The following is a summary of the Hexagon Composites ASA (HXGCF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Hexagon Composites ASA reported full year 2023 revenues amounted to NOK 5.2 billion, up 21% from the previous year, achieving an EBITDA of NOK 480 million.
The Q4 2023 revenue rose to NOK 1.437 billion from NOK 1.27 billion in 2022, with an EBITDA of NOK 126 million.
The EBITDA margin improved to 9% in 2023 from 8% in 2022. When corrected for one-off costs, it hits around 10%.
Strong contributions were reported from the Mobile Pipelines and Digital Wave sectors. The Agility division reported Q4 revenue of NOK 1.2 billion, marking a 21% growth, with Q4 EBITDA reaching NOK 110 million.
Business Progress:
Hexagon Ragasco brought in a record of 21 new customers, including a significant 5-year agreement with a Saudi client, Gasco.
Hexagon Digital Wave reported year-over-year growth of 54% and secured an essential long-term UE agreement.
The company advanced in environmental actions, with its solutions helping to avoid 1.5 million metric tons of CO2 equivalents.
The Anticipated launch of the 15-liter Cummins engine in 2025 is projected to drive future growth.
The company expressed continuous strong demand in the Mobile Pipelines business, planning to replace its winder in Lincoln in Q2 to meet higher demand.
Hexagon Purus business, where Hexagon Composites holds a 38% stake, showed robust growth and positive EBITDA is expected in 2025.
The company is on track to achieve its 2025 targets of over NOK 6 billion in revenues and an EBITDA margin of around 15%.
More details: Hexagon Composites ASA IR
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