Hexatronic Group AB

Latest Results (10.11.2025):

Hexatronic Group AB's Q1 2024 financial results show significant declines compared to the previous year, with net sales falling 16% and profitability metrics such as EBITA and EBIT decreasing by 54% and 59%, respectively. Net profit dropped by 73%, and earnings per share after dilution fell to SEK 0.31 from SEK 1.09. Despite these declines, the company reported a robust operating cash flow of MSEK 270 this quarter versus MSEK 28 in Q1 2023, bolstered by inventory optimization and contributions from its new focus areas in Harsh Environment and Data Center.

Financial Performance

For Q1 2024, Hexatronic Group AB experienced a substantial downturn in financial metrics: net sales decreased by 16% to MSEK 1,782, EBITA dropped by 54% to MSEK 168, and operating profit (EBIT) fell by 59% to MSEK 138. Net profit also saw a steep decline of 73%, reflecting the challenging market environment in Fiber Solutions influenced by capacity utilization and pricing pressures.

Operating Cash Flow

The company achieved a strong operating cash flow of MSEK 270 in Q1 2024, a marked improvement over the MSEK 28 recorded in the same period last year. This improvement is primarily attributed to efficient inventory management and strategic initiatives across its business segments.

New Focus Areas

The new focus areas, specifically Harsh Environment and Data Center, are beginning to contribute significantly to Hexatronic Group AB’s total sales. Sales in Harsh Environment surged from MSEK 52 in Q1 2023 to MSEK 259 in Q1 2024, while Data Center sales increased from MSEK 182 to MSEK 256. These areas partly offset the declines in the traditional Fiber Solutions segment and reflect the company’s diversification strategy.

Regional Performance

Geographically, the company witnessed mixed performance. In North America, sales declined 8% despite positive contributions from key acquisitions, whereas Europe experienced a 21% drop in Rest of Europe sales and an 8% decrease in Sweden due to a subdued FTTH market. APAC sales decreased by 25% compared to the previous year, influenced by the absence of large-scale submarine projects.

Financial Flexibility and Outlook

Hexatronic Group AB maintains good financial flexibility with an interest-bearing net debt of MSEK 2,102 at the quarter-end and a slightly increased leverage ratio (net debt/EBITDA) from 1.4x to 1.7x. Looking ahead, the company remains optimistic about sustained demand in its new focus areas, particularly in defense, energy, and AI-driven data centers, even as the Fiber Solutions market faces headwinds.