HEXPOL (HPOL) Q2 2026 earnings summary

Executive summary

• Achieved strong organic sales growth of 8% in Q2 2026, driven by higher volumes, especially in Thermoplastic Compounding, and increased market share across key segments such as cable, building, construction, and automotive.

• Implemented price increases in Europe and North America to offset volatile raw material costs, particularly due to geopolitical unrest in the Middle East.

• Navigated high market uncertainty and supply chain challenges, especially in North America, while maintaining profitability and customer relations.

• Strategic focus on organic growth, customer base expansion, and readiness for acquisitions, though M&A activity is currently impacted by market uncertainty.

Financial highlights

• Q2 2026 sales reached 5,280 MSEK (SEK 5.3 billion), up 6% year-over-year, with 8% organic growth and 1% from acquisitions, partially offset by -3% FX effects.

• Adjusted EBIT was 772 MSEK (up 2% year-over-year), with an EBIT margin of 14.6% (down 50 bps from 15.1%).

• Adjusted EPS increased to 1.60 SEK (from 1.56 SEK); operating cash flow for Q2 was 678 MSEK.

• Net debt to EBITDA improved to 1.17, with net debt at 3,757 MSEK (down from 4,473 MSEK).

• Working capital slightly higher due to increased inventory and raw material volatility.

Outlook and guidance

• No explicit guidance provided for Q3; management remains cautious due to ongoing market uncertainty, especially in North America, while Europe remains more stable.

• Continued focus on market share, price management, and leveraging new projects for volume growth.

• Management expects positive demand in Thermoplastic Compounding and ongoing strength in Rubber Compounding.