HMH Holding Inc. Announces Third Quarter 2026 Results
Higher service activity and improved adjusted margins accompanied lower revenue and negative quarterly free cash flow.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
HMH Holding (NASDAQ: HMH) reported third-quarter 2026 revenue of $171.1 million, down 21% year over year and substantially flat sequentially. Net income attributable to HMH was $5.0 million, versus $16.2 million a year earlier and $5.0 million in the second quarter.
Orders reached $191 million, up 12% year over year but down 7% sequentially. Adjusted EBITDA, a non-GAAP earnings measure, was $38.2 million, down 3% annually and up 13% sequentially; its margin rose to 22.3%. Free cash flow was negative $11.6 million. Quarter-end cash was $90.1 million, with approximately $165 million in total liquidity.
HMH completed its $14.5 million acquisition of Deepwater Riser Services. The company plans to consolidate U.S. Gulf riser operations in Houma, Louisiana, while equipment opportunities shifted to later periods and Middle East disruptions continued.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointOrders of $191 million rose 12% year over year but fell 7% sequentially; orders-to-revenue ratio reached 1.12x. 26% of market cap
- Moderate pointAdjusted EBITDA of $38.2 million increased 13% sequentially but declined 3% year over year.
- Moderate pointAdjusted EBITDA margin of 22.3% exceeded 18.2% a year earlier and 19.8% in the preceding quarter.
- Moderate pointCost of sales fell 28% year over year to $112.9 million; gross margin reached 34%.
- Moderate pointDeepwater Riser Services acquisition completed for $14.5 million, expanding HMH's aftermarket platform. 2% of market cap
- Moderate pointApproximately $165 million total liquidity included the revolving credit facility; no long-term debt maturity until June 2028.
6 minor points
- Minor pointService orders of $115 million increased 16% year over year but declined 3% sequentially.
- Minor pointSpare parts orders of $60 million increased 7% year over year but declined 8% sequentially.
- Minor point. Forward-looking: it has not happened yet and may not happen.Houma consolidation planned to expand riser inspection, recertification, refurbishment and storage capabilities.
- Minor point. Forward-looking: it has not happened yet and may not happen.Long-lead materials investment planned to improve delivery readiness and cost positioning.
- Minor pointNet interest expense of $3.759 million declined from $8.334 million a year earlier and $3.945 million sequentially.
- Minor pointResearch and development expense of $222,000 fell sequentially from $771,000 but exceeded $98,000 a year earlier.
Negative
- Moderate pointRevenue of $171.1 million fell 21% year over year and remained substantially flat sequentially.
- Moderate pointNet income attributable to HMH of $5.0 million compared with $16.2 million annually and $5.0 million sequentially.
- Moderate pointFree cash flow was negative $11.6 million, including $5.4 million in capital expenditures and development costs.
- Moderate pointOperating income of $21.830 million fell from $28.203 million annually, recovering from a $4.831 million sequential loss.
- Moderate pointEquipment opportunities shifted to later periods; longer customer award timelines narrowed execution windows for certain projects.
- Moderate pointMiddle East conflict impacts were roughly $17 million revenue and $8 million adjusted EBITDA for nine months ended September 30, 2026.
9 minor points
- Minor pointProduct revenue fell 69% year over year and 19% sequentially, reflecting lower equipment orders and regional delays.
- Minor pointService revenue fell 7% year over year, despite increasing 9% sequentially.
- Minor pointSpare parts revenue fell 2% year over year and 6% sequentially.
- Minor pointProduct orders of $16 million declined 27% sequentially and remained flat year over year.
- Minor pointCash of $90.073 million at September 30, 2026, declined from $96.585 million at December 31, 2025.
- Minor pointSelling, general and administrative expenses of $33.9 million exceeded $31.4 million annually but fell from $60.4 million sequentially.
- Minor pointRestructuring and other expenses of $2.174 million exceeded $104,000 annually but declined from $5.004 million sequentially.
- Minor pointIncome tax expense of $7.176 million compared with $4.343 million annually and a $4.506 million sequential benefit.
- Minor point. Forward-looking: it has not happened yet and may not happen.Rig reactivation delays remain near-term headwinds, alongside continued Middle East disruptions.
