Hexicon (HEXI) Q1 2025 earnings summary

Executive summary

• Floating offshore wind market is recovering from delays and downturns, with early signs of improvement and renewed investor confidence as commercial-scale projects advance and key milestones are achieved, including the Natura 2000 permit for the Mareld project and the divestment of two Italian projects.

• The company operates a diversified project portfolio across five key markets, focusing on project divestment, technology development, and maintaining technology value.

• Project portfolio size has decreased year-over-year due to government rejections in Sweden and internal cancellations in Korea, but remains sizable and resource-intensive.

Significant events and developments

• Natura 2000 permit granted for Mareld project in Sweden, awaiting final government approval.

• Sale of a 50% stake in two Italian projects to Ingka Investments and Oxan Energy for €2.5 million upfront, with potential milestone payments up to €20 million, transaction closed in April.

• TwinWind™ technology achieved a milestone with successful load assessment, confirming technical viability.

• South Korean project faced delays due to political turmoil and is awaiting post-election clarity to resume partner search.

• Liquidation of Korean subsidiary EWS Co., Ltd.

Financial highlights

• Net revenue: SEK 5.6 million (Q1 2024: SEK 0.5 million); operating loss: SEK -19.7 million (Q1 2024: SEK -19.9 million); loss before tax: SEK -21.7 million (Q1 2024: SEK -32.1 million); EPS: SEK -0.06 (Q1 2024: SEK -0.09).

• Cash flow from operating activities: SEK -13.4 million (Q1 2024: SEK -23.0 million); cash at period end: SEK 5.3 million (Q1 2024: SEK 151.6 million); equity: SEK -323.9 million (Q1 2024: SEK -33.4 million).

• Equity/asset ratio: -60% (Q1 2024: -5%).

• Number of shares: 363,802,686.