Hexatronic Group AB (publ) Year-end report 2025
Summary by AI BETAClose X
Fourth quarter October 1 – December 31, 2025
- Net sales increased by 1 percent to SEK 1,848 million (1,824). Sales increased organically by 10 percent, growth from acquisitions amounted to 1 percent and exchange rate effects had a negative impact of 9 percent.
- Adjusted EBITA amounted to SEK 133 million (182), corresponding to a margin of 7.2 percent (10.0).1
- Data Center and Harsh Environment make up 60 percent of Group’s adjusted EBITA in the quarter.
- EBITA amounted to SEK 37 million (182), corresponding to an EBITA margin of 2.0 percent (10.0), which includes non-recurring items of SEK -96 million.
- Operating profit (EBIT) amounted to SEK 12 million (151), corresponding to an operating margin of 0.6 percent (8.3).
- Profit for the quarter amounted to SEK -57 million (87).
- Earnings per share after dilution amounted to SEK -0.27 (0.42).
- Net sales in Data Center increased by 59 percent.
- Adjusted leverage amounted to 1.9x based on annualized adjusted EBITDA.
- Leverage was 2.2x, based on annualized EBITDA, compared with 1.9 times on 31 December 2024.
- Cash flow from operating activities amounted to SEK 349 million (286).
- Expansion of the performance improvement program in Fiber Solutions, which includes the factory in Clinton, South Carolina.
- One-time costs of SEK 28 million connected to Europe and SEK 67 million, of which approximately SEK 58 million non-cash, connected to the factory in Clinton in the quarter. Total SEK 96 million in the quarter.
- Annual run-rate saving on EBITA of SEK 120 million, earlier SEK 110 million, is expected to be fully realized by end of Q1 2026.
- Hexatronic acquired Communication Zone in the US.
Events after the end of the quarter
- Hexatronic is changing the structure of the Fiber Solutions business area so that it will consist of four regions. As a result of these changes, Christian Priess has decided to leave the company. Magnus Angermund will take over the leadership of the Europe region and remain part of the global Group Management team.
Comments from the CEO
Solid quarter – Delivering to plan
Hexatronic delivered a solid fourth quarter, fully in line with our expectations. Net sales reached SEK 1.8 billion and adjusted EBITA amounted to SEK 133 million, corresponding to 10 percent organic growth and an adjusted EBITA margin of 7.2 percent.
Growth was driven by strong performance in our fast-growing Data Center and Harsh Environment business areas, that now account for 37 percent of the Group’s total net sales and more than half of the profitability. Fiber Solutions continued to see a challenging market in the FTTH segment. However, a large submarine cable order largely offset this decline, and we continue to see growth opportunities in this segment.
Reaping the Benefits of Data Center Build-Out
The Data Center business area reported another record quarter, with net sales of SEK 369 million—an organic increase of 62 percent. All entities contributed to this strong performance. Profitability also improved, with an adjusted EBITA margin of 15.3 percent, up 260 basis points compared to Q4 2024.
We finalized the acquisition of Communication Zone in Chicago. This addition expands our geographical footprint in the US Midwest, strengthens our customer base, and broadens our product offering.
Continued momentum in Harsh Environment
Harsh Environment delivered net sales of SEK 310 million, representing 15 percent organic growth and an adjusted EBITA margin of 11.4 percent, up from 8.0 percent Q4 prior year. The strong performance was primarily driven by dynamic cables, which had solid growth and margins. Rochester Cable continued to execute on long-term margin improvements during the quarter.
Turnaround program in full swing for Fiber Solutions
Fiber Solutions continued to face market headwinds, as in previous quarters. Net sales for the quarter totaled SEK 1.2 billion, representing an organic decline of 1 percent compared to Q4 2024.
We saw a continued softness in the FTTH market and the typical seasonality pattern where volumes tend to be lower in Q4 and Q1. This led to an expected decline in microduct sales. However, the decline was partly offset by a large submarine cable delivery during the quarter.
The adjusted EBITA margin was 5.2 percent. Continued FTTH market headwinds and the negative seasonality effect was partly offset by the strong deliveries of submarine cable and some effects of our performance improvement program.
