Hexagon Composites (HEX) investor relations material

Executive summary

• Completed an oversubscribed NOK 550 million private placement, strengthening the balance sheet and financial flexibility, supported by an amended bank agreement extending debt maturity and relaxing leverage covenants.

• Significant restructuring and cost reductions over the past year led to a leaner cost base, improved EBITDA breakeven, and enhanced operating leverage.

• Consolidated European production from Poland to Germany, retaining capacity for future scaling and reporting Polish business as discontinued operations.

• Positioned for market recovery with growth drivers in natural gas vehicles, distributed energy, and new aerospace market entry, maintaining market leadership and diversification.

• Signs of market recovery in natural gas adoption for heavy-duty vehicles, especially in the U.S., and increased quoting activity for CNG trucks.

Financial highlights

• Q1 2026 revenue was NOK 669 million, down 5% sequentially from Q4, adjusted for currency effects and discontinued operations.

• EBITDA reached NOK 57 million (8.5% margin), the best since Q4 2024, with improved profitability year-over-year and quarter-over-quarter.

• Free cash flow for Q1 was -NOK 7 million, with positive cash flow from operations of NOK 28 million and inventory reduced by nearly NOK 100 million.

• Net interest-bearing debt at Q1 end was NOK 1.031 billion, expected to decrease to NOK 740 million post-transaction.

• Equity ratio improved from 45% to an expected 58% after refinancing and equity raise, with available liquidity post-transaction at NOK 600 million.

Outlook and guidance

• Revenue for 2026 expected to be in line with 2025 (around NOK 3 billion), with a stronger second half anticipated and order timing uncertain.

• EBITDA guidance for 2026 is at least NOK 200 million, with meaningful improvement in profitability and positive free cash flow anticipated.

• Positive free cash flow expected for the year, supported by cost actions and improved financial flexibility.

• Cautiously optimistic outlook, with potential for profitable growth in core and adjacent markets as commercial activity and pipeline build.