Hexicon (HEXI) Q4 2025 earnings summary

Executive summary

• Floating offshore wind market remains weak, with global installations at 277 MW, but long-term projections and political momentum in key regions like the US, UK, South Korea, Japan, and Taiwan remain strong.

• Portfolio is diversified by project size, stage, geography, and partners, with no expansion planned for 2026; focus is on divestments, especially in the UK and South Korea.

• Major impairment recognized on the TwinHub project due to challenging macro conditions and inability to divest at viable terms, but sufficient value remains in the portfolio.

• Pentland project in the UK advanced with new institutional investors and a Contract for Difference, positioning it for construction and potential divestment.

• South Korea's MunmuBaram project is progressing with policy clarity, auction preparations, and partner search, supported by a 25 GW offshore wind target for 2035.

Financial highlights

• SEK 118 million impairment recognized on TwinHub in Q4 2025, triggering write-downs of intercompany receivables.

• Q4 2025 net revenue: SEK 2.6 million; full year 2025: SEK 19.2 million.

• Q4 operating loss: SEK -152.0 million; full year: SEK -137.3 million.

• SEK 2.8 million loan secured to cover project costs, with lenders receiving warrants subject to EGM approval.

• Control balance sheet procedure confirmed equity remains intact, mainly due to the value of the South Korean project.

Outlook and guidance

• 2026 focus is on developing core projects, divesting selected assets, and improving project development processes, with operational efficiency measures to extend financial runway.

• Priorities include protecting liquidity, focusing on high-value projects, advancing partnerships/divestments, and progressing TwinWind™ technology.

• No immediate plans for further impairments, but ongoing market weakness could impact future valuations.

• Long-term market outlook remains positive, with expectations for improvement over the next year.