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Hexagon
Quarterly Report • Apr 30, 2025
2919_10-q_2025-04-30_cf1e7f8a-1d74-46a0-91d4-7823ee20d709.pdf
Quarterly Report
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INTERIM REPORT
1 JANUARY - 31 MARCH 2025 FIRST QUARTER
Good start affected by late-quarter customer delays
- 0% organic revenue growth (using fixed exchange rates and a comparable group structure)
- Net sales increased by 2% to 1,322.8 MEUR (1,299.9)
- Adjusted gross margin of 67.2% (66.5)
- Adjusted operating earnings (EBIT1) decreased by -8% to 344.7 MEUR (376.5)
- Adjusted operating margin amounted to 26.1% (29.0)
- Earnings per share, excluding adjustments, amounted to 9.4 Euro cent (10.1)
- Earnings per share, including adjustments, amounted to 7.0 Euro cent (8.9)
- Operating cash flow before non-recurring items decreased to 154.0 MEUR (219.4)
- Cash conversion amounted to 71% (88)
- Recurring revenue increased by 10% and amounted to 570.7 MEUR (520.3)
ADJUSTED KEY FIGURES2)
| MEUR | Q1 2025 | Q1 2024 | Δ% | |
|---|---|---|---|---|
| Operating net sales | 1,322.8 | 1,299.9 | 0 1) | |
| Gross earnings | 889.5 | 864.5 | 3 | |
| Gross margin, % | 67.2 | 66.5 | 0.7 | |
| Operating earnings (EBITDA) | 463.8 | 483.6 | -4 | |
| EBITDA margin, % | 35.1 | 37.2 | -2.1 | |
| Operating earnings (EBIT1) | 344.7 | 376.5 | -8 | |
| Operating margin, % | 26.1 | 29.0 | -2.9 | |
| Earnings before taxes | 311.4 | 333.8 | -7 | |
| Earnings per share, Euro cent | 9.4 | 10.1 | -7 | |
| 1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth. |
2)For definition, see page 23. For specification, see page 4
Norbert Hanke, interim President and CEO, Hexagon AB commented
"Following a good start to the quarter, we recorded weaker than expected financial performance in March, which is the most significant month in the quarter for revenues. Geopolitical uncertainty affected growth in North America and China, causing delays in customer orders and shipments. Recurring revenues continued to grow strongly, but this was offset by weakness in demand for sensors, robotic solutions and perpetual licences, leading to 0% overall organic growth for the quarter.
The late decline in volumes on a cost base positioned for a return to growth, coupled with negative currency transaction effects, resulted in a decline in the EBIT1 margin to 26%, despite further progress in our gross margin level. Cash conversion was 71%, reflecting an increase in working capital due to the timing of the slowdown as well as the usual seasonality.
We have seen a stabilisation of demand early in the second quarter, but the overall outlook remains uncertain. We are closely monitoring the current trends in end markets and adjusting the group accordingly.
Despite macroeconomic challenges, we remain confident and continue to invest in Hexagon's future. In early March, the Board of Directors provided additional information on the proposed separation of the Asset Lifecycle Intelligence and Safety, Infrastructure & Geospatial divisions and related businesses, where preparations are ongoing and on track. During the quarter, we also launched a new Robotics division to advance humanoid robotics and help customers achieve true autonomy. We look forward to exciting developments in this market over coming quarters."
ORGANIC GROWTH 0 %
CASH CONVERSION
COMMENTS FROM THE CEO
In the first quarter we saw positive momentum until geopolitical uncertainty affected trading in late March, which impacted both organic growth and profitability. Overall, organic growth was 0%, with gains in Asset Lifecycle Intelligence (ALI), Autonomous Solutions (AS), and Safety, Infrastructure & Geospatial (SIG) offset by continued weakness in Manufacturing Intelligence (MI) and Geosystems, particularly in their sensor and robotic solutions portfolios. Recurring revenues grew by 10%, driven by growth in recurring software and services across all divisions.
Operating margins fell to 26.1% (29.0) reflecting the late decline in volumes on a cost base positioned for a return to growth and currency transaction headwinds. Despite typical seasonality and increased inventories from lower activity, cash conversion remained satisfactory at 71%.
Innovation continues to drive the gross margin level, which rose to 67.2% (66.5) during the quarter, and there is a strong pipeline of product launches scheduled in the second half of 2025. We have also launched a new Robotics division, which intends to leverage our skills in measurement technologies, AI and autonomy in the field of humanoid robotics, which will be a key focus of the agenda at Hexagon Live in June 2025.
We also made good progress in strategic M&A. During the quarter we acquired CAD Service (ALI) and Scasa (Geosystems) and also completed the acquisition of Septentrio (AS). In April, we also completed the acquisition of the Geomagic software suite (MI) and announced the acquisition of the Unified Communications Radio Suite (UCRS) assets of CONET Group (SIG). These acquisitions enhance our market leadership and will be integrated into the business to drive further growth.
During the quarter, MI recorded an organic decline of -2% (5), with continued growth in aerospace offset by a weak automotive sector. China grew 1% in the quarter, and India continued to grow strongly, but geopolitical uncertainty led to customer delays in North America towards the end of the quarter.
ALI grew 5% (2) organically, with strong growth in SaaS products partially offset by a reduction in non-recurring services and perpetual licences.
Geosystems declined organically by -3% (-2), with strong growth in recurring revenues offset by a continuation of weakness in demand for sensors and robotic solutions across the majority of construction markets, which was exacerbated in the quarter by geopolitical uncertainty.
AS saw organic growth of 2% (8), with customer delays in mining offset by strong growth in aerospace & defence and the autonomous road-train project in Australia.
SIG grew by 2% (5), with strong growth in public safety, partially offset by weakness in federal services activity.
Preparations for the separation of ALI ("Newco") continue, with the Board increasing the perimiter to include all of SIG, given the shared heritage and synergies. The new entity will be listed on a U.S. stock exchange with a temporary Swedish Depository Receipt program.
Finally, while the near-term demand environment remains uncertain, we are firmly confident in Hexagon's future potential and are proactively taking action to position the group for future success.
– Norbert Hanke, interim President and CEO, Hexagon AB
CONTACTS
Investor Relations Tom Hull [email protected] Anton Heikenström [email protected] Media
Madlen Nicolaus [email protected]
CONFERENCE CALL
The Interim Report for the first quarter 2025 will be presented on 30 April at 10:00 CET at a webcast and telephone conference call. Please view instructions at Hexagon's website on how to participate.
https://investors.hexagon.com/en/upcoming-investor-events
FINANCIAL CALENDAR
Hexagon gives financial information on the following occasions:
Annual General Meeting 5 May 2005 Interim Report Q2 2025 25 July 2025 Interim Report Q3 2025 24 October 2025 Year-End Report 2025 30 January 2026
GROUP DEVELOPMENT Q1
NET SALES
Operating net sales increased by 2% to 1,322.8 MEUR (1,299.9). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 0%. Structure added 1% to growth, reflecting the net contribution of the acquisitions and divestments made in the last 12 months. More details on acquisitions and divestments are given in note 6.
Development by Geography
Regionally, organic growth was 0% in EMEA, -2% in the Americas and 2% in Asia.
In EMEA, Western Europe recorded -2% organic growth, primarily due to ongoing weakness in Manufacturing Intelligence and Geosystems. The remainder of EMEA recorded 11% organic growth with good momentum in both Geosystems and Autonomous Solutions.
In the Americas, North America recorded -4% organic growth, with activity levels weakening in Manufacturing Intelligence, Geosystems and Autonomous Solutions towards the end of the quarter, as geopolitical uncertainty caused customers to delay investments. South America recorded 14% organic growth, driven by strong performance in Manufacturing Intelligence, Asset Lifecycle Intelligence and Safety, Infrastructure & Geospatial.
