Slide 1: Q3 2025 report
Q3 2025 report 24 October 2025
Slide 2: Agenda
Hexagon group & core Q3 performance Agenda 1 Anders Svensson Octave Q3 performance 2 Mattias Stenberg Hexagon group Q3 financials 3 Norbert Hanke First quarter review – Hexagon core 4 Anders Svensson Question & answer session 5 Anders Svensson, Mattias Stenberg, Norbert Hanke, Ben Maslen
Slide 3: Q3 2025 performance summary
Q3 2025 performance summary Anders Svensson 3
Slide 4: Highlights of the quarter
Highlights of the quarter Solid progress in financial metrics and a great deal of operational progress − Growth driven by continued strength in Autonomous Q3 2025 Solutions and strong demand in some customer segments Category Achievement − Operating margins strengthened quarter-on-quarter Organic gr
Slide 5: Cost improvement programme
Cost improvement programme Addressing the cost base Targeting savings of €110m Breakdown of the charge − €74m of savings relate to the Hexagon core businesses Charge Q3 Category, MEUR 2025 − €36m of savings relate to the Octave businesses Costs to achieve − Benefits expected gradually from Q4 2025,
Slide 6: Changes to our Executive team
Changes to our Executive team Hexagon Octave – Norbert Hanke to be interim CFO until a permanent replacement secured Norbert Hanke Ben Maslen Interim CFO Incoming CFO / EVP Octave – Ben Maslen will become CFO, Octave on potential separation. Until then, he is EVP, Octave Tony Zana Andreas Wenzel Chi
Slide 7: Sale of Design & Engineering
Sale of Design & Engineering Announced 4th September 2025 − Sold to Cadence for €2.7bn − Expected gain of approx. €1.4bn − Part of Manufacturing Intelligence − Delivered strong results; growing subscription base − Consolidation of the engineering simulation market makes market leadership challenging
Slide 8: Hexagon core Q3 2025 divisional performance review
Hexagon core Q3 2025 divisional performance review Anders Svensson 8
Slide 9: Hexagon core performance
Hexagon core performance A solid financial performance Manufacturing Autonomous Q3 2025, MEUR Geosystems Hexagon core* Intelligence Solutions Revenue 445.3 352.6 178.0 979.5 Organic Growth 3% (-2%) 1% (-5%) 19% (-12%) 5% (-5%) EBIT1 111.9 94.9 65.2 265.5 Operating Margin 25.1% (25.4%) 26.9% (32.6%)
Slide 10: Manufacturing Intelligence
Manufacturing Intelligence Revenue by industry (FY 2024) 3% 3% 9% General manufacturing Q3 2025, MEUR (Q3 2024) Business update 34% Automotive Aerospace & defense Category Achievement − Solid growth in general 19% Electronics manufacturing and electronics Energy & power Revenue 445.3 − Continued to
Slide 11: Geosystems
Geosystems Revenue by industry (FY 2024) 12% 6% Heavy construction 28% Q3 2025, MEUR (Q3 2024) Business update Buildings 8% Surveying Category Achievement − Mid-single-digit growth in software Mining and recurring revenues, growth in Mapping Revenue 352.6 new products 18% Other (363.1) − Sensor and
Slide 12: Autonomous Solutions
Autonomous Solutions Revenue by industry (FY 2024) 6% 7% Mining Q3 2025, MEUR (Q3 2024) Business update Agriculture 17% Aerospace & defense Category Achievement − Good growth in aerospace & 53% Marine defence, agriculture weakness Other Revenue 178.0 persists (134.8) − Strong growth in mining, despi
Slide 13: Octave Q3 2025 divisional performance review
Octave Q3 2025 divisional performance review Mattias Stenberg 13
Slide 14: Octave at a glance
Octave at a glance Octave is a market leading provider of enterprise software that helps customers design, build, operate, and protect mission critical industrial and infrastructure assets €1.5B ~70% 31% ~7,400 60%+ Revenue in Recurring EBIT1 Margin Employees in of Global Fortune 2024 Revenue in In
Slide 15: Octave core pillars
Octave core pillars Revenue Products Approximate Description Type Included Revenue Contribution Complex 3D modeling, Combination of Smart 3D, Geospatial, U&C Design engineering analysis, digital simulations, and geospatial subscription and NetWorks, Bricsys, Caesar II, license revenue SPI, SDx2 inte
