Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hexagon Purus ASA (HPURF, Financial) extended a multi-year supply agreement with Solaris, indicating strong commercial momentum in the hydrogen transit bus sector.
- The company signed a multi-year agreement with Stadler for hydrogen fuel storage systems for rail applications in California, showcasing growth in the rail sector.
- Hexagon Purus ASA (HPURF) received its first orders from MCV, an Egyptian bus OEM, expanding its customer base in the Middle East and Africa.
- The company is on track with its EUR200 million cost reduction program, aiming to lower the break-even point and extend the cash runway.
- There is a significant increase in revenue contribution from the hydro and distribution business, indicating diversification in revenue streams.
Negative Points
- Hexagon Purus ASA (HPURF) experienced a 44% decline in revenue compared to the same period last year, indicating financial challenges.
- The company was negatively impacted by the loss of Nikola, its main customer in the heavy-duty truck area, which filed for Chapter 11.
- There is a significant delay in new green hydrogen projects in Europe, affecting revenue from hydrogen infrastructure.
- The company faced restructuring costs of 43 million in the quarter, impacting overall profitability.
- The policy shift from the new US administration has weakened the midterm market outlook and demand visibility for battery electric mobility.
Q & A Highlights
Q: Can you quantify the expected cost-cutting effects of further reductions in the German operations?
A: We are not providing specific guidance at this time, but it is fair to say that the cost reductions will be significant. - Martin Hole, Group CEO
Q: Is the recent development in revenue mix particularly positive or negative on working capital? Do you plan for neutral working capital in 2025?
A: We are currently seeing that working capital will be a relief on cash from working capital in 2025. - Salman Aam, CFO
Q: Are there plans to enter into cooperation with SpaceX or to supply the defense industry?
A: We are already in the aerospace market, supplying two out of the three commercial space exploration companies in North America. The activity level is increasing, and we see this as an exciting area for us going forward. - Martin Hole, Group CEO
Q: Is it on the table that you close or sell one of your factories?
A: We are reviewing our portfolio and keeping all options open to shorten the time to profitability, but we are not commenting on specific forward plans. - Martin Hole, Group CEO
Q: What was the reason for your BVI inventory write-down? How do you assess the risk of inventory write-downs?
A: The write-down was related to early-stage inventory that needed to be carried at the lowest of cost and net realizable value. This was an adjustment down to net realizable value. - Salman Aam, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
