Hexagon Reports Weaker Than Expected March Performance as Sensor Sales and Currency Effects Impact EBIT1 Margins

Hexagon Reports Weaker Than Expected March Performance as Sensor Sales and Currency Effects Impact EBIT1 Margins

(IN BRIEF) Hexagon has reported a disappointing financial performance in March 2025, a critical month for the quarter, despite a good overall start to the year. Sales in key markets such as NAFTA and China experienced a slowdown in the latter part of March, attributed to mounting economic uncertainty that affected deliveries. Although recurring revenues showed robust growth, this was counterbalanced by a significant downturn in sensor sales, compounded by a 6 MEUR negative impact from currency transaction effects. Preliminary data indicates that Q1 2025 revenue reached approximately 1,322.8 MEUR, reflecting an organic growth rate of 0% compared to 3% in Q1 2024, though reported growth stands at around 2% when currency and structural impacts are factored in. Operating earnings (EBIT1) are forecast at about 345 MEUR for Q1 2025, down from 376.5 MEUR in Q1 2024, leading to an adjusted operating margin of roughly 26.1%, compared to 29.0% the previous year. In response to ongoing end market uncertainty, Hexagon’s management is prepared to implement cost-saving measures if demand continues to decline, with further details to be outlined in the forthcoming Q1 2025 report scheduled for release on 30 April 2025 at 08:00 CET.

(PRESS RELEASE) STOCKHOLM, 11-Apr-2025 — /EuropaWire/ — After a promising start to the year, Hexagon experienced a weaker than anticipated financial performance in March—a critical month in the quarter for revenue generation. In March, growth in key markets such as NAFTA and China slowed significantly during the final two weeks, as prevailing economic uncertainty began to dampen delivery volumes. Although recurring revenues registered solid growth during the quarter, this was largely neutralized by a notable decline in sensor sales. In addition, sensor volume reductions in March, along with a negative 6 MEUR impact from currency transaction effects, contributed to a short-term decrease in EBIT1 margins.

Preliminary figures show that Hexagon’s Q1 2025 revenue is around 1,322.8 MEUR, compared to 1,299.9 MEUR recorded in Q1 2024. This represents an organic growth rate of 0%, down from 3% in the previous year. When adjustments for currency fluctuations and structural changes are included, the reported growth comes in at approximately 2%, with currency and structural factors each contributing an estimated 1% improvement. Meanwhile, group EBIT1, which reflects operating earnings excluding adjustments, is expected to be near 345 MEUR in Q1 2025, a reduction from 376.5 MEUR in Q1 2024. As a result, the adjusted operating margin is projected to be around 26.1%, compared to 29.0% in the same quarter a year earlier.

In light of ongoing uncertainty in end markets, Hexagon’s management is closely monitoring the situation. Should the current demand challenges persist, the company has indicated that it will take appropriate steps to adjust its cost base to mitigate further adverse impacts. A comprehensive update will be provided in the full Q1 2025 report.

Hexagon is set to officially release its Q1 2025 report on Wednesday, 30 April 2025 at 08:00 CET.

This information is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 11 April 2025.

Media Contacts:

Tom Hull, Head of Investor Relations, Hexagon AB, +44 7442 678 437, ir@hexagon.com

Anton Heikenström, Investor Relations Manager, Hexagon AB, +46 8 601 26 26, ir@hexagon.com

SOURCE: Hexagon AB