HMH Holding Inc.

What they do

HMH supplies highly engineered, mission-critical equipment used in oil and gas drilling operations, both offshore and onshore, and supports that installed equipment through its lifecycle. It operates in 15 countries with sales in over 80 countries and sells to drilling contractors, operators (including oil and gas E&P and mining companies) and manufacturers such as shipyards. Offerings span complete drilling equipment packages for newbuild or reactivated rigs, individual drilling and pressure control components, spare parts and integrated aftermarket and digital services. The company is also expanding into adjacent industries such as onshore and subsea mining.

Revenue drivers

• Aftermarket Services — Services on installed equipment plus integrated digital solutions that help customers extend lifespan, safety and efficiency of existing rig fleets; the largest revenue category at 52.1% of revenue in Q2 2026 and 47.1% for the six months ended June 30, 2026, up from 45.4% and 43.8% a year earlier.
• Sales of Spare Parts — Replacement parts for installed drilling equipment; 35.8% of Q2 2026 revenue and 37.3% for the six months ended June 30, 2026, up from 25.6% and 27.9% in the comparable 2025 periods.
• Sales of Projects and Products — Complete drilling equipment packages for newbuild or reactivated rigs and individual or grouped drilling and pressure control components for fleet maintenance and upgrades; the smallest and most cyclical category at 12.1% of Q2 2026 revenue and 15.6% for the six months ended June 30, 2026, down from 29.0% and 28.3% a year earlier.

Recent performance

Q2 2026 revenue was $170.8 million, down 16% year-over-year and substantially flat versus Q1 2026; the decline was driven primarily by lower product and service revenues, partly offset by higher spare parts revenue. Net income attributable to HMH was $5.0 million, versus $8.9 million in Q2 2025 and $3.4 million in Q1 2026, with Q2 2026 including a one-time pre-IPO stock-based compensation expense recognized on IPO completion. Adjusted EBITDA was $33.9 million, up 3% year-over-year and up 13% sequentially, at a 19.8% margin versus 16.1% in Q2 2025 and 17.6% in Q1 2026. Orders were $205 million, up 19% year-over-year, down 6% sequentially, for book-to-bill of 1.2x. Cash flow from operations was $17.9 million and free cash flow was positive at $22.2 million.

Strategy

HMH completed its IPO on April 2, 2026, selling 10,520,000 Class A shares at $20.00 for net proceeds of approximately $197.8 million, plus $12.9 million from the underwriters' partial exercise of their option for 685,844 additional shares. It used $39.5 million of IPO proceeds to purchase HMH Holding B.V. Voting Class A and Class B shares from principal stockholders Baker Hughes Holdings LLC and Akastor AS, and contributed the remaining proceeds to the business. Operationally, the company emphasizes aftermarket services, spare parts and digital technology offerings to support installed equipment and customer uptime, while growing its portfolio into adjacent markets such as mining. Management highlights its balance sheet strength, differentiated technology and execution focus following the IPO, and points to improving customer visibility and a growing backlog as drivers of higher activity in the second half of 2026.

Risks

• Customer caution and project timing — Management cited delayed equipment and repair order bookings and continued customer caution in certain regions as factors that reduced Q2 2026 revenue.
• Geopolitical and trade uncertainty — The company described a dynamic operating environment marked by geopolitical uncertainty and evolving trade policies that can affect the pace and timing of customer investment.
• Revenue mix shift toward lower-ticket categories — Projects and products fell to 12.1% of Q2 2026 revenue from 29.0% a year earlier, while aftermarket services and spare parts rose, changing the revenue base and its sensitivity to newbuild activity.
• Limited operating history as a public company — The IPO closed April 2, 2026, and results include predecessor HMH B.V.; the company states historical consolidated financial data may not indicate what actual or future results would have been had the reorganization been completed earlier.

Outlook

Management said improving customer visibility, a growing backlog and rising activity levels across key markets support confidence in the second half of 2026. It characterized geopolitical, trade and energy-market volatility as temporary and said these factors do not alter the long-term demand outlook for its equipment and services. The company expects customers to continue prioritizing capital-efficient production, asset reliability, uptime and technology-enabled solutions.