The performance improvement program within the Fiber Solutions business area, launched in Q3 2025 and comprising consolidation of production and organizational adjustments in Europe, is progressing according to plan. During the quarter, earnings were impacted by approximately SEK 30 million in restructuring costs, bringing the total program costs to the expected level of around SEK 230 million. In addition to this, we decided to adjust the capacity of our operations in Clinton, South Carolina. This measure is an expansion of the initial program and aims to adapt capacity to the prevailing market conditions. This results in an additional SEK 67 million in non-recurring costs for the quarter, of which approximately SEK 58 million are non cash items, and leads to total annual savings of SEK 120 million instead of the originally communicated SEK 110 million when the program is finished by the end of Q1 2026.
Excellent cash flow generation and reduced net debt
The financial position of Hexatronic continues to strengthen. During Q4 2025, our interest-bearing net debt (excluding IFRS 16) decreased to SEK 1,582 million compared with SEK 1,706 million at the end of Q3 2025 with an adjusted leverage of 1.9x, a stark testament to our financial strength as we acquired Communication Zone this quarter. Our operating cash flow was SEK 349 million in the quarter, equivalent to a cash conversion of 235 percent.
Financial targets
As we conclude the first year under our new financial targets, we remain confident in our ability to achieve them by 2028. The Data Center and Harsh Environment business areas delivered strong organic growth in 2025, increasing their combined share of the Group’s net sales by 8 percentage points—from 29 to 37 percent, supporting our target of reaching 50 percent by 2028. For the full year, these two fast-growing business areas increased their combined adjusted EBITA by 42 percent over prior year and accounted for 55 percent of Hexatronic profits before group eliminations.
Meanwhile, Fiber Solutions faced another challenging year. However, we have implemented necessary measures to improve operational cost efficiency and position the business area to capture new growth opportunities in growing segments like submarine cable and transport networks.
Outlook
With the strengthened SEK, the currency will continue to be a significant headwind to our top line but with limited impact on EBITA due to our localization strategy.
For Fiber Solutions, the challenging market conditions with industry overcapacity on duct and conduit are expected to remain, but we expect the North American business to gradually return to growth in 2026.
In Data Center, we expect the growth momentum to continue as we are actively driving the business for further growth both organically and through acquisitions, primarily through expanding our service offering. However, the pace of growth will naturally slow given the strong base established in 2025.
We expect continued solid market activity within Harsh Environment, especially in the defense and energy sector, which will fuel continued organic growth. We are also actively looking for M&A opportunities, primarily within the connectivity solution segment. In parallel, we are working on gradually improving operational efficiency and profitability, primarily within Rochester Cable.
The order book at the end of the fourth quarter was in line with the previous quarter and amounted to around 2.5 months of sales.
To sum up — Q4 showed solid progress towards the strategy we have laid out. As we enter 2026, Hexatronic is stronger and well positioned for future growth. I want to extend a big thank you to our customers, partners, and especially our employees around the world. We are excited about continuing this journey together.
Rikard Fröberg
President and CEO
Hexatronic streamlines Fiber Solutions Management
Hexatronic is simplifying the leadership structure of the Fiber Solutions business area to consist of four commercial regions (Europe, North America, Asia and ANZ*) as well as global functions for Product & Innovation and Sourcing & Supply Chain.
As a result of these changes, Christian Priess has decided to leave the company by the end of February 2026. Christian Priess is currently Head of Fiber Solutions EMEA and have been part of the Global Executive team since 2019. Magnus Angermund, currently deputy head of Fiber Solutions EMEA will assume the full leadership role for Region Europe and remain on the Global Executive Team.
As a consequence, the Global Executive Team will reduce in size from eight to seven individuals.
*Australia & New Zealand
Presentation
Hexatronic will present the interim report at a webcast conference call today, Thursday, February 5, 2026, at 10:00 CET. CEO Rikard Fröberg, CFO Pernilla Lindén and Deputy CEO Martin Åberg 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/q4-report-2025/register
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/q4-report-2025/dial-in
The webcast and presentation materials will be available on the Hexatronic website.
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