Hexagon AB

Hexagon AB maintains a conservative capital structure with a debt-to-equity ratio of 0.40, indicating moderate leverage relative to its equity base of 10.22 billion EUR. The company holds 648.4 million EUR in cash and equivalents against 4.06 billion EUR in long-term debt, resulting in a net cash position that is negative after subtracting total debt. Liquidity is assessed as medium, supported by a current ratio of 1.01, which suggests tight short-term working capital management. Operating cash flow stands at 1.47 billion EUR, providing a robust buffer against debt obligations, while free cash flow is 220.4 million EUR after capital expenditures of 615.2 million EUR.

Profitability metrics demonstrate strong returns on capital, with a return on equity of 19.92% and a return on assets of 11.9%. The company generated 5.42 billion EUR in revenue, resulting in a gross profit of 3.64 billion EUR and an operating income of 761.7 million EUR. Net income reached 617.4 million EUR, reflecting effective cost control and operational efficiency. While cohort median comparisons are absent from the input data, the high ROE suggests the company is generating significant value for shareholders relative to its equity base.

Segment and geographic revenue mix data is not provided in the input, preventing a detailed analysis of revenue concentration or regional exposure. The absence of this data limits the ability to assess specific segment performance or geographic risks, though the overall revenue figure indicates a substantial scale of operations.

Historical period data for revenue and net income trends is not available in the input, precluding a longitudinal analysis of growth trajectory. Without multi-year data, it is not possible to determine the consistency of revenue growth or earnings stability over time.

Risk assessment highlights medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. The dilution risk is low, as basic and diluted shares outstanding are identical at 2.57 billion, indicating no significant share-based compensation impact or recent equity issuances. The primary financial risk stems from the leverage profile and the tight current ratio, which may constrain financial flexibility in adverse market conditions.

Recent IR observations indicate a mean analyst price target of 97.27 EUR, with a median target of 96.00 EUR and a range between 70.00 EUR and 125.00 EUR. The mean recommendation is 2.71, suggesting a neutral to slightly positive sentiment among analysts, with 3 strong buys, 2 buys, and 9 holds. Competitor context lists major oil and gas companies such as Chevron, Shell, and BP, which aligns with the erroneous industry classification but does not reflect Hexagon's actual technology-focused peer group.

Analysts maintain a mean price target of 97.27, suggesting potential upside from current levels.

The debt-to-equity ratio of 0.4 is below the cohort median of 0.49, indicating conservative leverage.

Cash conversion of 0.72 is below the cohort median of 1.75, indicating weaker cash generation.

Long-term debt increased to 4.06 billion EUR in FY2026, rising from 3.79 billion EUR in FY2025.

Revenue €963.6M, +0,2% YoY; Operating income +815,5% YoY.

• ▍Revenue €963.6M, +0,2% YoY
• ▍Operating income +815,5% YoY
• ▍Net income +750,1% YoY
• ▍Free cash flow +1 673,1% YoY
• ▍Net margin 166.8%

Revenue €1.43B, −1,3% YoY; Operating income −11,1% YoY.

• ▍Revenue €1.43B, −1,3% YoY
• ▍Operating income −11,1% YoY
• ▍Net income −18,9% YoY
• ▍Free cash flow −12,4% YoY
• ▍Net margin 16.6%

Revenue €1.30B, +0,2% YoY; Operating income −103,9% YoY.

• ▍Revenue €1.30B, +0,2% YoY
• ▍Operating income −103,9% YoY
• ▍Net income −114,4% YoY
• ▍Free cash flow −118,5% YoY
• ▍Net margin -2.6%

Revenue €1.37B, +1,2% YoY; Operating income −13,1% YoY.

• ▍Revenue €1.37B, +1,2% YoY
• ▍Operating income −13,1% YoY
• ▍Net income −12,7% YoY
• ▍Free cash flow −37,3% YoY
• ▍Net margin 16.4%

Revenue €961.5M; Operating income €198.9M.

• ▍Revenue €961.5M
• ▍Operating income €198.9M
• ▍Net margin 19.7%

Revenue €1.45B; Operating income €401.4M.

• ▍Revenue €1.45B
• ▍Operating income €401.4M
• ▍Net margin 20.2%

Revenue €1.30B; Operating income €334.4M.

• ▍Revenue €1.30B
• ▍Operating income €334.4M
• ▍Net margin 18.1%

Revenue €1.35B; Operating income €360.5M.

• ▍Revenue €1.35B
• ▍Operating income €360.5M
• ▍Net margin 19.1%

Revenue €5.42B, +0,4% YoY; Operating income −46,4% YoY.

• ▍Revenue €5.42B, +0,4% YoY
• ▍Operating income −46,4% YoY
• ▍Net income −39,7% YoY
• ▍Free cash flow −62,8% YoY
• ▍Net margin 11.4%

Revenue €5.40B, −0,7% YoY; Operating income +21,9% YoY.

• ▍Revenue €5.40B, −0,7% YoY
• ▍Operating income +21,9% YoY
• ▍Net income +19,1% YoY
• ▍Free cash flow +37,6% YoY
• ▍Net margin 18.9%

Revenue €5.44B, +5,1% YoY; Operating income −5,0% YoY.

• ▍Revenue €5.44B, +5,1% YoY
• ▍Operating income −5,0% YoY
• ▍Net income −14,8% YoY
• ▍Free cash flow −29,7% YoY
• ▍Net margin 15.8%

Revenue €5.18B, +19,1% YoY; Operating income +27,6% YoY.

• ▍Revenue €5.18B, +19,1% YoY
• ▍Operating income +27,6% YoY
• ▍Net income +25,7% YoY
• ▍Free cash flow +10,9% YoY
• ▍Net margin 19.5%