Hexagon Composites (HEX) Q2 2025 earnings summary

Executive summary

• Q2 2025 was marked by weak financial performance due to macroeconomic headwinds, low activity, and delayed customer investments, especially in Mobile Pipeline.

• Cost-saving measures and organizational right-sizing were implemented to address challenging market conditions.

• Strategic progress included the acquisition of SES/SCS Composites and an extended alliance with Mitsui & Co.

• Commercial momentum is emerging, with major new orders for X15N engine fuel systems and Mobile Pipeline modules, especially in North America and Jordan.

• The company remains well positioned for long-term growth as market conditions improve.

Financial highlights

• Q2 2025 revenue was NOK 674 million, down 41% year-over-year; EBITDA was NOK 12 million with a 2% margin.

• Fuel Systems revenue was NOK 463 million, with a 7% EBITDA margin; refuse sector strong, truck sector weak.

• Mobile Pipeline revenue was NOK 132 million, with a -25% EBITDA margin due to volume decline and delayed investments.

• Aftermarket revenue was NOK 109 million, EBITDA margin 3%, with stable vehicle parts and service activities.

• Liquidity at quarter-end was NOK 763 million, with unused credit facilities of NOK 633 million.

Outlook and guidance

• Formal guidance for 2025 remains paused due to ongoing market uncertainty; will be reinstated when conditions improve.

• Inventory reduction and improved working capital are expected in H2 2025, with positive liquidity effects.

• The company is positioned for sustainable growth as commercial momentum continues and regulatory support strengthens.