News Explained
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Details
Market move: HMH -5.84% vs previous close. 3Q26 earnings report
On Nov 4, the day this news came out, the latest delayed price for HMH is 5.84% below the previous close. Our momentum scanner has recorded 33 alerts for this stock so far that day. The latest delayed price is $14.50. Relative volume is elevated at 2.1x what this stock usually trades by this time of day.
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Key Figures
- Revenue
- $171.1 million; down 21% year over year
- Third quarter 2026
- Net income attributable to HMH
- $5.0 million, compared with $16.2 million
- Third quarter 2026 versus third quarter 2025
- Orders / book-to-bill
- $191 million; 1.12x
- Third quarter 2026 orders were up 12% year over year and down 7% sequentially
- Adjusted EBITDA
- $38.2 million; down 3% year over year and up 13% sequentially
- Third quarter 2026
- Adjusted EBITDA Margin
- 22.3%
- Compared with 18.2% in third quarter 2025 and 19.8% in second quarter 2026
- Deepwater Riser Services acquisition
- $14.5 million
- Acquisition completed
- Free Cash Flow
- Negative $11.6 million
- Third quarter 2026
- Middle East conflict impact
- $17 million revenue; $8 million Adjusted EBITDA
- Impact for the nine months ended September 30, 2026
Previous Earnings Reports
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Revenue declined year over year, while orders and Adjusted EBITDA increased year over year.
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Revenue and net income declined year over year; orders rose and full-year EBITDA guidance was provided.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
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, Nov. 04, 2026 (GLOBE NEWSWIRE) -- HMH Holding Inc. (“HMH” or the “Company”) (NASDAQ: HMH) today announced financial and operational results for the third quarter of 2026.
Third Quarter Highlights
- Revenue of
$171.1 million , down21% compared to the third quarter of 2025 and substantially flat compared to the second quarter of 2026. - Net income attributable to HMH of
$5.0 million , compared to net income of$16.2 million in the third quarter of 2025 and net income of$5.0 million in the second quarter of 2026. - Orders of
$191 million , up12% compared to the third quarter of 2025 and down7% compared to the second quarter of 2026, resulting in book-to-bill of 1.12x. - Adjusted EBITDA of
$38.2 million , down3% compared to the third quarter of 2025 and up13% compared to the second quarter of 2026. - Completed acquisition of Deepwater Riser Services for
$14.5 million .
Financial Summary
HMH reported revenue for the third quarter of 2026 of
Adjusted EBITDA in the third quarter of 2026 was
Orders for the quarter were
HMH Holding Inc.’s Chief Executive Officer, Eirik Bergsvik, stated: “Equipment order activity remained below our expectations in the third quarter as several larger equipment and upgrade opportunities shifted to later periods. Customer contract awards took longer than anticipated, narrowing execution windows for certain projects, while customers remained disciplined in their capital deployment. Importantly, we have not seen these opportunities disappear and continue to see a healthy pipeline across our installed base. Stronger service activity, favorable business mix, and disciplined cost execution provide resilience as we navigate this near-term variability and position the business for the next phase of market activity.
“Looking ahead, we are taking deliberate actions to strengthen HMH’s competitive and financial position as these opportunities convert. We are maintaining critical equipment capabilities, investing in long-lead materials to improve delivery readiness and cost positioning, and expanding our aftermarket platform through the acquisition of Deepwater Riser Services. As part of this strategy, we are consolidating our U.S. Gulf riser operations in Houma, Louisiana, creating a more focused and efficient operating footprint while expanding our riser inspection, recertification, refurbishment, and storage capabilities. We remain confident in the underlying deepwater fundamentals and believe HMH is well positioned to benefit from the opportunities developing into 2027. Continued Middle East disruptions and rig reactivation delays remain near-term headwinds, but our focus remains firmly on disciplined execution, strengthening our market position and converting our opportunity pipeline into profitable growth.”
