HMH Holding Inc (HMH)

Price$19.50Cached quoteAs of 2026-09-07 00:43 UTC

AI: Fair-priced

Valuation is moderate against improving adjusted earningsAt $19.70 and approximately 43.93 million economic shares, HMH has an implied equity value near $866 million and enterprise value around $991 million using June broad net debt of $125.3 million.

The enterprise value is about 7.2x FY2025 EBITDA of $137.2 million and roughly 5.9x the midpoint of management's unchanged $157-$177 million 2026 adjusted EBITDA guidance. FY2025 revenue was $821.8 million and net income $46.1 million. Those multiples are reasonable for a mission-critical offshore equipment and aftermarket franchise, but revenue volatility, controlling shareholders and cyclical drilling exposure keep the shares closer to Fair-priced than clearly undervalued.

Orders and aftermarket demand point to a stronger second halfQ2 orders were $205 million, up 19% year over year and above $170.8 million of revenue, producing a 1.2x book-to-bill ratio.

Service orders increased 50% year over year to $118 million, driven by digital technology, while spare-parts orders were $65 million. Management expects second-half activity to strengthen and reported growing backlog and better offshore customer visibility. Approximately 80% of projected 2027 floater rig years associated with HMH's installed base were covered by contracts or options at the Q2 update, supporting future aftermarket, upgrade and automation demand.

Margins improved despite a sharp decline in product revenueQ2 revenue fell 16% year over year to $170.8 million, but gross margin expanded to 36% and adjusted EBITDA margin reached 19.8%.

Product revenue dropped 65% year over year because of lower beginning backlog and Middle East equipment and commissioning delays, while service revenue fell 4% and spare-parts revenue grew 17%. Reported operating loss was $4.8 million and consolidated net loss was $5.0 million, although net income attributable to HMH Holding Inc. was $5.0 million because of the Up-C noncontrolling-interest structure. The local Q2 EBITDA measure was $11.2 million, while company-adjusted EBITDA was materially higher at $33.9 million after excluding stock compensation, restructuring and other items.

IPO deleveraging strengthened liquidity, but debt and governance risks remainThe April IPO materially improved HMH's balance sheet, with June cash of $119.7 million and no scheduled long-term debt maturity until 2028.

HMH used $137.1 million of IPO proceeds to repay shareholder loans. Broad total debt and lease liabilities declined to about $245.0 million from $390.5 million at FY2025 year-end, reducing broad net debt to approximately $125.3 million from $293.9 million. Q2 operating cash flow was $17.9 million versus only $9.0 million for all of FY2025. Remaining risks include the 7.875% secured bonds, oil-price and offshore-capex cyclicality, geopolitical disruptions, customer concentration, project timing and an Up-C structure in which Baker Hughes and Akastor collectively retain roughly 73% voting control and exchangeable interests.

AI: News

Latest material update confirmed Q2 order strength and margin resilienceHMH's August results showed orders exceeding revenue, higher adjusted EBITDA and positive cash flow despite weaker equipment deliveries.

Revenue was $170.8 million, adjusted EBITDA was $33.9 million and operating cash flow was $17.9 million. Gross margin expanded by roughly 10 percentage points year over year to 36%. Management maintained $157-$177 million of 2026 adjusted EBITDA guidance and expects performance to improve in the second half as strong services and spare-parts orders convert to revenue. The separate August 21 HMH Holding B.V. report was the latest material company financial release found as of September 17.

Offshore contracting visibility is improving after the spring IPOHMH says longer-duration offshore awards and increasing utilization of rigs carrying its installed equipment are strengthening the outlook for aftermarket services, upgrades and digital products.

Management reported that contracted rig years during the first seven months of 2026 were about 50% higher than the comparable 2025 period and expects another quarter of book-to-bill above 1.0. The principal near-term offset is execution timing: Middle East geopolitical disruption delayed equipment deliveries and customer approvals during Q2. HMH rang the Nasdaq closing bell on September 9, marking its first months as a public company, but that event did not change the latest operating guidance.

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Financial statements

	2025	2024	2023	2022
Revenue	$821.8M	$843.4M	$785.4M	$677.2M
Research & development	$2.8M	$7.1M	$3.0M	$2.9M
Operating expenses	$154.4M	$153.9M	$132.4M	$201.2M
Operating income	$91.3M	$118.3M	$78.0M	$20.3M
Operating margin	11.11%	14.03%	9.93%	3.00%
EBITDA	$137.2M	$153.1M	$117.9M	$56.4M
EBITDA margin	16.70%	18.16%	15.01%	8.33%
Net income	$46.1M	$52.0M	$17.4M	−$26.6M
Net profit margin	5.61%	6.16%	2.22%	−3.92%
Basic EPSper basic share	$0.74	$4.48	$1.52	-$2.33
Diluted EPSper diluted share	$0.74	$4.48	$1.52	-$2.33

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Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$1.48M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Apr 2, 2026Form 4	Dyrseth Roy A.Chief Commercial Officer	BuyClass A Common Stock	8.0K	$20.00	$160.0K	68.3K
Apr 2, 2026Form 4	Skogerbo PalChief Technology Officer	BuyClass A Common Stock	1.0K	$20.00	$20.0K	61.3K
Apr 2, 2026Form 4	Loeffler LanceDirector	BuyClass A Common Stock	5.0K	$20.00	$100.0K	13.5K
Apr 2, 2026Form 4	McGee Thomas W.Chief Financial Officer	BuyClass A Common Stock	50.0K	$20.00	$1.00M	147.3K
Apr 2, 2026Form 4	Bergsvik EirikChief Executive Officer	BuyClass A Common Stock	10.0K	$20.00	$200.0K	121.9K

Review ownership filings at SEC.gov ↗

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HMH Holding Inc (HMH)

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