Slides
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Q4 2025 report 30 January 2025
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| hexagon.com 2 Cautionary statement This communication may contain forward-looking statements, estimates and projections. When used in this communication, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements, estimates and projections. They may involve risks and uncertainties, including technological advances in the measurement field, product demand and market acceptance, the effect of economic and general business conditions, the impact of competitive products and pricing, foreign currency exchange, interest and tariff rates, political developments, interruptions in supply, major customer credit losses and other risks, many of which are beyond the control of Hexagon and its management. These forward-looking statements, estimates and projections reflect the views of Hexagon's management as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements, estimates and projections are based on estimates and assumptions made by Hexagon's management and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements, estimates and projections and undue influence should not be given to, and no reliance should be placed on, such statements, estimates and projections. Hexagon disclaims any intention or obligation to update these forward-looking statements, estimates and projections.
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Agenda 1 2 3 Hexagon group & core Q4 performance Anders Svensson Octave Q4 performance Mattias Stenberg Hexagon group Q4 financials Norbert Hanke Question & answer session Anders Svensson, Mattias Stenberg, Norbert Hanke, Ben Maslen4
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Q4 2025 performance summary Anders Svensson 4
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| hexagon.com 5 Highlights of the quarter − Announced acquisition of Inertial Sense, strengthening the breadth of the positioning portfolio − Acquisition of IconPro, improving service capabilities of metrology solutions − Sale of the Design & Engineering business in Manufacturing Intelligence on track to close in Q1 − New Hexagon operating model implemented A good financial performance Key financial metrics Organic growth3% Gross margin67% Operating margin29% Cash conversion121% Key operational achievements − Strategic partnership with Microsoft to further advance our humanoid robot, AEON − Enrique Patrickson announced as new Hexagon CFO, starting no later than during July 2026 − Potential separation of Octave remains on track to complete within the first half of 2026 Board proposing a dividend of 0.14 EUR per share
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| hexagon.com 6 Enrique Patrickson appointed as CFO of Hexagon Joining during July 2026 at the latest Brings a great deal of CFO experience and strategic leadership: − Operating partner at Triton − CFO & Head of Strategy at Viaplay − CFO & senior finance roles at Electrolux & Assa Abloy Norbert Hanke to become Group Executive Vice President on Enrique’s joining Appointment of new Hexagon CFO
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| hexagon.com 7 Organic growth – Delivered good organic growth while: – Octave prioritised SaaS growth over perpetual – Geosystems de-stocked channels in weaker markets – Recurring revenues of 3%, in-line with organic growth – New products continue to support growth, with the most recent major launch (TS20) successfully introduced in Q4 Good growth while making decisions for the longer term -4% -2% 0% 2% 4% 6% 8% 10% 0 200 400 600 800 1,000 1,200 1,400 1,600 Revenue Organic growth 10% 20% 30% 40% 50% 60% 70% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 R12M Recurring rev % R12M SW&S %
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| hexagon.com 8 Regional and industry development Industry % of sales 2025 Americas Q4 11% org. growth EMEA Q4 4% org. growth China Q4 -5% org. growth Rest of Asia Q4 -14% org. growth Construction* 22% General manufacturing 14% Aerospace & defence 11% Mining 9% Automotive 7% Energy & power** 8% Electronics 4% Agriculture 2% * Construction includes: Heavy construction – infrastructure/industrial facilities, buildings and surveying ** Energy & power includes: Oil & gas and Energy & power >8% 0-8% Negative Growth in quarter YoY
