HMH Holding Inc. Announces Second Quarter 2026 Results
Rhea-AI Summary
HMH Holding (NASDAQ: HMH) reported second quarter 2026 revenue of $170.8 million, down 16% year-over-year and roughly flat sequentially. Net income attributable to HMH was $5.0 million, versus $8.9 million a year earlier and $3.4 million in the first quarter, reflecting a one-time pre-IPO stock-based compensation expense.
Orders reached $205 million, up 19% year-over-year and down 6% sequentially, producing a book-to-bill ratio of 1.2x. Adjusted EBITDA was $33.9 million, up 3% year-over-year and 13% sequentially, with Adjusted EBITDA Margin improving to 19.8%. Free Cash Flow was positive at $22.2 million and operating cash flow was $17.9 million.
HMH completed its IPO on April 2, 2026, issuing 10,520,000 shares at $20.00 per share, plus an additional 685,844 shares from the underwriters’ option, generating total net proceeds of approximately $210.7 million. The company used $39.5 million to repurchase shares from principal stockholders, and HMH Holding B.V. applied $137.1 million to fully repay a shareholder loan, with $21.2 million allocated to working capital. HMH ended the quarter with $119.7 million in cash and about $195 million of total liquidity, and has no long-term debt maturity until June 2028.
Positive
- Orders up 19% year-over-year to $205 million, book-to-bill 1.2x
- Adjusted EBITDA of $33.9 million, margin improved to 19.8%
- Free Cash Flow positive at $22.2 million in Q2 2026
- IPO generated net proceeds of about $210.7 million
- Used $137.1 million IPO proceeds to repay shareholder loan
- Cost of sales down 28% year-over-year, gross margin up to 36%
- Service order intake $118 million, up 50% year-over-year
Negative
- Total revenue down 16% year-over-year to $170.8 million
- Product revenue declined 65% year-over-year and 38% sequentially
- Selling, general and administrative expenses rose to $60.4 million
- Includes $22.0 million one-time pre-IPO stock-based compensation expense
- Operating result was a loss of $4.8 million versus prior-year profit
- Net income attributable to HMH fell to $5.0 million from $8.9 million
News Explained
HMH reported
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | First-quarter earnings | Positive | +2.1% | Orders, positive free cash flow, and full-year EBITDA guidance accompanied the earnings release. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The only tag-matched prior earnings event had a positive 2.08% reaction, aligning with its positive earnings sentiment.
Key Terms
adjusted ebitda financial
book-to-bill financial
free cash flow financial
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOUSTON, Aug. 05, 2026 (GLOBE NEWSWIRE) -- HMH Holding Inc. (“HMH” or the “Company”) (NASDAQ: HMH) today announced financial and operational results for the second quarter of 2026.
Second Quarter Highlights
- Revenue of
$170.8 million , down16% compared to the second quarter of 2025 and substantially flat compared to the first quarter of 2026. - Net income attributable to HMH of
$5.0 million , compared to net income of$8.9 million in the second quarter of 2025 and net income of$3.4 million in the first quarter of 2026. Net income in the second quarter of 2026 reflected a one-time pre-IPO stock-based compensation award expense recognized upon completion of the IPO. - Orders of
$205 million , up19% compared to the second quarter of 2025 and down6% compared to the first quarter of 2026, resulting in book-to-bill of 1.2x. - Adjusted EBITDA of
$33.9 million , up3% compared to the second quarter of 2025 and up13% compared to the first quarter of 2026. - Cash flow provided by operating activities was
$17.9 million and Free Cash Flow was positive at$22.2 million for the second quarter of 2026.
Financial Summary
HMH reported revenue for the second quarter of 2026 of
Adjusted EBITDA in the second quarter of 2026 was
Orders for the quarter were
HMH Holding Inc.’s Chief Executive Officer, Eirik Bergsvik, stated: “Our second quarter results reflect the underlying resilience of our business. During the quarter, we navigated a dynamic operating environment marked by geopolitical uncertainty, evolving trade policies, project timing shifts, and continued customer caution in certain regions. These factors, combined with delayed equipment and repair order bookings, impacted revenue performance. Despite these headwinds, our team remained focused on execution, delivering improved margins, positive Free Cash Flow, and strong order intake. We were particularly encouraged by the continued strength in our digital technology offerings, which drove a
Importantly, the underlying fundamentals supporting long-term offshore and energy investment remain constructive. Across many of the markets we serve, customers continue to prioritize capital-efficient production, asset reliability, operational uptime, and technology enabled solutions. While macroeconomic volatility, geopolitical developments, and energy market uncertainty may continue to influence the pace and timing of investment decisions, we believe these factors are temporary and do not alter the long-term demand outlook for the critical equipment and services we provide.
