Key developments in Q1 2025 and after balance sheet date:
Quarterly revenue of NOK 230 million in the first quarter of 2025, 44% lower compared to same quarter last year;
EBITDA of NOK -242 million in the first quarter of 2025, compared to NOK -97 million in the same period last year. EBITDA in the quarter was negatively affected by approximately NOK 65 million of restructuring costs and other non-recurring items;
Received first orders from Egyptian company MCV for delivery of hydrogen fuel storage systems for FCEV buses targeted for the European public transportation market;
Signed multi-year agreement with Stadler for delivery of hydrogen fuel storage systems for hydrogen rail applications in California;
CIMC-Hexagon, the Company’s joint venture in China, produced its first commercial hydrogen cylinders in its facility in Shijiazhuang intended for the European market;
Exited the quarter with order backlog consisting of firm purchase orders of NOK 792 million.
“The start of 2025 has been challenging for Hexagon Purus, for the renewables sector and for zero-emission mobility. We entered the quarter with an uncertain demand outlook and a market sentiment that had weakened significantly following the US presidential election. The subsequent announcement of a shift in policy from the new US administration has added new challenges into the mix, both on the geopolitical front and on the global trade arena.”, says Morten Holum, CEO of Hexagon Purus. “With continued demand uncertainty, we are taking additional measures to reduce our cost base to enable profitability at lower volume and to extend the cash runway towards EBITDA and cash flow break even”.
Hexagon Purus Q1 2025 consolidated financials
In the first quarter of 2025, Hexagon Purus (“the Company” or “the Group”) generated revenue of NOK 230 million, down 44% compared to the corresponding period in 2024. The main reason for the revenue decline was significantly lower activity in the hydrogen infrastructure and hydrogen heavy-duty mobility application areas, partly offset by higher revenue from hydrogen transit bus and for the Battery Systems and Vehicle Integration (BVI) business unit.
Total operating expenses in the first quarter of 2025 ended at NOK 472 (504) million, leading to an operating profit before depreciation (EBITDA) of NOK -242 (-97) million, equivalent to an EBITDA margin of -105% (-24%). In total, restructuring costs and other non-recurring items amounted to approximately NOK 65 million in the quarter. Adjusting for these non-recurring items, EBITDA was NOK -177 million, equivalent to -77% margin.
Total assets at the end of the first quarter of 2025 amounted to NOK 4,503 (4,832)
million. Compared to year-end 2024 and the same quarter last year, the NOK strengthened against the USD and EUR by 7% and 3% respectively, translating to lower balance sheet values in NOK terms.
Inventory amounted to NOK 658 (577) million as of the end of the first quarter of 2025, and the majority of inventory consists of raw materials and items in work-in-progress. Trade receivables decreased sequentially in the first quarter of 2025 to NOK 275 (359) million.
Total equity was NOK 1,676 (2,085) million as per the first quarter of 2025, equal to an equity ratio of 37% (43%). The increase in non-current liabilities to NOK 2,174 (1,989) million is mainly driven by non-cash interest added to the principal of the two outstanding convertible bonds. Total current liabilities stood at 653 (758) million at the end of the first quarter of 2025, of which trade payables made up NOK 188 (243) million and which was sequentially down compared to the fourth quarter of 2024.
Net cash flow from operating activities in the first quarter of 2025 was NOK -183 (-211) million. Release of working capital amounted to NOK 45 (-109) million in the quarter, driven by a reduction in inventory and accounts receivables, which was partly offset by a reduction in trade payables.
Net cash flow from investing activities was NOK -35 (-132) million in the first quarter of 2025, of which NOK 28 (130) million relates to investments in production equipment and facilities and is mainly spill-over items from 2024 related to the Company’s capacity expansion program. Capitalized product development was NOK 13 (4) million in the first quarter of 2025, and capital injections to CIMC Hexagon Hydrogen Energy Systems Ltd., was NOK 2 (0) million. Interest received on bank deposits in the first quarter of 2025 was NOK 8 (6) million.
Cash and cash equivalents ended at NOK 794 (965) million as of the first quarter of 2025.
