The past shocks in the economy have only had short-lived impacts on Hexagon.

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.

The high share of recurring revenue such as software and services should partially mitigate impact from tariffs.

The company's guidance suggests that cyclical demand will remain soft in early 2025.

Hexagon released its Q4 earnings report today, which was slightly better than we or the consensus expected. Growth was low, as we expected, and there still seems to be no clear market recovery in sight.

Hexagon will report its Q4 results on Friday, January 31. We believe that the next key drivers for the share are related to global economic activity and the impact of changes in US trade policy.