Hexagon Composites ASA (HXGCF) (Q3 2026) Earnings Call Highlights: Record Revenue Surge and ...

Q & A Highlights

Q: With regards to your guidance, you mentioned confidence in the higher side. For clarity, does that mean that you have confidence in delivering above the current full year EBITDA guidance of NOK300 million? A: CFO Eirik Lohre said the phrasing is "intentionally a little bit vague," but the company feels relatively good about achieving and exceeding NOK300 million. He flagged timing risks and noted that some volumes expected in Q4 were pulled into Q3, but reiterated confidence in the previously communicated target.

Q: EBITDA for 2026 is around NOK300 million towards the high side. Q4 is down from NOK150 million last year to NOK66-plus million. Why? A: CFO Eirik Lohre explained that last year's Q4 was inflated by an accounting gain and has been restated to around NOK30 million, which is the proper like-for-like comparison. He said backlog for the remainder of the year is relatively solid and Q4 is typically seasonally stronger, but some volumes were pulled into Q3 and there are customer mix, product mix and supply chain factors to manage.

Q: How should we think about the starting point for revenue and profitability moving into 2027? A: CFO Eirik Lohre said the company normally does not guide at this time of year and will provide perspectives with the Q4 report in February. Directionally, growth over 2026 is expected, supported by resilient segments such as aftermarket, transit and refuse, plus contracted mobile pipeline demand well into 2027. Upside depends on the truck market and further mobile pipeline demand, with a potentially significant range of outcomes. He reiterated the long-term 15% margin target, while noting it cannot be promised.

Q: It seems like data centers will be the main focus for mobile pipeline orders moving forward. What about the oil and gas market, which has traditionally contributed high revenue? Do you see increased revenue there, or have these customers switched to other solutions? A: CEO Philipp Schramm said customers have not switched; oil and gas demand is primarily tied to rig count, especially in the Permian, which has not changed significantly. Without higher rig count and more fracking activity in North America, other demand drivers are needed, and data centers and industrial applications are filling that role. He described data centers as a new emerging market, with mobile pipeline suited to primary gas supply via Titan trucks as well as backup power, peak shaving and uptime support as grid buildout lags energy demand growth.

Q: When can we see a new large data center contract? A: CEO Philipp Schramm said the company is working on all fronts with all its customers to fill the pipeline for 2026 and 2027, alongside a good base load. He declined to promise timing but expressed confidence in the gradual growth seen in mobile pipeline.

Q: Hexagon already has a big contract with Certarus. Are you getting inquiries from other customers in this segment about delivering mobile pipelines to data centers? A: CEO Philipp Schramm confirmed the company is in a lot of discussions, but no order has been placed and it is too early to say what will materialize. Applications under discussion are wide-ranging, from gas and energy delivery to backup power and peak shaving, and potential truck volumes range from one unit to many. He also sees opportunities in industrial applications for behind-the-meter gas power solutions.

Q: Can you elaborate more on the rather slow transition to CNG heavy-duty trucks in North America? A: CEO Philipp Schramm acknowledged adoption is taking longer than anticipated, but said fleet feedback on trials is extremely positive. The new natural gas engine has the power and torque to replace diesel in heavy-duty long-haul applications, and the diesel-to-gas price spread is favorable both in the current peak year and on a 10-year average. New fleets are trialing the technology and existing fleets are reordering, though the overall US truck market remains depressed due to higher cost of capital and uncertainty around EPA 2027. CNG is viewed as the alternative to diesel, which he called promising.

Q: When it comes to the strong results in transit, do you view this as a one-off? Or can you see this up cycle moving into 2027? A: CEO Philipp Schramm characterized transit, bus, refuse and aftermarket as the more stable segments, with transit expected to deliver solid growth potential following this year's consolidation of the European market. The higher growth potential lies in fuel systems and mobile pipeline, where he sees many opportunities ahead.

Q: Are you in dialogue with Hexagon Purus on their capital structure review? And if Purus needs additional capital, would Hexagon Composites participate? A: CEO Philipp Schramm said the company maintains a constant dialogue on all its minority shareholdings, questioning what they deliver for shareholders, and is professionally and collaboratively open to discussions with Hexagon Purus. He was emphatic that Hexagon Composites does not and will not inject any cash into Purus.

Q: You note several dynamics negatively affecting margins. Could you provide some color as to what the EBITDA margin could have been stripping out these effects? A: CFO Eirik Lohre said margins will always vary with mix and volumes given the high operating leverage in the business. The reported 12% margin could have been 1 to 2 percentage points higher excluding the negative effects, but he noted that if it is not these effects, it will likely be others, so some elements will always impact the numbers positively and negatively.

Q: How do you expect the US election results to impact the outlook for the US data center market development in the near and long term? A: CEO Philipp Schramm said there are currently around 1,900 data centers in use in the US, with roughly 2,800 more predicted by 2030 and energy demand set to double. State-level government shifts have come with statements that already-approved data centers will continue to be built, while many red states remain favorable for data center applications. He said time will tell how many of the planned projects proceed, but the opportunity extends beyond primary energy supply to secondary applications such as backup, emergency and peak shaving power.

Q: Could you please comment on any X15N connected delivery in the quarter? A: CEO Philipp Schramm said deliveries occurred and were better than before, though individual orders remain

For the complete transcript of the earnings call, please refer to the full earnings call transcript .