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| hexagon.com 9 Gross margin Record gross margin Innovation supports gross margins Rolling 12-months gross margin Gross margin by quarter 40% 45% 50% 55% 60% 65% 70% Q4 11 Q4 12 Q4 13 Q4 14 Q4 15 Q4 16 Q4 17 Q4 18 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 Q4 24 Q4 25 66.5% 66.5% 67.3% 67.1% 66.7% 67.2%67.0%66.9% 67.5% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 – Gross margin development across business areas – Strong product mix – Pricing and cost management – Benefits of recently launched products
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| hexagon.com 10 Adjusted operating earnings (EBIT1) – Underlying progress offset by: – Negative currency impacts of -150 basis points – Reduced gap between capitalisation & amortisation – Restructuring programme implemented to improve underlying margins – Expect currency to remain a headwind in Q1 and for usual seasonality to apply Operating margin of 29.4% 20% 22% 24% 26% 28% 30% 32% 0 50 100 150 200 250 300 350 400 450 500 Adj. operating earnings Margin
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| hexagon.com 11 Hexagon core performance Continued organic growth * Includes other operations & group costs Q4 2025, MEUR Manufacturing Intelligence Geosystems Autonomous Solutions Hexagon core* Revenue 491.3 363.0 196.4 1,056.6 Organic Growth 1% (-3) -1% (-2%) 23% (-2%) 4% (-2%) EBIT1 139.3 103.0 67.7 300.4 Operating Margin 28.4% (29.7%) 28.4% (30.6%) 34.5% (31.4%) 28.4% (29.4%)
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| hexagon.com 12 Category Achievement Revenue 491.3 (510.0) Organic growth 1% (-3) EBIT1 139.3 (151.4) Operating margin 28.4% (29.7) Revenue by industry (FY 2025) Revenue by geography (FY 2025) Q4 2025, MEUR (Q4 2024) Manufacturing Intelligence 35% 21% 18% 11% 4% 2% 9% General manufacturing Automotive Aerospace & defense Electronics Energy & power Healthcare & life sciences Other 42% 29% 29% APAC Americas EMEA Business update − Market dynamics broadly unchanged from Q3 2025 − China grew 5%, Americas also growing well − Good demand in electronics and aerospace & defence, continued weakness in automotive − Delays in customer decision making impacted in-quarter growth, but have resulted in a strong order book − EBIT1 decline reflected currency headwinds
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| hexagon.com 13 Geosystems Business update − Growth impacted by the proactive decision to destock in channels where demand has been soft − Overall markets trends are similar to Q3 − Good growth in the Americas, stability in EMEA and negative growth in heavy infrastructure in Asia − Operating margins reflect product mix, currency and lower volumes Category Achievement Revenue 363.0 (386.8) Organic growth -1% (-2) EBIT1 103.0 (118.3) Operating margin 28.4% (30.6) Q4 2025, MEUR (Q4 2024) 28% 23% 22% 8% 5% 4% 2% 8% 49% 35% 16% Revenue by industry (FY 2025) Revenue by geography (FY 2025) Surveying Heavy construction Buildings Mining Utilities Mapping Public safety Other EMEA Americas APAC
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| hexagon.com 14 Autonomous Solutions Category Achievement Revenue 196.4 (146.5) Organic growth 23% (-2) EBIT1 67.7 (46.0) Operating margin 34.5% (31.4) Q4 2025, MEUR (Q4 2024) 47% 27% 12% 5% 9% 55% 27% 19% Revenue by industry (FY 2025) Revenue by geography (FY 2025) Mining Agriculture Aerospace & defense Marine Other Americas EMEA APAC Business update − Record growth in aerospace & defence and mining, agriculture weakness persists − Strong growth in the Americas & EMEA. Asia performance impacted by tough comparatives but underlying performance also good − Margins positively impacted by strong volumes, good product mix, but negative currency impact
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Q4 2025 Octave update Mattias Stenberg 15
