| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 96 | 0.0x | 17.8x | Top tier | |
Growth | 22 | -9.7% | 7.1% | Bottom tier | |
Quality | 65 | 8.7% | 4.5% | Around median | |
Safety | 70 | 1.0x | 2.6x | Top tier | |
Capital Return | 97 | — | 2.12% | Top tier | |
Momentum | — | — | 2.9% | N/A | |
Sentiment | 64 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
HMH provides equipment, technologies, and aftermarket services to the offshore and onshore drilling and mining markets, with a clear focus on the floating rig fleet and harsh-environment rigs. Its revenue comes from three main streams: aftermarket services, including repairs and digital upgrades, spare parts, and product and equipment sales. The company benefits from its installed customer base, as longer drilling contracts and rig reactivations generate demand for maintenance, spare parts, automation, and digital upgrades throughout the contract term.
In Q2 fiscal 2026, HMH reported revenue of $170.8 million, gross profit of $61.3 million, net income of $5.0 million, and earnings per share of $0.42. These figures equate to a gross margin of approximately 35.9%, while adjusted EBITDA reached $34 million with a margin of 19.8%, increasing year over year due to cost discipline, favorable mix, and operating efficiency. Free cash flow adjusted to exclude one-time IPO payments was $22 million.
Q2 fiscal 2026 revenue was divided among aftermarket services at $89 million, or approximately 52% of the total, spare parts at $61 million, or approximately 36%, and products at $21 million, or approximately 12%. Spare-parts revenue increased 17% year over year, while aftermarket services declined 4% due to slower repair activity, and product revenue fell 66% because of a lower opening backlog and delays in delivery, installation, and commissioning in the Middle East. For comparison, fiscal 2025 revenue was approximately $821.8 million, gross profit was $245.7 million, and net income was $45.5 million.
Automated analysis for informational purposes only — not investment advice.
Analyst consensus rates HMH shares a “Buy,” with an average price target of $28 and a wide range of $24 to $32. The average target is above the upper end of the 52-week range of $24.50, while the lowest target is slightly below it, meaning the bullish case requires digital and spare-parts orders to translate into actual growth and the company to overcome product delays in the Middle East. No usable price-to-earnings ratio is available in the provided data, so the stock's valuation here is based on the target range and the 52-week range of $16.32–$24.50 rather than an unreliable earnings multiple.
Figures in the text are as of 2026-09-09; the live price is shown at the top of the page.
HMH generates revenue from aftermarket services, spare parts, and products related to offshore and onshore drilling and mining equipment. In Q2 fiscal 2026, service revenue was $89 million, spare-parts revenue was $61 million, and product revenue was $21 million. Services and spare parts together represented approximately 88% of quarterly revenue, highlighting the importance of the installed base and ongoing customer relationships.
Revenue was $170.8 million, gross profit was $61.3 million, and net income was $5.0 million. The company reported adjusted EBITDA of $34 million and a margin of 19.8%, with adjusted EBITDA increasing 3% year over year. It also generated free cash flow of $22 million after excluding one-time cash payments related to the IPO.
Product revenue declined 66% year over year and 38% quarter over quarter to $21 million in Q2 fiscal 2026. Management attributed this to a lower backlog at the beginning of the quarter, delayed order bookings, and postponed equipment deliveries and installation and commissioning work in the Middle East. Management estimated the Middle East's negative impact on quarterly revenue at approximately $10 million, with some delays in new orders potentially extending beyond fiscal 2026.
The company has visibility into approximately 80% of the expected floating rig operating years within its installed base in 2027, compared with approximately 65% at the comparable point of the previous year. Contracted rig years during the first seven months of 2026 were 50% higher than in the same period of 2025. Management also presented industry forecasts indicating that marketed floating rig utilization could approach 90% in 2027, supporting demand for spare parts, digital upgrades, and automation.
Management maintained its adjusted EBITDA guidance for fiscal 2026 at $157 million to $177 million during the August 6, 2026 call. It expects revenue in the second half of fiscal 2026 to be clearly stronger than in the first half as service and spare-parts orders convert into revenue. It also expects capital spending, excluding development costs, to equal 2% of fiscal 2026 revenue.
The clearest operating risks are delays in customer spending on repairs and products and the 66% year-over-year decline in product revenue during Q2 fiscal 2026. The situation in the Middle East also caused an approximately $10 million negative impact, with equipment stranded on vessels and installation and commissioning work delayed. Achieving an improvement in fiscal 2026 depends on a second-half acceleration, despite orders declining 6% quarter over quarter and approximately 20% of expected floating rig activity for 2027 remaining outside current visibility.
