Hexatronic Group AB (publ) Interim report Q3 2026
Summary by AI BETAClose X
Third quarter July 1 – September 30, 2026
- Net sales of SEK 2,498 million (1,883), an increase of 33 percent, of which organic growth of 17 percent.
- Adjusted EBITA of SEK 281 million (146), an increase of 93 percent.1
- Adjusted EBITA margin of 11.3 percent (7.7), higher sequentially and compared to previous year.1
- Fiber Solutions reported net sales of SEK 1,414 million (1,236), an organic growth of 13 percent driven by strong performance in the US market. Adjusted EBITA grew 102 percent to SEK 133 million (66) driven primarily by higher net sales and the performance improvement program which now has full effect. Adjusted EBITA margin increased to 9.4 percent (5.4).
- Harsh Environment reported net sales of SEK 393 million (314), an organic growth of 6 percent driven by connectivity solutions. Adjusted EBITA grew 24 percent to SEK 43 million (35) driven by the acquisition of JOWO Systemtechnik. Adjusted EBITA margin of 11.0 percent (11.1).
- Data Center reported net sales of SEK 692 million (334), an organic growth of 44 percent driven by strong performance in the US market. Adjusted EBITA grew 108 percent to SEK 117 million (56) driven by higher organic net sales and acquisitions. Adjusted EBITA margin of 16.9 percent (16.9).
- Profit for the period amounted to SEK 180 million (-123).
- Cash flow from operating activities amounted to SEK 228 million (154).
- Adjusted leverage reduced to 1.3x, a decrease of 0.4x compared to Q2 2026, driven primarily by positive cash flow from operating activities.1
- EBITA includes net non-recurring effects of SEK 71 million related to the performance improvement program, of which SEK 67 million related to the reversal of a previously recognized impairment of tangible assets associated with the planned capacity adjustment of the Clinton facility in Q4 2025. The effect was excluded from adjusted EBITA.
Significant events in the quarter
- Oscar Wärme was appointed acting Head of Data Center and member of the Executive Management Team.
- Hexatronic held an Extraordinary General Meeting to adopt the long-term performance-based share savings program.
- Pernilla Lindén will transition from Group CFO to the newly created role President Fiber Solutions as of November 1, 2026.
Comments from the CEO
Delivering on the plan with increasing margins and record sales
Hexatronic delivered a strong Q3, with organic growth across all three business areas and improved profitability for the group. Net sales increased by 33 percent (of which 17 percent organic) to SEK 2,498 million which was the highest quarterly sales in the company’s history.
Adjusted EBITA grew 93 percent to SEK 281 million, corresponding to an adjusted EBITA margin of 11.3 percent up from 7.7 percent Q3 last year. The improvement was supported by all three business areas. Data Center delivered another record quarter, Harsh Environment achieved its highest quarterly EBITA to date, and Fiber Solutions reported improved margins and organic growth driven by North America and APAC.
The development during the quarter validates our strategy and the strength of Hexatronic’s diversified business model. The performance improvement program in Fiber Solutions has been instrumental in restoring profitability. Our business in North America continued to grow rapidly and has now surpassed Europe as the largest region. We continue to enjoy compelling growth opportunities from our positioning as an important solution provider to data centers, defense and communications infrastructure around the world.
Fiber Solutions shifting to growth, driven by the US market
Fiber Solutions continues to solidify the business turnaround. This was the third consecutive quarter with sequentially improving adjusted EBITA margin, now at 9.4 percent approaching our target of 10 percent over a cycle. The performance improvement program launched last year is of course an important driver and has delivered the expected benefits.
We are therefore now increasingly shifting the business focus back towards growth, with organic net sales growth of 13 percent during the quarter. In particular, the US business is growing faster than anticipated and we have therefore decided to reverse the earlier decision to down-size one of our facilities in South Carolina. APAC is also experiencing robust growth with increasing opportunities arising in emerging markets. This development complements our strong progress in North America and provides further opportunities for Fiber Solutions to expand its presence in attractive growth markets. We also saw material orders from submarine cables being shipped in the quarter. Our European FTTH business on the other hand, continues to face challenging market conditions, especially in the UK and DACH regions.
Record earnings in Harsh Environment
Harsh Environment is moving in the right direction with net sales growth of 25 percent, of which 6 percent organic. We saw record earnings in the quarter with an adjusted EBITA of SEK 43 million, corresponding to a margin of 11.0 percent.
