Hexatronic Group (HTRO) Q4 2025 earnings summary

Executive summary

• Net sales for Q4 2025 reached SEK 1.8 billion, with organic growth of 10% and a negative currency impact of 9%.

• Adjusted EBITA/EBITDA was SEK 133 million (7.2% margin), but EBITA was SEK 37 million due to SEK 96 million in non-recurring costs.

• Data Center and Harsh Environment segments now account for over 50% of group profit and drove growth.

• Performance improvement program expanded, including downsizing a US facility and closing a plant in the Netherlands.

• Acquisition of Communication Zone in the US for over $20 million, expanding Data Center services and Midwest presence.

Financial highlights

• Q4 organic growth was 10%, with overall growth of 1% due to negative FX impact; net sales SEK 1,848 million.

• Adjusted EBITA/EBITDA margin declined to 7.2% from 10% last year; adjusted gross margin was 37.5%, down from 41.4%.

• Net income for Q4 was SEK -57 million, EPS after dilution SEK -0.27.

• Operating cash flow was SEK 349 million, with a cash conversion of 235%.

• Net debt reduced to SEK 1.6 billion, leverage ratio at 1.9x.

Outlook and guidance

• Data Center and Harsh Environment expected to continue strong performance, with Data Center growth aligning with ~10% market growth.

• Fiber Solutions market in Europe to remain subdued; North America expected to recover in 2026, supported by BEAD program.

• Performance improvement program to reach full run-rate by end of Q1 2026, targeting SEK 120 million EBITA effect.

• No guidance for further margin expansion in Data Center; long-term target remains 15%.

• Seasonality expected, with lower activity in Q4 and Q1.