Sweden's Hexatronic Q1 net sales fall 10%, margin growth returns

Hexatronic AB

29/04/2026 06:32

Overview

Sweden connectivity solutions provider's Q1 net sales fell 10% yr/yr, with organic sales down 2%

Adjusted EBITA margin improved sequentially after five quarters of decline, aided by cost savings

Company closed acquisition of Germany's JOWO Systemtechnik AG after quarter-end

Outlook

Hexatronic expects continued strong growth and slightly improved margins in Data Center for Q2 2026

Company anticipates persistent challenges in European FTTH market, but positive organic growth in North America for Q2 2026

Company says input cost volatility and currency headwinds will continue to impact results in coming months

Result Drivers

DATA CENTER GROWTH - Data Center segment became the largest contributor to group EBITA, driven by strong organic growth and high market activity, particularly in the US

COST SAVINGS - Sequential improvement in adjusted EBITA margin attributed to cost savings from completed performance improvement program

HARSH ENVIRONMENT GROWTH - Strong organic sales growth in Harsh Environment segment, though margins were muted due to unfavorable product mix and timing effects from 2025 US government shutdown

Company press release: ID:nMFN7Zhmzk

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
SEK 1.7 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electrical components & equipment peer group is "buy"

Wall Street's median 12-month price target for Hexatronic Group AB is SEK33.00, about 13.2% below its April 28 closing price of SEK38.00

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)