As we look ahead to the second half of 2026, improving customer visibility, a growing backlog, and rising activity levels across our key markets give us confidence in the opportunities ahead. Following the successful completion of our IPO, HMH is well positioned with a strong balance sheet, differentiated technology, and a dedicated team committed to creating long-term value for our customers and shareholders.”
Initial Public Offering
On April 2, 2026, we completed our IPO of 10,520,000 shares of our Class A common stock at a price to the public of
We used
Operational and Financial Results
Revenue, Cost of Sales, and Gross Operating Margin
Revenue for the second quarter of 2026 was
Total cost of sales decreased by
Selling, General and Administrative Expenses
Selling, general and administrative expenses were
Order Intake, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow
Orders for the quarter were
Net income attributable to HMH was
Cash flow provided by operating activities was
Conference Call Details
The Company has scheduled a conference call on August 6, 2026, at 8:00 am Central Time to discuss its results for the second quarter of 2026. To access the conference call, participants may dial (800) 715-9871 for U.S. participants or (646) 307-1963 for international participants and use Conference ID: 6309447. Participants may listen to the call through a webcast link posted in the Investors section of HMH’s website. A replay of the conference call will be made available on the website following the conclusion of the live call.
About HMH
HMH is a leading provider of highly engineered, mission-critical equipment solutions, providing customers with a comprehensive portfolio of drilling equipment, services and systems utilized in oil and gas drilling operations, both offshore and onshore. HMH’s global reach, technical expertise and innovative product offerings, coupled with its integrated operations from manufacturing to aftermarket services, allow HMH to provide customers with first-class technology, engineering, and project management services through the entire asset lifecycle of the equipment it provides. In addition, HMH is growing its portfolio of products and services to adjacent industries, such as mining. The complexity and criticality of HMH’s installed equipment drive customers to choose HMH for their aftermarket support, particularly in the offshore environment, which is subject to extensive regulation. For more information, please visit HMH’s website at www.hmhw.com.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow.
We use Adjusted EBITDA and Adjusted EBITDA Margin as one of the indicators to evaluate and compare the results of our operations from period to period by removing the effect of our capital structure and certain non-recurring items. We define Adjusted EBITDA as net income before interest expense, net, income tax expense, depreciation and amortization, IPO listing related cost and other non-recurring items. Management does not consider these non-recurring items to be indicative of our ongoing operating performance measure, and such items include, but are not limited to, restructuring and other operating expenses and foreign exchange currency (gain) loss. We track Adjusted EBITDA on an absolute dollar basis and as a percentage of revenue, which we refer to as Adjusted EBITDA Margin. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We believe that Adjusted EBITDA is a supplemental measurement tool used by analysts and investors to evaluate overall operating performance, ability to pursue and service possible debt opportunities and possible future investment opportunities. In addition, we believe that Adjusted EBITDA Margin is a supplemental measurement tool used by analysts and investors to evaluate profitability of sales. Adjusted EBITDA does not represent funds available for our discretionary use and is not intended to represent or to be used as a substitute for net income, as measured in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The items excluded from Adjusted EBITDA and Adjusted EBITDA Margin, but included in the calculation of reported net income, are significant components of the consolidated statements of income and must be considered in performing a comprehensive assessment of overall financial performance. We believe that the disclosure of Adjusted EBITDA and Adjusted EBITDA Margin offers additional financial metrics that, when coupled with the GAAP results and the reconciliation to GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business.
We use Free Cash Flow to evaluate our liquidity to provide flexibility and optionality to achieve our broader capital allocation strategy. We define Free Cash Flow as cash flow from operations minus purchases of property and equipment and development costs and excluding the impact of one time non-cash IPO related expenses. Management believes that Free Cash Flow is a meaningful indicator of liquidity that provides information to our management and investors about the amount of cash generated from operations, after purchases of property and equipment that can be used for investment in our business and for acquisitions as well as to strengthen our balance sheet. Free Cash Flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by (used in) operating activities. Free Cash Flow does not reflect our ability to meet future contractual commitments and may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure.
These non-GAAP measures are reconciled to the most directly comparable GAAP measures in the accompanying tables and should not be considered as alternatives to GAAP results.