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| hexagon.com 16 Octave: Delivering Intelligence at Scale We focus on industries and assets with both a high cost of failure and that are technically complex Octave enables sophisticated organisations to run with more clarity, fewer failures, and faster response - by connecting the intelligence that flows through customer workflow environments (design, build, operate, and protect) into one contextualised platform We are competitively differentiated by our deep domain expertise across a broad range of industries which allows us to go-to-market and price our products mainly based on the value we deliver Octave will be the trusted platform to drive superior performance and resilience for physical assets, people, and critical infrastructure - delivering intelligence at scale to create an unbreakable world Our vision
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| hexagon.com 17 Octave technology leadership − Sustained market leadership for over 15 years in core engineering design software − Multiple Quadrant “Leader” positions from Gartner, IDC, Verdantix, ARC Advisory and LNS − Recognised broadly across Design, Build, Operate, Protect − Validated by the most demanding buyers: energy, utilities, infrastructure, manufacturing, government and public sector/public safety − Proof of durability, trust, and mission-critical relevance across technology cycles Q4'25 Awards Leader in Gartner’s latest Magic Quadrant for Quality Management System (QMS) Software Gartner’s “Company to Beat” in Geospatial Earth Intelligence Solutions Leader in IDC's Marketscape report for Worldwide AI-Enabled Asset- Intensive Enterprise Asset Management Leader in IDC’s Marketscape report for Asset Performance Management for Oil & Gas 35+ Total industry recognitions 15+ Research inclusions by leading analyst firms 15+ Years market leadership
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| hexagon.com 18 67% 17% 16% Octave − Recurring revenue grew 3% organically compared to the prior year – SaaS revenue continues to grow at strong double-digit rates, with another quarter of record new bookings in Q4 – Monthly subscription license revenue declined year-over-year, reflecting high project activity in 2024. Activity levels improved sequentially in 2H’25 − Lower perpetual revenue due to shift to subscription models and record activity in the prior year − EBIT1 reflects lower perpetual license revenue in quarter, FX headwinds, and additional investments in R&D and public company readiness Category Achievement Revenue 372.6 (402.9) Organic growth 2% (10%) EBIT1 119.9 (142.9) Operating margin 32.2% (35.5%) Q4 2025, MEUR (Q4 2024) Business update Revenue by type (FY 2025) Subscription Revenue License Revenue Services & Other 48% 34% 18% APAC EMEA Americas Revenue by geography (FY 2025)
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| hexagon.com 19 Octave core pillars Design Build Operate Protect Description Revenue type Q4’25 Revenue trends Complex 3D modeling, engineering analysis, digital simulations, and geospatial intelligence Construction and project performance management, materials management Operations Intelligence, quality assurance, asset and performance management Public safety, physical security, industrial (OT) cybersecurity Combination of subscription and license revenue Mainly subscription revenue Mainly subscription revenue Mainly license, maintenance and services revenue Approximate revenue contribution Strength in cross- platform sales offset by lower monthly subscription licenses Strong growth driven by SaaS offerings in construction and project performance management Solid recurring revenue growth in QMS, EAM, APM Solid recurring revenue growth offset by y/y decline in perpetual revenue on record activity in prior year
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| hexagon.com 20 Revenue from monthly subscription licenses -10% 0% 10% 20% 25 € 50 € 75 € 100 € Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Y/Y Growth Octave recurring revenue growth dynamics Recurring revenue 0% 2% 4% 6% 8% 10% 12% 14% 100 € 200 € Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Y/Y Growth Excluding monthly subscriptions licenses
