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Introduction & Market Context
Hexagon Purus (OSE:HPUR) released its third-quarter 2025 results on October 21, revealing sequential improvement in key metrics despite significant year-over-year declines. The company, which specializes in hydrogen storage systems and zero-emission mobility solutions, saw its stock fall 14.22% to NOK 1.84 following the announcement, reflecting investor concerns about the pace of recovery.
The company reported revenue of NOK 252 million for Q3 2025, marking a 54% decrease compared to the same period last year but a 30% increase from the previous quarter. This mixed performance comes amid ongoing restructuring efforts and a shifting business landscape for clean energy solutions.
Quarterly Performance Highlights
Hexagon Purus demonstrated sequential improvement in its financial performance for Q3 2025, though year-over-year comparisons remain challenging. The company’s EBITDA margin improved to -46% in Q3 2025, representing a 38 percentage point improvement quarter-over-quarter, despite being 36 percentage points worse than the same period last year.
As shown in the following chart of quarterly performance and order book:
The company’s order book stood at NOK 974 million at the end of Q3 2025, providing revenue visibility for the remainder of the year. The order book is diversified across hydrogen infrastructure (30%), hydrogen mobility (31%), battery electric mobility (4%), and other applications (35%).
The profit and loss statement reveals the extent of the company’s financial challenges, with a loss after tax of NOK 364.582 million in Q3 2025, compared to NOK 148.841 million in the same period last year:
The company’s financial results were impacted by a NOK 31 million restructuring charge related to workforce reductions in Germany, as well as a NOK 102 million impairment charge included in finance costs.
Segment Performance
Hexagon Purus experienced a significant shift in its revenue mix year-over-year, with hydrogen infrastructure and mobility gaining importance while battery mobility declined:
The company’s year-over-year revenue bridge shows substantial declines across most segments, with only the "Other Applications" category, which includes aerospace, showing growth:
The Hydrogen Mobility & Infrastructure (HMI) segment, which accounts for the majority of the company’s revenue, saw a 55% year-over-year decline in Q3 2025:
Meanwhile, the Battery Systems & Vehicle Integration (BVI) segment reported revenue of NOK 13 million in Q3 2025, down from NOK 29 million in Q3 2024, with an EBITDA of NOK -30 million:
Cost Reduction Initiatives
Hexagon Purus has implemented significant cost-cutting measures to address its financial challenges. The company completed a second round of workforce reductions in Germany during Q3 2025, contributing to a cumulative workforce reduction of approximately 30% year-to-date compared to 2024 levels.
The company expects the full profit and loss impact of these cost reductions to materialize from 2026, as it works toward financial stabilization. These efforts have already contributed to the lowest quarterly cash outflow in over two years:
The company’s cash flow statement shows a net cash outflow of NOK 166 million in Q3 2025, with operating losses being the main driver:
Forward-Looking Statements
Despite current challenges, Hexagon Purus maintains that its order book provides good revenue visibility for the remainder of 2025, with a focus on executing existing orders while initiating customer dialogues for 2026:
The company has laid out a path to gradual recovery and financial stabilization, focusing on four key areas:
However, investors should note that the company’s optimism contrasts with market reaction to the results. According to the earnings call, 20-30% of Q4 orders are expected to be deferred to Q1 2026, which may impact near-term performance. Additionally, the company faces ongoing challenges in the hydrogen market, where growth has been slower than anticipated.
Strategic Initiatives
Hexagon Purus is conducting a portfolio review of its three business segments: Battery Systems & Vehicle Integration, Hydrogen Mobility & Infrastructure, and its China Joint Venture. The company reported steady progress on this review, which was initiated earlier in the year:
This strategic evaluation comes as the company experiences varying demand dynamics across its different applications. While hydrogen transit buses and aerospace applications show strong momentum, other segments like hydrogen distribution and battery electric trucks face more challenging market conditions:
The company continues to run customer demonstration programs for its Tern RC8 battery electric truck, with units operating with several leading logistics and distribution companies across the US. Feedback has reportedly been encouraging, particularly regarding the vehicle’s drivability, range efficiency, and overall reliability.
As Hexagon Purus navigates through this transitional period, its ability to execute on cost reductions while maintaining strategic positioning in growth segments will be crucial for achieving its goal of financial stabilization by 2026.
Full presentation:
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