Hexagon AB Reports Q2 GAAP EPS of €0.098, Revenue of €1.37B, and 3% Organic Revenue Growth.

Hexagon AB reported Q2 GAAP EPS of €0.098 and revenue of €1.37B, a 1.5% YoY increase. Organic revenue growth was 3%. Adjusted gross margin was 67.0%, down from 67.3, and adjusted operating earnings decreased by 10% to €360.6M. The adjusted operating margin was 26.3%, down from 29.5.

Hexagon AB, a Swedish technology group specializing in positioning, sensor, and software solutions, has released its second quarter 2025 financial results. The company reported a 1.5% year-over-year (YoY) increase in revenue to €1.37 billion, driven by a 3% organic revenue growth [2]. This growth was achieved despite a 10% decrease in adjusted operating earnings to €360.6 million and a 3.2 percentage point contraction in adjusted gross margin to 67.0% [3].

The company's earnings per share (EPS) was €0.098 for the quarter, down from €0.108 in the same period last year. Adjusted operating margin decreased to 26.3%, compared to 29.5% in the previous year [2].

Organic revenue growth was primarily driven by the Manufacturing Intelligence segment, which saw a 3% increase in revenue. However, the company faced significant margin pressure, with the adjusted gross margin contracting by 3.2 percentage points year-over-year [3].

Analysts at Morgan Stanley noted that the better-than-expected top-line result offset the EBIT miss, leading to a 3.7% gain in Hexagon AB stock [3]. Looking ahead, analysts expect organic revenue growth to remain stable, but margin forecasts may be adjusted downward to reflect the foreign exchange and profitability pressures demonstrated in the second quarter results [3].

References:
[1] https://hexagon.com/company/newsroom/press-releases/2025/hexagon-interim-report-1-january---30-june-2025
[2] https://seekingalpha.com/news/4472007-hexagon-ab-gaap-eps-of-009-revenue-of-137b
[3] https://www.investing.com/news/earnings/hexagon-stock-rises-as-organic-growth-beats-expectations-93CH-4152599