Slide 16: Octave
Octave Q3’25 Revenue by Type Q3 2025, MEUR (Q3 2024) Business update 15% Subscription Revenue Category Achievement − Recurring revenue grew 6% over the prior year, using fixed License Revenue Revenue 324.3 exchange rates and a comparable group structure 13% Services & Other (356.0) o SaaS revenue co
Slide 17: Octave strategic customer win
Octave strategic customer win – Recently secured a multi-year, eight-figure landmark deal with one of the world’s largest energy producers – Octave selected as the core platform (SDx2) for driving organization-wide, unified digital transformation – Chosen for Octave's proven ability to deliver scala
Slide 18: Octave key initiatives
Octave key initiatives Transitioning to a subscription-first business model - positioning for durable, recurring revenue growth Establishing core public company functions and governance infrastructure - including finance, legal, compliance, and investor relations, to support transparency, audit read
Slide 19: Octave leadership team
Octave leadership team Mattias Stenberg Ben Maslen Tamara Adams Scott Moore Jennifer Kaplan Chief Executive Officer Chief Financial Officer Chief Revenue Officer Chief Operating Officer Chief Human Resources Officer David Cryer Tony Zana Vivek Mokashi Jay Allardyce Chief Marketing Officer Chief Lega
Slide 20: Update on proposed separation
Update on proposed separation Spin-off remains on track for 1H 2026 Monitoring delays due to U.S. government shutdown, which impacts the SEC review process timeline Octave to be listed on a U.S. national securities exchange, with a Swedish Depository Receipt program expected to run for approximately
Slide 21: Q3 2025 financial update
Q3 2025 financial update Norbert Hanke 21
Slide 22: Income statement
Income statement Operating margins impacted negatively by currency and product mix Adjusted income statement, MEUR Q3 2025 Q3 2024 Change % Sales bridge Net sales 1,303.8 1,299.8 4 2024, MEUR 1,299.8 COGS -431.4 -427.7 1 Structure, %* 1% Gross earnings 872.4 872.1 0 Gross margin 66.9% 67.1% -0.2 Cur
Slide 23: Gross margin
Gross margin Continued strong gross margin progression Rolling 12-months gross margin Gross margin by quarter Resilient GM% development 70% 67.3% - R12M gross margin 67.1% 67.2% 67.0%66.9% of 67.0% 66.5% 66.7% 66.5% 65% - Q3 adjusted gross margin 65.5% of 66.9% (67.1) 60% - Negatively impacted by cu
Slide 24: Revenue & profitability Y-o-Y bridge
Revenue & profitability Y-o-Y bridge Currency headwinds and dilutive organic drop-through MEUR Q3 2024 Currency Structure Organic Q3 2025 Operating net sales 1,299.8 -55 12 47 1,303.8 Growth -4% 1% 4% 0% Adjusted operating earnings (EBIT1) 376.6 -20 10 -18 349.3 Adjusted operating margin 29.0% 36% 8
Slide 25: Cash flow
Cash flow Continued operational discipline Cash flow statement, MEUR Q3 2025 Q3 2024 Change % - Solid cash conversion in a seasonally weaker quarter Adjusted operating earnings (EBIT1) 349.3 376.6 -7% D&A (Excluding adjustments) 129.9 112.9 15% - Working capital build Adjusted EBITDA 479.2 489.5 -2%
Slide 26: Working capital to sales
Working capital to sales Returning to trend WC/Sales, % WC Bridge Q3 2025 25% Receivables & prepaid expenses 10.7 20% Inventories 11.3 15% Liabilities Q3 2025 5.3% -8.5 10% Deferred revenue 43.7 5% Accrued expenses -24.8 0% Change in WC 32.4 Working capital to net sales (on a rolling basis) 26 | hex
Slide 27: Summary of Q3 2025
Summary of Q3 2025 Anders Svensson 27
Slide 28: Q3 2025 Summary
Q3 2025 Summary Solid financial metrics Sale of D&E Organic growth of 4%, operating Further focus on core measurement margins improving quarter-on-quarter & positioning technologies; €1.4bn and solid cash conversion gain expected Cost improvement programme Potential separation of Octave €110m in eff
Slide 29: First quarter review: Hexagon core businesses
First quarter review Hexagon core businesses Anders Svensson
Slide 30: Hexagon has superior value creation potential for decades to come
