- Hexagon’s second-quarter net sales were €1.35 billion, missing the estimate of €1.4 billion, and down 0.9% year-on-year.
- Organic revenue was flat at 0%, failing to meet the estimate of +3.41% growth.
- Adjusted pretax profit was €357.4 million, slightly below the estimate of €349.4 million, and nearly unchanged year-on-year.
- Adjusted EBIT reached €399.5 million, a 1.4% increase from last year, though below the estimate of €404.9 million.
- Adjusted operating margin improved to 29.5% from 28.9% last year, surpassing the estimate of 29.3%.
- Adjusted EBITDA was €507.9 million, a 3.9% increase year-on-year, but below the estimate of €517.8 million.
- Earnings per share (EPS) remained constant at €0.108, which was under the estimate of €0.11.
- The company faced slow demand in automotive and machining activities in EMEA and China, impacting the Manufacturing Intelligence (MI) business.
- The global construction sector’s weakness affected the Geosystems division, with organic growth declining by 5%.
- Despite the slowdown, Geosystems saw good progress in software sales, notably in design software and the reality data platform HxDR.
- Manufacturing Intelligence’s organic growth was flat, as weaknesses in the automotive sector balanced out positive trends in aerospace and flat revenues in China.
- Asset Lifecycle Intelligence (ALI) experienced a 9% organic growth, driven by strong SaaS and perpetual software sales for design tools and enterprise asset management solutions.
- Early indicators predict that challenging conditions in the construction and automotive markets will persist into the third quarter.
- Analyst recommendations include 11 buys, 10 holds, and 5 sells.
A look at Hexagon Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Hexagon AB, a global leader in design, measurement, and visualization technologies, shows a promising long-term outlook based on the Smartkarma Smart Scores. With a solid score in Growth and Momentum, indicating strong potential for expansion and market traction, the company demonstrates resilience and value in its industry. While the dividend score is moderate, Hexagon’s focus on innovation and technological advancements positions it well for future sustainability and growth.
Hexagon AB, known for its expertise in design, measurement, and visualization technologies, excels in areas such as Growth and Momentum according to the Smartkarma Smart Scores. The company’s commitment to innovation and its diverse range of measurement technologies in Geosystems, Metrology, and Technology demonstrate a strong potential for long-term success. Additionally, Hexagon’s strategic focus on resilience and value ensures a solid foundation for continued growth and market competitiveness.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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