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Investing.com -- Hexagon shares jumped 6.5% after the company announced a new €110 million cost saving program while reporting its third-quarter results.
The company’s CEO Anders Svensson stated in prepared remarks that the market environment is likely to remain unchanged in the fourth quarter of 2025.
In the third quarter, Hexagon saw mixed performance across its business segments. Geosystems returned to positive organic growth at 1% year-over-year, while Autonomous Solutions showed strong performance with 19% growth, driven by demand in aerospace, defense, and mining sectors. Manufacturing Intelligence grew by 3%.
Octave growth was 1% organic, which fell below consensus forecasts. The company cited "continued delays in customer decision-making which particularly impacted perpetual sales during the quarter," despite achieving strong double-digit growth rates in SaaS revenues.
Margins decreased to 26.8% in the third quarter compared to 29% in the same period last year.
The newly announced cost saving program will require a €113 million restructuring charge. Additionally, Hexagon took a further one-off charge of €186 million related to impairment of capitalized R&D and inventories, which may reduce the pace of R&D amortization charges growth in coming periods.
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