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements generally relate to expectations, beliefs, future events, future expected business, or our future financial or operating performance and prospects, and include statements regarding business plans, objectives and expected operating results. When used in this press release, words such as “may,” “could,” “should,” “will,” “plan,” “project,” “forecast,” “guidance,” “outlook,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in HMH’s filings with the Securities and Exchange Commission (the “SEC”), including the sections titled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in HMH’s final prospectus filed with the SEC on April 1, 2026 and subsequent Quarterly Reports on Form 10-Q. HMH undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release, except as required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts and the Investors section of HMH’s website. We may use these channels to distribute material information about HMH; therefore, we encourage investors, the media, business partners and others interested in HMH to review the information posted on HMH’s website. The information on HMH’s website is not part of, and is not incorporated into, this press release.
Company Contact
Katina Hargett
Investor Relations
HMH Holding Inc.
+1 (281) 371-4985
investorrelations@hmhw.com
| HMH Holding Inc. Comparative Condensed Consolidated Statements of Income (Unaudited) | |||||||||||
| Second Quarter 2026 | Second Quarter 2025 | First Quarter 2026 | |||||||||
| (in thousands) | |||||||||||
| Revenue | |||||||||||
| Service revenue | $ | 89,072 | $ | 92,332 | $ | 72,009 | |||||
| Product revenue | 20,027 | 58,812 | 32,466 | ||||||||
| Spare parts revenue | 61,163 | 52,151 | 66,519 | ||||||||
| Related party revenue | 560 | 162 | 327 | ||||||||
| Total revenue | 170,822 | 203,457 | 171,321 | ||||||||
| Operating expenses | |||||||||||
| Cost of services sold | 58,766 | 63,671 | 53,058 | ||||||||
| Cost of goods sold – products | 16,527 | 53,422 | 25,367 | ||||||||
| Cost of goods sold – spare parts | 34,231 | 34,452 | 38,208 | ||||||||
| Total cost of sales | 109,524 | 151,545 | 116,633 | ||||||||
| Selling, general and administrative expenses | 60,354 | 29,441 | 35,111 | ||||||||
| Research and development expenses | 771 | 649 | 414 | ||||||||
| Restructuring and other expenses (income), net | 5,004 | 1,072 | — | ||||||||
| Total operating expenses | 175,653 | 182,707 | 152,158 | ||||||||
| Operating income (loss) | (4,831 | ) | 20,750 | 19,163 | |||||||
| Foreign currency gain (loss), net | (591 | ) | 2,948 | (2,228 | ) | ||||||
| Other non-operating income (loss), net | (158 | ) | 334 | (255 | ) | ||||||
| Interest income (expense), net | (3,945 | ) | (9,106 | ) | (6,953 | ) | |||||
| Income (loss) before income taxes | (9,525 | ) | 14,926 | 9,727 | |||||||
| Income tax (expense) benefit | 4,506 | (5,158 | ) | (5,852 | ) | ||||||
| Net income (loss) | (5,019 | ) | 9,768 | 3,875 | |||||||
| Less: Net income (loss) attributable to non-controlling interests | (9,995 | ) | 819 | 427 | |||||||
| Net income (loss) attributable to HMH Holding Inc. | $ | 4,976 | $ | 8,949 | $ | 3,448 | |||||
| HMH Holding Inc. Comparative Condensed Consolidated Balance Sheets (Unaudited) | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| (in thousands) | |||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 119,705 | $ | 96,585 | |||
| Other current assets | 529,203 | 532,625 | |||||
| Property, plant and equipment, net | 197,673 | 200,818 | |||||
| Other assets | 515,984 | 527,676 | |||||
| Total assets | $ | 1,362,565 | $ | 1,357,704 | |||
| Liabilities and equity | |||||||
| Total current liabilities | 218,317 | 223,639 | |||||
| Long-term debt, net | 196,363 | 195,636 | |||||
| Long-term debt, net—related party | — | 143,732 | |||||
| Other long-term liabilities | 101,486 | 94,245 | |||||
| Total liabilities | 516,166 | 657,252 | |||||
| Total equity | 846,399 | 700,452 | |||||
| Total liabilities and shareholders’ equity | $ | 1,362,565 | $ | 1,357,704 | |||
| HMH Holding Inc. Comparative Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||||||
| Second Quarter 2026 | Second Quarter 2025 | First Quarter 2026 | |||||||||
