Hexagon Purus ASA: Results for the third quarter 2024
Key developments in Q3 2024 and after balance sheet
date:
Record-high quarterly revenue of NOK 544 million in the third
quarter of 2024, up 43% from the third quarter of 2023.
Year-to-date (YTD) revenue as per the third quarter of 2024 stood
at NOK 1,480 million, up 55% compared to the same period in
2023;
- EBITDA was NOK -51
million in the third quarter of 2024, compared to NOK -116 million
in the same period last year. This corresponds to an EBITDA margin
of -9% in the third quarter of 2024, up from -30% in the third
quarter of 2023. Financials in the quarter was positively impacted
by the contract termination payment from Daimler Trucks North
America. YTD as per the third quarter of 2024, the EBITDA margin is
-17%, up from -33% in the same period last year;
- Successfully raised
gross proceeds of approximately NOK 1 billion through an equity
private placement;
- Entered into a
multi-year supply agreement with GILLIG, a leading designer and
manufacturer of heavy-duty transit buses in the US, for supply of
hydrogen fuel storage systems;
- Hexagon Purus and
Panasonic Energy agreed to amend terms for battery cell supply
agreement, which inter alia reduces outstanding pre-payment amount
by USD 21.5 million;
- Selected by New
Flyer for the fifth consecutive year to supply hydrogen cylinders
for transit buses in North America. Total value of contract
estimated to approx. USD 6.3 million;
- Daimler Truck North
America and Hexagon Purus end supply agreement for battery electric
vocational vehicles;
- Exited the quarter
with order backlog consisting of firm purchase orders of NOK 913
million, providing full backlog coverage for FY 2024 revenue
target.
“Q3 2024 was another record quarter for Hexagon Purus,
continuing the strong positive momentum we’ve built throughout the
year. We have consistently grown revenue quarter by quarter, but
most importantly, we have reported positive EBITDA in our hydrogen
business in Europe and North America for two consecutive quarters”,
says Morten Holum, CEO of Hexagon Purus. “In Q3 2024, we also put
the finishing touches to the new vehicle integration facility in
Dallas, marking the end of our multi-year capacity expansion
program. Our new manufacturing footprint gives us capacity to
continue growing significantly in the years ahead without major new
capital investments”.
Hexagon Purus Q3 2024 consolidated financials
In the third quarter of 2024, Hexagon Purus (“the Company” or
“the Group”) generated all-time high quarterly revenue of NOK 544
million, up 43% from the corresponding period in 2023. Hydrogen
infrastructure and hydrogen mobility solutions were the main
drivers of growth year-over-year. In the quarter, NOK 29 million in
contract termination payment from Daimler Truck North America was
also recognized under other operating revenue. Year-to-date as of
the third quarter of 2024, accumulated revenue stood at NOK 1,480
million, up 55% compared to the same period in 2023.
Total assets at the end of the third quarter of 2024 amounted to
NOK 4,620 (3,786) 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 higher revenue. Inventory amounted to NOK 678
(438) million as of the end of the third quarter of 2024, and the
majority of inventory consists of raw materials and items in
work-in-progress. Trade receivables increased to NOK 468 (311)
million in the third quarter of 2024 and reflects the revenue
increase experienced in the quarter.
Net cash flow from operating activities in the third quarter of
2024 was NOK -115 (-284) million, of which NOK -59 (-152) 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 -135 (-117)
million in the third quarter of 2024, of which NOK 128 million
relates to investments in production equipment and facilities
related to the Company’s capacity expansion program. Net cash flow
from financing in the third quarter of 2024 was NOK -25 (-21)
million. Cash interest payments and repayment of lease liabilities
amounted to NOK 23 (20) million in the third quarter of 2024, while
repayment of interest bearing loans amounted to NOK 2 (1)
million.
Cash and cash equivalents stood at NOK 269 (566) million at the
end of the third quarter of 2024.