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| hexagon.com 21 Octave customer highlights in Q4 Multi-year expansion standardizing asset management (EAM) across global fulfillment centers Enabling advanced data utilization across diverse business units (logistics, retail, fintech), as the customer rapidly expands into new geographic and service markets Multi-year renewal for computer-aid dispatch (CAD) technology for 8M+ citizens and a 7M+ annual call volume Validates scale for complex urban environments and provides a repeatable success model for other large municipalities Won 7-figure ARR partnership automating quality & compliance (QMS) standards across 50+ countries Consolidated fragmented processes onto a single cloud-native SaaS platform. $1M+ ARR SaaS expansion to standardize global project delivery using Octave’s project performance management software Displaced incumbent by aligning platform flexibility with global restructuring goals Fast growing e-commerce company in Asia Global energy sector leader Global pharmaceutical distributor Largest US municipal police dept Design Build Protect Operate
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| hexagon.com 22 Octave areas of focus in 2026 Transitioning to a subscription-first business model: positioning for durable, recurring revenue growth Portfolio Integration & Cross-Sell: Leveraging integrated offerings and cross-sell opportunities to deepen customer footprints across the DBOP pillars Platform Evolution: Directing R&D investments toward a unified architecture, while launching more outcome-driven AI applications Strategic Market Expansion: Scaling our global partner ecosystem and penetrating high- growth new verticals to diversify and capture incremental market share Operational Excellence & Standalone Readiness: Finalising public company governance and infrastructure to ensure a seamless transition as an independent company
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| hexagon.com 23 Update on proposed separation Spin-off remains on track; Expected Q2 spin date Draft Registration Statement (Form 10) expected to be filed publicly in February Octave to be listed on a U.S. national securities exchange, with a Swedish Depository Receipt program expected to run for approximately 2 years Octave Investor Day on March 26, 2026 in New York City; Details to follow
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Q4 2025 financial update Norbert Hanke 24
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| hexagon.com 25 Sales bridge Q4 2024, MEUR 1,448.0 Structure, %* 1% Currency, % -6% Organic growth, %** 3% Total, % -1% Q4 2025, MEUR 1,429.2 Income statement Operating margins impacted negatively by currency and product mix Adjusted income statement, MEUR Q4 2025 Q4 2024 Change % Net sales 1,429.2 1,448.0 3 COGS -465.1 -481.7 -3 Gross earnings 964.1 966.3 0 Gross margin 67.5% 66.7% 0.8 Operating earnings (EBITDA) 557.5 587.0 -5 EBITDA margin 39.0% 40.5% -1.5 Operating earnings (EBIT1) 420.3 450.3 -7 EBIT1 margin 29.4% 31.1% -1.7 Earnings before taxes 390.1 409.2 -5 Earnings per share, Euro cent 11.8 12.4 -5 EBIT1, incl PPA 393.3 421.4 -7 EBIT1, incl PPA, margin 27.5% 29.1% -1.6 * All acquisitions/divestments are included in structural growth for the first 12 months ** Organic growth calculated as the growth excluding impacts from structure and currency during the period Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth
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| hexagon.com 26 Revenue & profitability year-on-year bridge Currency headwinds and dilutive organic drop-through MEUR Q4 2024 Currency Structure Organic Q4 2025 Operating net sales 1,448.0 -82 16 47 1,429.2 Growth -6% 1% 3% -1% Adjusted operating earnings (EBIT1) 450.3 -47 14 4 420.3 Adjusted operating margin 31.1% 57% 85% 7% 29.4% Accretion / (dilution) on margin -1.5% 0.6% -0.8%
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| hexagon.com 27 R&D capitalisation dynamics and EBIT comparability R&D capitalisation and amortisation gap declining 0% 1% 2% 3% 4% 5% 6% 0 20 40 60 80 100 120 140 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Capitalised R&D Gap % of sales − R&D investments coming off peak levels, driven by new product development (e.g. ATS800, Maestro, TS20), launched in 2025 − New products are capitalised until launch as per IAS 38 − R&D investments are decreasing and the gap between capitalisation and amortisation is narrowing − This represents a year-on-year EBIT margin headwind − The capitalisation headwind persists into Q1 2026