In Asia, China recorded -3% organic growth, with modest growth in Manufacturing Intelligence offset by continued weakness in Geosystems. The rest of Asia recorded 8% organic growth, bolstered by continued growth in Manufacturing Intelligence in India and progress in the autonomous road train project in Australia within Autonomous Solutions.
Development by Product Type
Software and services posted a 4% increase (reported), with a decline in perpetual software licenses offset by strong growth in SaaS and subscription software revenues. Recurring revenues maintained their upward trajectory, increasing by 10%, with growth in recurring software and services across all divisions.
The sensors & robotic solutions portfolio declined by -2% (reported), with activity levels declining significantly during March, which is the most significant month in the quarter for revenues.
SALES BRIDGE - FIRST QUARTER
| Operating net sales 1) | ||
|---|---|---|
| 2024, MEUR | 1,299.9 | |
| Structure, % | 1 | |
| Currency, % | 1 | |
| Organic growth, % | 0 | |
| Total, % | 2 | |
| 2025, MEUR | 1,322.8 |
1) Net sales from acquisitions and divestments during the last twelve months are reported as "Structure" in the table above. Percentages are rounded to the nearest whole per cent.
GROWTH TREND
SALES BY PRODUCT TYPE - FIRST QUARTER
| MEUR | Q1 2025 | % of sales | Q1 2024 | % of sales | Reported Δ% |
|---|---|---|---|---|---|
| Software & Services | 823.0 | 62.2% | 791.2 | 60.9% | 4% |
| Sensors & Robotics Solutions | 499.8 | 37.8% | 508.7 | 39.1% | -2% |
| Total | 1,322.8 | 1,299.9 | 2% | ||
| Recurring revenue | 570.7 | 43.1% | 520.3 | 40.0% | 10% |
SALES BY GEOGRAPHY - FIRST QUARTER
| MEUR | Q1 2025 | % of sales | Q1 2024 | % of sales | Organic Δ% |
|---|---|---|---|---|---|
| North America | 439.8 | 33% | 443.2 | 34% | -4% |
| South America | 60.5 | 5% | 55.0 | 4% | 14% |
| Western Europe | 351.3 | 26% | 355.0 | 27% | -2% |
| Eastern Europe, MiddleEast, Africa | 107.0 | 8% | 94.7 | 7% | 11% |
| China | 181.1 | 14% | 182.2 | 14% | -3% |
| Asia, excl China | 183.1 | 14% | 169.8 | 13% | 8% |
| Total | 1,322.8 | 1,299.9 | 0% |
EARNINGS Q1
Adjusted operating earnings (EBIT1) decreased by -8% to 344.7 MEUR (376.5), which corresponded to an adjusted operating margin of 26.1% (29.0). The adjusted operating margin (EBIT1) was impacted by a weaker volume development in March and negative currency impacts. The adjusted operating margin including amortisation of surplus values (PPA) of -28.4 MEUR (-27.7) amounted to 23.9% (26.8).
Adjusted operating earnings (EBIT1) were negatively impacted by currency transaction effects of -5.8 MEUR (0.9) and positively impacted by currency translation effects of 7.0 MEUR. Earnings before taxes, excluding adjustments, amounted to 311.4 MEUR (333.8).
Total R&D spend (including capitalised amounts) was 228.5 MEUR (211.4), equivalent to 17% (16) of net sales, whereof 125.6 MEUR (118.7) was capitalised. Amortisation of previously capitalised R&D amounted to 72.2 MEUR (55.4) The adjusted net R&D cost expensed to EBIT in the quarter was 175.1 MEUR (148.1).
Hexagon's net capital investments, excluding acquisitions and divestitures, amounted to -154.3 MEUR (-146.6) in the first quarter. Depreciation, amortisation and impairment amounted to -167.8 MEUR (-134.8) in the first quarter, whereof impairment charges amounted to -20.3 MEUR (-6.6).
The adjustments for the quarter consist of share-based program expenses (LTIP) of -6.8 MEUR (-12.9), amortisation of surplus values (PPA) of -28.4 MEUR (-27.7) and items affecting comparability consisting of -42.3 MEUR (0.0), reflecting costs related to the investigation of a potential spin-off of the ALI and SIG divisions and related businesses of -10.3 MEUR, as well as the impairment of overlapping technology and transaction and integration costs in relation to the acquisitions of Geomagic and Septentrio.
TAX AND FINANCIAL NET EXPENSE
The Group's tax expense for the quarter totalled -42.1 MEUR (-52.8). The reported tax rate was 18.0% (18.0) for the quarter. The tax rate, excluding adjustments, was 18.0% (18.0) for the quarter. The financial net expenses amounted to -33.3 MEUR (-42.7).
SALES AND OPERATING PROFIT BRIDGE
| 0MEUR | Q1 2024 | Currency | Structure | Organic | Q1 2025 |
|---|---|---|---|---|---|
| Operating net sales Adjusted operating earnings (EBIT1) |
1,299.9 376.5 |
15 0 |
13 4 |
-5 -36 |
1,322.8 344.7 |
| Adjusted operating margin Accretion (dilution) on margin |
29.0% | 2% -0.3% |
32% 0.0% |
710% -2.6% |
26.1% |
CURRENCY TRANSLATION IMPACT COMPARED TO EUR - FIRST QUARTER
| Movement 1) | Income less cost | Earnings impact | ||
|---|---|---|---|---|
| CHF | Strengthened | 0% | Negative | Negative |
| USD | Strengthened | 3% | Positive | Positive |
| CNY | Strengthened | 2% | Positive | Positive |
| EBIT1, MEUR | 7.0 |
1)Compared to Q1 2024
ADJUSTMENTS IN THE QUARTER
| MEUR | Q1 2025 | Adjustments | Total adjustments | Q1 2025 | ||
|---|---|---|---|---|---|---|
| Non-IFRS | PPA | LTIP | IAC 1) | IFRS | ||
| Operating earnings (EBIT1/EBIT) | 344.7 -28.4 | -6.8 | -42.3 | -77.5 | 267.2 | |
| Depreciation, amortisation and impairment | 119.1 | 28.4 | 20.3 | 48.7 | 167.8 | |
| EBITDA | 463.8 | 435.0 | ||||
| Share program expenses | 0 | 6.2 | 6.2 | 6.2 | ||
| Capital gain/loss and other non-cash items | -6.5 | 0.6 | 22.0 | 22.6 | 16.1 | |
| Cash flow from operations before change in working capital excluding taxes and interest |
457.3 | 457.3 |
1) Items affecting comparability
GROSS PROFIT AND GROSS MARGIN EBIT1 AND EBIT1 MARGIN
REPORTING SEGMENTS
| MEUR | Q1 2025 | Q1 2024 | Reported Δ% | Organic Δ% |
|---|---|---|---|---|
| Operating net sales | ||||
| Manufacturing Intelligence | 469.9 | 478.1 | -2% | -2% |
| Asset Lifecycle Intelligence | 204.4 | 192.2 | 6% | 5% |
| Geosystems | 375.7 | 376.8 | 0% | -3% |
| Autonomous Solutions | 151.1 | 135.5 | 12% | 2% |
| Safety, Infrastructure & Geospatial | 120.5 | 116.9 | 3% | 2% |
| Other operations & Group costs | 1.2 | 0.4 | 200% | n.a. |
| Total operating net sales | 1,322.8 | 1,299.9 | 2% | 0% |
| Adjusted operating earnings (EBIT1) | ||||
| Manufacturing Intelligence | 117.1 | 124.8 | -6% | |
| Asset Lifecycle Intelligence | 62.9 | 66.5 | -5% | |
| Geosystems | 102.8 | 117.5 | -13% | |
| Autonomous Solutions | 47.7 | 47.7 | 0% | |
| Safety, Infrastructure & Geospatial | 22.3 | 24.3 | -8% | |
| Other operations & Group costs | -8.1 | -4.3 | -88% | |
| Total adjusted EBIT | 344.7 | 376.5 | -8% | |
| Adjusted operating margin, % | ||||
| Manufacturing Intelligence | 24.9% | 26.1% | -1.2% | |
| Asset Lifecycle Intelligence | 30.8% | 34.6% | -3.8% | |
| Geosystems | 27.4% | 31.2% | -3.8% | |
| Autonomous Solutions | 31.6% | 35.2% | -3.6% | |
| Safety, Infrastructure & Geospatial | 18.5% | 20.8% | -2.3% | |
| Other operations and Group costs | n.a. | n.a. | n.a. | |
| Total adjusted EBIT margin % | 26.1% | 29.0% | -2.9% |
CASH FLOW AND BALANCE SHEET
Operating cash flow before tax, interest and non-recurring Items amounted to 244.6 MEUR (332.9), a decrease of -27% compared to the prior year. The cash conversion ratio amounted to 71% (88) during the quarter. Working capital saw an outflow of -58.4 MEUR.
