Slide 1: Q1 2025 report
iby HEXAGON Q1 2025 report 30 April 2025
Slide 2: Q1 2025 Performance update
Q1 2025 Performance update
Slide 3: Q1 2025 performance highlights
• A good start to the quarter, but geopolitical uncertainty impacted volumes in March • Sensors & robotic solutions most impacted, alongside a slowdown Category Achievement in perpetual licences • Recurring revenues increased by 10% Organic growth 0% • Continued good progress in gross margins, but o
Slide 4: Uncertainty impacted demand in key countries
Uncertainty impacted demand in key countries Growth by key geography, Q1 2025 Growth by period Americas EMEA +9% 38% of revenues 34% of revenues -2% organic growth 0% organic growth Canada -14% organic growth Western Europe -2% organic growth USA +1% +1% -2% organic growth China -3% organic growth Q
Slide 5: Main risk remains the overall impact on the global economy
Main risk remains the overall impact on the global economy At current tariff rates we expect the direct impact on earnings to be up to 15 MEUR, before mitigation Examples of mitigating activities • Direct flows between China and the US are already minimal • Flows to Canada and Mexico are being re-ro
Slide 6: Divisional performance
Divisional performance Growth & margins impacted by global uncertainty Manufacturing Asset Lifecycle Autonomous Safety, Infrastructure Intelligence Intelligence Geosystems Solutions & Geospatial Hexagon Q1 2025, MEUR Revenue 469.9 204.4 375.7 151.1 120.5 1,322.8* Organic Growth -2% (5%) 5% (2%) -3%
Slide 7: Divisional performance
Divisional performance Division Category (MEUR) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Revenue 1,299.9 1,353.4 1,299.8 1,448.0 5,401.1 1,322.8 Organic growth in revenue 3% 0% -2% 1% 0% 0% Hexagon* EBIT1 376.5 399.5 376.6 450.3 1,602.9 344.7 EBIT1 margin % 29.0% 29.5% 29.0% 31.1% 29.7% 26.1%
Slide 8: Manufacturing Intelligence
Manufacturing Intelligence Revenue by industry (FY 2024) General manufacturing 3% 3% 9% Automotive 9% 34% Aerospace & Defence Q1 2025, MEUR (Q1 2024) Business update Electronics Weaker end to the quarter with customer delays 19% Energy & Power reflecting trade uncertainties 23% Revenue 469.9 (478.1)
Slide 9: Asset Lifecycle Intelligence
Asset Lifecycle Intelligence Revenue by industry (FY 2024) Oil & Gas Chemicals 23% 25% Heavy construction - Q1 2025, MEUR (Q1 2024) Business update industrial facilities 5% Energy & Power Good growth in SaaS and subscription revenues, 10% 19% Mining including EAM Revenue 204.4 (192.2) 18% Other Decl
Slide 10: Geosystems
Geosystems Revenue by industry (FY 2024) Heavy construction - infrastructure 12% Buildings 6% 28% Surveying Q1 2025, MEUR (Q1 2024) Business update 8% Mining Continued weakness in construction markets and a 18% Mapping slowdown in reality capture 28% Revenue 375.7 (376.8) Other Continued weakness in
Slide 11: Autonomous Solutions
Autonomous Solutions Revenue by industry (FY 2024) 7% Mining 6% Agriculture Q1 2025, MEUR (Q1 2024) Business update 17% Aerospace & Defense 53% Good growth in aerospace & defence and the Marine autonomous road train project 17% Revenue 151.1 (135.5) Other Mining impacted by delays driven by global O
Slide 12: Safety, Infrastructure & Geospatial
Safety, Infrastructure & Geospatial Revenue by industry (FY 2024) 5% 5% Public safety 10% Aerospace & Defense Q1 2025, MEUR (Q1 2024) Business update Utilities 12% 49% Transportation Strong growth in public safety, offset by continued weakness in the Federal services business Revenue 120.5 (116.9) 1
Slide 13: UCRS software assets
UCRS software assets Announced 17 April 2025 • The Unified Communications Radio Suite (UCRS) software assets of CONET Communications • A communication solution for control centres, capable of integrating diverse communication channels including mobile phone networks, video surveillance, satellite an
Slide 14: Q1 2025 Financial update
Q1 2025 Financial update
Slide 15: Income statement
Income statement Operating margins impacted by changeable markets Adjusted income statement MEUR Q1 2025 Q1 2024 % Change Sales bridge 2024, MEUR 1,299.9 Net Sales 1,322.8 1,299.9 0* COGS -433.9 -436.4 -1 Structure, %* 1% Gross earnings 889.5 864.5 3 Currency, % 1% Gross margin 67.2% 66.5% 0.7 Organ
Slide 16: Gross margin
