Hexagon

Organic growth is picking up gradually even if the profitability has slightly deteriorated.

FX headwinds and increased fixed costs are a burden for profitability.

We see the deal in positive light from Hexagon's shareholder’s perspective.

Q2 report offered some relief to the market, with organic growth slightly exceeding the low expectations.

The abrupt deterioration in demand seen at the end of Q1 has likely not extended to Q2 but we don’t expect a sharp rebound either.

Q1 organic growth was at 0%. The weakness came from hardware and perpetual software license sales that suffered from customers’ prolonged investment decisions amid tariff-related uncertainty.

The long-term impacts of the tariffs are still unknown. Hexagon has continued to invest for growth, which burdens profitability in the short term.