Hexatronic Group (HTRO) Q2 2026 earnings summary

Executive summary

• Net sales reached SEK 2,245 million in Q2 2026, up 18% year-over-year, with 11% organic growth and strong contributions from acquisitions.

• Adjusted EBITA/EBITDA rose 33% to SEK 224 million, with a margin of 10.0%, driven by Fiber Solutions and Data Center segments.

• North America accounted for 44% of total sales, up from 34% a year ago, reflecting rapid expansion in the region.

• Data Center and Harsh Environment segments now represent 40% of net sales and 50% of adjusted EBITA/EBITDA, reflecting ongoing strategic diversification.

• Major acquisitions included JOWO Systemtechnik AG and Superior Fiber & Data Services, funded by a SEK 600 million share issue.

Financial highlights

• Adjusted gross margin was 38.7%, down from 40.1% year-over-year due to business mix and prior exceptional Data Center margins.

• Earnings per share after dilution rose 61% to SEK 0.61.

• Profit for the period was SEK 131 million, up 70% year-over-year.

• Cash flow from operating activities was SEK 181 million, with an 84% cash conversion rate.

• Net debt (excluding leases) was SEK 1.5 billion, leverage reduced to 1.7x from 2.2x, with SEK 694 million in cash and SEK 1.2 billion in backup facilities.

Outlook and guidance

• Fiber Solutions expected to maintain organic growth in the U.S., with European market remaining soft in the short term.

• Data Center segment to continue strong organic growth, with margins stabilizing around the 15% long-term target.

• Harsh Environment expected to see modest margin improvement in H2 2026, with defense sector strong but oil and gas softer.

• Submarine cable order book is strong for 2026, with revenue more evenly spread between Q3 and Q4.

• M&A focus remains on Data Center and Harsh Environment, with opportunistic approach to Fiber Solutions.