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Introduction & Market Context
Hexicon AB (HEXI) presented its Q2 2025 interim report on August 20, highlighting its strategic positioning in the recovering floating offshore wind market. The company’s stock closed at 0.22, up 4.9% on the day, reflecting investor optimism about the company’s project development strategy and potential future revenue streams.
The presentation emphasized signs of recovery in the global offshore wind sector, with policy developments in key markets supporting growth. The UK has launched its 7th Contracts for Difference (CfD) auction with a ceiling price of GBP 271/MWh for floating wind, while France has initiated consultation for its next auction targeting 8.4-9.2 GW of new fixed-bottom and floating capacity.
As shown in the following chart detailing the evolution of wind power technology and market penetration:
The company highlighted that floating offshore wind represents the third generation of wind power technology, following onshore (100+ countries, >1,000 GW installed) and bottom-fixed offshore (26 countries, >83 GW installed). Floating technology currently operates in just 7 countries with approximately 245 MW installed capacity across about 50 turbines.
Quarterly Performance Highlights
The second quarter of 2025 was marked by several significant events for Hexicon. In April, the company completed the sale of its Italian projects, Sicily South and Sardinia Northwest, to Ingka Investments and Oxan Energy. This transaction aligns with information from earlier reports indicating an upfront payment of €2.5 million with potential additional milestone payments totaling €20 million.
The timeline of key Q2 events is illustrated here:
In June, Hexicon announced ongoing discussions with lenders regarding an extension of its existing SEK 75 million credit facility (plus accrued interest and fees) that was set to mature on June 30, 2025. According to the presentation, the credit facility remains in force under current terms while negotiations continue, with discussions expected to conclude after the quarter.
Project Portfolio Development
Hexicon’s project portfolio has undergone significant changes since Q2 2024, decreasing from 14,600 MW to 12,857 MW in Q2 2025. This reduction stems from discontinued projects in Sweden and the sale of two projects in Italy, reflecting the company’s strategic focus on portfolio optimization.
The following charts illustrate the evolution of Hexicon’s project portfolio by development stage and geographic distribution:
Despite the overall reduction in portfolio size, Hexicon noted that its projects are maturing steadily across markets, with late-stage projects increasing from 3,475 MW in Q2 2024 to 6,575 MW in Q2 2025. The company maintains an active project ownership of 54% and has stated it has no plans to increase its portfolio during 2025, instead focusing on divesting shares of projects in the UK and South Korea.
Strategic Initiatives
South Korea represents a key market for Hexicon, with the company highlighting recent positive developments in the country’s renewable energy landscape. A new president took office in June 2025, establishing a department of climate and energy that signals a clear focus on renewable transition.
The company provided the following update on its flagship South Korean project:
The Munmubaram Project, with 750 MW capacity and 100% Hexicon ownership, has secured Electricity Business Licenses (EBLs) and Environmental Impact Assessment (EIA) approval. Two of three EBLs have been transferred to Hexicon after approval from authorities in November 2024, with an application for the third EBL under evaluation.
Hexicon’s strategic priorities for 2025 focus on three key areas: Portfolio Development, Technology Development, and Financing. The company aims to develop key projects through milestones, divest selected projects, and continuously improve its project development process.
Forward-Looking Statements
The global floating wind market shows promising growth potential, according to Hexicon’s market analysis. The presentation highlighted a global floating pipeline of approximately 266 GW, up from 244 GW previously, with projected annual installations growing from 48 MW in 2023 to 8,300 MW by 2033.
This growth forecast is illustrated in the following chart:
Hexicon’s CEO Markus Thor has previously emphasized that the company’s "core revenue generating capacity lies in divesting projects," a strategy that remains central to the company’s approach as outlined in this presentation. The focus on securing "staying power" through improved operational efficiency and establishing a sufficient operational runway suggests the company is preparing for a longer-term development cycle while navigating current financial constraints.
With its stock trading at 0.22, up from the 52-week low of 0.13 but still well below the 52-week high of 0.55, Hexicon’s strategic execution in project development and divestment will be crucial for the company’s financial stability and growth prospects in the evolving floating offshore wind market.
Full presentation:
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