Hexagon has superior value creation potential for decades to come Exciting point in Hexagon’s journey: – Industrial customer base increasingly valuing high-precision measurement & positioning technologies as an answer to their sustainability, quality & labour challenges – Industry-leading technology
Slide 31: Ideally positioned to enable autonomy in industry
Ideally positioned to Measurement & Digital twins / Data and AI enable autonomy in positioning 3D environments industry technologies By taking Hexagon’s capabilities in high-precision measurement & positioning technologies, digital twins and enriching this with AI enabled data, we can enable true au
Slide 32: Benefitting from a series of exciting product launches
Benefitting from a series of exciting product launches MAESTRO ATS 800 TS20 iCON trades AEON (CMM) (Laser tracker) (Robotic total (Digital templating) (Humanoid robot) station) | hexagon.com
Slide 33: Organic growth and improving profitability
Organic growth and improving profitability Hexagon core – Organic growth development − Hexagon has the proven ability to 25% deliver peer-leading profit margins 20% 15% Hexagon Core − Recent growth impacted by slow 10% 5% Manufacturing Intelligence demand in customer industries 0% Geosystems -5% − C
Slide 34: Steps towards full potential performance
Click icon to add picture Steps towards full potential performance The new operating model will: – Establish 17 divisional P&L’s, creating clear accountability – Improve responsiveness to changes in end markets – Bring product and operational decisions close to customers To initiate a performance st
Slide 35: R&D stabilising
R&D stabilising Hexagon Group gross R&D development 900 − Absolute R&D spend expected to 800 17% stablise 700 − Increased R&D spend in recent 12% 600 quarters driven by major product innovations and some R&D project 500 7% delays 400 − Review of product portfolio leading 2% 300 to an impairment of €
Slide 36: New management structure with P&L accountable Divisions
New management structure with 17 P&L accountable Divisions Hexagon core Manufacturing Autonomous Geosystems Intelligence Solutions Geomatics Mining Stationary metrology Scanning & mapping Positioning – NovAtel Portable metrology Robotics Construction trade solutions Aerospace & defence Divisions Mac
Slide 37: Division priorities will follow stability-profitability-growth
Division priorities will follow stability-profitability-growth Growth Profitability + + Stability + + + - – Strong focus on organic growth above - market – Capital allocation priority for add-on – Focus on improving operations, acquisitions – Transform offering/business model margins & return – Keep
Slide 38: Implementing strong performance management using scorecards
Implementing strong performance management using scorecards Decentralised Operating Model KPI scorecards Standardised and automated from management reporting system Divisions Division Highest operational level accountability Full accountability for strategy, resources & performance Performance trans
Slide 39: Our plan for superior value creation
Our plan for superior value creation Fundamental success factors in place – Global market leader in high- precision measurement & positioning technologies with strong exposure to the high- Immediate actions to growth autonomy space Best practice Strong governance & correct cost base operating model
Slide 40: Hexagon's Capital Markets Day 2026
Hexagon’s Capital Markets Day 2026 30 April, 2026 London Topic areas to include: − Business area strategy updates − Refreshed financial targets for Hexagon core Invite to follow Octave will also host a Capital Markets Day in Q1 2026 40 | hexagon.com
Slide 41: Appendix
Appendix Q3 2025 {HEXAGON
Slide 42: Divisional performance
Divisional performance Division Category (MEUR) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Revenue 1,299.9 1,353.4 1,299.8 1,448.0 5,401.1 1,322.8 1,370.7 1,303.8 Organic growth in revenue 3% 0% -2% 1% 0% 0% 3% 4% Hexagon* EBIT1 376.5 399.5 376.6 450.3 1,602.9 344.7 360.6 349.3