Shares in Hunting, the FTSE 250 oil and gas equipment maker, fell 12% to 376p after a third-quarter trading update that cut full-year profit expectations.
The company now expects 2026 EBITDA (earnings before interest, tax, depreciation and amortisation) of $128 million to $133 million, down from $138 million to $141 million.
Jefferies said the new midpoint is 6% lower than before, and 6% below the Bloomberg consensus of $139 million.
Third-quarter EBITDA was about $27 million, against $39 million in the second quarter.
Nine-month EBITDA of about $89 million equates to 68% of the midpoint of the new full-year range.
Middle East and North America slow
Hunting blamed the "protracted and deepening" conflict in the Middle East, which it said had hit results in the third quarter and into the fourth.
Rig activity in Saudi Arabia has fallen, reducing work on the Jafurah unconventional gas development and hurting Hunting Titan, its perforating guns and energetics business.
Deliveries to the Middle East have slowed notably, and some slowdown in North America is expected to last to the year-end.
More unexpectedly, the North America division expects a slowdown in oil country tubular goods (OCTG), the pipe used in oil and gas wells, across the region in the fourth quarter.
Subsea holds up
Subsea remains the strong spot, with profitability across Subsea Technologies described as "robust".
Europe, Middle East and Africa is expected to report a small EBITDA loss for the year, and Asia Pacific to break even in the second half.
Cash guidance trimmed
Year-end cash and bank balances are now expected at $40 million to $45 million, down from $50 million to $60 million.
Net cash was $11 million at the end of the third quarter, compared with net debt of $19 million at the end of the second.
Jefferies understands the order book is broadly flat on the $387 million reported at the half-year.
Kuwait Oil Company's re-tender for OCTG has now been published, with results likely towards the end of the year.
Jefferies rates the shares "hold" with a price target of 470p.