Net interest payments amounted to -28.0 MEUR (-42.3) during the quarter. Taxes paid amounted to -62.6 MEUR (-71.2).
Operating cash flow before non-recurring items amounted to 154.0 MEUR (219.4), corresponding to a decline of -30 % compared to the prior year.
CASH FLOW STATEMENT
| MEUR | Q1 2025 | Q1 2024 | Δ% |
|---|---|---|---|
| Adjusted operating earnings (EBIT1) | 344.7 | 376.5 | -8 |
| D&A (excl adjustments) | 119.1 | 107.1 | 11 |
| Adjusted EBITDA | 463.8 | 483.6 | -4 |
| Non-cash items | -6.5 | -16.8 | -61 |
| Capital expenditures | -154.3 | -146.6 | 5 |
| Cash flow post investment | 303.0 | 320.2 | -5 |
| Working capital | -58.4 | 12.7 | n.a. |
| Operating cash flow before tax and interest | 244.6 | 332.9 | -27 |
| Cash conversion | 71% | 88% | -17 |
| Taxes paid | -62.6 | -71.2 | -12 |
| Interest received and paid, net | -28.0 | -42.3 | -34 |
| Operating cash flow before non-recurring items | 154.0 | 219.4 | -30 |
NET DEBT BRIDGE
| MEUR | Q1 2025 |
|---|---|
| Net debt opening balance | -3,231.1 |
| Operating cash flow | 138.5 |
| Investments in subsidiaries | -418.3 |
| Investments/divestments in financial fixed assets | -0.5 |
| Changes to pension liability | 0.5 |
| New/changed lease contracts | -26.7 |
| Currency | -12.7 |
| Other | -0.3 |
| Net debt closing balance | -3,550.6 |
| Net debt to EBITDA | 1.7 |
CAPITAL EFFICIENCY
Capital employed increased to 15,090.6 MEUR (14,380.1), mainly due to currency movements. Return on average capital employed for the last twelve months was 10.8% (11.3). Return on average shareholders' equity for the last twelve months was 9.2% (8.5). The capital turnover rate was 0.4 times (0.4).
FINANCIAL POSITION
Total shareholders' equity increased to 10,991.0 MEUR (10,465.4). The equity ratio was 61.9% (61.4). Hexagon's total assets increased to 17,762.4 MEUR (17,039.0), primarily driven by currency movements.
Hexagon's main sources of financing consist of:
1) A multicurrency revolving credit facility (RCF) established in 2021. The RCF amounts to 1,500 MEUR with a tenor of 5+1+1 years.
2) A Swedish Medium Term Note Programme (MTN) established during 2014. The MTN programme amounts to 20,000 MSEK with tenor up to 6 years.
3) A Swedish Commercial Paper Programme (CP) established during 2012. The CP programme amounts to 15,000 MSEK with tenor up to 12 months.
On 31 March 2025, cash and unutilised credit limits totalled 1,456.3 MEUR (1,513.2). Hexagon's net debt was 3,550.6 MEUR (3,408.7). The net indebtedness was 0.30 times (0.30). Interest coverage ratio was 7.4 times (7.4).
MANUFACTURING INTELLIGENCE – Q1 2025
Hexagon's Manufacturing Intelligence division provide customers hardware and software solutions to allow improved design, process, quality and efficiency. Key solution areas include Design and Engineering Software (conceptual design and detailed engineering tools), Production Software (CAD & CAM software) and Metrology (stationary & portable metrology, automated inspection), Quality Management Software (ETQ) and Hexagon's manufacturing cloud platform (Nexus). By geography Manufacturing Intelligence revenues in 2024 were split 31% Americas, 29% EMEA and 40% APAC.
NET SALES AND EARNINGS
| MEUR | Q1 2025 | Q1 2024 | Δ% |
|---|---|---|---|
| Operating net sales | 469.9 | 478.1 | -2% 1) |
| Adjusted operating earnings (EBIT1) | 117.1 | 124.8 | -6% |
| Adjusted operating margin, % | 24.9% | 26.1% | -1.2% |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
NET SALES
Manufacturing Intelligence (MI) operating net sales amounted to 469.9 MEUR (478.1). Using fixed exchange rates and a comparable group structure (organic growth), net sales decreased by -2%. For the majority of the quarter there was solid progress, particularly within aerospace, general manufacturing and electronics, which offset continued weakness in automotive markets. However, volumes declined at high single digit rates in March, reflecting geopolitical uncertainty and delayed customer decision making.
By geography, growth was negative in the Americas, particularly within Canada and Mexico. EMEA continued to decline, reflecting weakness in automotive markets. Asia grew slightly, driven by continued strong growth in India and a stable development in China (1% growth).
Weakness centred on the robotics solutions and sensor portfolio, with volumes impacted late in the quarter by geopolitical uncertainty. Recurring revenues increased during the quarter, reflecting growth in recurring software and services.
EARNINGS
EBIT1 decreased compared to the prior year, reflecting currency transaction effects and the decline in volumes during the quarter.
ACQUISITIONS AND NOTABLE PRODUCT LAUNCHES
In April 2025, Hexagon completed the acquisition of 3D Systems' Geomagic suite of interoperable software packages, which are used to create high quality 3D models from multiple sources, including laser scanning.
ASSET LIFECYCLE INTELLIGENCE – Q1 2025
Hexagon's Asset Lifecycle Intelligence division is a market leading software provider to Fortune 500 companies that helps clients design, construct, operate, maintain and secure more profitable, safe, and sustainable industrial facilities around the world. The division's core technologies help produce actionable insights that enable better decision-making and intelligence across the asset lifecycle of capitalintensive projects, leading to improvements in safety, quality, efficiency, and productivity, which contribute to Economic and Environmental Sustainability. Key solution areas include Design and Engineering (conceptual design and detailed engineering tools), Project Planning & Execution (construction, fabrication and supply chain management) and Operations & Maintenance (enterprise asset management, predictive maintenance and OT cyber security software). By geography Asset Lifecycle Intelligence revenues in 2024 were split 45% Americas, 31% EMEA and 24% APAC.
NET SALES AND EARNINGS
| MEUR | Q1 2025 | Q1 2024 | Δ% |
|---|---|---|---|
| Operating net sales | 204.4 | 192.2 | 5% 1) |
| Adjusted operating earnings (EBIT1) | 62.9 | 66.5 | -5% |
| Adjusted operating margin, % | 30.8% | 34.6% | -3.8% |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
NET SALES
Asset Lifecyle Intelligence (ALI) operating net sales amounted to 204.4 MEUR (192.2). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 5%. Growth was particularly strong in the SaaS product suites, which recorded a double-digit increase during the quarter, but weaker in non-recurring services reflecting the shift to simplified deployments in the cloud.
