Hexagon Composites Asa Stock Earnings Reports

Q3 results: Group revenue NOK 538 million and EBITDA negative NOK 54 million, with August driving the bulk of the loss. Hexagon attributes the weak quarter to prolonged macroeconomic uncertainty and a cyclical downturn—most pronounced in its Truck and Mobile Pipeline businesses in North America. Actions taken: a NOK 590 million equity raise in September, renegotiated banking arrangements (covenant testing suspended until Q3 2026 with a 4.2x target at that point), and a group-wide cost & cash savings program. Cost actions to date include ~NOK 190 million annualized personnel cost reductions (≈20% headcount reduction vs. 2024), NOK 70 million of structural run-rate savings realized by end-Q3, and further targets to reach an additional NOK 80–130 million over the next four quarters. Balance sheet and cash measures include targeting NOK 150–200 million working capital reductions (H1 2026), capping 2026 CapEx for core businesses at max NOK 80 million, and reducing available debt facilities to NOK 2.0 billion (with NOK 1.6 billion immediately accessible). Segment performance: Fuel Systems NOK 372 million (negative 4% margin impacted by low truck volumes but Refuse and Transit remain resilient), Mobile Pipeline NOK 93 million with EBITDA margin -49% (severe North America weakness), Aftermarket NOK 97 million with ~8% margin (resilient). Strategic moves to stimulate demand: partnership with Cummins & Clean Energy to launch Pioneer (leasing), a demo-truck program in North America, and acquisition of SES Composites (EUR ~30m revenue, ~EUR 2m EBITDA reported historically) to strengthen European Transit position. Outlook: management expects Q4 to be better than Q3, Q1 2026 to be weaker seasonally, limited visibility for cyclical segments into 2026, and continued focus on lowering breakeven and preserving liquidity. Management remains confident in long-term adoption of natural gas (target industry adoption 8–10% of Class 8 trucks) but timing of recovery is uncertain.