Hexagon Purus ASA Reports Strong Q4 and Full-Year Performance
Hexagon Purus ASA Shows Strong Earnings in Q4 2024
Hexagon Purus ASA has reported encouraging financial results for the fourth quarter of 2024 along with preliminary figures for the full year. The company recorded a notable increase in quarterly revenue, reaching NOK 396 million, which marks an 8% growth compared to the same quarter last year. Full-year revenue for 2024 stood at NOK 1,876 million, reflecting a robust 42% increase from the previous fiscal year.
Key Financial Highlights of Q4 2024
Despite a quarterly EBITDA of NOK -104 million—an improvement from NOK -129 million in Q4 2023—Hexagon Purus achieved an EBITDA margin of -26%, up from -35% year-over-year. This positive movement indicates the company’s strategic efforts to enhance operational efficiency and reduce costs. For 2024, the annual EBITDA margin improved significantly to -19% compared to -34% in 2023.
Strategic Partnerships and Developments
Hexagon Purus has secured a renewed, multi-year supply agreement with a leading European bus manufacturer for the provision of hydrogen fuel storage systems through 2028. This collaboration underscores the company's commitment to expanding its footprint in the hydrogen fuel market.
Investment and Capital Raising Efforts
In an important financial maneuver, Hexagon Purus successfully completed an equity capital raise amounting to NOK 1 billion. This influx of funds is aimed at supporting the company’s ambitious growth plans and expansion strategies in the clean mobility sector.
Operational Challenges and Adjustments
Looking ahead, the company anticipates a challenging market landscape, particularly following recent political events that have introduced greater uncertainty in North America. To adapt, Hexagon Purus plans to reduce its workforce by approximately 15% and adjust its cost base by NOK 200 million. CEO Morten Holum expressed pride in the team’s achievements, emphasizing the difficult but necessary decision to downsize.
Revenue Growth Drivers and Future Projections
The revenue increase in Q4 was primarily driven by segments such as hydrogen infrastructure, hydrogen mobility, and battery systems. However, the company experienced delays in certain customer deliveries which affected revenue expectations. As a result, Hexagon Purus is forecasting a gradual revenue ramp-up in 2025, with early indicators suggesting a slower start.
Insight into Hydrogen Mobility and Infrastructure
In the hydrogen mobility and infrastructure segment, revenue remained stable at NOK 355 million for Q4 2024. For the entire year, revenue reached NOK 1,782 million, marking a 40% annual growth. The hydrogen infrastructure solutions continue to be a significant contributor, particularly with demand from notable clients such as Air Liquide and Norwegian Hydrogen.
Battery Systems and Vehicle Integration Performance
The battery systems and vehicle integration segment also showed commendable performance, with Q4 revenue jumping to NOK 47 million, up significantly from NOK 9 million the prior year. Major contributions stemmed from vehicle deliveries to Hino and Toyota Motors North America, demonstrating the segment's capacity for growth.
Outlook amid Market Headwinds
The restructuring following the recent U.S. presidential election has created challenges, particularly for the hydrogen transit bus sector. However, the company maintains a strong order backlog totaling NOK 726 million, with the majority of orders scheduled for delivery in 2025. While growth projections are recalibrated for the near future, Hexagon Purus is focused on maintaining its operational viability until it reaches EBITDA and cash break-even.
Conclusion and Company Vision
Hexagon Purus ASA is dedicated to providing solutions for zero-emission mobility, playing a crucial role in advancing clean energy technology. As the company navigates through current market volatility, its robust strategies and continued focus on innovation position it well for overcoming challenges and leveraging future opportunities in the clean mobility space.
Frequently Asked Questions
What was Hexagon Purus ASA's revenue in Q4 2024?
Hexagon Purus ASA reported a quarterly revenue of NOK 396 million, which is an 8% increase from Q4 2023.
How much did Hexagon Purus raise in its recent equity capital?
The company successfully raised NOK 1 billion in equity capital during the quarter.
What are the future outlooks for Hexagon Purus ASA?
The company is projecting a cautious outlook for 2025, expecting a slow revenue start and responding to market changes.
What actions is Hexagon Purus taking in response to market challenges?
Hexagon Purus is reducing its workforce by about 15% and adjusting its cost base by NOK 200 million to navigate market uncertainties.
What’s the significance of the hydrogen mobility segment for Hexagon Purus?
The hydrogen mobility segment is crucial as it accounts for a significant portion of the company's revenue, driven by ongoing demand for sustainable transport solutions.
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