Hexagon AB (publ) (HEXA_B) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good day and thank you for standing by. Welcome to the Hexagon Q1 Report 2025 Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1, 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one, one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Norbert Hanke. Please go ahead. Good morning, and thank you for joining our first quarter 2025 conference call. I am Norbert Hanke, Interim President and CEO of Hexagon, And I am joined by our Chief Strategy Officer, Ben Muslin, and our Chief Financial Officer, David Mills. In Q1, we delivered 0% organic growth, 67% gross margins, and an operating margin of 26%, and with a cash conversion of 71%. The current revenue grows strongly by 10%. So the quarter began well, but in mid-March, geopolitical uncertainties impacted the volume. March is the largest month in the quarter for revenues, so this had a sizable impact on our growth potential in Q1. The largest impact, however, was on operating margin. Here we saw the combination of negative currency and the late decline on volumes on a cost base positioned for growth. We have seen demand stabilizing now in April. However, we remain very cautious of the uncertain market backdrop and will continue to monitor this and adjust our cost base accordingly. Besides the challenging market, we have made good progress. The preparations to separate the ELI division are on track. And during the quarter, we did announce that the SIG division will be included in the ...