Hexicon (HEXI) Q3 2025 earnings summary

Executive summary

• Floating offshore wind market remains weak, but recent political actions in the UK, France, and South Korea are strengthening support for the sector.

• Business model focuses on developing and divesting projects during the development phase, not operating them post-construction.

• Portfolio has become smaller and more mature due to divestments and political decisions, with a focus on core projects in the UK and South Korea.

• Main focus is on maturing existing projects, divestments, and operational efficiency, with no plans to expand the portfolio in 2025.

• Extended revolving credit facility by 24 months, secured new EUR 4.75 million loan, and signed MoUs to convert loans into equity and enhance local collaboration.

Market and industry conditions

• Offshore wind, especially floating, has seen a downturn in recent years, with fewer buyers and lower valuations, but long-term fundamentals remain strong.

• UK and France have strengthened subsidy regimes and auction structures for floating wind, though France saw two auctions with no bids.

• South Korea has increased renewable targets and established a new ministry to support energy transition.

• Global floating wind installations remain small at 277 MW, but strong growth is forecasted compared to 83,000 MW for fixed-bottom wind.

• High capital costs, inflation, and slow permitting continue to challenge the sector.

Segment performance

• MunmuBaram in South Korea, Pentland in Scotland, and TwinHub in England are the most mature projects.

• MunmuBaram is a 750 MW project, now fully owned after buyback from Shell, and is the largest value driver in the portfolio.

• UK projects are preparing for upcoming Contracts for Difference auctions.

• Revenue primarily from consulting services and project divestments, with major divestment of Italian projects in Q2 2025.

• Active project portfolio includes South Korea, South Africa, UK, Italy, and Sweden, with 54-55% active ownership.