Operational and Financial Results
Revenue, Cost of Sales, and Gross Operating Margin
Revenue for the third 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 used in operating activities was
For the nine months ended September 30, 2026, the revenue and Adjusted EBITDA impact of the Middle East conflict is roughly
Conference Call Details
The Company has scheduled a conference call on November 5, 2026, at 8:00 am Central Time to discuss its results for the third 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: 2200998. 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, share-based compensation, IPO listing related cost and, when applicable, other items. Management does not consider these items to be indicative of our ongoing operating performance measure, and such items include, but are not limited to, restructuring 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) | |||||||||||
| Third Quarter 2026 | Third Quarter 2025 | Second Quarter 2026 | |||||||||
| (in thousands) | |||||||||||
| Revenue | |||||||||||
| Service revenue | $ | 97,128 | $ | 104,838 | $ | 89,072 | |||||
| Product revenue | 16,705 | 53,954 | 20,027 | ||||||||
| Spare parts revenue | 57,202 | 58,186 | 61,163 | ||||||||
| Related party revenue | 45 | 193 | 560 | ||||||||
| Total revenue | 171,080 | 217,171 | 170,822 | ||||||||
| Operating expenses | |||||||||||
| Cost of services sold | 63,733 | 71,737 | 58,766 | ||||||||
| Cost of goods sold – products | 19,905 | 52,441 | 16,527 | ||||||||
| Cost of goods sold – spare parts | 29,288 | 33,227 | 34,231 | ||||||||
| Total cost of sales | 112,926 | 157,405 | 109,524 | ||||||||
| Selling, general and administrative expenses | 33,928 | 31,361 | 60,354 | ||||||||
| Research and development expenses | 222 | 98 | 771 | ||||||||
| Restructuring and other expenses | 2,174 | 104 | 5,004 | ||||||||
| Total operating expenses | 149,250 | 188,968 | 175,653 | ||||||||
| Operating income (loss) | 21,830 | 28,203 | (4,831 | ) | |||||||
| Foreign currency gain (loss), net | (113 | ) | 74 | (591 | ) | ||||||
| Other non-operating income (loss), net | (441 | ) | 229 | (158 | ) | ||||||
| Interest income (expense), net | (3,759 | ) | (8,334 | ) | (3,945 | ) | |||||
| Income (loss) before income taxes | 17,517 | 20,172 | (9,525 | ) | |||||||
| Income tax (expense) benefit | (7,176 | ) | (4,343 | ) | 4,506 | ||||||
| Net income (loss) | 10,341 | 15,829 | (5,019 | ) | |||||||
| Less: Net income (loss) attributable to non-controlling interests | 5,358 | (357 | ) | (9,995 | ) | ||||||
| Net income attributable to HMH Holding Inc. | $ | 4,983 | $ | 16,186 | $ | 4,976 | |||||
| HMH Holding Inc. Comparative Condensed Consolidated Balance Sheets (Unaudited) | |||||
| September 30, 2026 | December 31, 2025 | ||||
| (in thousands) | |||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 90,073 | $ | 96,585 | |
| Other current assets | 586,300 | 532,625 | |||
| Property, plant and equipment, net | 195,372 | 200,818 | |||
| Other assets | 527,667 | 527,676 | |||
| Total assets | $ | 1,399,412 | $ | 1,357,704 | |
| Liabilities and equity | |||||
| Total current liabilities | 238,051 | 223,639 | |||
| Long-term debt, net | 196,727 | 195,636 | |||
| Long-term debt, net—related party | — | 143,732 | |||
| Other long-term liabilities | 106,259 | 94,245 | |||
| Total liabilities | 541,037 | 657,252 | |||
| Total equity | 858,375 | 700,452 | |||
| Total liabilities and shareholders’ equity | $ | 1,399,412 | $ | 1,357,704 | |
| HMH Holding Inc. Comparative Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||||||
| Third Quarter 2026 | Third Quarter 2025 | Second Quarter 2026 | |||||||||
| (in thousands) | |||||||||||
| Cash flows from operating activities | |||||||||||