There was growth across all geographies, although demand in North America was more subdued than other regions. EMEA was the strongest performer, recording double-digit growth.
All solution areas grew during the quarter, in particular Enterprise Asset Management (EAM), which increased at double digit rates, and Operations & Maintenance software and OT cybersecurity software.
EARNINGS
EBIT1 decreased compared to the prior year period, resulting in an operating margin of 31% (35). The decrease reflects the slower development in North America, amplified by a shift away from perpetual licences to SaaS solutions, and increased investments in new product development and sales and marketing.
ACQUISITIONS AND NOTABLE PRODUCT LAUNCHES
On 21 January 2025 Hexagon acquired CAD Service, a developer of advanced visualisation tools used to integrate computer aided design (CAD) drawings, BIM models and reality capture data into Hexagon EAM.
GEOSYSTEMS – Q1 2025
Hexagon's Geosystems division provide a comprehensive portfolio of digital solutions that capture, measure, and visualise the physical world and enable data-driven transformation across industry ecosystems. Their reality-capture technologies create digital worlds from different views, whether a single dimension between two walls in a house, cadastral boundaries of properties or 3D representations of cities, infrastructures, utilities, entire countries or even crime scenes. These digital worlds provide actionable information vital for understanding, planning and execution. Key solution areas include Reality Capture sensors and software, mapping solutions and map data, survey hardware and software and machine control solutions. By geography Geosystems revenues in 2024 were split 33% Americas, 47% EMEA and 20% APAC.
NET SALES AND EARNINGS
| MEUR | Q1 2025 | Q1 2024 | Δ% |
|---|---|---|---|
| Operating net sales | 375.7 | 376.8 | -3% 1) |
| Adjusted operating earnings (EBIT1) | 102.8 | 117.5 | -13% |
| Adjusted operating margin, % | 27.4% | 31.2% | -3.8% |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
NET SALES
Geosystems operating net sales amounted to 375.7 MEUR (376.8). Using fixed exchange rates and a comparable group structure (organic growth), net sales declined by -3%. Growth in software and services was offset by a continuation of the weakness seen across the majority of construction markets, which was exacerbated late in the quarter by the impact of geopolitical uncertainty in some segments. Recurring revenues recorded another strong quarter, increasing by 11%.
Geographically, North America declined overall, reflecting weakness in Canada, although continued to record growth in software and services. South America grew well during the quarter. EMEA remained weak but saw modest growth overall, led by the DACH region. Demand in Asia declined at double digit rates, reflecting the challenging market environment in China and difficult comparatives elsewhere.
By solution area, software and services saw solid growth. The sensors and robotics solutions portfolio continued to benefit from the product launches in late 2024, including the Leica GS05 smart antenna and the Leica iCON trades platform, but this was more than offset by weakness in the broader Surveying portfolio and a slowdown in Reality Capture.
EARNINGS
EBIT1 decreased compared to the prior year, reflecting negative currency transaction effects, an unfavourable product mix and the weaker demand development during the quarter, in particular March.
ACQUISITIONS AND NOTABLE PRODUCT LAUNCHES
On 1 January 2025 Hexagon acquired Scasa, software which supports to creation of 3D and 2D models from point clouds.
AUTONOMOUS SOLUTIONS – Q1 2025
Hexagon's Autonomous Solutions division brings together our mining, positioning and autonomy capabilities. Our Mining product portfolio empowers mines to connect all parts of their business with technologies that make sense of data in real time, while integrating, automating and optimising critical workflows, resulting in improved productivity, reduced cost and enhanced safety. Key solution areas include surveying, design, fleet management, production optimisation and collision avoidance in a single life-of-mine solution. Positioning provides high-precision GNSS, sensor fusion, antenna, and perception technologies to advanced navigation systems, delivering safety, security, reliability, and availability for applications requiring assured positioning. Key solution areas include agriculture, defense, marine, automotive, and other mission-critical applications. Autonomous Solutions pioneers end-to-end solutions for assured autonomy in mobile industrial applications such as autonomous haulage. By geography Autonomous Solutions revenues in 2024 were split 55% Americas, 26% EMEA and 19% APAC.
NET SALES AND EARNINGS
| MEUR | Q1 2025 | Q1 2024 | Δ% |
|---|---|---|---|
| Operating net sales | 151.1 | 135.5 | 2% 1) |
| Adjusted operating earnings (EBIT1) | 47.7 | 47.7 | 0% |
| Adjusted operating margin, % | 31.6% | 35.2% | -3.6% |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
NET SALES
Autonomous Solutions operating net sales amounted to 151.1 MEUR (135.5). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 2%. Mining recorded a good performance in planning and operations software, but delays in deal conversion late in the quarter, driven by geopolitical uncertainty, held growth back. Aerospace & defence grew well, somewhat offsetting weak agriculture markets. Growth also benefitted from the ramp up of the autonomous road train project in Australia.
By geography, growth in North America declined, primarily due to delays in decision making on a number of key projects. EMEA also declined overall, reflecting difficult comparatives in mining markets, largely offset by continued growth in autonomy and positioning solutions. APAC continued to record strong growth, largely driven by good progress in the autonomous road train project in Australia.
By solution area there was a high demand for anti-jamming solutions in aerospace & defence and the autonomous road train project.
EARNINGS
EBIT1 was stable compared to the prior year, corresponding to an adjusted operating margin of 32% (35). Margins were negatively impacted by volume declines in some areas and a weaker product mix.
ACQUISITIONS AND NOTABLE PRODUCT LAUNCHES
On 19 March 2025 Hexagon completed the acquisition of Septentrio NV, a leading OEM provider of Global Navigation Satellite System (GNSS) technologies.
SAFETY, INFRASTRUCTURE & GEOSPATIAL – Q1 2025
Hexagon's Safety, Infrastructure & Geospatial (SIG) division makes the world's critical services and infrastructure more resilient and sustainable. Their technologies transform complex data about people, places and assets into meaningful information and capabilities for better, faster decision making in public safety, defense, transportation and government markets. SIG are the global leader in public safety solutions, protecting over 1 billion people worldwide. They also support government defense agencies with mapping and imagery intelligence, as well as geospatial and network management software. Key solution areas include computer aided dispatch software, geospatial technologies and VMS & PSIM software. By geography SIG revenues in 2024 were split 58% Americas, 33% EMEA and 9% APAC.
NET SALES AND EARNINGS
| MEUR | Q1 2025 | Q1 2024 | Δ% |
|---|---|---|---|
| Operating net sales | 120.5 | 116.9 | 2% 1) |
| Adjusted operating earnings (EBIT1) | 22.3 | 24.3 | -8% |
| Adjusted operating margin, % | 18.5% | 20.8% | -2.3% |
Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
NET SALES
Safety, Infrastructure & Geospatial operating net sales amounted to 120.5 MEUR (116.9). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 2%. Demand remained very strong in the Public Safety segment, which delivered double digit growth during the quarter. This was offset by weakness in the US Federal business, which experienced delays on a number of key projects.
By geography, growth was slightly negative in the Americas, reflecting the decline in the US Federal business. EMEA also declined but was offset by strong growth in Asia, particularly in public safety markets.
By solution area Public Safety, which includes the SaaS-ready OnCall dispatch software suite, posted impressive double-digit growth.
EARNINGS
EBIT1 decreased compared to prior year, corresponding to an adjusted operating margin of 19% (21). The decline reflects the volume decline in the US Federal business and investments made to support the strong growth outlook in Public Safety.
