Hexagon Purus ASA

Results for the third quarter 2023 - Seite 2

Net cash flow from operating activities in the third quarter of 2023 was NOK -284 (-133) million, of which NOK 152 (58) million was due to an increase in net working capital. Net cash flow from investing activities was NOK -117 (-94) million in the third quarter of 2023, of which NOK 102 million is investments in production equipment and facilities related to the ongoing capacity expansion program. Net cash flow from financing in the third quarter of 2023 was NOK -21 (-2) million. The majority of the outflow from financing is related to lease payments, which in the third quarter of 2023 amounted to NOK -16 (-7) million.

Cash and cash equivalents ended at NOK 566 (481) million.

Outlook

Hexagon Purus’ customer interactions are positively influenced by the strong legislative tailwinds, and customer demand for the Company’s products and services is expected to further accelerate going forward. Hexagon Purus has been successful in securing several long-term agreements recently, which gives the Company confidence in its medium to long-term targets.

Hexagon Purus’ order backlog, consisting of firm customer purchase orders, stood at approximately NOK 1.1 billion as of the third quarter of 2023, with the majority of the orderbook scheduled for execution in 2024. Order intake for 2024 has been strong after the balance sheet date, adding approximately NOK 130 million in additional orders during October. With its recent commercial success, Hexagon Purus has a strong and diversified portfolio of long-term agreements across several applications supporting the Company’s medium and long-term targets. As more of these long-term agreements comes online and customer purchase orders are released as part of the long-term agreements, the Company expect corresponding growth in the order backlog, although order intake will fluctuate from quarter to quarter. For 2023, the Company expects revenue growth of approximately 50% year-over-year.

With several growth initiatives underway, including building production capacity and organizational capabilities to support customer launch activities and expected market demand in the coming years in North America, Europe and Asia, Hexagon Purus is in the investment phase of its development. Such investments are expected to impact profitability over the near-to-medium term. The relative EBITDA margin is expected to significantly improve year-over-year, but EBITDA will continue to be impacted by ramp-up of the organization and production facilities. Negative EBITDA for full-year 2023 is expected to widen by approximately 10% compared to full-year 2022 EBITDA.