Hexagon Purus (HPUR) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of NOK 544 million, up 43% year-over-year, with LTM revenue at NOK 1,845 million and YTD revenue at NOK 1,480 million, driven by hydrogen infrastructure and mobility segments.

• EBITDA margin improved to -9% in Q3 2024 from -30% in Q3 2023, aided by a contract termination payment from Daimler Truck North America; hydrogen business turned EBITDA positive.

• Secured multi-year agreements with GILLIG and New Flyer, and received first purchase order from Hino Trucks, strengthening market position in North American transit bus sector.

• Raised NOK 1 billion in equity post-quarter, providing liquidity to support growth and operations beyond EBITDA and cash flow break-even.

• Order backlog at quarter end was over NOK 900 million, fully covering 2024 revenue targets.

Financial highlights

• Q3 2024 revenue: NOK 544 million (+43% YoY); LTM revenue: NOK 1,845 million (+39% YoY); YTD revenue: NOK 1,480 million (+55% YoY).

• Q3 2024 EBITDA: NOK -50.8 million (margin -9%), improved from NOK -115.7 million (margin -30%) in Q3 2023.

• EBIT for Q3 2024: NOK -106.2 million; net loss after tax: NOK -149 million, improved from NOK -197 million last year.

• Cost of materials as % of revenue decreased to 56% from 62% YoY; payroll expenses at 36% of revenue, down from 42%.

• Cash and cash equivalents at quarter-end: NOK 269 million, with NOK 1 billion equity raised post-quarter.

Outlook and guidance

• 2024 revenue target fully covered by existing order backlog; execution is the main focus for year-end.

• Expects at least 50% revenue growth and significant EBITDA margin improvement for 2024 and 2025.

• Targeting EBITDA break-even and positive cash flow during 2026, supported by lower CapEx and improved working capital efficiency.

• Capacity expansion program nearly complete; focus shifts to optimizing utilization and profitability.

• Uncertainty remains due to US political developments, regulatory changes, and energy transition pace.