Gross margin Continued strong gross margin progression Rolling 12-months gross margin Gross margin by quarter 70% 67.3% 67.1% 67.2% • R12M gross margin of 66.5% 66.7% 65% 66.5% 66.5% 67.1% 65.6% 65.5% • Q1 adjusted gross margin 60% of 67.2% (66.5) • Strong contribution from the 55% software portfoli
Slide 17: Revenue & profitability bridge
Revenue & profitability bridge Lower volumes impacting operating margins MEUR Q1 2024 Currency Structure Organic Q1 2025 Operating Net Sales 1,299.9 15 13 -5 1,322.8 Growth 1% 1% 0% 2% Adjusted Operating Earnings (EBIT1) 376.5 0 4 -36 344.7 Adjusted Operating Margin 29.0% 2% 32% 710% 26.1% Accretion
Slide 18: Cash flow
Cash flow In-line with usual seasonality Cash Flow Statement Q1 25 Q1 24 Change % MEUR • Cash generation in line with Adjusted operating earnings (EBIT1) 344.7 376.5 -8 seasonality D&A (Excluding adjustments) 119.1 107.1 11 • Cyclical build in working capital Adjusted EBITDA 463.8 483.6 -4 Non-cash
Slide 19: Working capital to sales
Working capital to sales Returning to trend WC/Sales, % 25% WC Bridge Q1 2025 Receivables & 20% -9.3 Prepaid expenses Q1 2025 Inventories 22.7 15% 6.9% Liabilities 45.2 10% Deferred revenue -63.0 Accrued expenses 62.8 5% Change in WC 58.4 0% Working capital to net sales (on a rolling basis) 19 | hex
Slide 20: Seasonality
Seasonality Seasonal pattern: Q2 & Q4 tend to be the strongest quarters MEUR 32% 1,400 30% 28% Adjusted EBIT1 Margin % 1,200 26% 24% 22% 1,000 20% 18% 800 16% Net Sales 14% 600 12% 10% 400 8% 6% 200 4% 2% EBIT1 0 0%
Slide 21: Q1 2025 Customer, product and conclusions
Q1 2025 Customer, product and conclusions
Slide 22: Netflix
Netflix Customer background Customer Challenge Netflix is a subscription video on- Netflix’s “Avatar: The Last Airbender” demand over-the-top streaming series needed to create visual effects service. at scale and speed. How Hexagon is helping Using the Leica BLK360 and Leica RTC360 laser scanners to
Slide 23: Aerospace
Aerospace Customer background Customer challenge A European aerospace leader known To design and build next-generation for designing and producing commercial airplanes that meet zero commercial aircraft, helicopters, and carbon targets while ensuring their defence systems, driving innovation manufac
Slide 24: Hyundai Engineering Co., Ltd.
Hyundai Engineering Co., Ltd. Customer background Customer Challenge Hyundai E&C has driven the Hyundai E&C used manual processes globalisation of the Korean construction for materials management, causing industry. With more than 7,000 inaccuracies in data, construction delays employees, Hyundai E&C
Slide 25: Sao Paolo Municipal Housing Secretariat (SEHAB)
Sao Paolo Municipal Housing Secretariat (SEHAB) Customer background Customer challenge SEHAB develops and To mitigate fraud risks and guarantee a sustainable implements housing policies urban development, SEHAB chose to partner with and programs in the city of Hexagon. It needed a solution that coul
Slide 26: Advancing humanoid robotics
Advancing humanoid robotics • Dedicated Robotics division to accelerate next-generation autonomy • Leverages our expertise in AI, spatial intelligence & measurement technologies • Delivering autonomous solutions to complement industrial workforce challenges • Key focus at Hexagon Live in June 26 | h
Slide 27: Conclusions
Conclusions Market Adapting to the Separation New uncertainty Margins environment continues products Despite a good start to Gross margins Demand stabilisation in On track for Strong pipeline in the quarter, market progressed well, but late April, but monitoring and completion in the H2, including w
Slide 28: Cautionary statement
Cautionary statement This communication may contain forward-looking statements. When used in this communication, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements. They may involve risks and uncertainties,
Slide 29: Appendix
Appendix
Slide 30: Our key targets
Our key targets Organic growth Average annual growth of 5-7% Conviction in our existing Growth via M&A Average annual growth of 3-5% 2022-2026 targets Operating margin More than 30% by the end of 2026 (EBIT1 incl. PPA) Cash conversion Annual target range of 80-90% Additional targets 95% reduction of
Slide 31: Key geographic trends
Key geographic trends Mixed demand environment across geographies Americas EMEA APAC 38% of revenues 34% of revenues 27% of revenues -2% Organic growth 0% Organic growth 2% Organic growth North America Western Europe China • Down -4% in Q1 • -2% organic growth in Q1 • Declined -3%, with modest growt