HMH Holding reported third quarter 2026 revenue of $171.1 million, representing a 21% year-over-year decline and missing the analyst consensus of $214.9 million by 20.4%. Results were significantly impacted by Middle East conflict disruptions and delayed customer contract awards for large equipment projects. Despite these headwinds, the company achieved a book-to-bill ratio of 1.12x and expanded its Adjusted EBITDA margin to 22.3% through cost discipline and a favorable shift toward service activity.
Key Highlights
- Product revenue declined 69% year-over-year to $16.7 million due to lower equipment backlog conversion and regional project delays.
- Order intake rose 12% year-over-year to $191 million, driven by $115 million in service orders as drilling repair demand remains robust.
- Adjusted EBITDA margin increased to 22.3% from 18.2% in the prior-year period, reflecting a higher service-to-product revenue mix and cost optimization.
- Completed the acquisition of Deepwater Riser Services for $14.5 million to expand aftermarket capabilities and consolidate U.S. Gulf riser operations.