Hexagon Ab Class B · OMXSTO:HEXA_B
Hexagon Ab Class B — Q1 2026 Earnings Presentation
36 slides from Hexagon Ab Class B's earnings presentation, Apr 23, 2026
Slide 1: Q1 2026 report
a) HEXAGON Q1 2026 report 23 April 2026
Slide 2: Cautionary statement
Cautionary statement This communication may contain forward-looking statements, estimates and projections. When used in this communication, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements, estimates and p
Slide 3: Octave is now presented within discontinued operations
Octave is now presented within discontinued operations Bridging performance Q1 2026, MEUR Hexagon continuing ops. Octave (Former) Hexagon Group Hexagon continuing operations: − Excludes Octave Revenue 964 327 1,291 − Excludes the Design & Engineering business, from the date of sale – 23 February, 20
Slide 4: Agenda
Agenda Hexagon Q1 performance 1 Anders Svensson Hexagon Q1 financials 2 Norbert Hanke Octave Q1 performance 3 Mattias Stenberg Question & answer session 4 Anders Svensson, Mattias Stenberg, Norbert Hanke, Ben Maslen
Slide 5: Q1 2026 performance summary
Q1 2026 performance summary Anders Svensson 5
Slide 6: Highlights of the quarter
Highlights of the quarter All figure presented in this report refer to continuing operations, unless otherwise stated A strong start to 2026 Key financial metrics Key operational achievements 8 Organic − Continued to take portfolio actions to focus Hexagon on the core precision % growth measurement
Slide 7: Hexagon & Waygate technologies
Hexagon & Waygate technologies Transaction value FY2025 EBIT1 margins Customer persona – FY 2025 revenue Transaction Scope: ~$1.45bn ~10% Carve-out of includes head of Expected close ~$630m Opportunity for strong Baker-Hughes quality and MRO in late H2 2026 value creation departments What we are buy
Slide 8: Organic growth
Quarterly revenue & organic growth Organic growth Revenue Organic growth €M 1 200 % 15 Delivered strong growth of 8% 1 000 10 800 5 600 0 400 − Driven by Autonomous Solutions growth of 13% -5 200 and Manufacturing Intelligence growth of 9% 0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 − Geosystems gr
Slide 9: Regional and industry development
Regional and industry development Industry % of sales Americas EMEA China Rest of Asia 15% org. growth 4% org. growth -4% org. growth 7% org. growth Construction* 27% General manufacturing 16% Aerospace & defence 13% Mining 11% Growth in quarter YoY Automotive 10% >8% Electronics 5% 0-8% Negative Ag
Slide 10: Gross margin
Gross margin Impacted by tariff & inflationary pressure Rolling 12-months gross margin Gross margin by quarter – Gross margin excluding D&E for both periods amounted to 65 70 62.0% (62.6%) 64 65.0% – Gross margins offset by: 64.6% 64.0% 65 64.3% 64.4% 62.8% 63.7% 63.7% 62.9% – A full quarter of tari
Slide 11: Adjusted operating earnings (EBIT1)
Adjusted operating earnings (EBIT1) Adjusted EBIT1 & operating margin trends €M % 350 30 Operating margin of 26.1% (25.9%) 300 25 – Excluding the full impact of D&E, operating 250 margins grew 80 basis points, offsetting: 200 – Tariff & cost inflation 20 150 – Strong currency headwinds (-60 basis po
Slide 12: Manufacturing Intelligence
Manufacturing Intelligence Revenue by industry (FY 2025) 2% 9% 4% General manufacturing Q1 2026, MEUR (Q1 2025) Business update 11% 35% Automotive Aerospace & defense Category Achievement* − Broad-based organic growth; Electronics strong order intake Revenue Energy & power 432.7 − Strong growth in A