Hydrogen Mobility and Infrastructure (HMI)
Revenue for the HMI segment in the third quarter of 2024 totaled
NOK 514 million, up 35% compared to the corresponding period in
2023. Year-to-date as of the third quarter of 2024, revenue
amounted to NOK 1,427 million, which represents growth of 55%
compared to the corresponding period in 2023. 59% (59%) of the HMI
segment revenue in the third quarter of 2024 stemmed from hydrogen
infrastructure solutions, which grew 34% 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 to develop strongly in the quarter and
made up 29% (15%) of HMI segment revenue in the third quarter of
2024. This represents 163% year-over-year growth and was mainly
driven by increased deliveries to transit bus OEM customers such as
Solaris, CaetanoBus and New Flyer and heavy-duty vehicle customer
Nikola.
EBITDA for the HMI segment in the third quarter of 2024 ended at
NOK 11 (-29) million, equivalent to an EBITDA margin of 2% (-8%).
Year-to-date as per the third quarter of 2024, EBITDA was NOK 13
(-61) million, equivalent to an EBITDA margin of 1% (-7%). The
Company’s hydrogen infrastructure and aerospace and specialty
cylinder business recorded close to double-digit EBITDA margin
during the third quarter of 2024, but HMI segment EBITDA was
negatively offset by the Company’s hydrogen mobility business.
Historical segment financials are made available on
www.hexagonpurus.com together with Q3 2024 report and
presentation.
Battery Systems and Vehicle Integration (BVI)
Revenue for the BVI segment in the third quarter of 2024 was NOK
29 (0) million, which was almost solely related to the contract
termination payment from Daimler Truck North America (as announced
on 4 October). Year-to-date as of the third quarter of 2024,
revenue stood at NOK 50 (31) million. Revenue recognition for the
BVI segment is expected to pick-up during the fourth quarter of
2024 as initial deliveries of complete battery electric heavy-duty
vehicles are expected to be made to Hino Trucks.
BVI segment EBITDA ended at NOK -21 (-36) million in the third
quarter of 2024 and was positively affected by the DTNA contract
termination payment and CVIC funding contribution.
Historical segment financials are made available on
www.hexagonpurus.com together with Q3 2024 report and
presentation.
Outlook
With the multi-year capacity expansion program close to
completion, the Company now has sufficient capacity to cover the
expected growth over the next few years. The Company’s focus for
the coming years will be to optimize the utilization of existing
capacity, drive operational improvements and profitability, and
minimize further capital spend. On 31 October, the Company
announced the successful completion of a private placement of new
shares, raising approximately NOK 1 billion in gross proceeds. The
proceeds from the private placement will be used to finance the
Company’s business plan and are intended to fund the Company past
the point of cash flow break-even.
The Company’s order backlog, consisting of firm customer
purchase orders, stood at approximately NOK 0.9 billion as of the
third quarter of 2024, with about 56% due for execution in 2024 and
about 44% for execution in 2025. Combining the year-to-date revenue
as of the third quarter of 2024 with the backlog for the rest of
2024, gives coverage of this year’s revenue target of at least 50%
year-over-year revenue growth. The backlog for 2025 is expected to
continue to increase going forward. The backlog dynamic is also
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.
The new incoming administration following the US presidential
election has increased uncertainty around the near-term outlook for
the energy transition and zero emission mobility in North America,
and it is currently unclear what impact this will have on the
Company’s end-markets. 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. For 2025, based on preliminary estimates, the
Company still believe it is achievable to deliver revenue growth of
at least 50% year-over-year and continued significant improvement
in EBITDA margin. The Company expects to reach EBITDA break-even
and be cash flow positive during 2026.
Presentation of the results
Hexagon Purus will present the Q3 2024 results at 08:30 CEST on
Thursday 28 November 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 X
and LinkedIn.
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
- HPUR Q3 2024 Report
- HPUR Q3 2024 Presentation
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