Hexagon Purus (HPUR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 44% year-over-year to NOK 230 million, mainly due to lower activity in hydrogen infrastructure and heavy-duty mobility, partially offset by growth in transit bus and battery systems.

• Cost reduction program is on track, targeting NOK 200 million in annualized savings, with a 14–15% workforce reduction and lower SG&A.

• Net loss after tax was NOK 385 million, compared to NOK 165 million loss in Q1 2024.

• Order backlog improved to NOK 1,357 million at quarter-end, up 9% sequentially, with new contracts in hydrogen storage for buses and rail.

• Significant new and extended supply agreements signed with Solaris, MCV, and Stadler for hydrogen fuel storage systems.

Financial highlights

• Revenue: NOK 230 million, down 44% year-over-year.

• EBITDA: NOK -242 million (margin -105%), or NOK -177 million adjusted for NOK 65 million in non-recurring items.

• EBIT: NOK -304 million, a further decline from NOK -141 million in Q1 2024.

• Cash and cash equivalents: NOK 794 million at quarter-end.

• Cost of materials ratio: 64% of revenue, up from 54% last year, influenced by product mix and non-recurring items.

Outlook and guidance

• Market conditions expected to remain challenging in 2025, with demand uncertainty and a slower ramp-up in Battery Systems & Vehicle Integration.

• Hydrogen transit bus segment expected to grow, while hydrogen infrastructure revenue projected to decline year-over-year.

• Battery mobility revenue expected to grow in 2025, with increased activity in the second half.

• Continued focus on cost reductions, business portfolio review, and extending cash runway to reach EBITDA and cash break-even.