Slide 13: Geosystems
Geosystems Revenue by industry (FY 2025) 8% 4% 2% Surveying 28% Heavy construction 5% Q1 2026, MEUR (Q1 2025) Business update Buildings − Growth impacted by completion of 8% Mining Category Achievement China destocking, excluding this Utilities Revenue growth would be 4% 349.4 23% Mapping Public saf
Slide 14: Autonomous Solutions
Autonomous Solutions Revenue by industry (FY 2025) 9% 5% Mining Q1 2026, MEUR (Q1 2025) Business update Aerospace & defense 12% Agriculture − Aerospace & defence continued to 47% Category Achievement Marine be strong; mining softened on Other Revenue cautious capex; agriculture 175.5 remained subdue
Slide 15: Q1 2026 financial update
Q1 2026 financial update (Continuing operations, unless otherwise stated) Norbert Hanke 15
Slide 16: Income statement
Income statement Adjusted income statement, MEUR Q1 2026 Q1 2025 Change % Sales bridge Net sales 963.8 961.5 8% Q1 2025, MEUR 961.5 COGS -357.5 -342.4 4% Structure, %* -1% Gross earnings 606.3 619.1 -2% Gross margin 62.9% 64.4% -1.5% Currency, % -6% Operating earnings (EBITDA) 351.1 342.4 3% Organic
Slide 17: Revenue & profitability year-on-year bridge
Revenue & profitability year-on-year bridge Accretive organic and structure drop-through, but currency headwinds remain MEUR Q1 2025 Currency Structure Organic Q1 2026 Operating net sales 961.5 -58 -12 72 963.8 Growth -6% -1% 8% 0% Adjusted operating earnings (EBIT1) 248.7 -21 0 23 251.3 Adjusted op
Slide 18: Restructuring programme
Restructuring programme Addressing underlying profitability Estimated phasing of quarterly cost savings MEUR − Targeting savings of 74 MEUR 20 − Full run rate savings expected by the end of 2026 15 − Q1 2026: 10 MEUR cost savings 10 − Annualised run rate as of Q1 2026: 51 MEUR 10 6 5 0 Q4 Q1 Q2 Q3 Q
Slide 19: Cash flow
Cash flow Continued operational discipline Cash flow statement, MEUR Q1 2026 Q1 2025 Change % Adjusted operating earnings (EBIT1) 251.3 248.7 1% D&A (Excluding adjustments) 99.8 93.7 7% Adjusted EBITDA 351.1 342.4 3% Non-cash items -25.3 -4.6 453% Cash flow from operations before change in working c
Slide 20: Working capital to sales
Working capital to sales WC Bridge Q1 2026 WC/Sales, % Receivables & 20 prepaid expenses 5.0 15 Inventories -38.3 13.3% 12.5% 11.9% 11.8% 10.5% Liabilities 9.3 10 11.0% 10.7% 7.9% Deferred revenue 3.0 5 Accrued expenses -34.9 0 Q2 Q3 2024 Q4 Q1 Q2 2025 Q3 Q4 Q1 2026 Change in WC -55.9 20 | hexagon.c
Slide 21: Q1 2026 Octave
Q1 2026 Octave Mattias Stenberg
Slide 22: Octave
octave.com Octave Revenue by type (FY 2025) 16% Q1 2026, MEUR (Q1 2025) Business update − Recurring revenue grew 6% organically Subscription Revenue CCategory Achievement − SaaS revenue continues to grow at License Revenue 17% Revenue double-digit rates with continued strong 327.2 growth in bookings
Slide 23: Octave trends by workflow
octave.com Octave trends by workflow Description Revenue type Q1’26 revenue trends Complex 3D modeling, Combination of Lower license sales, FY’25 revenue engineering analysis, digital subscription and sequential improvement by workflow environment Design simulations and geospatial license revenue in
Slide 24: Octave revenue growth dynamics
octave.com Octave revenue growth dynamics Revenue from monthly Recurring Revenue excluding Revenue from subscription licenses monthly subscriptions licenses Perpetual Licenses 100 € 100 € 20% 200 € 20% 75 € 175 € 75 € 10% 10% 150 € 50 € 50 € 0% 0% 125 € 25 € 25 € -10% 100 € -10% 0€ Y/Y Growth Y/Y Or
