Overview
Sweden's fiber solutions provider's Q4 net sales rose 1% to SEK 1,848 mln
Adjusted EBITA for Q4 was SEK 133 mln, margin at 7.2%
Company completed acquisition of Communication Zone in US Midwest
Outlook
Hexatronic expects North American Fiber Solutions to return to growth in 2026
Company anticipates continued growth in Data Center through organic expansion and acquisitions
Hexatronic sees solid market activity in Harsh Environment, especially in defense and energy
Result Drivers
DATA CENTER GROWTH - Data Center business area saw a 59% increase in net sales, contributing to overall growth
HARS ENVIRONMENT PERFORMANCE - Harsh Environment segment delivered 15% organic growth, driven by dynamic cables
FIBER SOLUTIONS CHALLENGES - Fiber Solutions faced market headwinds, with declines offset by a large submarine cable order
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
SEK 1.85 bln
Q4 EPS
-SEK 0.27
Q4 Net Income
-SEK 57 mln
Q4 EBIT
SEK 12 mln
Q4 EBITA
SEK 37 mln
Q4 EBITA Margin
2.00%
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 SEK26.00, about 6.9% above its February 4 closing price of SEK24.33
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nMFN8fbKhk
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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.)