Hexagon (HEXA) Q4 2025 earnings summary

Executive summary

• Achieved 3% organic growth in Q4 2025, led by Autonomous Solutions and strong demand in electronics, aerospace & defence, and key sectors.

• Record gross margin of 67.5% and strong cash conversion at 121%.

• Implemented restructuring program targeting EUR 110 million in annual savings by end of 2026; EUR 11 million benefit realized in Q4 2025.

• Announced acquisitions (Inertial Sense, IconPro) and divestiture (D&E to Cadence), with D&E sale on track to close in Q1 2026.

• Progressed Octave spin-off, targeted for H1 2026, and appointed Enrique Patrickson as CFO by July 2026.

Financial highlights

• Q4 2025 revenue was EUR 1,429.2 million, with reported growth of -1% due to -6% currency impact; organic growth was 3%.

• Adjusted EBIT1 was EUR 420.3 million (Q4, -7% YoY), margin 29.4%; adjusted EPS 11.8 euro cent (Q4, -5% YoY).

• Operating cash flow before tax and interest was EUR 509 million; after non-recurring items, EUR 352 million, down 13% YoY.

• Interest expense and financial costs decreased from EUR 41 million to EUR 30 million.

• Net working capital to sales ratio improved to 3.2%.

Outlook and guidance

• Market conditions for Q1 2026 expected to be consistent with H2 2025, with normal seasonality and continued currency headwinds.

• Restructuring program benefits to continue throughout 2026, with full run-rate savings by year-end.

• New product launches and SaaS growth expected to contribute more significantly to growth and margins in 2026.

• Octave spin-off targeted for Q2 2026, pending regulatory and shareholder approvals.