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Reaffirms its mid-term targets for 2022-2026
- Average annual organic growth of 5-7%
- Average annual structural (M&A) growth of 3-5%
- EBIT11 operating margin (incl. PPA) of more than 30% by the end of 2026
- Reaffirm the 80-90% per annum cash conversion target rate
- Announces plans to reach 95% reduction of scope 1 and 2 emissions by 2030 and net-zero by 2050
- Increases financial disclosure on a quarterly basis
- Proposes to adjust management incentives to be aligned with the 2026 financial targets, including the cash conversion target rate
New divisional reporting and financial disclosures
From Q1 2024 Hexagon will commence to report the revenues and EBIT1 of its operating divisions on a quarterly basis. The divisions are:
- Manufacturing Intelligence
- Asset Lifecycle Intelligence
- Geosystems
- Autonomous Solutions
- Safety, Infrastructure & Geospatial
During the day senior leadership from each of these divisions will present additional context on these business units, including growth strategies.
CFO
- New M&A revenue and EBIT1
- Software revenues
- Recurring revenues
- R&D capitalisation
- Cash impact of inventory, receivables and payables (working capital)
Committed to meeting the 2022-2026 mid-term financial targets and reaffirming the 80-90% per annum cash conversion target rate
Hexagon has reaffirmed its 2022-2026 mid-term financial targets:
- Average annual organic growth of 5-7%
- Average annual structural (M&A) growth of 3-5%
- EBIT1 operating margin (incl. PPA) of more than 30% by the end of 2026
- Reaffirm the 80-90% per annum cash conversion target rate
The Group's confidence in achieving these targets is based on both internal and external factors including structural demand trends for improvements in sustainability, productivity and solutions to labour market shortages, as well as proactive internal actions being taken to focus technology leadership, improve commercial execution and drive operational excellence.
Incentives
Executive incentives from 2024 will be suggested to be aligned with the 2026 financial targets, including the cash conversion target rate. The adjusted management incentives will be described in the remuneration guidelines to be approved by the AGM 2024.
New sustainability commitments
Head of Sustainability,
- Reach 95% reduction of Scope 1 and 2 emissions by 2030
- Reach net zero by 2050
Webcast details
The CMD will start at
For further information, please contact:
Anton Heikenström, Investor Relations Manager,
[1] Operating earnings excluding capital gains on shares in group companies and adjustments. Adjustments are excluded to facilitate the understanding of the Group´s operational development and to give comparable numbers between periods
Hexagon is the global leader in digital reality solutions, combining sensor, software and autonomous technologies. We are putting data to work to boost efficiency, productivity, quality and safety across industrial, manufacturing, infrastructure, public sector, and mobility applications.
Our technologies are shaping production and people related ecosystems to become increasingly connected and autonomous - ensuring a scalable, sustainable future.
Hexagon (Nasdaq Stockholm: HEXA B) has approximately 24,000 employees in 50 countries and net sales of approximately
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