Following a good start to the year, Hexagon has recorded a weaker than expected financial performance in March, which is the most significant month in the quarter for revenues. Growth in the key NAFTA and China markets declined in the last two weeks of March, with economic uncertainty impacting deliveries. Recurring revenues grew strongly during the quarter, but this was more than offset by weakness in sensor sales. The decline in sensor volumes in March, coupled with a 6 MEUR drag from currency transaction effects, had a negative short-term impact on EBIT1 margins.
Preliminary reporting indicates revenue of approximately 1,322.8 MEUR in Q1 2025 (Q1 2024: 1,299.9 MEUR), corresponding to organic growth of 0% (Q1 2024: 3%) for the group. Reported growth will be around 2%, with both currency and structure contributing 1% each. EBIT1 (operating earnings excluding adjustments) for the group is expected to be approximately 345 MEUR (Q1 2024: 376.5 MEUR), resulting in an adjusted operating margin of around 26.1% (Q1 2024: 29.0%).
The management team is closely monitoring the current uncertainty in end markets, and if demand continues to be impacted actions will be taken to address the cost base of the group accordingly. A further update will be provided in the Q1 2025 report.
Hexagon will release its Q1 2025 report on Wednesday 30April 2025 at 08:00 CET.
