Fed Governor Adriana Kugler to resign
Introduction & Market Context
Hexagon Purus (OB:HPUR) released its Q2 2025 earnings presentation on July 17, revealing a significant deterioration in financial performance as the company continues to navigate challenging market conditions. The clean energy solutions provider reported a 63% year-over-year revenue decline while simultaneously expanding its cost reduction program and initiating strategic reviews of business segments.
The presentation comes after the company’s stock has already experienced substantial pressure, with shares falling 9.82% to NOK 2.48 in the trading session prior to the earnings release. The stock has declined dramatically from its 52-week high of NOK 12.22, reflecting ongoing investor concerns about the company’s path to profitability.
Quarterly Performance Highlights
Hexagon Purus reported Q2 2025 revenue of NOK 193 million, representing a steep 63% decline from NOK 528 million in the same quarter last year. Last twelve months (LTM) revenue fell to NOK 1,364 million, down 19% year-over-year. The company’s EBITDA deteriorated to negative NOK 161 million in Q2 2025 compared to negative NOK 97 million in Q2 2024.
As shown in the following chart detailing revenue and profitability metrics:
The revenue decline was particularly pronounced in the company’s hydrogen segments. Hydrogen infrastructure revenue plummeted by 95% year-over-year, while hydrogen mobility revenue fell by 40%. These declines were partially offset by growth in battery mobility and other applications, which saw year-over-year growth of 12% and 18% respectively.
The following revenue bridge illustrates the significant impact of lower hydrogen infrastructure and mobility activity:
The company also experienced a notable shift in its revenue mix during the quarter. Hydrogen infrastructure’s contribution to total revenue decreased from 62% in Q2 2024 to 46% in Q2 2025, while battery mobility increased from 0% to 12%, and other applications (including aerospace) grew from 10% to 34%.
This shift in revenue composition is clearly illustrated in the following chart:
Strategic Initiatives
In response to the challenging financial situation, Hexagon Purus announced a significant expansion of its cost reduction program. The company has increased its cost reduction target from NOK 200 million to NOK 350 million and plans to reduce its workforce by approximately 30%, up from the previously announced 15% reduction.
The following slide details the expanded cost reduction program:
Additionally, Hexagon Purus announced it has expanded its partnership with Hino in North America for the delivery of complete Class 6 & 7 battery electric straight trucks. This relationship expansion represents a strategic focus on the battery electric vehicle segment amid slower development in hydrogen mobility applications.
The company has also initiated a strategic review to evaluate alternatives for its Battery Systems and Vehicle Integration (BVI) segment. This review is part of a broader portfolio assessment aimed at securing the company’s cash runway, which also includes evaluations of the Hydrogen Mobility & Infrastructure business and the China Joint-Venture.
Financial Position & Cash Flow
Hexagon Purus reported a cash balance of NOK 527 million as of Q2 2025, with an equity ratio of 33%, down 4 percentage points from Q1 2025. The company’s balance sheet showed increased inventory levels in anticipation of higher revenue expected in the second half of 2025.
The following cash flow waterfall chart illustrates the company’s cash movement during the quarter:
Operating losses were the main driver of negative operating cash flow in the quarter, while working capital increased due to inventory build-up for anticipated higher activity in H2 2025. Capital expenditures remained limited as the company’s expansion program approaches completion.
Forward-Looking Statements
Despite the challenging quarter, Hexagon Purus reported its highest quarterly order intake since 2023, with the order backlog increasing to NOK 1,056 million, up 33% from Q1 2025. This improved order intake is expected to support higher activity levels in the second half of 2025.
The following chart shows the positive trend in order backlog:
The order backlog is diversified across application segments, with hydrogen mobility representing 35%, hydrogen infrastructure 29%, and other applications (including aerospace) 32%. Most of the backlog (69%) is scheduled for delivery beyond 2027, with only 4% allocated to the remainder of 2025.
For the second half of 2025, the company expects improved performance across several segments:
Management indicated that approximately NOK 1,150 million in revenue is secured for FY2025, providing some visibility despite the current challenges. The company’s key focus areas for the remainder of 2025 include continuing to reduce costs to enable profitability at lower volumes, completing the business portfolio review, and reducing cash outflow in the second half of the year.
Segment Performance
The Hydrogen Mobility & Infrastructure (HMI) segment, which includes the company’s hydrogen cylinders and systems manufacturing operations in Europe and the US, reported revenue of NOK 164 million in Q2 2025, down 69% from NOK 526 million in Q2 2024. The segment’s EBITDA deteriorated to negative NOK 76 million, compared to positive NOK 17 million in the same period last year.
In contrast, the Battery Systems & Vehicle Integration (BVI) segment showed revenue growth, albeit from a low base. BVI revenue increased to NOK 25 million in Q2 2025, up from just NOK 2 million in Q2 2024, driven by deliveries of the Tern RC8 to Hino. The segment’s EBITDA improved to negative NOK 31 million from negative NOK 60 million in Q2 2024.
The following chart shows the BVI segment’s financial results:
The company’s outlook by application indicates continued strong commercial momentum in hydrogen transit bus applications and aerospace, while hydrogen distribution remains weak but with improving visibility. Battery electric trucks face a slower ramp-up curve due to policy shifts from the new US administration, and hydrogen electric trucks are expected to have limited volumes with market adoption pushed toward the end of the decade.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.