Profit warning. Sales stalled in the latter half of March, meaning uncertainty prevails in the markets.
Similar announcements can be expected from many other companies in the near future.
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Hexagon’s preliminary Q1 figures fell short of expectations. Revenue and profitability were below forecasts.
Weak preliminary sales data from March adds uncertainty regarding estimates, especially for the short term. Demand, particularly in China, could be hit by the increased tensions in trade policy. We will today assess the current need for estimate changes. Hexagon will report its complete Q1 report on April 30.
Here are Pauli’s comments on the preliminary Q1 figures and a bit more:
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Hexagonia painaa tällä hetkellä epävarmuus tulleista, mikä hidastaa teollisuuden investointeja. Q1-luvut jäivät odotuksista ja Q2:sta odotetaan vielä heikompaa. Pitkällä aikavälillä yhtiö on kuitenkin suoriutunut hyvin myös vaikeina aikoina. Arvostus on vissiin houkutteleva.
Kannattaa lukea analyysi. 
Hexagon is currently being significantly affected by the tariff uncertainty that slows down industrial customers’ investment activity. Historically, the company has performed well even during negative demand shocks and has been able to catch up on the lost sales fast once the market has stabilized. We find the current valuation attractive and reiterate our Accumulate recommendation with an unchanged target price of SEK 100.
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From Pauli’s report after Q1, it appears that the short-term demand outlook is slightly more positive than before, although there is naturally still no certainty about the long-term effects of tariffs. Hexagon intends to continue growth investments, which will thus weaken short-term profitability. However, growth in recurring revenue and the recovery of cyclical sales will support earnings development in the future.
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Here are Pauli’s preview comments as Hexaon announces its results on Friday. 
The sudden weakening of demand seen at the end of Q1 has likely not continued into Q2, but we also do not expect a rapid recovery. We model adjusted operating profit to decrease by 7% year-on-year as growth initiatives increase the cost base and currency rate changes burdening both sales and profitability. Management’s forward-looking comments on demand and the effects of the trade war are especially awaited during these volatile times.
EDIT: Finnish comment replaced with English one
Pauli has published a new company report on Hexagon after Q2.
Hexagon’s Q2 report offered the market some relief as organic growth slightly exceeded low expectations. However, geopolitical challenges and continued currency headwinds keep uncertainty high, prompting the company’s renewed management team to launch a new cost-saving program. The stock currently appears fully priced, although future strategic changes in 2026 could bring better clarity to the company’s future direction. We lower our recommendation to Reduce (previously Add) while slightly raising our target price to SEK 110 (previously SEK 105), reflecting slightly lower market risks compared to the time of our previous report in early May.
Here are the analyst’s comments on Hexagon agreeing to sell its Design and Engineering business to Cadence Design Systems for approximately 2.7 billion euros.
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Here are Paul’s preview comments as Hexagon releases its Q3 results next Friday.
We expect organic growth to improve from the previous quarter, but we estimate that a negative currency effect will likely strongly limit overall growth. Currency changes and an increased fixed cost base will likely weigh on profitability, even though we are slightly more optimistic about profitability compared to the consensus view.
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Hexagonin Q3:
Third quarter 2025
− 4% organic revenue growth (using fixed exchange rates and a comparable group structure)
− Net sales increased by 0% to 1,303.8 MEUR (1,299.8)
− Net sales including the reduction of acquired deferred revenue amounted to 1,303.1 MEUR (1,299.8)
− Adjusted gross margin of 66.9% (67.1)
− Adjusted operating earnings (EBIT1) decreased by -7% to 349.3 MEUR (376.6)
− Adjusted operating margin amounted to 26.8% (29.0)
− Earnings per share, excluding adjustments, amounted to 9.6 Euro cent (10.1)
− Earnings per share, including adjustments, amounted to -1.3 Euro cent (8.8)
− Operating cash flow before non-recurring items increased to 177.8 MEUR (165.9)
− Cash conversion amounted to 77% (70)
− Recurring revenue grew 6% organically and amounted to 564.2 MEUR (564.9)
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Pauli has published a new company report on Hexagon after Q3.
Organic growth continued its gradual recovery in Q3, although the company’s profitability is under pressure. Hexagon has initiated extensive measures to grow the potential of the decentralized technology group through strategic division and a cost-saving program. We expect a clear turnaround in growth and profitability to materialize in 2026-27, which, however, is not enough to make the valuation attractive at current share prices. We reiterate our reduce recommendation and a target price of SEK 110 for the share.
We’re talking Hexagon! The gradual improvement in organic growth, the cost-saving program, and the split into two. Check it out:
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