Q2 2026 HMH Holding Inc Earnings Call Transcript
Key Points
- Adjusted EBITDA margins expanded year-over-year to 20%, driven by disciplined cost execution and favorable mix.
- Orders reached $205 million with a book-to-bill ratio of 1.2 times, indicating strong demand.
- Service order intake surged 50% year-over-year, led by robust digital technology upgrade orders.
- Visibility into 2027 floater rig years improved to 80%, up from 65% at the same point last year.
- The company maintains a strong balance sheet with $120 million in cash and no long-term debt maturities until June 2008.
- Product revenue declined 66% year-over-year due to delayed project approvals and geopolitical uncertainty.
- Repair activity was slower than planned, impacting service revenue in the quarter.
- Middle East installation and commissioning delays caused a $10 million revenue headwind.
- Customer decision-making was slower than anticipated, leading to order timing shifts.
- Free cash flow was positive but modest at $22 million, reflecting ongoing operational challenges.
( Operators Instructions ) I will now hand the conference over to David Bratton, Senior Vice President, Finance. Please go ahead.
Good morning, everyone, and thank you for joining us for HMH's second quarter results.
Joining me today are Ayak Bergstick, our Chief Executive Officer, and Tom McGee, our Chief Financial Officer.
Before we begin, we would like to remind you that this conference call may include forward-looking statements.
These statements, which are subject to various risks, uncertainties, and assumptions, could cause our actual results to differ materially from these statements.
These risks, uncertainties, and assumptions are detailed in this morning's press release, as well as our filings with the SEC, which can be found at our website at investor.hmhw.com.
We undertake no obligation to revise or update any forward-looking statements or information accepted required by law.
Management statements may include non-GAAP financial measures. For
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