Hexagon Composites (HEX) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 revenue of NOK 1.5–1.533 billion and EBITDA of NOK 257 million, with a 17% margin, driven by robust volumes in fuel systems and Mobile Pipeline businesses.

• Full-year 2024 revenue reached NOK 4.88–4.877 billion and EBITDA NOK 637 million, with margin improvement to 13% from 8% in 2023.

• Major milestones included the launch of the X15N engine, a NOK 620 million UPS order, and the sale of Hexagon Ragasco, strengthening the balance sheet.

• Enabled avoidance of 1.8–1.84 million metric tons of CO2 equivalents in 2024, equivalent to removing 430,000 combustion cars from the road.

• Significant operational expansion with new production lines and facilities, increasing capacity by up to 15% and doubling RNG/CNG fuel system capacity.

Financial highlights

• Q4 2024 revenue grew 21% year-over-year to NOK 1,533 million; EBITDA at NOK 257 million, margin 17%.

• Full-year 2024 revenue was NOK 4,877 million (up from NOK 4,526 million YoY); EBITDA at NOK 637 million (13% margin), up from NOK 366 million (8% margin) in 2023.

• Leverage at 1.5x net interest-bearing debt/EBITDA; available liquidity of NOK 1.2 billion.

• Equity ratio stands at 50%.

• Excluding non-recurring items, Q4 profit before taxes was NOK 136 million; reported Q4 loss before taxes was NOK -690 million due to impairments and associate losses.

Outlook and guidance

• 2025 expected to be a transition year with a soft first half and significant growth in the second half, driven by Freightliner trucks with X15N engines and new truck platforms.

• Sales guidance for 2025: NOK 4.9–5.3 billion; EBITDA: NOK 640–740 million.

• Anticipates 10x growth in heavy-duty natural gas truck engines by 2030, with 8–10% adoption rates.

• Mobile Pipeline and truck segments expected to see strong growth in H2 2025.

• Cummins preparing for at least 8% natural gas truck adoption; new adopters expected to increase order sizes.