Hexagon: Tariffs have burdened sensor sales already in March

Weak preliminary sales data from March adds uncertainty regarding estimates, especially for the short term. Demand, particularly in China, could be hit by the increased tensions in trade policy. We will today assess the current need for estimate changes. Hexagon will report its complete Q1 report on April 30.

Growth slightly below estimates, profitability clearly missed

Earlier today, Hexagon published preliminary headline figures from Q1 that were weaker than expected overall. Revenue amounted to 1,323 MEUR, which was 2% below both our and consensus estimates. Adjusted EBIT was 345 MEUR, which was 12-13% below our and consensus estimates. Organic growth amounted to 0% (we estimated 1.5%). Recurring revenue, including software and services, grew strongly during the quarter, which was, however, more than offset by the weakness in sensor sales. Adjusted EBIT was also affected by 6 MEUR currency transaction effects.

China and North America were the affected markets

The company said that it has recorded weaker than expected performance in March after a good start to the year. Especially China and North American markets have been affected by the uncertainty regarding tariffs. The company is closely monitoring the situation, and if demand does not recover, it might consider actions to reduce the cost base of the group accordingly.