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]

Hexagon Purus ASA's second quarter results 2025 will be released on 17 July 2025, 07:00 CET. Morten Holum (CEO) and Salman Alam (CFO) will present the results at 08:30 CET and the presentation will be broadcasted live via https://hexagonpurus.vivida.live. The presentation will be held in English and will be virtual. A recording of the presentation will be made available on www.hexagonpurus.com. For more information: Mathias Meidell, IR Director, Hexagon Purus ASATelephone: +47 909 82 242 | mathias.meidell ...

Financial Data and Key Metrics Changes - Net cash used in operating activities for Q1 2025 was approximately $30 million, with guidance for the year unchanged at approximately $110 million to $125 million [43][50] - The company closed the quarter with approximately $90 million in cash and cash equivalents [44] Business Line Data and Key Metrics Changes - The hybrid aircraft program was announced, which has a range of over a thousand miles and opens up additional market opportunities in defense and commercial operations [6][22] - The battery systems are expected to generate a 50/50 revenue split with aircraft sales by the 2030s, with a gross margin of over 40% for batteries [23][80] Market Data and Key Metrics Changes - The company is positioned to serve the full global market by certifying to the highest aviation standards, with ongoing discussions for potential customers in various sectors [7][89] - The hybrid powertrain will allow for expansion into regional air mobility, with capabilities for airlines to use the aircraft for short regional flights [70] Company Strategy and Development Direction - The company launched its Flight Path 2030 business strategy, aiming to lead the eVTOL sector by the end of the decade with a clear roadmap and certification timetable [7][8] - Partnerships with Honeywell have been formalized to enhance flight controls and aircraft management systems, valued at approximately $1 billion over the next ten years [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving certification goals by 2028 and highlighted the importance of safety in their aircraft design [85][99] - The company is excited about the upcoming piloted wing-borne flight tests, which are expected to begin in Q2 2025, marking a significant milestone [68][107] Other Important Information - The company has appointed three new directors to strengthen governance and strategic leadership [21] - The hybrid aircraft will be integrated into existing airframes, with testing planned for Q2 2026 [60][61] Q&A Session Summary Question: What is the impact on cash spend and cash burn going forward given the hybrid announcement? - Management stated that the development of the hybrid powertrain was already included in previous cash spend guidance, with no changes to the projected cash spend for the year [49][50] Question: Is the hybrid product a supplemental type certification or a new certification with EASA? - The hybrid product will be certified as a separate aircraft, likely around the same time as the electric VX4, with a full-scale piloted hybrid aircraft expected to fly in Q2 next year [52][53] Question: Will the hybrid powertrain be integrated into existing airframes for testing? - The hybrid will be integrated into an existing airframe that is currently under construction, with plans to retrofit the hybrid powertrain after initial all-electric flights [60][61] Question: How does the introduction of a hybrid electric propulsion system expand capabilities? - The hybrid aircraft will have a range of over a thousand miles and a payload capability of over 1,100 kilograms, allowing for expanded opportunities in defense and regional air mobility [70][71] Question: What is the business model for the battery systems? - The battery business is expected to follow a razor-razor blade model, with significant margins and recurring revenue from battery sales alongside airframe sales [80][81]

Core Insights - Hexagon Purus faced significant challenges in Q1 2025, with a 44% decline in quarterly revenue to NOK 230 million compared to the same quarter last year, primarily due to lower activity in hydrogen infrastructure and heavy-duty mobility applications [1][2] - The company is implementing cost-reduction measures to achieve profitability at lower volumes and extend its cash runway towards EBITDA and cash flow break-even [1][19] Financial Performance - Total operating expenses for Q1 2025 were NOK 472 million, leading to an EBITDA of NOK -242 million, reflecting an EBITDA margin of -105% [3][8] - Restructuring costs and other non-recurring items accounted for approximately NOK 65 million in the quarter, with adjusted EBITDA at NOK -177 million, equivalent to a -77% margin [3][8] - Total assets decreased to NOK 4,503 million, with total equity at NOK 1,676 million, resulting in an equity ratio of 37% [4][6] Inventory and Cash Flow - Inventory increased to NOK 658 million, primarily consisting of raw materials and work-in-progress items, while trade receivables decreased to NOK 275 million [5] - Net cash flow from operating activities was NOK -183 million, with a release of working capital amounting to NOK 45 million driven by reductions in inventory and accounts receivables [7] Segment Performance - Hydrogen Mobility and Infrastructure (HMI) segment revenue was NOK 204 million, down 47% year-over-year, with an EBITDA of NOK -143 million and a margin of -70% [11][12] - Battery Systems and Vehicle Integration (BVI) segment revenue grew by 35% year-over-year to NOK 25 million, with an EBITDA of NOK -54 million [14][15] Outlook and Strategic Initiatives - The company anticipates continued uncertainty due to recent changes in US policy and international trade, impacting the near-term outlook [16] - Despite challenges, there is strong commercial momentum for hydrogen transit buses in Europe, and incoming order activity for hydrogen infrastructure has improved [17] - The company is focused on cost reduction and reviewing its business portfolio to ensure sustainability until it reaches EBITDA and cash break-even [19]