Hunting Lowers 2026 Profit Outlook Amid Market Slowdown
Energy operators face a cooling North American market and Middle East project delays impacting current earnings.
Updated on Oct. 28, 2026 in Corporate Finance
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Energy services firm Hunting reduced its 2026 full-year profit outlook as regional conflicts and project delays hamper operations. The company expects EBITDA to fall between $128 million and $133 million for the year.
Why it matters
Operational volatility in the Middle East and a persistent downturn in North American rig activity are forcing energy sector suppliers to adjust their financial forecasts. These pressures highlight the sensitivity of specialized service providers to geopolitical conflict and local oilfield investment cycles.
Hunting reported $89 million in EBITDA for the first nine months of the year, with Q3 earnings totaling $27 million versus $39 million in Q2. Shares fell 12% to 376p following the revision of its 2026 full-year EBITDA guidance to between $128 million and $133 million.
The players
Hunting
A global energy services provider that manufactures and supplies precision-engineered equipment for the oil and gas industry.
Kuwait Oil Company
The national petroleum company responsible for exploration and production of oil and gas in Kuwait.
The details
Profit expectations are softening as the Middle East conflict slows deliveries and disrupts work on the Jafurah gas development in Saudi Arabia. Simultaneously, the company is managing a transition from $19 million in net debt during the second quarter to a projected $40 million to $45 million in cash by year-end, even as North American demand remains sluggish.
Timeline
Q2 2026: EBITDA totaled $39 million.
Q3 2026: EBITDA fell to $27 million.
October 28, 2026: Company released trading update.
Q4 2026: North America OCTG slowdown expected to persist.
End of 2026: Kuwait Oil Company expected to announce re-tender results.
Market Landscape
The delays at the Jafurah gas development illustrate how geopolitical instability continues to disrupt large-scale regional energy infrastructure projects. This follows a broader trend where international service providers must navigate project-specific slowdowns while managing shifts in regional rig activity.
Operators should monitor the duration of the North American market slowdown, which is expected to persist through the end of the year. Financial planning should account for delayed regional infrastructure project timelines as geopolitical tensions continue to affect energy supply chains.
The takeaway
Energy services providers are facing a multi-front pressure cycle between Middle East delivery delays and North American demand weakness. Operators should review their own capital expenditure pipelines against current regional project delays to ensure near-term cash flow projections remain realistic.
What happens next
Market participants should track the Kuwait Oil Company re-tender results, which are expected to be announced toward the end of 2026.
Further reading
For additional context on how sector volatility impacts balance sheets, visit Corporate Finance.
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