ACQUISITIONS AND NOTABLE PRODUCT LAUNCHES
On 17 April 2025 Hexagon announced an agreement to acquire the Unified Communications Radio Suite (UCRS) software assets of CONET Communications GmbH (CCOM), part of CONET Group, to complement its public safety platform. Completion of the transaction is subject to regulatory approvals and other customary conditions and is expected to be finalised by the end of Q2 2025.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held on 5 May 2025 at 17:00 CET at IVA Konferenscenter, Grev Turegatan 16, Stockholm.
SUBSEQUENT EVENTS
In April 2024, Hexagon completed the acquisition of 3D Systems' Geomagic suite of interoperable software packages, which are used to create high quality 3D models from multiple sources, including laser scanning
On 17 April 2025 Hexagon announced an agreement to acquire the Unified Communications Radio Suite (UCRS) software assets of CONET Communications GmbH (CCOM), part of CONET Group, to complement its public safety platform. Completion of the transaction is subject to regulatory approvals and other customary conditions and is expected to be finalised by the end of Q2 2025.
The Board of Directors and the President and CEO declare that this Interim Report provides a true and fair overview of the Company´s and the Group´s operations, its financial position and performance, and describes material risks and uncertainties facing the Company and companies within the Group.
Stockholm, Sweden, 30 April 2025 Hexagon AB (publ)
Ola Rollén Chair of the Board
Norbert Hanke Interim President and CEO
John Brandon Board Member
Annika Falkengren Board Member
Gun Nilsson Board Member
Ralph Haupter Board Member
Märta Schörling Andreen Board Member
Erik Huggers Board Member
Sofia Schörling Högberg Board Member
Brett Watson Board Member
This Interim Report has not been reviewed by the Company's auditors.
CONDENSED INCOME STATEMENT
| MEUR | Q1 2025 | Q1 2024 | 2024 |
|---|---|---|---|
| Net sales | 1,322.8 | 1,299.9 | 5,401.1 |
| Cost of goods sold | -433.9 | -436.4 | -1,791.4 |
| Gross earnings | 888.9 | 863.5 | 3,609.7 |
| Sales expenses | -278.5 | -264.6 | -1,083.9 |
| Administration expenses | -108.9 | -104.3 | -426.7 |
| Research and development expenses | -191.6 | -165.4 | -683.7 |
| Other income and expenses, net | -42.7 | 6.7 | 16.8 |
| Operating earnings 1) | 267.2 | 335.9 | 1,432.2 |
| Financial income | 3.1 | 2.8 | 13.5 |
| Financial expenses | -36.4 | -45.5 | -183.6 |
| Earnings before taxes | 233.9 | 293.2 | 1,262.1 |
| Taxes | -42.1 | -52.8 | -227.1 |
| Net earnings | 191.8 | 240.4 | 1,035.0 |
| Attributable to: | |||
| Parent company shareholders | 189.1 | 237.8 | 1,023.4 |
| Non-controlling interest | 2.7 | 2.6 | 11.6 |
| 1) of which adjustments | -77.5 | -40.6 | -170.7 |
| Earnings include depreciation, amortisation and impairments of | -167.8 | -134.8 | -577.5 |
| - of which amortisation of surplus values (included in adjustments) | -28.4 | -27.7 | -112.4 |
| Basic earnings per share, Euro cent | 7.0 | 8.9 | 38.1 |
| Earnings per share after dilution, Euro cent | 7.0 | 8.8 | 37.8 |
| Total shareholder's equity per share, EUR | 4.08 | 3.89 | 4.16 |
| Closing number of shares, thousands | 2,684,378 | 2,684,378 | 2,684,378 |
| Average number of shares, thousands | 2,684,378 | 2,684,378 | 2,684,378 |
| Average number of shares after dilution, thousands | 2,705,478 | 2,705,478 | 2,705,478 |
CONDENSED COMPREHENSIVE INCOME STATEMENT
| MEUR | Q1 2025 | Q1 2024 | 2024 |
|---|---|---|---|
| Net earnings | 191.8 | 240.4 | 1,035.0 |
| Other comprehensive income Items that will not be reclassified to income statement |
|||
| Remeasurement of pensions | 0.2 | 1.8 | -11.8 |
| Taxes on items that will not be reclassified to income statement | 0.0 | -0.3 | 2.0 |
| Total items that will not be reclassified to income statement, net of taxes |
0.2 | 1.5 | -9.8 |
| Items that may be reclassified subsequently to income statement Exchange rate differences |
-420.4 | 177.5 | 542.0 |
| Taxes on items that may be reclassified subsequently to income statement |
17.1 | -11.7 | -17.5 |
| Total items that may be reclassified subsequently to income statement, net of taxes |
-403.3 | 165.8 | 524.5 |
| Other comprehensive income, net of taxes | -403.1 | 167.3 | 514.7 |
| Total comprehensive income for the period | -211.3 | 407.7 | 1,549.7 |
| Attributable to: | |||
| Parent company shareholders | -212.8 | 405.0 | 1,537.0 |
| Non-controlling interest | 1.5 | 2.7 | 12.7 |
CONDENSED BALANCE SHEET
| MEUR | 31/3 2025 | 31/3 2024 | 31/12 2024 |
|---|---|---|---|
| Intangible fixed assets | 13,815.1 | 13,201.0 | 13,767.1 |
| Tangible fixed assets | 600.1 | 596.8 | 611.3 |
| Right-of-use assets | 196.3 | 204.9 | 192.4 |
| Financial fixed assets | 161.0 | 161.2 | 167.3 |
| Deferred tax assets | 183.8 | 155.3 | 161.0 |
| Total fixed assets | 14,956.3 | 14,319.2 | 14,899.1 |
| Inventories | 587.2 | 570.3 | 566.4 |
| Accounts receivables | 1,275.0 | 1,238.3 | 1,331.9 |
| Other receivables | 189.7 | 198.5 | 194.4 |
| Prepaid expenses and accrued income | 205.2 | 206.7 | 194.9 |
| Total current receivables | 1,669.9 | 1,643.5 | 1,721.2 |
| Cash and cash equivalents | 549.0 | 506.0 | 663.8 |
| Total current assets | 2,806.1 | 2,719.8 | 2,951.4 |
| Total assets | 17,762.4 | 17,039.0 | 17,850.5 |
| Equity attributable to parent company shareholders | 10,954.3 | 10,431.4 | 11,160.9 |
| Equity attributable to non-controlling interest | 36.7 | 34.0 | 35.2 |
| Total shareholders' equity | 10,991.0 | 10,465.4 | 11,196.1 |
| Interest bearing liabilities | 2,464.7 | 2,885.7 | 2,959.6 |
| Lease liabilities | 144.3 | 154.4 | 140.5 |
| Other liabilities | 123.3 | 138.7 | 122.5 |
| Pension liabilities | 63.4 | 54.7 | 63.9 |
| Deferred tax liabilities | 576.0 | 566.3 | 581.6 |
| Other provisions | 6.4 | 8.5 | 6.1 |
| Total long-term liabilities | 3,378.1 | 3,808.3 | 3,874.2 |
| Interest bearing liabilities | 1,363.5 | 759.2 | 667.5 |
| Lease liabilities | 63.7 | 60.7 | 63.4 |
| Accounts payable | 282.2 | 268.6 | 328.3 |
| Other liabilities | 300.0 | 315.6 | 327.4 |
| Other provisions | 77.3 | 131.5 | 72.9 |
| Deferred income | 930.5 | 855.7 | 883.6 |
| Accrued expenses | 376.1 | 374.0 | 437.1 |
| Total short-term liabilities | 3,393.3 | 2,765.3 | 2,780.2 |
| Total equity and liabilities | 17,762.4 | 17,039.0 | 17,850.5 |
FINANCIAL INSTRUMENTS
In Hexagon's balance sheet derivatives and other long-term securities holdings are carried at fair value. Derivatives are measured at fair value based on valuation techniques with observable market data as input (level 2 according to definition in IFRS 13). Other long-term securities holdings amount to insignificant numbers. Liabilities for contingent considerations are measured at fair value and based on management's best estimation of the most probable outcome (level 3 according to definition in IFRS 13). Other assets and liabilities are carried at accrued cost.