Slide 25: Octave - Internal Drivers to Accelerate ARR Growth
octave.com Octave - Internal Drivers to Accelerate ARR Growth ~2/3 ~1/3 of ARR growth of ARR growth expected to expected to come come from existing customers from new customers Strategic M&A Medium- term New customers ARR Growth Cross-sell Net Retention 10%+ Technology and channel bolt-ons to Upsell
Slide 26: Octave customer highlights in Q1
octave.com Octave customer highlights in Q1 New Logos Expansion / Cross-Sell Visa CashApp Racing Bulls Global motion and control leader Attune – New SaaS customer win for enterprise Reliance & Attune – SaaS expansion for enterprise-quality asset management for F1 racing operations transformation and
Slide 27: FY'26E Impacted by Revenue Model Shifts and PubCo Costs
octave.com FY’26E Impacted by Revenue Model Shifts and PubCo Costs Expected FY’26E Impact (vs FY’25) • Continued strength in SaaS product growth FY’26E Revenue Growth Drivers • Recovery of subscription licenses in 2H ~ +3– 4% • Decline in perpetual license revenues • Public company launch costs ~ -1
Slide 28: The Octave Vision – A Scalable Model Built for Predictable Growth and Profitability
octave.com The Octave Vision – A Scalable Model Built for Predictable Growth and Profitability FY’25 FY’26E Medium-Term ARR Growth* 9% 6 - 8% 10%+ Organic Revenue Growth 3% 3 - 4% 6 - 8% Adj. Operating Margin 31% ~30% ~30% Capital Expenditures <1% <1% <1% (% of revenue) Capitalized Software Developm
Slide 29: Investment Highlights
Market Growing to $40B by 2029 (9% CAGR) Installed Base 97% gross retention Expanding Recurring Revenue Investment $1.1 billion; 66% of revenue mix and growing Highlights AI To amplify 30 years of context and expertise Product & Market Leadership 35+ industry leadership recognitions Independence 29
Slide 30: Next steps on the proposed separation
octave.com Next steps on the proposed separation Date Event 24 April 2026 Hexagon Annual General meeting; includes vote to approve distribution of Octave shares to Hexagon shareholders and list Octave as an independent public company 20 May 2026 Expected last day of trading in Series B shares in Hex
Slide 31: Summary of Q1 2026
Summary of Q1 2026 Anders Svensson 31
Slide 32: Q1 2026 Summary
Q1 2026 Summary Strong financial performance Solid foundation for Q2 Good organic growth, improving Strong MI order intake and Geosystems underlying profitability and strong cash destocking resolution provide a conversion constructive foundation, attentive to the wider macro environment Cost restruc
Slide 33: 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 Contact cmd@hexagon.com to attend in person, or visit investors.hexagon.com 33 | hexagon.com
Slide 34: Appendix
Appendix Q1 2026 {HEXAGON
Slide 35: Continuing operations reporting segments
Continuing operations reporting segments Division Category (MEUR) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Operating net sales 958.1 996.9 939.0 1,040.4 3,934.4 961.5 1,010.5 976.1 1,053.1 4,001.2 963.8 Organic growth 2% -3% -5% -2% -2% -2% 2% 5% 4% 2%
Slide 36: Restated performance excluding D&E and Octave
Restated performance excluding D&E and Octave Division Category (MEUR) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Operating net sales 888.2 939.4 907.1 980.3 3,715.0 924.9 Gross margin % 62.6% 62.3% 61.9% 61.6% 62.1% 62.0% Hexagon Organic growth -2% 3% 5% 4% 3% 8% EBIT1 255.1 231.1 235.5 255.4