Sweden's Hexagon tops profit forecast in fourth quarter (updated)
30/01/2026 07:10
Adds shares and comments on tariffs in paragraphs 2, 3, CEO comments on market conditions and defence sector in paragraphs 5, 7, spin-off and cost-cutting progress in paragraphs 8, 9 Q4 operating earnings fall less than market expected, shares rise Autonomous solutions for mining and defence drive sales growth Market conditions stable into early 2026, CEO says Octave spin-off on track for H1 2026 listing By Marta Frackowiak Jan 30 (Reuters) - Swedish industrial technology group Hexagon HEXAb.ST reported a smaller-than-expected drop in quarterly operating earnings on Friday, aided by strong sales growth in its autonomous solutions unit which supplies tools that enable automation in sectors ranging from mining to defence. Shares in the company were up 4.4% by 1010 GMT, as it also said that higher prices, supply-chain adjustments and internal cost management helped it offset the impact of U.S. tariffs. "We have manufacturing in many parts of the world, so we can also optimise where we ship products from," CEO Anders Svensson told Reuters. Hexagon, whose technologies can be found from the particle accelerator at CERN to Formula 1 pit lanes at Red Bull Racing, said its adjusted operating earnings fell by 30 million to 420.3 million euros ($501.0 million) in the fourth quarter. That beat the average estimate of 404.4 million euros from 10 analysts polled by LSEG. Market conditions in the fourth quarter were largely unchanged from the third, and the environment in the first quarter of 2026 looks similar, the CEO said. Operating net sales in the autonomous solutions unit grew by 23%, helped by record quarterly performance in aerospace & defence and mining, though that was partly offset by weaker demand in the agriculture segment. Svensson said about 4-5% of Hexagon's revenue comes from the defence sector, which is expected to remain a key contributor as European nations up their military spending. The company is well positioned both in the European Union and North America to serve the industry, he added. The company reiterated that it expected to complete the spin-off and listing of its Asset Lifecycle Intelligence and Safety, Infrastructure & Geospatial businesses, to be called Octave, in the first half of 2026. The previously announced cost improvement programme, targeting 110 million euros in annual savings by the end of 2026, is progressing as planned, Hexagon said, It proposed an unchanged annual dividend of 14 euro cents per share. ($1 = 0.8390 euros) (Reporting by Marta Frąckowiak in Gdansk; Editing by Milla Nissi-Prussak) ((marta.frackowiak@thomsonreuters.com))