Hexagon (HEXA) Q2 2025 earnings summary

Executive summary

• Achieved 3% organic growth in Q2 2025, with net sales of EUR 1,370.7 million and strong cash conversion at 104%, despite ongoing macro and geopolitical uncertainty and significant negative currency impacts.

• Operating earnings (EBIT1) declined 10% to EUR 360.6 million, with margins diluted by 130 bps due to currency headwinds and increased R&D investment.

• Leadership transition with Anders Svensson appointed CEO, and a cost improvement program underway with further details expected at Q3 2025 results.

• Announced potential spin-off of Octave (combining ELI and SIG divisions), on track for H1 2026 completion.

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

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 stable at 67% (67.0% vs 66.5% prior year); adjusted operating margin at 26.3% (down from 29.5%).

• EBIT1 at EUR 360.6 million, down 10% year-over-year; EPS at 9.8 euro cents, down 9%.

• Operating cash flow before non-recurring items at EUR 270.8 million (up 9%), cash conversion at 104%.

• Adjusted EBITDA margin at 34.9% (vs 37.5% Q2 2024); net working capital at 5.5% of rolling 12-month sales.

Outlook and guidance

• Market uncertainty and geopolitical factors persist, making H2 2025 forecasts challenging.

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

• Organic growth target of 5%-7% per year for 2022-2026 remains in place.

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

• New product launches expected to contribute to growth and margin improvement from 2026.