Hexagon
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Hexagon (HEXA) investor relations material

Hexagon 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 summary30 Jan, 2026

Executive summary

  • Achieved 3% organic growth in Q4 2025, led by Autonomous Solutions and strong demand in electronics, aerospace & defence, and key sectors.

  • Record gross margin of 67.5% and strong cash conversion at 121%.

  • Implemented restructuring program targeting EUR 110 million in annual savings by end of 2026; EUR 11 million benefit realized in Q4 2025.

  • Announced acquisitions (Inertial Sense, IconPro) and divestiture (D&E to Cadence), with D&E sale on track to close in Q1 2026.

  • Progressed Octave spin-off, targeted for H1 2026, and appointed Enrique Patrickson as CFO by July 2026.

Financial highlights

  • Q4 2025 revenue was EUR 1,429.2 million, with reported growth of -1% due to -6% currency impact; organic growth was 3%.

  • Adjusted EBIT1 was EUR 420.3 million (Q4, -7% YoY), margin 29.4%; adjusted EPS 11.8 euro cent (Q4, -5% YoY).

  • Operating cash flow before tax and interest was EUR 509 million; after non-recurring items, EUR 352 million, down 13% YoY.

  • Interest expense and financial costs decreased from EUR 41 million to EUR 30 million.

  • Net working capital to sales ratio improved to 3.2%.

Outlook and guidance

  • Market conditions for Q1 2026 expected to be consistent with H2 2025, with normal seasonality and continued currency headwinds.

  • Restructuring program benefits to continue throughout 2026, with full run-rate savings by year-end.

  • New product launches and SaaS growth expected to contribute more significantly to growth and margins in 2026.

  • Octave spin-off targeted for Q2 2026, pending regulatory and shareholder approvals.

Octave's US listing and SDR program details
Geosystems destocking impact on Q1 2026
D&E divestment proceeds allocation strategy
Octave's SaaS transition impact on margins
Restructuring program: pace and future savings
R&D cap/amort gap: new product contribution
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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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