Hexagon Ab Stock Earnings Reports

Hexagon (continuing operations) delivered a strong Q1 2026: revenues €964m, organic growth +8%, EBIT €251m and operating margin 26.1%, with cash conversion improving to 77%. The company completed the sale of Design & Engineering (D&E) for ~€2.7bn and is presenting Octave as discontinued operations ahead of the planned spin-off (record/effective date May 22; Octave listings late May). Octave reported Q1 revenues €327m (organic +1%) with recurring revenue momentum and an Investor Day outlook targeting ARR growth and transitioning toward SaaS. Hexagon announced the agreement to acquire Waygate Technologies (~$1.45bn) to expand Manufacturing Intelligence into nondestructive testing and to “complete the measurement chain” from surface to interior inspection. Business-area performance highlights: Autonomous Solutions +13% (margin expansion to 34.1%), Manufacturing Intelligence +9% (strong order intake), Geosystems +2% (underlying ~4% when excluding China destocking). Company actions: restructuring program targeting €74m annualized savings (Q1 delivered €10m, run-rate €51m), active pricing/freight surcharge measures to offset tariff/input cost inflation, and executive appointments (new CFO and CPO). Key risks/near-term headwinds: currency (notably weaker USD), tariffs, freight and input-cost inflation, and geopolitical uncertainty in the Middle East. Management expects Q2 to show continued benefits from MI order intake and a cleaner Geosystems base after destocking; Octave guidance indicates 2026 as a transition year (targeting 3–4% total revenue growth, 6–8% ARR growth, with margin compression from public-company costs and revenue-model shift).