Hexagon flat in Q1

Staff reporter

Sweden’s Hexagon said weakness in European and Chinese construction markets constrained sales and earnings in the first quarter of 2024.

The software and hardware company reported a 1% rise in net sales to €1.3 billion, compared with the same period last year, while EBIT and operating margin were also about the same at €376.5 million and 29%, respectively.

Total mining-related Q1 sales across Hexagon’s asset lifecycle intelligence, geosystems and autonomous solutions divisions were €121.52 million, or US$130.36m.

“Growth in Hexagon Mining was held back by timing issues and macro uncertainty in South America,” the company said.

The bulk of the group’s mining-related business is generated through its autonomous solutions division (52% of autonomous solutions sales in Q1, 2024), which saw good growth in the period (plus-8%) “offset by a slowdown in mining that was partly driven by timing issues”.

Mining also accounts for about 11% of the sales of Hexagon’s largest division, geosystems, which reported €376.8 million revenue for the latest quarter versus €389.8 million in Q1 last year.

“The first quarter of 2024 demonstrated the strength of Hexagon’s business model,” Hexagon CEO Paolo Guglielmini said.

“We delivered 3% organic growth in revenues, despite a mixed demand backdrop, reflecting weaker demand in the construction sector in both Europe and China and a gradual continuation of the broader economic slowdown seen throughout 2023.

“Despite this backdrop we maintained margins, with a higher contribution from software products mitigating weakness in the high-margin Geosystems division.”


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