment.
QMS
Quality Management System.
R
R&D
Research and Development.
RCF
Revolving Credit Facility.
Glossary
continued
Hunting PLC
Annual Report and Accounts 2025
249
Strategic Report
Corporate Governance
Financial Statements
Other Information
Recordable incidents
An OSHA recordable incident is recorded if it
results in any of the following: death, days away
from work, restricted work or transfer to another
job, medical treatment beyond first aid, or loss of
consciousness. Also included are any significant
injuries or illnesses diagnosed by a physician or
other licensed health care professional, even if
it does not result in death, days away from work,
restricted work or job transfer, medical treatment
beyond first aid, or loss of consciousness.
RIF
Reduction In Force.
RMF
Risk Management Framework.
ROCE*
See NGM S.
RSP
Restricted Share Plan.
S
S&P
Standard & Poor’s.
Sales order book
The value of all orders booked and expected
to be recognised as revenue in future periods.
See NGM T.
SASB
Sustainability Accounting Standards Board.
Scope 1
Scope 1 emissions are direct GHG emissions
from sources that are owned or controlled by
the entity. Scope 1 emissions include fossil fuels
burned on site, emissions from vehicles and
other direct sources.
Scope 2
Scope 2 emissions are indirect GHG emissions
resulting from the generation of electricity,
heating and cooling or steam generated off site
but purchased by the entity.
Scope 3
Scope 3 emissions are all other indirect
emissions that are not produced by the entity
itself and are not the result of activities from
assets owned or controlled by it, but by those
that it is indirectly responsible for up and down
its value chain.
SDS
Subsea Distribution Systems.
SID
Senior Independent Director.
SRS
Sustainability Reporting Standards.
SURF
Subsea Umbilicals, Risers and Flowlines.
T
3D
Three-dimensional.
TCFD
Task Force on Climate-related Financial
Disclosures.
TLoD
Three Lines of Defence.
Total cash and bank/(borrowings)*
See NGM K.
Trade payables days*
See NGM H.
Trade receivables days*
See NGM G.
TRIR
Total Recordable Incident Rate is calculated by
multiplying the number of recordable incidents
by 200,000 and then dividing that number for
the number of labour hours worked.
TSJ
Titanium Stress Joint.
TSR*
Total Shareholder Return – the net share price
change plus the dividends paid during that period.
U
UAE
United Arab Emirates.
UK
United Kingdom.
UKCFD
UK Climate-related Financial Disclosures.
US
United States.
USA
United States of America.
USD
US Dollars.
V
VAT
Value Added Tax.
W
Well completion
Well completion refers to the processes of
preparing a well for production. This involves the
assembly of downhole tubulars and equipment
required to enable safe and efficient production
from an oil or gas well.
Well construction
Well construction refers to the initial drilling and
processes of constructing the wellbore in an oil
and gas well. These processes typically include
drilling and logging the hole; running, cementing
and logging the casing; hydraulic fracturing or
stimulating the well and monitoring well
performance and integrity.
Well intervention
Well intervention refers to any operation carried
out on an oil or gas well that maintains or
enhances the production of the well or provides
well diagnostics.
Wellbore
The wellbore refers to the drilled hole.
Working capital*
See NGM E.
WTI
West Texas Intermediate – the price per barrel
of Texas light sweet crude oil.
WTW
WillisTowersWatson.
Glossary
continued
*
Non-GAAP measure.
Hunting PLC
Annual Report and Accounts 2025
250
Strategic Report
Corporate Governance
Financial Statements
Other Information
Professional Advisers
Solicitors
CMS Cameron McKenna Nabarro Olswang LLP
Independent Auditors
Deloitte LLP
Joint Corporate Brokers
Canaccord Genuity Limited and
RBC Capital Markets
Financial Advisers
N.M. Rothschild & Sons Limited
Insurance Brokers
WillisTowersWatson
Pension Advisers and Actuary
Lane Clark & Peacock LLP
Financial Public Relations
Sodali & Co Limited
Registrars and Transfer Office
Equiniti Limited
Aspect House
Spencer Road, Lancing
West Sussex BN99 6DA
Telephone:
+44 (0)371 384 2173
Hunting PLC
Annual Report and Accounts 2025
251
Strategic Report
Corporate Governance
Financial Statements
Other Information
Hunting PLC
30 Panton Street
London SW1Y 4AJ
United Kingdom
Tel: +44 (0)20 7321 0123
Fax: +44 (0)20 7839 2072
www.huntingplc.com
Designed and produced by Gather
www.gather.london
Printed by Park Communications
This product is made of material from well-managed,
FSC
®
-certified forests and other controlled sources
Park Communications is certified to ISO 14001
Environmental Management System and the
EU Eco-Management and Audit Scheme (EMAS)
Hunting PLC
Annual Report and Accounts 2025
252
Strategic Report
Corporate Governance
Financial Statements
Other Information