The Connectivity business developed particularly well, supported by strong demand from the defense sector. We continue to enjoy a strong order book in this segment which further underlines the growth potential. Dynamic cables delivered modest organic growth with continued subdued demand in the energy sector.
Momentum in Data Center continues
Our Data Center business area had an exceptionally strong quarter. Net sales increased by 107 percent, including organic growth of 44 percent, with an adjusted EBITA margin of 16.9 percent. This was the business area’s first quarter with EBITA exceeding SEK 100 million and rolling 12-month net sales have now passed SEK 2 billion. It is particularly pleasing to see our two latest acquisitions, Communication Zone and Superior Fiber and Data Services performing well with Communication Zone delivering a material project for a large customer and Superior Fiber and Data Services cementing its strong position in the education segment.
Demand in the data center market remains strong, supported by continued investment in digital infrastructure and increased computing capacity. However, this was an exceptionally strong quarter with tailwinds from both seasonal effects and timing of certain projects, positively impacting net sales in the quarter.
Strong cash flow and materially lower leverage
Cash flow from operating activities amounted to SEK 228 million, corresponding to a cash conversion rate of 72 percent. The positive cash flow, together with improved earnings, contributed to a reduction in adjusted leverage to 1.3x at the end of Q3, compared with 1.7x at the end of Q2.
Priorities going forward and outlook
Hexatronic enters the final quarter of the year with good momentum across the Group. We remain focused on creating growth in North America and driving demand for digital infrastructure across different sectors, while continuing to lift the performance of Fiber Solutions and Harsh Environment. At the same time, our strong financial position gives us flexibility to pursue growth through acquisitions.
Some segments are beginning to see growth restrictions, limiting our ability to grow faster than current levels. This applies in particular to glass fiber and some types of connectors. Input costs show some divergence with certain costs, mainly fiber and transportation increasing. On the other hand, resin costs have stabilized at lower levels during the quarter. We are responding to the cost increases by validating new suppliers and increasing prices. However, increasing backlogs and lead times are sometimes unavoidable.
For Fiber Solutions, North America remains the key growth priority driven both by market growth in fiber-to-the-home and transport networks as well as opportunities to take market share. We expect the European market to remain subdued in the near term as transport network upgrades have not yet materialized to the same extent as in North America. We also foresee a normal seasonal pattern with lower activity in Q4 and Q1 compared to Q2 and Q3.
Demand for submarine cables remains strong and we expect a similar level of deliveries in Q4 as in Q3. Our capacity expansion in Sweden, supported by the long-term partnership with NKT, is progressing according to plan.
Harsh Environment continues to see strong long-term trends. Very strong demand in defence is offset by a more muted sentiment in oil and gas. This dynamic is expected to persist in Q4 and thus we expect a similar trend as in Q3 with modest margin improvement compared to H1 2026.
Within Data Center, we see no signs of the underlying momentum to slow down. This quarter was an exceptionally strong quarter though, with tailwinds from both timing of certain projects and favourable seasonality. We expect a normalization of activity in Q4, reflecting normal project timing and the typical seasonality.
The order book at the end of Q3 2026 for the group remained on similar levels as the previous quarter with around 4 months of net sales.
In conclusion, I am pleased to see strong results across all three business areas, illustrating that our strategy is delivering results. The progress we have made since launching our financial targets a year ago demonstrates that we are well on our way towards achieving them. With a solid financial structure, we are well positioned to capture both organic and non-organic growth opportunities as demand for fast and reliable digital infrastructure continues to increase.
Finally, I would like to thank all our employees for their continued commitment and hard work. These strong results are a reflection of the dedication and drive demonstrated across our entire organisation.
Rikard Fröberg
President and CEO
Presentation
Hexatronic will present the interim report at a webcast conference call today, Thursday, October 22, 2026, at 10.00 CEST. CEO Rikard Fröberg, CFO Pernilla Lindén, and Head of Investor Relations Patrik Johannesson will participate.
Please use the link below to follow the webcast presentation. During the webcast, participants will have the opportunity to ask written questions.
https://hexatronic-group.events.inderes.com/q3-report-2026
To participate via the teleconference, please register using the link below. After registration, you will receive a telephone number and a conference ID to log into the conference. During the conference call, you will have the opportunity to ask questions.
https://events.inderes.com/hexatronic-group/q3-report-2026/dial-in
The webcast and presentation materials will be available on the Hexatronic website.
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