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Introduction & Market Context
Hexicon AB (HEXI) presented its third-quarter 2025 results on November 19, revealing a strategic focus on portfolio consolidation and technological advancement amid challenging market conditions in the floating offshore wind sector. The company's stock fell 8.31% following the presentation, closing at 0.17, near its 52-week low of 0.13.
The global floating wind market continues to show long-term promise despite near-term headwinds. Hexicon highlighted that global floating wind installations have reached 277 MW, with forecasts showing significant acceleration in the coming decade.
As shown in the following chart of global floating wind installations forecast:
The latest market projections indicate floating wind capacity could reach 8,300 MW by 2034, representing a compound annual growth rate (CAGR) of 72%, up from previous forecasts of 54%. This optimistic long-term outlook contrasts with current market challenges, including auction failures in France and ongoing economic pressures.
Executive Summary
Hexicon's Q3 2025 presentation emphasized its strategic pivot to focus on core markets while securing financial stability. The company has maintained its active project ownership at 54% while reducing its overall portfolio size following the discontinuation of projects in Sweden and divestment of two projects in Italy.
Key developments during the quarter included extending the company's revolving credit facility by 24 months and securing an additional EUR 4.75 million loan from Nuveen Infrastructure Partners. The company also highlighted technological progress with its TwinWind platform, completing an integrated load analysis with wind turbine manufacturer MingYang.
Hexicon's business model centers on developing and divesting projects at various stages, as illustrated in their project development process:
The company's approach involves identifying and investing in promising markets, developing projects through various stages, and strategically divesting at optimal points to generate revenue. This model is particularly relevant as Hexicon navigates the current market downturn while positioning for future growth.
Strategic Initiatives
South Korea remains a central focus of Hexicon's strategy, with the 750 MW MunmuBaram project (100% owned by Hexicon) advancing through regulatory approvals. The company noted that the Marine Traffic Safety Examination has been approved, and auction preparations are ongoing. Two of three Electricity Business Licenses (EBLs) have been transferred to Hexicon after approval from authorities in November 2024.
The South Korean market presents significant opportunities following political changes:
With new President Lee Jae-myung taking office in June 2025 and a new five-year plan expected for offshore wind expansion, Hexicon is strategically positioned to capitalize on the market's growth potential. The company has signed an MoU with SK Oceanplant to enhance local collaboration and develop fabrication and localization strategies.
Hexicon's global portfolio continues to mature across markets, though the company has no plans to increase its portfolio during 2025:
Instead, Hexicon is focusing on divesting shares of projects in the UK and South Korea, reflecting its strategy of generating value through strategic project development and timely exits.
Detailed Financial Analysis
While specific quarterly financial figures were not disclosed in the presentation, Hexicon emphasized its efforts to secure financial stability through extended credit facilities and additional funding. The company extended its revolving credit facility by 24 months and secured a loan from Nuveen Infrastructure Partners of up to EUR 4.75 million.
The stock's 8.31% decline following the presentation suggests investor concerns about the company's reduced project portfolio and broader market challenges. Trading near its 52-week low of 0.13, Hexicon faces pressure to demonstrate the viability of its business model in a challenging market environment.
The company's technology development represents a potential value driver, with significant milestones achieved in 2025:
The completion of an integrated load analysis with wind turbine manufacturer MingYang positions Hexicon among a limited group of companies that have achieved this technical milestone. The company also developed a platform controller with MingYang and partners, providing reliable yaw alignment under varying environmental conditions.
Forward-Looking Statements
Looking ahead to 2026, Hexicon outlined three key focus areas: portfolio development, technology development, and financing:
The company plans to develop key projects through milestones, divest selected projects, and continuously improve its project development process. On the technology front, Hexicon aims to maintain and manage technical asset value, develop a consortium of partners, and establish a route to market.
CEO Marcus Thor expressed optimism about market conditions improving, suggesting that "2026 could be that transition year where you go from a weak market back to something a lot more promising." This perspective aligns with the company's timeline presentation, which charts Hexicon's journey from its IPO in 2021 to anticipated future opportunities:
Despite current challenges, including the martial law situation in Korea in 2024/2025, Hexicon is positioning for a potential MunmuBaram auction win and divestment in 2026/2027. The company's strategy reflects a pragmatic approach to navigating near-term market headwinds while maintaining focus on long-term value creation in the floating offshore wind sector.
Full presentation:
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