Hexagon (HEXA) Q2 2025 earnings summary

Executive summary

• Achieved 3% organic growth in Q2 2025, with stable gross margin and strong cash conversion of 104%, despite ongoing geopolitical uncertainty and significant negative currency impacts.

• Announced and progressed a cost improvement program to address cost base misalignment, with further details expected by Q3 2025.

• Launched new products including the AEON/AION humanoid robot and Maestro CMM platform, with commercial launches expected in 2026.

• Progressed on the planned separation of Octave/Occtave, targeting completion in H1 2026.

• Strategic actions included the acquisition of Aero Photo Europe Investigation (APEI) and divestment of non-core SIG assets.

Financial highlights

• Q2 2025 sales reached EUR 1,370.7 million, up 1% reported and 3% organic, with a -3.7% FX impact.

• Gross margin held at 67% (vs. 66.5%/67.3% prior year); EBIT1 fell 10% to EUR 360.6 million, margin at 26.3% (down 130 bps from FX).

• EPS declined 9% to 9.8 euro cents.

• Operating cash flow rose 11% to EUR 375.1 million, with cash conversion at 104%.

• Adjusted EBITDA margin at 34.9% (vs. 37.5% Q2 2024); net working capital at 5.5% of sales.

Outlook and guidance

• Market uncertainty continues, making H2 2025 difficult to forecast.

• Cost improvement program underway, with updates promised by Q3 2025.

• Organic growth target of 5%-7% per year through 2026 remains in place.

• Preparations for the potential separation of Octave remain on track for H1 2026.

• New product launches expected to support growth and margin expansion from 2026.