| Net income (loss) | $ | 10,341 | $ | 15,829 | $ | (5,019 | ) | ||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization | 10,640 | 10,884 | 11,066 | ||||||||
| Share-based compensation expense | 2,343 | — | 22,775 | ||||||||
| Amortization of borrowing costs | 364 | 461 | 409 | ||||||||
| Restructuring and other expenses | 203 | — | — | ||||||||
| Deferred tax expense (benefit) | 2,319 | (991 | ) | (8,643 | ) | ||||||
| Payment-in-kind interest | — | 2,660 | 65 | ||||||||
| Provision for bad debt expense | 423 | 13,157 | 184 | ||||||||
| Provision for inventory write-down | 619 | 3,582 | 1,609 | ||||||||
| Net cash provided by (used in) operating activities before changes in operating assets and liabilities | 27,252 | 45,582 | 22,446 | ||||||||
| Changes in operating assets and liabilities | (33,441 | ) | (9,082 | ) | (4,577 | ) | |||||
| Net cash provided by (used in) operating activities | (6,189 | ) | 36,500 | 17,869 | |||||||
| Cash flows from investing activities | |||||||||||
| Purchase of property, plant and equipment | (1,727 | ) | (1,746 | ) | (1,166 | ) | |||||
| Development costs | (3,678 | ) | (3,326 | ) | (4,082 | ) | |||||
| Acquisition of business, net of cash | (14,499 | ) | — | — | |||||||
| Net cash provided by (used in) investing activities | (19,904 | ) | (5,072 | ) | (5,248 | ) | |||||
| 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 | (417 | ) | — | (10,380 | ) | ||||||
| Repayment of long-term debt, net—related party | — | — | (137,099 | ) | |||||||
| Proceeds from issuance of revolving credit facilities | — | 25,702 | — | ||||||||
| Repayment of revolving credit facilities | (745 | ) | (38,000 | ) | — | ||||||
| Purchase of treasury shares | (2,198 | ) | — | (4,888 | ) | ||||||
| Net cash provided by (used in) financing activities | (3,360 | ) | (12,298 | ) | 5,929 | ||||||
| Effect of foreign exchange rate on cash and cash equivalents | (179 | ) | (935 | ) | (142 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | (29,632 | ) | 18,195 | 18,408 | |||||||
| Cash and cash equivalents beginning of period | 119,705 | 38,413 | 101,297 | ||||||||
| Cash and cash equivalents end of period | $ | 90,073 | $ | 56,608 | $ | 119,705 | |||||
| HMH Holding Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin | |||||||||||
| Third Quarter 2026 | Third Quarter 2025 | Second Quarter 2026 | |||||||||
| (in thousands) | |||||||||||
| Net income (loss) | $ | 10,341 | $ | 15,829 | $ | (5,019 | ) | ||||
| Add: Interest expense, net | 3,759 | 8,334 | 3,945 | ||||||||
| Income tax expense | 7,176 | 4,343 | (4,506 | ) | |||||||
| Depreciation and amortization | 10,640 | 10,884 | 11,066 | ||||||||
| Share-based compensation | 2,343 | — | 22,775 | ||||||||
| Restructuring and other expenses | 2,174 | 104 | 5,004 | ||||||||
| Foreign currency (gain) loss, net | 113 | (74 | ) | 591 | |||||||
| IPO listing and acquisition related costs | 1,640 | — | — | ||||||||
| Adjusted EBITDA | $ | 38,186 | $ | 39,420 | $ | 33,856 | |||||
| Net income (loss) as a % of revenue | 6.0 | % | 7.3 | % | (2.9 | )% | |||||
| Adjusted EBITDA Margin (a) | 22.3 | % | 18.2 | % | 19.8 | % | |||||
(a). Calculated as a percentage of total revenue.
| HMH Holding Inc. Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow | |||||||||||
| Third Quarter 2026 | Third Quarter 2025 | Second Quarter 2026 | |||||||||
| (in thousands) | |||||||||||
| Net cash provided by (used in) operating activities | $ | (6,189 | ) | $ | 36,500 | $ | 17,869 | ||||
| Add: Purchases of property and equipment | (1,727 | ) | (1,746 | ) | (1,166 | ) | |||||
| Development costs | (3,678 | ) | (3,326 | ) | (4,082 | ) | |||||
| Non-cash IPO related settlement | — | — | 9,541 | ||||||||
| Free Cash Flow | $ | (11,594 | ) | $ | 31,428 | $ | 22,162 | ||||
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