Hydrogen Mobility and Infrastructure (HMI)
Revenue for the HMI segment in the first quarter of 2025 was NOK 204 million, down 47% compared to the corresponding period last year. The decline in revenue is primarily owed to lower activity in hydrogen infrastructure and heavy-duty hydrogen mobility, which is only partially offset by higher year-over-year revenue from the hydrogen transit bus segment. Revenue-mix wise, 21% (57%) of the HMI segment revenue in the first quarter of 2025 stemmed from hydrogen infrastructure solutions and amounted to NOK 42 (220) million, down 81% year-over-year. Within hydrogen infrastructure solutions, hydrogen distribution solutions made up most of the revenue in the quarter.
EBITDA for the HMI segment in the first quarter of 2025 ended at NOK -143 (-16) million, equivalent to an EBITDA margin of -70% (-4%) as the sharp decline in revenue reduced the segment’s ability to absorb its fixed costs combined with a less profitable product mix. Restructuring costs related to the cost cutting program announced in February amounted to approximately NOK 38 million, and bad debt expense of approximately NOK 16 million related to two insolvent customers was also recognized during the quarter.
Historical segment financials are made available on www.hexagonpurus.com together with Q1 2025 report and presentation.
Battery Systems and Vehicle Integration (BVI)
Revenue for the BVI segment in the first quarter of 2025 was NOK 25 (19) million. The 35% year-over-year revenue growth was mainly driven by vehicle deliveries of the Tern RC8 to Hino as well as deliveries of battery systems to Toyota Motors North America. In the same quarter last year revenue was mainly made up of an extraordinary payment from an OEM customer for design and engineering services without any corresponding costs in the quarter.
BVI segment EBITDA ended at NOK -54 (-25) million in the first quarter of 2025. Restructuring costs related to the cost cutting program announced in February for the BVI segment amounted to approximately NOK 4 million. Additionally, an inventory write-down of NOK 6 million was made during the quarter.
Historical segment financials are made available on www.hexagonpurus.com together with Q1 2025 report and presentation.
Outlook
Hexagon Purus has for a while been operating in an environment with high uncertainty. The recent changes and volatility in US policy and the international trade environment has further negatively impacted the near-term outlook.
The Company has a well-diversified customer base and core technologies that are applicable to a wide range of end-use applications at varying stages of maturity. As evidenced by recent contract announcements, commercial momentum for hydrogen transit bus in Europe remains strong combined with selective wins in other end-use applications such as rail and aerospace. Incoming order activity for the hydrogen infrastructure business picked up in the first quarter of 2025 compared to the end of 2024, and revenue from hydrogen infrastructure is expected to increase in the second half of the year. However, looking at full-year 2025, revenue from hydrogen infrastructure solutions is expected to be significantly down year-over-year.
The US Hino dealer network continues to market the Tern branded truck towards its customers in the US, and initial customer feedback has been positive. Although the current political climate in the US has dampened the ramp-up curve for the Hino program, the Company is still expecting the BVI segment to grow its revenue significantly year-over-year for the full-year 2025.
The Company remains focused on reducing costs to enable profitability at lower volumes and is at the same time continuing to review its business portfolio. These initiatives are aimed at making the current cash balance last until the Company reaches EBITDA and cash break-even.
Presentation of the results
Hexagon Purus will present the Q1 2025 results today, 6 May, at 08:30 CET and the presentation will be broadcast live via https://hexagonpurus.vivida.live.
The presentation will be held in English and will be virtual. A recording of the presentation will be made available on www.hexagonpurus.com.
Hexagon Purus enables zero emission mobility for a cleaner energy future. The company is a world leading provider of hydrogen Type 4 high-pressure cylinders and systems, battery systems and vehicle integration solutions for fuel cell electric and battery electric vehicles. Hexagon Purus' products are used in a variety of applications including light, medium and heavy-duty vehicles, buses, ground storage, distribution, refueling, maritime, rail and aerospace.
Learn more at www.hexagonpurus.com and follow @HexagonPurus on X and LinkedIn.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
