Hexagon Purus ASA: Results for the second quarter 2024
Key developments in Q2 2024:
- All-time high quarterly revenue of NOK 528 million in the
second quarter of 2024, up 60% from the second quarter of 2023. YTD
revenue as per the second quarter of 2024 stood at NOK 935 million,
up 63% compared to the same period in 2023;
- EBITDA was NOK -97 million in the second quarter of 2024,
compared to NOK -89 million in the same period last year. This
corresponds to an EBITDA margin of -18% in the second quarter of
2024, up from -27% in the second quarter of 2023. YTD as per the
second quarter of 2024, the EBITDA margin is -21%, up from -35% in
the same period last year;
- The Hydrogen Mobility & Infrastructure (HMI) segment turned
EBITDA positive during the second quarter, delivering EBITDA of NOK
17 million, equal to an EBITDA margin of 3%. This has also brought
the year-to-date EBITDA into positive territory for the HMI
segment;
- Launched the Tern RC8, a zero-emission truck to be delivered
under the long-term agreement between Hexagon Purus and Hino Trucks
for complete battery electric vehicles, to be distributed through
Hino’s dealer network in the U.S;
- Announced serial production partnership with Toyota North
America for supply of hydrogen storage systems and battery systems
for Toyota’s fuel cell electric powertrain kit for commercial
vehicles for the North American market;
- Exited the quarter with order backlog consisting of firm
purchase orders of approximately NOK 1.0 billion, providing solid
line-of-sight to full-year revenue target.
“We have just reported yet another record quarter for Hexagon
Purus, adding to an already strong start to the year and keeping us
well on track to deliver on our targets. We continue to expect that
full-year 2024 will be a year of significant revenue growth and a
large step in the right direction towards EBITDA breakeven in
2025.”, says Morten Holum, CEO of Hexagon Purus. “It is very
encouraging to see that our hydrogen business in Europe and North
America is already EBITDA positive for the first half of 2024, and
we expect performance to further improve towards year-end as volume
and scale increase”.
Hexagon Purus Q2 2024 consolidated
financials
In the second quarter of 2024, Hexagon Purus (“the Company” or
“the Group”) generated all-time high quarterly revenue of NOK 528
million, up 60% from the corresponding period in 2023. Hydrogen
infrastructure and hydrogen mobility solutions were the main
drivers of growth year-over-year. Year-to-date as of the second
quarter of 2024, accumulated revenue stood at NOK 935 million, up
63% compared to the same period in 2023.
Total assets at the end of the second quarter of 2024 amounted
to NOK 4,619 (3,818) million. The year-over-year increase in total
assets is mainly driven by increases to property, plant and
equipment and right-of-use assets resulting from the Company’s
capacity expansion program, combined with an increase in working
capital to cater for a higher activity level. Trade receivables
increased to NOK 401 (256) million in the second quarter of 2024
and reflects the strong revenue growth experienced in the quarter.
Inventory stood at NOK 611 (449) million, and the year-over-year
increase is partly driven by the ramp-up phase that the battery
systems & vehicle integration (BVI) business is in. The
Company’s working capital position reflects the Company’s sustained
growth track-record, which is expected to continue going
forward.
Net cash flow from operating activities in the second quarter of
2024 was NOK -232 (-172) million, of which NOK -120 (-71) million
was due to an increase in net working capital, driven by an
increase in inventory and trade receivables on the back of strong
revenue growth.
Net cash flow from investing activities was NOK -180 (-264)
million in the second quarter of 2024, of which NOK 133 million
relates to investments in production equipment and facilities
related to the Company’s capacity expansion program and NOK 43
million relates to the final earn-out payment related to the
acquisition of Wystrach in 2021. Net cash flow from financing in
the second quarter of 2024 was NOK -5 (56) million. Cash interest
payments and repayment of lease liabilities amounted to NOK 26 (18)
million in the second quarter of 2024.
Cash and cash equivalents stood at NOK 543 (973) million at the
end of the second quarter of 2024.
Hydrogen Mobility and Infrastructure (HMI)
Revenue for the HMI segment in the second quarter of 2024
totaled NOK 526 million, up 71% year-over-year. Year-to-date as of
the second quarter of 2024, revenue amounted to NOK 914 million,
which represents growth of 69% compared to the corresponding period
in 2023. 62% (59%) of the HMI segment revenue in the second quarter
of 2024 stemmed from hydrogen infrastructure solutions, which grew
82% year-over-year. Hydrogen mobility, which covers revenue from
the sale of type 4 hydrogen cylinders and cylinder systems for
hydrogen-powered on-road and off-road vehicles, continued its
strong growth momentum from the start of the year and made up 28%
(11%) of HMI segment revenue in the second quarter of 2024. This
represents 335% year-over-year growth.
