Hexagon AB Class B

Strong Financial Performance: Hexagon's continuing operations delivered a revenue of EUR 964 million in Q1 2026, achieving an 8% organic growth year-over-year. EBIT was EUR 251 million with an operating margin of 26.1%, reflecting a marginal increase from 25.9% in the previous year. This growth was driven by strong order intake and operational improvements.

Segment-Specific Insights: - Manufacturing Intelligence: Grew 9%; robust aerospace and defense demand countered automotive pressures. Operating margin was 23.7%, impacted by currency headwinds. - Geosystems: Reported 2% growth but adjusted for a destocking initiative in China results in an underlying growth of 4%. Operating margin was 26.9%, slightly down from the previous year. - Autonomous Solutions: Strongest performer with 13% organic growth, particularly in aerospace and defense, operating margin improved to 34.1%.

Acquisition of Waygate Technologies: Announced acquisition for $1.45 billion is expected to enhance Hexagon's precision measurement capabilities. Expected synergy realization post-integration could accelerate revenue potential, especially leveraging customer overlaps in manufacturing intelligence sectors.