Hexagon Composites
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Hexagon Composites (HEX) investor relations material

Hexagon Composites Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary12 Feb, 2026

Executive summary

  • Q4 2025 showed sequential revenue and profitability improvement, driven by Fuel Systems, SES Composites acquisition, and strong refuse segment demand, despite ongoing market softness and macroeconomic uncertainty.

  • Regulatory clarity from the EPA 2027 NOx emission rule began to positively influence Class 8 truck sales and fleet investment sentiment.

  • Structural cost actions, including a 25% workforce reduction and over NOK 200 million in cost savings, have improved competitiveness and lowered the break-even point.

  • Diversification efforts included a record NOK 800 million in refuse segment revenue, a NOK 110 million order in Mexico, and entry into the space sector with a $7 million order.

  • Acquisition of SES Composites in October contributed NOK 97 million in revenue and NOK 4 million in EBITDA, positioning the group as a leading supplier to European transit bus OEMs.

Financial highlights

  • Q4 2025 revenue was NOK 831 million, up 50% sequentially; full-year revenue reached NOK 2,955 million, with profitability improving quarter-over-quarter due to higher volumes and cost initiatives.

  • Q4 EBITDA was NOK 156 million, including a NOK 119 million one-off gain and NOK 13 million in severance; adjusted EBITDA was NOK 49 million (6% margin).

  • Full-year adjusted EBITDA was NOK 65 million (2% margin); net loss after tax for Q4 was NOK -87 million, and for the year NOK -1,132 million.

  • Positive operational cash flow in Q4, with a NOK 37 million working capital release and NOK 104 million higher cash balance at quarter-end.

  • Net interest-bearing debt at year-end was NOK 1,031 million; available liquidity at NOK 561 million; equity ratio at 50%.

Outlook and guidance

  • 2026 is expected to be back-end loaded, with a soft first half and gradual improvement in the second half as market fundamentals stabilize.

  • Top line for 2026 projected to be broadly in line with or moderately above 2025, with profitability and free cash flow improvements anticipated.

  • Strict financial discipline, cost optimization, and leveraging core technology remain top priorities.

  • Cautious optimism for 2026, with long-term growth confidence.

Leverage covenant risk mitigation strategy
Strategy for underperforming segments
Rationale for Purus impairment non-reversal?
Plan to meet Q3 2026 leverage covenant?
Strategic plan for data center power generation?
Sustainability of cost optimization benefits?
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Frequently asked questions

Hexagon Composites ASA, produces composite pressure cylinders and systems for mobility, industrial, and consumer applications. The company's products include cylinders for gas storage and transportation; tanks for the onboard storage of various gases; and fuel systems consisting of a tank, frame and mounting system, fuel pump, valves, end caps, overfill protection system, safety mechanisms, and connections to the engine. Hexagon Composites ASA is headquartered in Ålesund, Norway.

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