EBITDA for the HMI segment in the second quarter of 2024 ended
at NOK 17 (2) million, equivalent to an EBITDA margin of 3% (1%).
Year-to-date as per the second quarter of 2024, EBITDA was NOK 1
(-32) million, equivalent to an EBITDA margin of 0% (-6%). It is
highly encouraging to see that the HMI segment now has passed the
point of EBITDA break-even, as higher volume with solid gross
margins is increasing scale and fixed cost absorption, leading to
improved profitability.
Historical financials for HMI are made available on
www.hexagonpurus.com together with Q2 2024 report and
presentation.
Battery Systems and Vehicle Integration
(BVI)
Revenue for the BVI segment in the second quarter of 2024
totaled NOK 2 (11) million, and year-to-date as of the second
quarter, revenue stood at NOK 21 million.
The segment’s revenue development is largely in line with
expectations, and any significant revenue recognition related to
the two major agreements signed for delivery of complete battery
electric utility and heavy-duty vehicles to Hino Trucks and Daimler
Trucks North America is not expected until the fourth quarter of
2024.
Historical financials for BVI are made available on
www.hexagonpurus.com together with Q2 2024 report and
presentation.
Outlook
The Company’s financial and operational performance in the
second quarter of 2024 and year-to-date 2024 has developed in line
with expectations, and the focus for the remainder of the year is
to increase the capacity utilization of the new production
footprint combined with operational improvements while minimizing
further capital spend. 2024 is an important transitional year from
a profitability perspective to reach Group EBITDA break-even in
2025. It is highly pleasing and encouraging to see that the
profitability trend in 2024 has developed as expected and that the
HMI segment is now EBITDA positive. This gives further confidence
to the Group’s 2025 EBITDA break-even target. The current capacity
expansion program will be mostly behind us by the end of this year,
and beyond this, the level of investments in new production
capacity will be tempered going forward.
The hydrogen infrastructure and mobility offering is expected to
continue to be a key growth driver for revenue for the remainder of
2024. More significant revenue recognition related to the Company’s
battery electric utility and heavy-duty vehicles for Daimler Trucks
North America and Hino Trucks is expected to commence during the
fourth quarter of 2024 and will be an important driver of revenue
growth in 2025.
The Company’s order backlog, consisting of firm customer
purchase orders, stood at approximately NOK 1.0 billion as of the
second quarter of 2024, with about 86% due for execution in 2024
and the remaining 14% for execution in 2025. Combining the
year-to-date revenue as of the second quarter of 2024 with the
backlog for the rest of 2024, gives 90% coverage of this year’s
revenue target. The backlog for 2025 is expected to increase
significantly during the second half of 2024 as the planning for
2025 deliveries with the Company’s major hydrogen distribution
customers will commence during the third quarter of 2024. The
backlog dynamic is expected to change somewhat going forward as
mobility applications becomes a larger part of the revenue mix. The
Company’s mobility customers, compared to its hydrogen
infrastructure customers, usually have much shorter lead-time from
purchase order to delivery, which means backlog coverage far out in
time will usually also be lower in relative terms.
For the full year 2024, the Company continues to expect revenue
growth of at least 50% year-over-year, as well as significant
year-over-year improvement in the Group’s EBITDA margin.
Presentation of the results
Hexagon Purus will present the Q2 2024 results at 08:30 CEST on
Thursday 18 July and the presentation will be broadcast live via
https://hexagonpurus.vivida.live.
The presentation will be held in English and will be virtual.
Recording of the presentation will be made available on
www.hexagonpurus.com.
For more information:
Mathias Meidell, IR Director, Hexagon Purus ASA
Telephone: +47 909 82 242 |
mathias.meidell@hexagonpurus.com
Salman Alam, CFO, Hexagon Purus ASA
Telephone: +47 476 12 713 | salman.alam@hexagonpurus.com
About Hexagon Purus ASA
Hexagon Purus enables zero emission mobility for a cleaner
energy future. The company is a world leading provider of hydrogen
Type 4 high-pressure cylinders and systems, battery systems and
vehicle integration solutions for fuel cell electric and battery
electric vehicles. Hexagon Purus' products are used in a variety of
applications including light, medium and heavy-duty vehicles,
buses, ground storage, distribution, refueling, maritime, rail and
aerospace.
Learn more at www.hexagonpurus.com and follow @HexagonPurus on
Twitter and LinkedIn.
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
- HPUR Q2 2024 Report
- HPUR Q2 2024 Presentation
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