| (in thousands) | |||||||||||
| Cash flows from operating activities | |||||||||||
| Net income (loss) | $ | (5,019 | ) | $ | 9,768 | $ | 3,875 | ||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization | 11,066 | 10,682 | 10,653 | ||||||||
| Share-based compensation expense | 22,775 | — | — | ||||||||
| Amortization of borrowing costs | 409 | 311 | 318 | ||||||||
| Restructuring and other expenses | — | 700 | — | ||||||||
| Deferred tax expense (benefit) | (8,643 | ) | (77 | ) | 1,918 | ||||||
| Payment-in-kind interest | 65 | 2,809 | 2,843 | ||||||||
| Provision for bad debt expense | 184 | (309 | ) | 284 | |||||||
| Provision for inventory write-down | 1,609 | 1,143 | 380 | ||||||||
| Net cash provided by (used in) operating activities before changes in operating assets and liabilities | 22,446 | 25,027 | 20,271 | ||||||||
| Changes in operating assets and liabilities | (4,577 | ) | (46,166 | ) | (12,984 | ) | |||||
| Net cash provided by (used in) operating activities | 17,869 | (21,139 | ) | 7,287 | |||||||
| Cash flows from investing activities | |||||||||||
| Purchase of property, plant and equipment | (1,166 | ) | (2,537 | ) | (920 | ) | |||||
| Development costs | (4,082 | ) | (969 | ) | (1,814 | ) | |||||
| Acquisition of business, net of cash | — | — | (770 | ) | |||||||
| Net cash provided by (used in) investing activities | (5,248 | ) | (3,506 | ) | (3,504 | ) | |||||
| Cash flows from financing activities | |||||||||||
| Issuance of common stock in initial public offering (IPO), net of underwriting discount | 210,670 | — | — | ||||||||
| Purchase of HMH B.V. voting shares from Principal Stockholders | (39,480 | ) | — | — | |||||||
| Redemption under exchange agreement with Principal Stockholders | (12,894 | ) | — | — | |||||||
| Deferred IPO costs paid | (10,380 | ) | — | — | |||||||
| Repayment of long-term debt, net—related party | (137,099 | ) | — | — | |||||||
| Proceeds from issuance of revolving credit facilities | — | 50,000 | 719 | ||||||||
| Repayment of revolving credit facilities | — | (37,000 | ) | — | |||||||
| Purchase of treasury shares | (4,888 | ) | — | — | |||||||
| Net cash provided by (used in) financing activities | 5,929 | 13,000 | 719 | ||||||||
| Effect of foreign exchange rate on cash and cash equivalents | (142 | ) | 3,074 | 210 | |||||||
| Net increase (decrease) in cash and cash equivalents | 18,408 | (8,571 | ) | 4,712 | |||||||
| Cash and cash equivalents beginning of period | 101,297 | 46,984 | 96,585 | ||||||||
| Cash and cash equivalents end of period | $ | 119,705 | $ | 38,413 | $ | 101,297 | |||||
| HMH Holding Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin | ||||||||||||||
| Second Quarter 2026 | Second Quarter 2025 | First Quarter 2026 | ||||||||||||
| (in thousands) | ||||||||||||||
| Net income (loss) | $ | (5,019 | ) | $ | 9,768 | $ | 3,875 | |||||||
| Add: Interest expense, net | 3,945 | 9,106 | 6,953 | |||||||||||
| Income tax expense | (4,506 | ) | 5,158 | 5,852 | ||||||||||
| Depreciation and amortization | 11,066 | 10,682 | 10,653 | |||||||||||
| Share-based compensation | 22,775 | — | — | |||||||||||
| Restructuring and other expenses | 5,004 | 1,072 | — | |||||||||||
| Foreign currency (gain) loss, net | 591 | (2,948 | ) | 2,228 | ||||||||||
| IPO listing related cost | — | — | 520 | |||||||||||
| Adjusted EBITDA | $ | 33,856 | $ | 32,838 | $ | 30,081 | ||||||||
| Net income (loss) as a % of revenue | (2.9 | ) | % | 4.8 | % | 2.3 | % | |||||||
| Adjusted EBITDA Margin (a) | 19.8 | % | 16.1 | % | 17.6 | % | ||||||||
| (a). Calculated as a percentage of total revenue. | ||||||||||||||
| HMH Holding Inc. Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow | |||||||||||
| Second Quarter 2026 | Second Quarter 2025 | First Quarter 2026 | |||||||||
| (in thousands) | |||||||||||
| Net cash provided by (used in) operating activities | $ | 17,869 | $ | (21,139 | ) | $ | 7,287 | ||||
| Add: Purchases of property and equipment | (1,166 | ) | (2,537 | ) | (920 | ) | |||||
| Development costs | (4,082 | ) | (969 | ) | (1,814 | ) | |||||
| Non-cash IPO related settlement | 9,541 | — | — | ||||||||
| Free Cash Flow | $ | 22,162 | $ | (24,645 | ) | $ | 4,553 | ||||
