Total operating expenses in the fourth quarter of 2024 ended at NOK 500 (494) million, leading to an operating profit before depreciation (EBITDA) of NOK -104 (-129) million, equivalent to an EBITDA margin of -26% (-35%). For FY 2024, the EBITDA margin was -19% (-34%), a significant improvement compared to the same period last year and in line with expectations.
Total assets at the end of the fourth quarter of 2024 amounted to NOK 4,934 (3,773)
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 as well as a higher cash balance following the Company’s equity capital raise completed during the fourth quarter of 2024. Inventory amounted to NOK 694 (482) million as of the end of the fourth quarter of 2024, and the majority of inventory consists of raw materials and items in work-in-progress. Trade receivables decreased sequentially in the fourth quarter of 2024 to NOK 351 (275) million.
Increases in equity and non-current liabilities in the fourth quarter of 2024 compared to the fourth quarter of 2023 are mainly driven by the NOK 1,000 million (gross) equity raise completed during the fourth quarter of 2024, and an increase in lease liabilities related to production facilities and equipment as part of the Company’s capacity expansion program. Trade payables stood at NOK 260 (220) million and was sequentially down compared to the third quarter of 2024. At quarter-end, the Company had an equity ratio of 43% (51%).
Net cash flow from operating activities in the fourth quarter of 2024 was NOK -99 (-138) million. Changes in net working capital was stable compared to the third quarter of 2024.
Net cash flow from investing activities was NOK -112 (-111) million in the fourth quarter of 2024, of which NOK 66 million relates to investments in production equipment and facilities related to the Company’s capacity expansion program. Capitalized product development expenditure was NOK 36 (9) million in the fourth quarter of 2024, and loans to associated companies amounted to NOK 17 (6) million. Interest received on bank deposits in the fourth quarter of 2024 was NOK 7 (10) million.
Cash and cash equivalents ended at NOK 1,028 (307) million as of the fourth quarter of 2024.
Hydrogen Mobility and Infrastructure (HMI)
Revenue for the HMI segment in the fourth quarter of 2024 totaled NOK 355 million, broadly unchanged compared to the corresponding period in 2023. For FY 2024, revenue amounted to NOK 1,782 million, which represents growth of 40% compared to FY 2023. 62% (60%) of the HMI segment revenue in the fourth quarter of 2024 stemmed from hydrogen infrastructure solutions, which grew 3% year-over-year. Within hydrogen infrastructure solutions, hydrogen distribution solutions made up most of the revenue in the quarter with product deliveries to customers like Air Liquide, Norwegian Hydrogen and Linde. Revenue from mobile refueling stations and stationary storage solutions also increased year-over-year as units were delivered to amongst other Deutsche Bahn Energie during the fourth quarter of 2024.
EBITDA for the HMI segment in the fourth quarter of 2024 ended at NOK -25 (-33) million, equivalent to an EBITDA margin of -7% (-9%). For FY 2024, EBITDA ended at NOK -12 (-94) million, equivalent to an EBITDA margin of -1% (-7%).
Historical segment financials are made available on www.hexagonpurus.com together with Q4 2024 report and presentation.
Battery Systems and Vehicle Integration (BVI)
Revenue for the BVI segment in the fourth quarter of 2024 was NOK 47 (9) million. The year-over-year revenue growth was mainly driven by initial vehicle deliveries of the Tern RC8 to Hino as well as deliveries of battery systems to Toyota Motors North America. For FY 2024, revenue ended at 97 (40) million.
BVI segment EBITDA ended at NOK -33 (-34) million in the fourth quarter of 2024. For FY 2024, EBITDA ended at -139 (-140) million.
Historical segment financials are made available on www.hexagonpurus.com together with Q4 2024 report and presentation.
Outlook
As discussed in the Company’s Q3 2024 report released in November 2024, the new administration following the US presidential election has significantly increased uncertainty around the near-term outlook for the energy transition and zero emission mobility in North America. Customers, especially in California, are awaiting clarification around legislation and funding mechanisms. In addition, the hydrogen industry and project realization is developing slower than expected in Europe, impacting the Company’s customers.
With an uncertain near-term outlook and lower visibility, the Company is launching a program targeting annualized cost reduction of approximately NOK 200 million, including an approximate 15% reduction in workforce. The Company is also launching a review of its overall business portfolio to make additional adjustments to secure the Company’s cash runway to EBITDA and cash break-even.
The Company has a well-diversified customer base and are exposed to a range of attractive end-use applications at varying stages of maturity. The Company’s hydrogen infrastructure business is EBITDA profitable and is mainly based on large industrial gas companies’ need to cost efficiently transport gray hydrogen for industrial use cases. A delay in roll-out of green hydrogen projects will impact near-term growth for the hydrogen infrastructure business, but the Company continues to expect a base level of demand for its distribution solutions for industrial use-cases from its existing customer base of blue-chip industrial gas companies. The Company’s hydrogen transit bus business is experiencing strong growth as end-user demand is mainly made up of public authorities with local decarbonization agendas, both in Europe and North America. The Company’s hydrogen and battery electric heavy-duty vehicle business, centered around the US market, is on the other hand experiencing uncertainty and low demand visibility following the US presidential election. Year-over-year, the battery electric business is expected to grow in 2025, but with a slower ramp-up curve compared to earlier expectations.
The Company’s order backlog, consisting of firm customer purchase orders, stood at NOK 726 million by the end the fourth quarter of 2024, with about 90% due for execution in 2025 and the remaining 10% due for execution in 2026. The Company is expecting a slow start to 2025 revenue-wise and is currently projecting a significant sequential decline in Q1 2025 revenue.
Given the recent chain of events, it is no longer deemed realistic that the market will grow as previously guided in the near-term, and the Company has decided to postpone further guiding until better visibility is gained. The Company will first and foremost focus on making the current cash balance last until EBITDA and cash break-even.
Presentation of the results
Hexagon Purus will present the Q4 2024 results today, 11 February, at 08:30 CET and the presentation will be broadcast live via https://hexagonpurus.vivida.live.
The presentation will be held in English and will be virtual. A 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
Attachments
