Hexagon AB (HXGBY)
OTHER OTC:HXGBY
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Hexagon AB
(OTC:HXGBY)
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Rating:60Neutral
Price Target:
$10.50
▼(-10.87% Downside)
Action:ReiteratedDate:02/01/26
The score is primarily held back by weakening recent financial trajectory and a technically soft setup, while a high P/E limits valuation support. Offsetting these, the latest earnings call highlighted strong gross margins and cash conversion plus actionable cost and portfolio initiatives, but near-term FX and destocking headwinds temper the outlook.
Positive Factors
High Gross Margins
A sustained gross margin near 67% reflects durable pricing power and a favorable product mix across software and hardware. High gross margins provide structural insulation against revenue cyclicality, fund R&D and acquisitions, and underpin long-term operating leverage even if top-line growth slows.
Negative Factors
Sharp Revenue Decline
A near‑30% revenue drop materially reduces scale and erodes operating leverage, pressuring ROE and margins. Sustained top-line weakness can force deeper cost cuts, slow investment in product ramps, and impair the company’s ability to execute strategic initiatives over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
A sustained gross margin near 67% reflects durable pricing power and a favorable product mix across software and hardware. High gross margins provide structural insulation against revenue cyclicality, fund R&D and acquisitions, and underpin long-term operating leverage even if top-line growth slows.
Read all positive factors
Hexagon AB (HXGBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.37B
Dividend Yield1.34%
Average Volume (3M)131.73K
Price to Earnings (P/E)28.3
Beta (1Y)0.96
Revenue Growth2.98%
EPS Growth-33.47%
CountryUS
Employees25,091
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.14
Shares Outstanding2,595,227,800
10 Day Avg. Volume350,394
30 Day Avg. Volume131,728
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)2.62
Price to Sales (P/S)4.94
P/FCF Ratio26.24
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue4.74
Enterprise Value/Gross Profit7.15
Enterprise Value/Ebitda14.87
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.5
Revenue Forecast (FY)$6.39B
Hexagon AB Business Overview & Revenue Model
Company Description
Hexagon AB (publ) provides information technology solutions for geospatial and industrial applications worldwide. The company operates through two segments, Industrial Enterprise Solutions (IES) and Geospatial Enterprise Solutions (GIS). The IES s...
How the Company Makes Money
Hexagon makes money primarily by selling software, hardware/sensors, and related services that help customers capture and use measurement and location data across the lifecycle of assets and products.
1) Software revenue (licenses and subscriptio...
Hexagon AB Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly constructive message: Hexagon delivered organic growth (3%), record gross margin (67.5%), exceptional cash conversion (121%), and a standout performance in Autonomous Solutions (23% organic growth). Operational progress includes strategic acquisitions, a clear restructuring program targeting EUR 110m savings, and continued SaaS momentum and market recognition for Octave with a planned spin-off in H1 2026. Offsetting factors are meaningful near-term headwinds — notably FX (-150 bps on EBIT margin), a reported earnings decline, China channel destocking (EUR 8–10m in Q4 and Q1) and a temporary margin drag from R&D capitalization/amortization timing and Octave investments. Management presented actionable mitigants (cost program, pricing, product ramp-ups), and the positives (growth, margins, cash generation, strong order intake) outweigh the near-term negatives.Positive Updates
Return to Organic Growth
Group organic growth of 3% in Q4 2025 (reported revenue EUR 1.4bn; reported -1% due to FX). Recurring revenues grew 3% and new products contributed ~2% to growth.
Negative Updates
Significant Currency Headwinds
Material FX drag reduced EBIT margin by ~150 basis points in Q4 and drove reported sales down (currency -6% on sales). Management expects FX to be a significant headwind in Q1 at current rates.
Read all updates
Q4-2025 Updates
Positive
Negative
Return to Organic Growth
Group organic growth of 3% in Q4 2025 (reported revenue EUR 1.4bn; reported -1% due to FX). Recurring revenues grew 3% and new products contributed ~2% to growth.
