Hexagon Composites ASA

Hexagon Composites reported Q2 2026 revenue of NOK 627 million and EBITDA of NOK 69 million, implying an 11% EBITDA margin. Management said EBITDA improved by NOK 57 million from the low point of the downturn a year ago, with margin up 9 percentage points year over year. First-half 2026 revenue was approximately NOK 1.3 billion, and first-half EBITDA was NOK 126 million, or a 10% margin. Segment results included Fuel Systems revenue of NOK 450 million and EBITDA of NOK 78 million, Mobile Pipeline revenue of NOK 101 million and breakeven EBITDA, and Aftermarket revenue of NOK 98 million with EBITDA of NOK 11 million. Cash flow from operations was NOK 128 million and net cash flow was NOK 115 million. At quarter end, gross debt was NOK 972 million, cash on hand NOK 294 million, and net interest-bearing debt NOK 678 million; pro forma net debt after the July repair offering was NOK 576 million, and pro forma liquidity was NOK 796 million. For full-year 2026, management raised EBITDA guidance to around NOK 300 million from above NOK 200 million and said revenue is expected to grow moderately above last year.

Philipp Schramm framed the quarter as a “turning point” and said the company is moving from defense to offense after a year of restructuring. He highlighted four milestones: completion of the cost reduction program, the NOK 650 million equity raise, the record Mobile Pipeline order from Certarus, and the IVECO BUS exclusive supply agreement. His tone was notably more confident about the second half and 2027, driven by stronger profitability, a lower breakeven point, and emerging demand in data centers and natural gas trucking.

Eirik Lohre focused on the improved financial profile and the quality of the quarter’s earnings. He said revenue was NOK 627 million, EBITDA NOK 69 million, and first-half EBITDA NOK 126 million, while Fuel Systems posted NOK 78 million of EBITDA on NOK 450 million of revenue. He also pointed to cash generation of NOK 128 million from operations, CapEx of only NOK 12 million in the quarter and about NOK 20 million year to date versus NOK 70 million to NOK 80 million full-year guidance, and net interest payments of NOK 39 million, which he expects to fall as debt declines. On the balance sheet, he cited gross debt of NOK 972 million, cash of NOK 294 million, and pro forma net debt of NOK 576 million after the repair offering.

Analysts pressed management on the EPA’s 2027 NOx rule, Mobile Pipeline’s forward margin potential, the impact of X15N pilot activity, the decline in COGS percentage, and whether Hexagon would support Hexagon Purus with more capital. Management said the EPA changes are positive for CNG adoption, though they may extend diesel prebuy into early 2027. On Mobile Pipeline margins, Eirik Lohre said 20% EBITDA margins are probably a stretch, but the business should see improving and sustainable margins as volumes recover. On Purus, Philipp Schramm said Hexagon remains open and constructive but has been clear about not assuming additional cash injections, noting prior support was intended to give Purus enough runway to reach positive cash flow and EBITDA.