Financial Highlights and Developments
Hexagon Purus ASA recently released its financial results for the second quarter of 2025, revealing some challenging circumstances for the company. The revenue for this period reached NOK 193 million, marking a steep decline of 63% from the same quarter the previous year. This downturn is largely attributed to reduced activities in hydrogen infrastructure and hydrogen heavy-duty mobility sectors, though there was a partial offset thanks to increased sales from aerospace applications.
The company also reported an EBITDA of NOK -161 million, worse than NOK -97 million from the previous year, indicating an ongoing struggle to achieve profitability under the current operational conditions. As a part of their response to the financial pressures, the management has been proactive, adapting their cost framework to better align with the lower sales forecast.
CEO Commentary and Strategic Actions
Morten Holum, the CEO of Hexagon Purus, expressed the challenges faced during the quarter, stating, “We have had a tough second quarter with revenue ending at NOK 193 million, down 63% year-over-year. However, there is a positive perspective as our order intake was strong, which we hope will translate into better performance in the latter half of the year.” His optimism is coupled with a strategy to increase annualized cost savings from NOK 200 million to up to NOK 350 million to support the company through these turbulent times.
Moreover, there are expectations of a significant cash outflow reduction in the second half of 2025, supported by anticipated revenue growth and decreased capital expenditure. This strategy aims to stabilize the company's financial footing until they reach a point of cash break-even.
Segment Performance Overview
Hexagon Purus operates various segments, each showcasing distinct performance metrics. In the Hydrogen Mobility and Infrastructure (HMI) segment, revenue was reported at NOK 164 million, a significant drop of 69% compared to the previous year. This decline correlates with a contraction in both hydrogen infrastructure and heavy-duty mobility activities, despite increases in aerospace-related sales.
The EBITDA for this segment stands at a troubling -76 million, primarily due to the inability to effectively manage fixed costs amidst a reduced revenue stream.
Battery Systems and Vehicle Integration Surge
Contrastingly, the Battery Systems and Vehicle Integration (BVI) segment witnessed a notable surge in revenue, which hit NOK 25 million, a substantial increase compared to NOK 2 million previously. This growth can be attributed to successful vehicle deliveries, including the Tern RC8 to Hino Trucks and battery systems to Toyota Motors North America. However, EBITDA for this segment remained negative, at -31 million, reflecting ongoing investment and scaling challenges.
Future Outlook and Projections
Looking ahead, Hexagon Purus maintains a cautiously optimistic outlook, especially concerning its activities in hydrogen transit buses across Europe and aerospace operations in North America. Despite setbacks in the BVI business unit ramp-up, a robust order backlog suggests that revenue will recover well in the second half of the year.
Management is focused on implementing cost-reduction strategies while reviewing the overall business portfolio to maximize efficiency and ensure sustainability.
Key Contacts for Further Information
For those interested in learning more about Hexagon Purus, Mathias Meidell, the IR Director, is available at +47 909 82 242, or through email at mathias.meidell@hexagonpurus.com. Additionally, Salman Alam, the CFO, can be contacted at +47 476 12 713 or via salman.alam@hexagonpurus.com.
Hexagon Purus continues to be a leader in enabling zero-emission mobility solutions that contribute to a cleaner energy landscape. They are particularly noted for their advanced hydrogen Type 4 high-pressure cylinders and systems, which are pivotal in fuel cell electric and battery electric vehicles.
Frequently Asked Questions
What were Hexagon Purus's revenues for Q2 2025?
Hexagon Purus reported revenues of NOK 193 million for Q2 2025, a 63% decrease compared to Q2 2024.
Why did Hexagon Purus experience a revenue decline?
The revenue decline is primarily due to significantly lower activities in the hydrogen infrastructure and hydrogen heavy-duty mobility sectors.
What is the EBITDA for the HMI segment in Q2 2025?
The EBITDA for the Hydrogen Mobility and Infrastructure segment ended at NOK -76 million in Q2 2025.
What plans does Hexagon Purus have for cost reductions?
Hexagon Purus aims to increase its annualized cost reductions from NOK 200 million to up to NOK 350 million.
How is Hexagon Purus positioned for H2 2025?
Hexagon Purus forecasts improved activity and revenue in H2 2025, backed by a strong order backlog.
