Key Highlights

  • Revenue was USD 171.08 million against a USD 213.07 million estimate, with EPS of USD 0.46 against USD 0.69.
  • Product Revenue was USD 16.7 million against USD 54.0 million, tied to lower Backlog and Middle East delays.
  • Adjusted EBITDA was USD 38.2 million, a Margin of 22.3% against 18.2% in the third quarter of 2025.
  • Cash was USD 90.1 million, and total Liquidity was about USD 165.1 million including a USD 75 million revolver.

HMH Holding Inc. (NASDAQ:HMH) reported total revenue of USD 171.1 million for the third quarter, a decrease of 21.2% from USD 217.2 million a year earlier. The company attributed the decline to lower product and contract service agreement revenue, partly offset by higher repairs, field service and digital technology. EPS was USD 0.46, while GAAP diluted EPS was USD 0.40.

Revenue

Product revenue fell 69.1% to USD 16.7 million, which management tied to a lower equipment backlog and delays in the Middle East caused by the ongoing conflict. Service revenue was USD 97.1 million against USD 104.8 million, down 7.4%, and spare parts revenue was USD 57.2 million against USD 58.2 million.

By offering, aftermarket services made up 56.8% of revenue, spare parts 33.4% and projects and products 9.8%. A year earlier the shares were 48.3%, 26.8% and 24.9%. By segment, Equipment and System Solutions revenue was USD 96.7 million against USD 103.3 million, and Pressure Control Systems revenue was USD 74.4 million against USD 113.8 million. One customer accounted for approximately 11.4% of revenue, against 22.9% a year earlier.

Profit and Margins

Cost of sales was USD 112.9 million, or 66.0% of revenue against 72.5%, which the company tied to lower volume, revenue mix, cost optimization and increased utilization. Selling, general and administrative expenses were USD 33.9 million against USD 31.4 million, and restructuring and other expenses were USD 2.2 million against USD 0.1 million.

Operating income was USD 21.8 million against USD 28.2 million. Net interest expense was USD 3.8 million against USD 8.3 million, which management linked to the repayment of Shareholder loans after the April 2026 IPO and the refinancing of its 2026 bonds. Income tax expense was USD 7.2 million, an effective rate of 41.0%. Net Income was USD 10.3 million against USD 15.8 million, and net income attributable to HMH Holding was USD 5.0 million. GAAP diluted EPS was USD 0.40 against USD 0.23.

Cash, Balance Sheet and Outlook

Cash and cash equivalents were USD 90.1 million, and with a USD 75 million revolver the company reported total liquidity of approximately USD 165.1 million. It has USD 0.7 million of borrowings under a Credit line in China due within 12 months and no long-term Debt Maturity until June 2028. Its USD 200.0 million of 7.875% senior secured bonds mature on December 17, 2028. Nine-month Operating Cash Flow was USD 19.0 million against USD 28.9 million, and free cash flow was USD 15.1 million against USD 18.0 million.

During the quarter the company completed the Acquisition of Deepwater Riser Services, which inspects, recertifies, refurbishes and stores risers in the U.S. Gulf of America, for purchase consideration of USD 14.5 million. The company gave no numerical guidance. Management said its mix is increasingly weighted toward long-term offshore projects outside the Middle East that are advancing largely as planned, and that it has seen growth in backlog and higher utilization.

Figures Worth Comparing

Revenue of USD 171.08 million sits alongside Adjusted EBITDA of USD 38.2 million, GAAP diluted EPS of USD 0.40 and total liquidity of USD 165.1 million.

Management named a few dated items: the absence of long-term debt maturities before June 2028, the December 17, 2028 maturity of the senior secured bonds, and Middle East conflict and Strait of Hormuz disruptions that it described as raising uncertainty around energy Supply and prices.