For financial assets and liabilities that are carried at accrued cost, the fair value is deemed to be coincident with the carrying amount except for long-term liabilities to credit institutions. The difference between the fair value and the carrying amount for these long-term liabilities is deemed to be insignificant relative to the total balance sheet since the interest rate duration is short.
CONDENSED CASH FLOW STATEMENT
| MEUR | Q1 2025 | Q1 2024 | 2024 |
|---|---|---|---|
| Operating earnings | 267.2 | 335.9 | 1,432.2 |
| Depreciation, amortisation and impairment | 167.8 | 134.8 | 577.5 |
| Share program expenses | 6.2 | 11.6 | 46.9 |
| Capital gain/loss and other non-cash items | 16.1 | -15.5 | -71.4 |
| Taxes paid | -62.6 | -71.2 | -243.2 |
| Interest received and paid, net | -28.0 | -42.3 | -158.3 |
| Cash flow from operations before change in working capital | 366.7 | 353.3 | 1,583.7 |
| Change in inventories | -22.7 | -7.4 | 2.7 |
| Change in current receivables | 9.3 | 45.5 | 15.7 |
| Change in current liabilities | -45.0 | -25.4 | 75.6 |
| Cash flow from operations | 308.3 | 366.0 | 1,677.7 |
| Investments tangible assets, net | -22.5 | -23.1 | -105.6 |
| Investments intangible assets | -131.8 | -123.5 | -516.8 |
| Operating cash flow before non-recurring items | 154.0 | 219.4 | 1,055.3 |
| Non-recurring cash flow 1) | -15.5 | -28.8 | -89.5 |
| Operating cash flow | 138.5 | 190.6 | 965.8 |
| Cash flow from acquisitions and divestments | -418.3 | 16.2 | -84.6 |
| Cash flow from other investing activities | -0.5 | -0.5 | -3.1 |
| Cash flow after other investing activities | -280.3 | 206.3 | 878.1 |
| Dividends paid | - | - | -357.8 |
| Share programme | - | - | -88.8 |
| Cash flow from other financing activities | 176.8 | -246.1 | -317.5 |
| Cash flow for the period | -103.5 | 206.3 | 114.0 |
| Cash and cash equivalents, beginning of period | 663.8 | 547.1 | 547.1 |
| Effect of translation differences on cash and cash equivalents | -11.3 | -1.3 | 2.7 |
| Cash flow for the period | -103.5 | -39.8 | 114.0 |
| Cash and cash equivalents, end of period | 549.0 | 506.0 | 663.8 |
| 1) Non-recurring cash flow consists of restructuring costs and costs related to the investigation of a potential spin-off of the ALI and SIG divisions and related businesses |
|||
| Operating cash flow before interest, tax and non-recurring cash flow | 244.6 | 332.9 | 1,456.8 |
| Cash conversion | 71% | 88% | 91% |
| Cash flow from operations per share, Euro cent | 11.5 | 13.6 | 62.5 |
| Cash flow per share before change in working capital, Euro cent | 13.7 | 13.2 | 59.0 |
CONDENSED STATEMENT OF CHANGES IN EQUITY
| MEUR | Q1 2025 | Q1 2024 | 2024 |
|---|---|---|---|
| Opening shareholders' equity | 11,196.1 | 10,046.1 | 10,046.1 |
| Total comprehensive income for the period1) | -211.3 | 407.7 | 1,549.7 |
| Repurchase of Treasury shares | - | - | -88.8 |
| Dividend | - | - | -357.8 |
| Share based programme (LTIP) | 6.2 | 11.6 | 46.9 |
| Closing shareholders' equity2) | 10,991.0 | 10,465.4 | 11,196.1 |
| 1) Of which: Parent company shareholders | -212.8 | 405.0 | 1,537.0 |
| Non-controlling interest | 1.5 | 2.7 | 12.7 |
| 2) Of which: Parent company shareholders | 10,954.3 | 10,431.4 | 11,160.9 |
| Non-controlling interest | 36.7 | 34.0 | 35.2 |
KEY RATIOS
| MEUR | Q1 2025 | Q1 2024 | 2024 |
|---|---|---|---|
| Adjusted operating margin, % | 26.1 | 29.0 | 29.7 |
| Profit margin before taxes, % | 17.7 | 22.6 | 23.4 |
| Return on shareholders' equity, 12-month average, % | 9.2 | 8.5 | 9.8 |
| Return on capital employed ,12-month average, % | 10.8 | 11.3 | 11.1 |
| Equity ratio, % | 61.9 | 61.4 | 62.7 |
| Net indebtedness | 0.30 | 0.30 | 0.26 |
| Interest coverage ratio | 7.4 | 7.4 | 7.9 |
| Average number of shares, thousands | 2,684,378 | 2,684,378 | 2,684,378 |
| Basic earnings per share excl. adjustments, Euro cent | 9.4 | 10.1 | 43.3 |
| Basic earnings per share, Euro cent | 7.0 | 8.9 | 38.1 |
| Cash flow per share, Euro cent | 11.5 | 13.6 | 62.5 |
| Cash flow per share before change in working cap, Euro cent | 13.7 | 13.2 | 59.0 |
| Share price, SEK | 106.65 | 126.70 | 105.60 |
| Share price, translated to EUR | 9.83 | 10.99 | 9.22 |
CONDENSED PARENT COMPANY INCOME STATEMENT
| MEUR | Q1 2025 | Q1 2024 | 2024 |
|---|---|---|---|
| Net sales | 9.0 | 7.6 | 30.3 |
| Administration expenses | -6.4 | -8.2 | -50.0 |
| Operating earnings | 2.6 | -0.6 | -19.7 |
| Earnings from shares in Group companies | - | 2.0 | 5,199.2 |
| Interest income and expenses, net | -83.0 | 14.8 | -51.3 |
| Appropriations | - | - | 8.5 |
| Earnings before taxes | -80.4 | 16.2 | 5,136.7 |
| Taxes | 18.7 | 24.2 | 36.9 |
| Net earnings | -61.7 | 40.4 | 5,173.6 |
CONDENSED PARENT COMPANY BALANCE SHEET
| MEUR | 31/3 2025 | 31/3 2024 | 31/12 2024 |
|---|---|---|---|
| Total fixed assets | 18,572.9 | 14,798.4 | 18,556.9 |
| Total current receivables | 2,889.7 | 1,650.9 | 2,694.4 |
| Cash and cash equivalents | 36.0 | 55.6 | 123.6 |
| Total current assets | 2,925.7 | 1,706.5 | 2,818.0 |
| Total assets | 21,498.6 | 16,504.9 | 21,374.9 |
| Total shareholders' equity | 11,051.0 | 6,373.7 | 11,113.4 |
| Total long-term liabilities | 2,469.9 | 2,887.1 | 2,965.4 |
| Total short-term liabilities | 7,977.7 | 7,244.1 | 7,296.1 |
| Total equity and liabilities | 21,498.6 | 16,504.9 | 21,374.9 |
NOTE 1 ACCOUNTING PRINCIPLES
Hexagon applies International Financial Reporting Standards (IFRS) as adopted by the European Union. Hexagon's report for the Group is prepared in accordance with IAS 34, Interim Financial Reporting and the Annual Accounts Act. Parent company accounts are prepared in accordance with the Annual Accounts Act. Accounting principles and calculation methods are unchanged from those applied in the Annual Report for 2024, see note 1 for further information.
