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Hexagon (HEXA) investor relations material

Hexagon Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary24 Oct, 2025

Executive summary

  • Organic growth reached 4% year-over-year in Q3 2025, with strong demand in autonomous solutions, aerospace, defense, electronics, and mining, and solid cash conversion at 77%, despite currency headwinds and a seasonally weak quarter.

  • Operating margins improved sequentially but remain below targets, with adjusted operating earnings (EBIT1) down 7% to EUR 349 million and a margin of 26.8%.

  • A EUR 110 million cost efficiency program is underway, with a total restructuring charge of EUR 299 million in Q3, including EUR 186 million in impairments.

  • Strategic actions included the announced sale of the Design & Engineering business for EUR 2.7 billion, expected to yield a EUR 1.4 billion gain and close in Q1 2026, and leadership changes in anticipation of the Octave spin-off.

  • The Octave spin-off remains on track for H1 2026, with preparations for public company readiness and a capital markets day planned.

Financial highlights

  • Group revenue was EUR 1.3 billion, with reported growth flat year-over-year and 4% organic growth, offset by a 4% negative currency impact.

  • Adjusted gross margin was 66.9%, and operating earnings (EBIT1) fell 7% to EUR 349 million, with a margin of 26.8%.

  • Earnings per share declined by 5% to EUR 0.096; interest expenses and financial costs decreased from EUR 44 million to EUR 32 million.

  • Cash conversion improved to 77% from 70% in Q3 2024; operating cash flow before non-recurring items was EUR 177.8 million, up 7%.

  • Net working capital as a proportion of sales improved to 5.3% from 8.3% last year.

Outlook and guidance

  • Cost savings of EUR 110 million are expected to flow fully to the bottom line by end of 2026, with gradual benefits starting in Q4 2025.

  • The market environment is expected to remain unchanged in the near term, with delayed customer decisions and no near-term improvement expected.

  • New product launches and an updated operating model position the group for growth as markets recover.

  • The Octave spin-off and D&E sale are on track for completion in the first half of 2026, with a capital markets day planned for Q1 2026.

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Frequently asked questions

Hexagon AB engages in the development and provision of information technology solutions. The company is focused on delivering digital realities that require autonomous data capture, analysis and visualization by combining sensor inputs with software. Founded in 1975 and headquartered in Stockholm, Sweden. The company operates through two business areas: 1. Geospatial Enterprise Solutions (GES): comprising of Geosystems, Safety, Infrastructure & Geospatial and Autonomy & Positioning offering sensors, laser scanners, airborne cameras, unmanned aerial vehicles, monitoring equipment, mobile mapping technologies and precise positioning. 2. Industrial Enterprise Solutions (IES): comprising of Manufacturing Intelligence and PPM divisions. Offering includes coordinate measurement machines (CMM), laser trackers and scanners for optimizing design, processes and throughput in manufacturing facilities. Also provides a wide software offering such as CAD, CAM and CAE platforms as well as software improving design, productivity and leveraging asset management info in industrial plants and processing facilities.

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