#Sweden #Stockholm #earnings report #Hexagon #Q1 2026

Hexagon's Q1 2026 Financial Report

Hexagon AB has recently released its interim report for the first quarter of 2026, revealing substantial growth in its operations. For the period from January to March, the company reported operating net sales of €963.8 million, up from €961.5 million in the same quarter last year, representing an 8% organic growth.

Key Financial Highlights

a. Net Sales: The reported net sales, which includes deferred revenue from acquired entities, amounted to €963.6 million, mirroring the previous year's figure while showcasing the impact of Hexagon’s strategic acquisitions.

b. Gross Earnings: Adjusted gross earnings were reported at €606.3 million, slightly down from €619.1 million, which resulted in a 62.9% gross margin compared to 64.4% in Q1 2025.

c. Operating Earnings: The company’s adjusted operating earnings (EBIT) reached €251.3 million, marking a small increase from €248.7 million, resulting in a respectable EBIT margin of 26.1%.

d. Earnings per Share (EPS): Hexagon reported an adjusted EPS of €0.067 per share, compared to €0.065 in the prior quarter. The overall EPS, which includes discontinued operations, showcased a substantial growth to €0.584 from just €0.050 last year.

Cash Flow and Recurring Revenue

e. Cash Conversion: Cash conversion improved notably to 77%, up from 60%, indicating better cash flow management in ongoing operations.

f. Recurring Revenue: The recurring revenue streams accounted for €289.9 million, down from €308.0 million, with a 6% organic growth indicating resilience in core operational areas, despite some fluctuations in specific segments.

Segment Performance

Hexagon's subsidiary, Octave, experienced operational net sales of €327.2 million, a decrease from €361.3 million in the previous year, showing an adjusted operating margin of 25.2%. This decrease reflects market challenges but also offers an opportunity for further analysis and strategy refinement.

Looking Ahead

With these encouraging results, Hexagon AB positions itself as a key player in the technological and industrial sectors. The company is also poised for further developments, including new acquisitions and initiatives aimed at enhancing their portfolio and operational efficiencies.

The next steps for Hexagon will likely involve focusing on maintaining this growth trajectory while adapting to market demands and potential global economic shifts. Investors and analysts remain optimistic about Hexagon's long-term growth strategies based on this report.

For further inquiries regarding these results, you can reach out to Tom Hull, Head of Investor Relations, at +44 (0) 7442 678 437, or Anton Heikenström, Investor Relations Manager, at +46 8 601 26 26.

Conclusion

In conclusion, Hexagon AB's Q1 2026 report highlights its impressive growth in operating net sales, adjusted earnings, and enhanced cash flow. As the company continues to navigate through a rapidly evolving landscape, stakeholders can remain confident in its strategic approach and commitment to excellence.