Hexagon Composites (HEX) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was NOK 538 million with EBITDA at -NOK 54 million, reflecting a 57% year-over-year decline due to macroeconomic uncertainty, high capital costs, and a cyclical downturn in core markets, especially North America.

• An equity raise of NOK 590 million was completed in September to strengthen the balance sheet, alongside a group-wide cost savings program targeting over NOK 150 million in annualized reductions and a 20% headcount reduction.

• Strategic focus remains on driving adoption of natural gas vehicles, with new partnerships, demo programs, and the launch of Pioneer Clean Fleet Solutions to accelerate market penetration and diversify the customer base.

• Acquisition of SES Composites was completed, enhancing the European transit bus segment presence and expected to contribute EUR 2 million EBITDA annually.

• Aftermarket, Transit, and Refuse sectors showed resilience, maintaining stable revenues despite broader market softness.

Financial highlights

• Q3 2025 group revenues: NOK 538 million, down from NOK 1,250 million in Q3 2024; EBITDA: -NOK 54 million, including NOK 9 million in severance costs.

• EBIT for Q3 2025 was NOK -120 million; net loss before taxes from continuing operations was NOK -290 million.

• Free cash flow year-to-date was negative NOK 61 million, mainly due to negative EBITDA and capex.

• Available liquidity at period end was NOK 534 million, supported by unused credit facilities.

• For the first nine months, revenue was NOK 2,124 million (down 36% year-over-year), and EBITDA was NOK 2 million (0% margin).

Outlook and guidance

• Q4 2025 is expected to improve over Q3, with cost savings and several orders to be delivered, but guidance remains suspended due to macroeconomic uncertainty and softness may persist into H1 2026.

• Limited visibility for 2026, especially in cyclical segments; Q1 2026 anticipated to be weaker due to seasonality.

• Long-term growth drivers include aging U.S. truck fleet, economic benefits of natural gas, and industry ambition for 8%-10% CNG adoption of Class 8 trucks.

• Focus remains on cost optimization, liquidity, and expanding into high-growth CNG markets in North America, India, and South America.