Read all positive updates
Company Guidance
Management guided that Q1 2026 will see normal seasonality and a material FX headwind similar to Q4 (which reduced EBIT margin by ~150 bps), plus Geosystems channel destocking of ~EUR8–10m expected to persist in Q1; they reiterated the restructuring program targeting EUR110m annualized savings by end‑2026 (EUR74m in Hexagon core, EUR36m in Octave), noting EUR11m of savings realized in Q4 and a EUR65m run‑rate already in place. The Octave separation is on track for H1 2026 (targeted Q2; Form 10 filing in February; Octave Investor Day March 26), the Board will propose a dividend of EUR0.14/share, and management expects new‑product ramps (new products contributed ~2% in Q4; management cited ~3–4% contribution on a rolling basis) and strong gross margins (Q4 gross margin 67.5%) to help offset near‑term margin pressure from the narrowing R&D capitalization/amortization gap. Cash guidance emphasized continued strong liquidity and working‑capital performance: Q4 operating cash flow before tax and interest was EUR509m, operating cash flow EUR352m, net working‑capital release EUR121m (rolling 12‑month NWC/Sales 3.2%), with a target full‑year cash conversion in the ~80–90% range despite the Q4 outturn of 121%.Hexagon AB Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.42B | 5.40B | 5.44B | 5.16B | 4.34B |
| Gross Profit | 3.60B | 3.61B | 3.54B | 3.36B | 2.80B |
| EBITDA | 1.73B | 2.01B | 1.78B | 1.72B | 1.40B |
| Net Income | 617.40M | 1.02B | 858.90M | 1.01B | 801.60M |
Balance Sheet | |||||
| Total Assets | 17.11B | 17.85B | 16.88B | 16.48B | 14.10B |
| Cash, Cash Equivalents and Short-Term Investments | 758.20M | 663.80M | 547.10M | 486.30M | 472.10M |
| Total Debt | 4.11B | 3.83B | 4.08B | 3.87B | 2.94B |
| Total Liabilities | 6.85B | 6.65B | 6.84B | 6.61B | 5.33B |
| Stockholders Equity | 10.22B | 11.16B | 10.01B | 9.83B | 8.73B |
Cash Flow | |||||
| Free Cash Flow | 1.02B | 955.90M | 743.80M | 763.30M | 898.70M |
| Operating Cash Flow | 1.62B | 1.59B | 1.37B | 1.33B | 1.32B |
| Investing Cash Flow | -1.26B | -710.10M | -1.03B | -1.80B | -1.17B |
| Financing Cash Flow | -177.40M | -764.10M | -249.30M | 493.30M | -86.50M |
Hexagon AB Technical Analysis
Neutral
11.78
Price Trends
10.57
Negative
11.10
Negative
11.27
Negative
Market Momentum
-0.26
Negative
49.04
Neutral
66.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HXGBY, the sentiment is Neutral. The current price of 11.78 is above the 20-day moving average (MA) of 10.06, above the 50-day MA of 10.57, and above the 200-day MA of 11.27, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 66.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HXGBY.
Hexagon AB Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $29.91B | 27.35 | 8.65% | ― | 7.41% | -12.85% | |
74 Outperform | $55.39B | 33.10 | 16.50% | ― | 7.95% | 39.54% | |
63 Neutral | $57.65B | 48.81 | 3.58% | ― | 20.80% | ― | |
63 Neutral | $15.15B | 43.86 | 7.46% | ― | -0.86% | -75.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $27.37B | 28.29 | 5.99% | 1.34% | 2.98% | -33.47% | |
59 Neutral | $17.97B | 30.16 | 6.90% | 0.43% | -8.96% | -30.29% |
* Technology Sector Average
HXGBY
Hexagon AB
10.22
1.77
20.88%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.