Hexagon Composites ASA Reports Challenging Third Quarter of 2025

Hexagon Composites ASA Faces Unique Challenges in Q3 2025

In the latest financial results for the third quarter of 2025, Hexagon Composites ASA (OSE: HEX.OL), a leader in composite cylinder technology, reported significant changes that underscore the challenges faced not only by the company but also by the broader industry. With total revenues plummeting to NOK 538 million, compared to NOK 1,250 million in the same quarter last year, the company is signaling distress amid evolving trade dynamics and capital costs.

CEO Philipp Schramm highlighted that this downturn is reminiscent of a "perfect storm" affecting key sectors. This situation arises from various factors, including newly enacted trade tariffs and rising material costs, which have combined to create significant pressure on profitability—evidenced by a negative EBITDA of NOK -54 million (from NOK 184 million the previous year) and a stark contraction of the EBITDA margin to -10%—a significant drop from 15% in Q3 2024.

Market Dynamics and Cost Saving Strategies

As Hexagon Composites navigates these turbulent waters, they are actively implementing a Group-wide cost savings initiative aimed at improving their EBITDA break-even point and preserving liquidity. Schramm expressed confidence in the accidental cyclical downturn, reiterating that while current market conditions are soft, the company remains steadfast in its long-term growth ambitions.

Hexagon's strategic vision includes adapting to key market drivers such as an aging truck fleet in the U.S. and the anticipated market acceptance of their innovative X15N engine, which shows promise in generating positive returns on investment.

Despite the short-term challenges, there are indicators that suggest a potential rebound. The growth forecast for the natural gas trucking sector remains promising, with industry expectations of an 8-10% growth rate. Schramm believes it is not a question of if this will occur, but rather when, and this outlook underpins Hexagon's commitment to long-term objectives.

Upcoming Presentation and Investor Relations

The company is poised to present these findings in a live event scheduled for 0830 am CET today, which will include insights from both Schramm and CFO David Bandele. Investors are encouraged to tune in for this discussion as it promises to elucidate the strategic steps Hexagon plans to take moving forward.

By leveraging both their expertise in composite materials and capitalizing on their innovative product portfolio, Hexagon Composites aims to carve a path through these industry challenges. For updates, stakeholders can access the full presentation and accompanying report on the company's website.

Hexagon Composites, with its long-established reputation in the clean energy sector, continues to position itself for an enhanced role in sustainable energy solutions, despite operating in a tough financial climate. Investors and customers alike remain attentive to how the company adapts in these rapidly changing circumstances, which may shape the future of transportation and energy sectors across the globe.