Precision engineering outfit Hunting has cut its full-year earnings forecast for the second time this year after escalating conflict in the Middle East disrupted trading and weakened its near-term outlook.

Shares in the FTSE 250 London firm fell 11.4% to 375.5p in Wednesday morning trading after it reduced its 2026 EBITDA forecast to $128m-$133m from $138m-$141m.

Chief executive Jim Johnson said the “protracted and deepening nature of the conflict in the Middle East” had affected third-quarter results and trading into the fourth quarter, with conditions deteriorating in recent weeks.

Reduced rig activity in Saudi Arabia has hit Hunting Titan, while shipping disruption, attacks on regional infrastructure and logistical difficulties have delayed tender activity across the Middle East. Hunting also expects slower activity in North America during the fourth quarter, alongside supply-chain problems affecting its Electronics and Dearborn businesses.

Despite the challenges, the group reported year-to-date EBITDA of approximately $89m, with a margin of around 12%. Its subsea technologies business continued to deliver robust profitability, supported by demand across its platforms and growing interest in its Organic Oil Recovery technology.

Johnson said: “The Directors believe that there is significant upside within the Middle East once hostilities cease.

Hunting said a major Kuwait Oil Company re-tender was published on 12 October, with a decision expected before the end of the year and product shipments scheduled to begin in the second half of 2027. The group believes it is well positioned to secure further orders, although wider tender activity across the Middle East and Asia-Pacific remains subdued.

The company is continuing its cost-reduction programme, including combining its EMEA and Asia-Pacific operating segments, reviewing overheads and disposing of non-core businesses. It expects year-end net borrowings to be between $40m and $45m, while full-year capital expenditure is forecast at $35m-$45m.

Hunting's next trading update is scheduled for 19 January 2027.

Meanwhile, the company's search for a new CEO is still ongoing after Jim Johnson announced his retirement as CEO earlier this year. As par of today's market update, it said it has interviews planned for the rest of the year with a "high-calibre pool of both internal and external candidates" and looks forward to concluding the selection process in "due course".

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