Key Highlights

  • Top-line Revenue shrank 21.2%, landing at USD 171.1 million for the third quarter of 2026, while product sales collapsed by 69.1% to USD 16.7 million.
  • Diluted EPS of USD 0.40 beat last year's USD 0.23, yet attributable Net Income slid to USD 5.0 million, versus USD 16.2 million, owing to non-comparable share totals.
  • Adjusted EBITDA, a non-GAAP figure, came in at USD 38.2 million, slightly below USD 39.4 million, and its Margin nonetheless improved to 22.3% from 18.2%.
  • Liquidity of roughly USD 165.1 million combined USD 90.1 million of cash with USD 75 million of revolver capacity, and no long-term Debt matures before June 2028.

Product Sales Slump Offsets a Resilient Aftermarket

HMH Holding (NASDAQ:HMH) submitted its quarterly 10-Q on November 4, 2026, for the period through September 30. The firm designs and supplies engineered drilling machinery, along with services and spare parts for offshore and onshore rigs, and it is branching into mining. Total revenue fell USD 46.1 million, with most of the drop in product sales, which dropped to USD 16.7 million. The filing links that decline to thinner equipment Backlog and project postponements in the Middle East, where conflict continues. Service sales declined 7.4% to USD 97.1 million, and spare parts dipped 1.7% to USD 57.2 million. Aftermarket work now represents 56.8% of revenue, while projects and products make up 9.8%, down from 24.9%. Operating Income totaled USD 21.8 million, against USD 28.2 million a year before.

Share Base Changes Drive the Divergence Between EPS and Profit

Profit attributable to shareholders was USD 5.0 million, a decline of roughly 69.2% (calculated), but diluted EPS moved up to USD 0.40, having been USD 0.23 before. The gap comes from the denominator: weighted diluted shares were 12.4 million, far below the 69.4 million reported previously, because earlier periods were recast for the reorganization and do not include the 11.2 million Class A shares placed in the initial public offering. The April 2, 2026 offering of 10,520,000 shares priced at USD 20.00 brought in net proceeds of roughly USD 197.8 million, and the over-allotment option contributed USD 12.9 million more. Net interest expense fell to USD 3.8 million after Shareholder loans were paid off, though the tax charge grew to USD 7.2 million.

Adjusted Margin Gains Rest on Mix Rather Than Growth

Adjusted EBITDA landed at USD 38.2 million, close to the prior USD 39.4 million, so the 22.3% margin owes more to product mix and a smaller Top Line than to expansion. Across nine months, the measure was USD 102.1 million, practically unchanged from USD 102.2 million. Operating cash generation was USD 19.0 million for the period, down from USD 28.9 million, and free Cash Flow totaled USD 15.1 million, versus USD 18.0 million earlier. Fair Value of the 7.875% senior secured notes due 2028 was USD 204.0 million. Leadership expects long-term offshore work beyond the Middle East to proceed largely as planned and points to a growing backlog, while flagging near-term turbulence in onshore and jack-up Demand in that region.

Where Things Stand

The EPS increase reflects a much smaller share count following the reorganization and IPO, not higher earnings. The company posted USD 0.40 per diluted share, yet attributable net income shrank to USD 5.0 million, and revenue fell 21.2%. Aftermarket resilience, a wider margin and lower interest costs are the offsets. Next checkpoints are whether product orders rebound after the Middle East slowdown, how backlog turns into sales, and the 2028 bond maturity.