Hexagon Composites (HEX) Q4 2025 earnings summary

Executive summary

• Q4 2025 showed sequential revenue and profitability improvement, driven by Fuel Systems, SES Composites acquisition, and strong refuse segment demand, despite ongoing market softness and macroeconomic uncertainty.

• Regulatory clarity from the EPA 2027 NOx emission rule began to positively influence Class 8 truck sales and fleet investment sentiment.

• Structural cost actions, including a 25% workforce reduction and over NOK 200 million in cost savings, have improved competitiveness and lowered the break-even point.

• Diversification efforts included a record NOK 800 million in refuse segment revenue, a NOK 110 million order in Mexico, and entry into the space sector with a $7 million order.

• Acquisition of SES Composites in October contributed NOK 97 million in revenue and NOK 4 million in EBITDA, positioning the group as a leading supplier to European transit bus OEMs.

Financial highlights

• Q4 2025 revenue was NOK 831 million, up 50% sequentially; full-year revenue reached NOK 2,955 million, with profitability improving quarter-over-quarter due to higher volumes and cost initiatives.

• Q4 EBITDA was NOK 156 million, including a NOK 119 million one-off gain and NOK 13 million in severance; adjusted EBITDA was NOK 49 million (6% margin).

• Full-year adjusted EBITDA was NOK 65 million (2% margin); net loss after tax for Q4 was NOK -87 million, and for the year NOK -1,132 million.

• Positive operational cash flow in Q4, with a NOK 37 million working capital release and NOK 104 million higher cash balance at quarter-end.

• Net interest-bearing debt at year-end was NOK 1,031 million; available liquidity at NOK 561 million; equity ratio at 50%.

Outlook and guidance

• 2026 is expected to be back-end loaded, with a soft first half and gradual improvement in the second half as market fundamentals stabilize.

• Top line for 2026 projected to be broadly in line with or moderately above 2025, with profitability and free cash flow improvements anticipated.

• Strict financial discipline, cost optimization, and leveraging core technology remain top priorities.

• Cautious optimism for 2026, with long-term growth confidence.