Hexagon Ab Ads (sweden) Stock Earnings Reports

Hexagon delivered a strong Q1 2026 for continuing operations: revenues of EUR 964m, 8% organic growth, EBIT of EUR 251m and an operating margin of 26.1%. Key operational highlights include strong performance in Autonomous Solutions (+13%) and Manufacturing Intelligence (+9%), return-to-growth in Geosystems after a channel destocking program, and recurring revenues up ~6%. Cash conversion improved materially to 77% and adjusted EBITDA was EUR 351m. Portfolio actions: sale of the Design & Engineering business to Cadence (~EUR 2.7bn) was completed and Octave is presented as discontinued operations ahead of the planned spin-off (effective date May 22). Hexagon announced the proposed acquisition of Waygate Technologies (~$1.45bn) to expand into nondestructive testing and interior inspection, which management sees as complementary to its precision measurement franchise. Management reiterated risks from currency headwinds, tariffs, input-cost inflation and Middle East uncertainty; they expect some mitigation via pricing and surcharges with effects evident later in the year. The EUR 74m cost-reduction program is on track (EUR 10m run-rate delivered in Q1, EUR 51m annualized to date). Octave (to be spun off) is transitioning to recurring revenue: ARR/recurring revenue momentum (SaaS double-digit), a near-term 2026 transition year target of 3–4% total revenue growth (6–8% ARR growth), medium-term ARR growth target of 10%+ and margin/cash-flow improvement over time. Near-term guidance: Q2 recurring revenue organic growth expected ~6% for Octave; Hexagon remains cautious but confident in order intake and the cleaned Geosystems base following destocking.