NOTE 2 RISKS AND UNCERTAINTY FACTORS
As an international group, Hexagon is exposed to a number of business and financial risks. The business risks can be divided into strategic, operational and legal risks. The financial risks are related to such factors as exchange rates, interest rates, liquidity and the ability to raise funds. Risk management in Hexagon aims to identify, control and reduce risks. This work begins with an assessment of the probability of risks occurring and their potential effect on the Group. There has been no change in the risks facing the Group compared to what was reported in the Annual Report 2024.
NOTE 3 RELATED PARTY TRANSACTIONS
No significant related party transactions have been incurred during the quarter.
NOTE 4 EMPLOYEES
The average number of employees during the first quarter was 24,947 (24,338). The number of employees at the end of the quarter was 25,091 (24,091).
NOTE 5 SHARE DATA
Earnings per share, including adjustments, for the first quarter amounted to 7.0 Euro cent (8.9). Earnings per share, excluding adjustments, for the first quarter, amounted to 9.4 Euro cent (10.1).
On 31 March 2025, equity per share was 4.08 EUR (3.89) and the share price was 106.65 SEK (126.70).
Hexagon's share capital amounts to 85,761,451 EUR, represented by 2,684,377,888 outstanding shares, of which 110,250,000 are of series A with ten votes each and 2,574,127,888 are of series B with one vote each. Hexagon holds 21,100,000 treasury shares.
NOTE 6 ACQUISITIONS AND DIVESTMENTS
| MEUR | Q1 2025 | Q1 2024 |
|---|---|---|
| Fair value of acquired assets and assumed liabilities | ||
| Intangible fixed assets | 62.0 | 0.0 |
| Other fixed assets | 2.3 | 0.0 |
| Total fixed assets | 64.3 | 0.0 |
| Total current assets | 57.8 | 0.0 |
| Total assets | 122.1 | 0.0 |
| Total long-term liabilities | -33.1 | 0.0 |
| Total current liabilities | -10.3 | 0.0 |
| Total liabilities | -43.4 | 0.0 |
| Fair value of acquired assets and assumed liabilities, net | 78.7 | 0.0 |
| Goodwill | 370.2 | 0.0 |
| Total purchase consideration transferred | 448.9 | 0.0 |
| Less cash and cash equivalents in acquired companies | -40.9 | 0.0 |
| Adjustment for non-paid consideration and considerations | ||
| paid for prior years' acquisitions | 10.3 | 11.6 |
| Cash flow from acquisition of companies/businesses | 418.3 | 11.6 |
During the first quarter 2025, Hexagon acquired the following companies:
-
CAD Service, a developer of advanced visualisation tools
-
Scasa, a provider of 3D point cloud data processing software
-
Septentrio, a leading OEM provider of Global Navigation Satellite System (GNSS) technologies
Acquisition of Septentrio
In March 2025, Hexagon acquired Septentrio, a leading OEM provider of Global Navigation Satellite System (GNSS) technologies. Septentrio, headquartered in Leuven, Belgium, has around 150 employees, and generated revenues of over 50 MEUR in 2024, with strong growth rates and margins in line with the Hexagon Group. From the date of acquisition, Septentrio has contributed 6.0 MEUR of net sales in 2025. If the acquisition had taken place at the beginning of the year, the contribution to net sales would have been 15.5 MEUR. The contribution to the group operating margin has been accretive.
The acquisitions are individually assessed as immaterial from a group perspective which is why only aggregated information is presented. The analysis of the acquired net assets is preliminary and the fair value might be subject to change. Contingent considerations are recognised to fair value (level 3 according to definition in IFRS 13) each reporting period and based on the latest relevant forecast for the acquired company. The valuation method is unchanged compared to the previous period. The estimated liability for contingent considerations amounted to 131.0 (153.5) as of 31 March, whereof the fair value adjustment in 2025 amounted to 5.4 MEUR (12.5). In connection with the valuation of contingent considerations the assets acquired and liabilities assumed in the purchase price allocation are reviewed. Any indication of impairment due to the revaluation of contingent considerations is considered and adjustments are made to offset the impact from revaluation.
NOTE 7 SEGMENT BREAKDOWN
NET SALES PER SEGMENT*
| MEUR | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|---|---|
| Manufacturing Intelligence | 469.9 | 530.0 | 463.8 | 483.8 | 478.1 | 1,955.7 |
| Asset Lifecycle Intelligence | 204.4 | 228.8 | 207.6 | 203.1 | 192.2 | 831.7 |
| Geosystems | 375.7 | 400.1 | 373.0 | 405.5 | 376.8 | 1,555.4 |
| Autonomous Solutions | 151.1 | 146.5 | 134.8 | 141.2 | 135.5 | 558.0 |
| Safety, Infrastructure & Geospatial | 120.5 | 140.8 | 119.6 | 119.8 | 116.9 | 497.1 |
| Other operations | 1.2 | 1.8 | 1.0 | 0.0 | 0.4 | 3.2 |
| Group | 1,322.8 | 1,448.0 | 1,299.8 | 1,353.4 | 1,299.9 | 5,401.1 |
ADJUSTED OPERATING EARNINGS (EBIT1) PER SEGMENT
| MEUR | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|---|---|
| Manufacturing Intelligence | 117.1 | 159.0 | 118.3 | 129.1 | 124.8 | 531.2 |
| Asset Lifecycle Intelligence | 62.9 | 87.4 | 72.5 | 70.5 | 66.5 | 296.9 |
| Geosystems | 102.8 | 124.3 | 121.5 | 131.0 | 117.5 | 494.3 |
| Autonomous Solutions | 47.7 | 46.0 | 45.7 | 52.6 | 47.7 | 192.0 |
| Safety, Infrastructure & Geospatial | 22.3 | 41.9 | 24.7 | 23.8 | 24.3 | 114.7 |
| Other operations and Group costs | -8.1 | -8.3 | -6.1 | -7.5 | -4.3 | -26.2 |
| Group | 344.7 | 450.3 | 376.6 | 399.5 | 376.5 | 1,602.9 |
| Adjusted operating margin, % | 26.1 | 31.1 | 29.0 | 29.5 | 29.0 | 29.7 |
NET SALES BY REGION*
| MEUR | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|---|---|
| EMEA | 458.3 | 494.9 | 448.3 | 477.1 | 449.7 | 1,870.0 |
| Americas | 500.3 | 554.7 | 519.1 | 519.7 | 498.2 | 2,091.7 |
| Asia | 364.2 | 398.4 | 332.4 | 356.6 | 352.0 | 1,439.4 |
| Group | 1,322.8 | 1,448.0 | 1,299.8 | 1,353.4 | 1,299.9 | 5,401.1 |
*Operating net sales, i.e. excluding revenue adjustment (haircut)
NOTE 8 EXCHANGE RATES
| Average | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|---|---|
| SEK/EUR | 0.0891 | 0.0870 | 0.0873 | 0.0870 | 0.0887 | 0.0875 |
| USD/EUR | 0.9505 | 0.9374 | 0.9103 | 0.9288 | 0.9210 | 0.9239 |
| CNY/EUR | 0.1307 | 0.1303 | 0.1271 | 0.1283 | 0.1281 | 0.1284 |
| CHF/EUR | 1.0573 | 1.0684 | 1.0513 | 1.0271 | 1.0537 | 1.0497 |
| Closing | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | 2024 |
| SEK/EUR | 0.0922 | 0.0873 | 0.0885 | 0.0880 | 0.0868 | 0.0873 |
| USD/EUR | 0.9246 | 0.9626 | 0.8932 | 0.9341 | 0.9250 | 0.9626 |
| CNY/EUR | 0.1275 | 0.1319 | 0.1274 | 0.1286 | 0.1280 | 0.1319 |
| CHF/EUR | 1.0492 | 1.0625 | 1.0594 | 1.0380 | 1.0240 | 1.0625 |
NOTE 9 NUMBER OF SHARES
| series A | series B | Total | |
|---|---|---|---|
| 2014-12-31 Total issued and outstanding | 15,750,000 | 341,639,213 | 357,389,213 |
| New issue, warrants exercised | - | 2,947,929 | 2,947,929 |
| 2015-12-31 Total issued and outstanding | 15,750,000 | 344,587,142 | 360,337,142 |
| New issue, warrants exercised | - | 106,000 | 106,000 |
| 2016-12-31 Total issued and outstanding | 15,750,000 | 344,693,142 | 360,443,142 |
| 2017-12-31 Total issued and outstanding | 15,750,000 | 344,693,142 | 360,443,142 |
| New issue, warrants exercised | - | 2,481,550 | 2,481,550 |
| 2018-12-31 Total issued and outstanding | 15,750,000 | 347,174,692 | 362,924,692 |
| New issue, warrants exercised | - | 4,614,610 | 4,614,610 |
| 2019-12-31 Total issued and outstanding | 15,750,000 | 351,789,302 | 367,539,302 |
| New issue, warrants exercised | - | 11,500 | 11,500 |
| Repurchase of treasury shares | - | -646,000 | -646,000 |
| 2020-12-31 Total outstanding | 15,750,000 | 351,154,802 | 366,904,802 |
