Hexagon Purus ASA

Q2 revenue and other income was NOK 146 million, down 25% year over year; excluding NOK 38 million from the divested U.S. aerospace business in Q2 2025, revenue was down 6%. EBITDA was NOK -102 million versus NOK -161 million a year ago, and the quarter included NOK 17 million of restructuring costs. Net loss was NOK 215 million versus NOK 272 million last year. Order backlog ended at NOK 523 million, up 13% from the prior quarter. Cash ended the quarter at NOK 308 million in one remark and NOK 380 million in the balance sheet section; management also said operating cash flow was NOK -47 million and net cash flow was NOK -56 million. For the year to date, reported revenue was NOK 551 million, up 30%, but excluding an extraordinary NOK 134 million gain from Q1 structural transactions, like-for-like revenue was NOK 417 million, roughly flat. Looking ahead, management said revenue visibility for the second half of 2026 has improved, HMI transit bus activity is expected to remain materially below last year, and BVI should generate significantly higher revenue in the second half than in the first.

Morten Holum emphasized execution on restructuring, saying the company has taken out more than 50% of the workforce since 2024 and is in the final stages of aligning the cost base to a weaker market. He highlighted stronger hydrogen infrastructure orders, good visibility for the second half, and a growing pipeline for 2027, while also noting that transit bus weakness should persist. His tone was cautious but constructive: the business is not yet where it needs to be, but he said each step is moving it closer to a sustainable operating and financial profile.

Salman Alam framed Q2 as a relatively soft activity quarter, with revenue hurt by weak transit bus and industrial gas volumes and by delivery timing tilted to the second half. He pointed to a lower operating cost base, noting payroll of NOK 126 million including NOK 17 million of restructuring costs, or NOK 109 million excluding those costs, down 28% year over year; other operating expenses fell to NOK 41 million from NOK 101 million. He also cited a gross margin headwind from mix, with materials at 56% of revenue versus 52%, but said cash flow is improving structurally, with average quarterly net cash outflow in H1 2026 at NOK 56 million, more than 80% lower than 2023. On capital structure, he said the company is actively pursuing measures to strengthen equity and financing, while liquidity supports going concern operations.

On the convertible bonds, management said they are looking to refinance them and that the refinancing could take many forms, but they would not give details yet; the implied concern was dilution, which they did not address directly. On China, Morten Holum said Type 4 cylinder certification is in the final stage and they expect to be cleared for domestic Chinese sales by the end of this year. The Q&A also indirectly reinforced that the key near-term focus is financing and execution rather than new disclosure on capital structure.