By Marta Frackowiak
(Reuters) -Industrial technology group Hexagon posted a surprise 3% rise in its fourth quarter operating profit on Friday, aided by organic growth recovery and expansion in recurring revenues for some of its units despite a tough market backdrop.
The Swedish maker of measurement and positioning systems said its adjusted earnings before interest and taxes grew to 450.3 million euros ($468.2 million) in the December quarter, while analysts were expecting them to fall to 427 million euros in a company-provided consensus.
Hexagon’s shares rose more than 6% in early trading, among top performers on Europe’s benchmark STOXX 600 index.
Hexagon said the strong result was driven by its Asset Lifecycle Intelligence unit, which provides software for constructing and operating industrial facilities, and the Safety, Infrastructure & Geospatial unit responsible for public safety solutions.
“In the fourth quarter we recorded a return to positive organic growth, while maintaining EBIT margins and generating a very strong cash conversion, despite difficult macroeconomic conditions,” interim CEO Norbert Hanke said in a statement.
Hanke took the role in November after the sudden departure of Paolo Guglielmini. Hexagon has appointed Anders Svensson to take the top job in July at the latest, joining from Finland’s Konecranes.
The group reported 1% growth in its organic revenue for the fourth quarter, while recurring revenue rose by 7%. Cash conversion was 116%, up from 103% a year earlier.
However, market conditions remained challenging particularly in the automotive and construction industries. Hexagon said it expected no changes to this in the first quarter of 2025.
Hexagon, which in October said it was planning to separate the Asset Lifecycle Intelligence unit and related businesses, said investigation into the process was ongoing and it intended to provide an update on it during the first quarter.
It proposed a dividend of 0.14 euros per share for 2024, an increase of 8% from what it paid for the year prior.
($1 = 0.9617 euros)
(Reporting by Marta Frąckowiak in Gdansk; Editing by Milla Nissi)
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