| Repurchase of treasury shares | - | -204,000 | -204,000 |
| Split 7:1 outstanding shares | 94,500,000 | 2,105,704,812 | 2,200,204,812 |
| Repurchase of treasury shares | - | -1,400,000 | -1,400,000 |
| Issue in kind | - | 132,622,274 | 132,622,274 |
| Repurchase of treasury shares | - | -2,000,000 | -2,000,000 |
| 2021-12-31 Total outstanding | 110,250,000 | 2,585,877,888 | 2,696,127,888 |
| Repurchase of treasury shares | - | -850,000 | -850,000 |
| Repurchase of treasury shares | - | -2,350,000 | -2,350,000 |
| Repurchase of treasury shares | - | -2,000,000 | -2,000,000 |
| Repurchase of treasury shares | - | -1,250,000 | -1,250,000 |
| 2022-12-31 Total outstanding | 110,250,000 | 2,579,427,888 | 2,689,677,888 |
| Repurchase of treasury shares | -5,300,000 | -5,300,000 | |
| 2023-12-31 Total outstanding | 110,250,000 | 2,574,127,888 | 2,684,377,888 |
| 2025-03-31 Total outstanding | 110,250,000 | 2,574,127,888 | 2,684,377,888 |
| Total amount of treasury shares | - | 21,100,000 | 21,100,000 |
| 2025-03-31 Total issued | 110,250,000 | 2,595,227,888 | 2,705,477,888 |
Each share of series A carries entitlement to ten votes and each share of series B carries entitlement to one vote.
DEFINITIONS
In addition to the financial measures as required by the financial reporting framework based on IFRS, this report also includes other measures and indicators that are used to follow-up, analyze and manage the business. These measures also provide Hexagon stakeholders with useful financial information on the Group's financial position, performance and development in a consistent way. Below is a list of definitions of measures and indicators used in this report.
FINANCIAL DEFINITIONS
| Amortisation of surplus values | When a company is acquired, the purchase consideration is allocated to the identified assets and liabilities of the company. Intangible assets are most often allocated the substantial part of the purchase consideration. The amortisation of surplus values is defined as the difference between the amortisation of such identified intangible assets and what the amortisation would have been in the acquired company had the acquisition not taken place at all |
|---|---|
| Adjusted gross earnings | Operational net sales less cost of goods sold excluding adjustments related to cost of goods sold |
| Adjusted gross margin | Adjusted gross earnings divided by operating net sales |
| Adjusted operating earnings (EBIT1) | Operating earnings excluding capital gains on shares in group companies and adjustments. Adjustments are excluded to facilitate the understanding of the Group´s operational development and to give comparable numbers between periods |
| Adjusted operating earnings (EBITDA) | Adjusted operating earnings (EBIT 1) excluding amortisation, depreciation and impairment of fixed assets. The measure is presented to give depiction of the result generated by the operating activities |
| Adjusted EBITDA margin | Adjusted operating earnings (EBITDA) as a percentage of operating net sales |
| Adjusted operating margin | Adjusted operating earnings (EBIT1) as a percentage of operating net sales |
| Adjustments | Adjustments consist of expenses related to the share programme (LTIP), amortisation of surplus values (PPA) and items affecting comparability which refers to income and expenses that are not expected to appear on a regular basis and impact comparability between periods |
| Capital employed | Total assets less non-interest-bearing liabilities |
| Capital turnover rate | Net sales divided by average capital employed |
| Cash conversion | Operating cash flow excluding interest, tax payments and non-recurring items divided by operating earnings (EBIT1) |
| Cash flow per share | Cash flow from operations, after change in working capital, excluding non-recurring items divided by average number of shares |
| Earnings per share | Net earnings excluding non-controlling interest divided by average number of shares |
| Equity ratio | Shareholders' equity including non-controlling interests as a percentage of total assets |
| Interest coverage ratio | Earnings before taxes plus financial expenses divided by financial expenses |
| Investments | Purchases less sales of tangible and intangible fixed assets, excluding those included in acquisitions and divestitures of subsidiaries |
| Net debt | Interest-bearing liabilities including pension liabilities and interest-bearing provisions less cash and cash equivalents |
| Net indebtedness | Interest-bearing liabilities less interest-bearing current receivables and liquid assets divided by shareholders' equity including non-controlling interests |
| Organic growth | Net sales compared to prior period excluding acquisitions and divestments and adjusted for currency exchange movements |
| Operating net sales | Net sales adjusted by the difference between fair value and book-value of deferred revenue regarding acquired businesses. |
| Profit margin before taxes | Earnings before taxes as a percentage of net sales |
| Recurring revenues | Contractually recurring revenues from software (SaaS, subscription & maintenance), services and hardware subscriptions, plus recurring services and consumables. |
| Return on capital employed (12-month average) |
Twelve months to end of period earnings after financial items, excluding adjustments, plus financial expenses as a percentage of twelve months to end of period average capital employed. The twelve months average capital employed is based on average quarterly capital employed |
| Return on shareholders' equity (12-month average) |
Twelve months to end of period net earnings excluding non-controlling interests as a percentage of twelve months to end of period average shareholders' equity excluding non-controlling interests last twelve months. The twelve months average shareholders' equity is based on quarterly average shareholders' equity. |
| Shareholders' equity per share | Shareholders' equity excluding non-controlling interests divided by the number of shares at year-end |
| Share price | Last settled transaction on Nasdaq Stockholm on the last business day for the period. |
Hexagon, is the global leader in precision technologies at any scale. Our digital twins, robotics and AI solutions are transforming the industries that shape our reality.
Hexagon (Nasdaq Stockholm: HEXA B) has approximately 24,800 employees in 50 countries and net sales of approximately 5.4bn EUR. Learn more at hexagon.com and follow us @HexagonAB.
BUSINESS DEFINITIONS
| Americas | North, South and Central America |
|---|---|
| Asia | Asia, Australia and New Zealand |
| EMEA | Europe, Middle East and Africa |
FINANCIAL INFORMATION
Financial information is available in Swedish and English at the Hexagon website and can also be ordered via phone +46 8 601 26 20 or e-mail [email protected]
This 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 30 April 2025.
This communication may contain forward-looking statements. When used in this communication, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements. They may involve risks and uncertainties, including technological advances in the measurement field, product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of Hexagon's management as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by Hexagon's management and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. Hexagon disclaims any intention or obligation to update these forward-looking statements.
Hexagon AB [publ] P.O. Box 3692 SE- 103 59 Stockholm Fax: +46 8 601 26 21 Phone: +46 8 601 26 20 Registration number: 556190-4771 Registered Office: Stockholm Sweden hexagon.com