Hexagon Composites ASA: Fourth Quarter 2024 - A Record-Breaking Performance

Hexagon Composites ASA (HEX.OL) has just reported its fourth quarter 2024 results, and the news is nothing short of impressive. The company, a world leader in composite cylinder technology and related systems for clean gaseous energy, has delivered all-time high revenues and a second consecutive record-high EBITDA quarter. Let's dive into the details and explore what drove this remarkable performance.



Revenue and EBITDA Surge
Hexagon Composites reported revenues of NOK 1,533 million for the fourth quarter of 2024, a significant increase from NOK 1,272 million in the same period in 2023. The company's EBITDA also saw a substantial improvement, reaching NOK 257 million compared to NOK 99 million in the fourth quarter of 2023. This resulted in a 17% EBITDA margin, up from 8% in the previous year. The strong financial performance can be attributed to the company's strategic focus on high-pressure, clean energy solutions, which has driven robust volumes and profitability.

Market Trends and Opportunities
Hexagon Composites' performance in the quarter was driven by several market trends and opportunities, including the accelerated growth of natural gas trucking in North America. According to the company's Q4 2024 report, the expected accelerated 10x growth of natural gas trucking in North America by 2030 is a significant factor contributing to Hexagon's growth prospects. This growth is driven by global emissions reductions targets and the economic competitiveness of natural gas (RNG/CNG), which are expected to drive higher volumes for Hexagon's Mobile Pipeline and fuel systems businesses. Additionally, the company's proven track record, market-leading products, state-of-the-art production facilities, and team of industry experts position Hexagon to capture growth from 2025 and beyond.



Strategic Acquisitions and Partnerships
Hexagon Composites' strategic focus on high-pressure, clean energy solutions has also been evident in its recent acquisitions and partnerships. In May 2024, the company announced the signing of two definitive agreements with Worthington Enterprises (NYSE: WOR). The first agreement involved the sale of Hexagon Ragasco, the market leader in LPG composite cylinders, to Worthington Enterprises. The second agreement saw Hexagon Composites acquire a 49% stake in Worthington's Sustainable Energy Solutions (SES) business segment, a leading European supplier of high-pressure cylinders and systems for storage and distribution of compressed natural gas, hydrogen, and industrial gases. These transactions support Hexagon's strategic focus on high-pressure, clean energy solutions and position the company to capture growth from 2025 and beyond.

In conclusion, Hexagon Composites ASA's fourth quarter 2024 results are a testament to the company's strategic focus on high-pressure, clean energy solutions. The company's strong financial performance, driven by market trends and opportunities, strategic acquisitions, and partnerships, positions it well to capture growth in the years ahead. As an investor, keeping an eye on Hexagon Composites is a smart move, as the company continues to deliver impressive results and solidify its position as a leader in the clean energy sector.