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| hexagon.com 28 Restructuring programme − Targeting savings of 110 MEUR − Full run rate savings expected by the end of 2026 − Q4 2025: 11 MEUR cost savings − Annualised run rate as of 2025: 65 MEUR Addressing underlying profitability 11 Q4 25 Q1 26 Q2 26 Q3 26 Q4 26 Cost savings Estimated phasing of quarterly cost savings MEUR 0 28
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| hexagon.com 29 * Operating cash flow before tax and interest divided by adjusted operating earnings (EBIT1) Cash flow Continued operational discipline Cash flow statement, MEUR Q4 2025 Q4 2024 Change % Adjusted operating earnings (EBIT1) 420.3 450.3 -7% D&A (Excluding adjustments) 137.2 136.7 0% Adjusted EBITDA 557.5 587.0 -5% Non-cash items -33.3 -37.1 -10% Cash flow from operations before change in working capital excluding taxes and interest 524.2 549.9 -5% Capital expenditures -136.2 -168.8 -19% Cash flow post investment 388.0 381.1 2% Working capital 121.4 140.6 -14% Operating cash flow before tax and interest 509.4 521.7 -2% Cash conversion* 121% 116% 5% Taxes paid -59.7 -64.3 -7% Interest received and paid, net -30.1 -35.9 -16% Cash flow before non-recurring items 419.6 421.5 0% Non-recurring cash flow -67.1 -18.5 263% Operating cash flow 352.5 403.0 -13%
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| hexagon.com 30 Working capital to sales Returning to trend WC/Sales, % 0% 5% 10% 15% 20% 25% Working capital to net sales (on a rolling basis) Q4 2025 3.2% WC Bridge Q4 2025 Receivables & prepaid expenses 25.1 Inventories 8.0 Liabilities -68.8 Deferred revenue -78.4 Accrued expenses -7.3 Change in WC -121.4
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Summary of Q4 2025 Anders Svensson 31
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| hexagon.com 32 Q4 2025 Summary Good organic growth Organic growth of 3%, while making decisions that improve the long-term health of the business Margin improvement underway Restructuring programme introduced in Q3 being implemented Very strong cash Excellent cash conversion of 121% Potential separation of Octave On track for completion in the first half of 2026 Markets consistent Many trends noted in Q4 2025 expected to continue into Q1 2026 Dividend Board proposes dividend of 0.14 EUR per share
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| hexagon.com 33 London Hexagon’s Capital Markets Day 2026 30 April 2026 Octave will also host an Investor Day on 26 March 2026 in New York Topic areas to include: − Business area strategy updates − Refreshed financial targets for Hexagon core Invite to follow
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Appendix Q4 2025 34
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| hexagon.com 35 Division Category (MEUR) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Hexagon* Revenue 1,299.9 1,353.4 1,299.8 1,448.0 5,401.1 1,322.8 1,370.7 1,303.8 1,429.2 5,426.5 Organic growth in revenue 3% 0% -2% 1% 0% 0% 3% 4% 3% 2% EBIT1 376.5 399.5 376.6 450.3 1,602.9 344.7 360.6 349.3 420.3 1,474.9 EBIT1 margin% 29.0% 29.5% 29.0% 31.1% 29.7% 26.1% 26.3% 26.8% 29.4% 27.2% Manufacturing Intelligence Revenue 459.5 464.6 444.9 510.0 1,879.0 448.9 468.0 445.3 491.3 1,853.5 Organic growth in revenue 5% 0% -2% -3% 0% -3% 3% 3% 1% 1% EBIT1 119.2 122.4 113.0 151.4 506.0 110.4 114.4 111.9 139.3 476.0 EBIT1 margin % 25.9% 26.3% 25.4% 29.7% 26.9% 24.6% 24.4% 25.1% 28.4% 25.7% Geosystems Revenue 367.2 395.5 363.1 386.8 1,512.6 365.6 378.5 352.6 363.0 1,459.7 Organic growth in revenue -2% -6% -5% -2% -4% -3% -2% 1% -1% -1% EBIT1 114.8 127.6 118.2 118.3 478.9 100.3 100.4 94.9 103.0 398.6 EBIT1 margin % 31.3% 32.3% 32.6% 30.6% 31.7% 27.4% 26.5% 26.9% 28.4% 27.3% Autonomous Solutions Revenue 135.5 141.2 134.8 146.5 558.0 151.1 167.2 178.0 196.4 692.7 Organic growth in revenue 8% -2% -12% -2% -2% 2% 11% 19% 23% 14% EBIT1 47.7 52.6 45.7 46.0 192.0 47.7 54.5 65.2 67.7 235.1 EBIT1 margin % 35.2% 37.3% 33.9% 31.4% 34.4% 31.6% 32.6% 36.6% 34.5% 33.9% Octave Revenue 337.3 352.1 356.0 402.9 1,448.3 356.0 355.2 324.3 372.6 1,408.1 Organic growth in revenue 4% 8% 5% 10% 7% 4% 4% 1% 2% 3% EBIT1 99.1 104.4 105.8 142.9 452.2 94.4 99.7 83.8 119.9 397.8 EBIT1 margin % 29.4% 29.7% 29.7% 35.5% 31.2% 26.5% 28.1% 25.8% 32.2% 28.3% Business area performance * Hexagon total includes revenue, gross earnings and EBIT1 from other operations (such as R-evolution and group costs)