Hexagon Purus ASA: Results for the second quarter 2025

Core Insights - The company reported a significant decline in revenue for Q2 2025, with a total of NOK 193 million, representing a 63% decrease year-over-year due to reduced activity in hydrogen infrastructure and heavy-duty mobility applications [1][2] - The EBITDA for the quarter was NOK -161 million, worsening from NOK -97 million in the same period last year, indicating ongoing financial challenges [1][3] - Despite the revenue drop, the company signed a new supply agreement with Hino Trucks for battery electric trucks and has a strong order backlog of approximately NOK 1.1 billion, suggesting potential recovery in the second half of 2025 [1][2] Financial Performance - Total operating expenses for Q2 2025 were NOK 355 million, leading to an operating loss before depreciation [3] - The company's total assets decreased to NOK 4,266 million, with inventory rising to NOK 714 million, primarily consisting of raw materials and work-in-progress [4] - Trade receivables fell to NOK 244 million, while total equity decreased to NOK 1,418 million, resulting in an equity ratio of 33% [4] Cash Flow and Investments - Net cash flow from operating activities was NOK -197 million, with working capital increasing by NOK 41 million due to higher inventory levels [5] - Net cash flow from investing activities was NOK -62 million, mainly related to production equipment investments, while cash and cash equivalents stood at NOK 527 million at the end of Q2 2025 [6] Segment Performance - The Hydrogen Mobility and Infrastructure (HMI) segment generated NOK 164 million in revenue, down 69% year-over-year, primarily due to lower activity in hydrogen infrastructure [7][8] - The Battery Systems and Vehicle Integration (BVI) segment reported revenue of NOK 25 million, showing growth driven by vehicle deliveries to Hino Trucks and battery systems to Toyota Motors North America [10] Future Outlook - The company anticipates a notable increase in activity in the second half of 2025, supported by a strong order backlog, which is expected to improve revenue and profitability [12] - Cost reduction measures are being implemented, with an expected annualized reduction of up to NOK 350 million, exceeding previous targets [13][14]