Here is Pauli’s company report on Hexagon’s Q4 and how Inderes is terminating its coverage of the company.
Hexagon published its Q4 report on Friday morning, and it was mostly in line with our and consensus forecasts. Revenue and profitability were significantly weighed down by currency exchange rate fluctuations, particularly the weakened USD/EUR. Organic growth was only slightly lower than expectations due to, for example, destocking in the heavy infrastructure segment in China. The company plans to spin off Octave, which consists of enterprise software businesses, into an independent company listed in the US during H1/2026. The remaining Hexagon Core will focus on robotics, sensors, and related software. We are terminating our coverage of Hexagon. Our latest recommendation for the stock was reduce with a target price of 110 SEK.