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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.
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. 
Next Hexagon earnings date

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