Hexagon Composites (HEX) Q1 2026 TU earnings summary

Executive summary

• Strengthened balance sheet and financial flexibility through a NOK 550 million private placement and amended bank agreement, extending debt maturity and relaxing leverage covenants through Q3 2027.

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

• Consolidated European production from Poland to Germany, supporting operational leverage in H2 2026.

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

• Maintained market leadership across all business fields, with diversification into aerospace and commercial space exploration.

Financial highlights

• Q1 2026 revenue was NOK 669 million, down from NOK 737 million in Q4'25 and NOK 674 million in Q1'25, reflecting seasonal softness and discontinued operations.

• EBITDA for Q1 2026 was NOK 57 million (8.5% margin), the best since Q4 2024, up from NOK 44 million in Q4'25 and NOK 46 million in Q1'25.

• Net cash flow for Q1 was -NOK 33 million, with inventory reduced by NOK 100 million and positive cash flow from operations of NOK 28 million.

• Net interest-bearing debt at Q1 2026 was NOK 1,031 million, 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 projected at NOK 600 million.

Outlook and guidance

• Revenue for 2026 expected to be in line with 2025 (~NOK 3 billion), with a stronger second half anticipated and positive signs in commercial activity.

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

• Market recovery timing remains uncertain, but commercial activity and quoting pipeline are building.

• Cautiously optimistic outlook, with improved profitability and financial flexibility.