Hexagon AB $HEXA B (+0,84%) is a leading global provider of digital solutions for the measurement, automation and optimization of industrial processes. Based in Stockholm (Sweden), the company combines hardware (e.g. sensors, laser scanners) with powerful software and AI to make manufacturing, infrastructure, safety and environmental processes more efficient and precise.
Hexagon is divided into two main business areas:
- Geospatial Enterprise Solutions (GES): solutions for surveying, mapping, public safety and infrastructure.
- Industrial Enterprise Solutions (IES): software and automation solutions for manufacturing, construction, aerospace and energy.
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Current business development (H1 2025)
- Sales growth: +6% YoY (organically approx. +3%)
- Strong demand: particularly in the area of autonomous manufacturing and digital twins
- Gross margin: >60%, remains strong thanks to software share
- Free cash flow: robust, despite investments in AI and cloud infrastructure
- M&A: acquisition of several medium-sized software companies in the areas of infrastructure intelligence and smart construction
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Investment case - why Hexagon is interesting
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Growth market
Hexagon is benefiting from the structural trend towards the digitalization of industrial processes, the increasing need for precise data analysis (e.g. in smart cities, autonomous driving) and ESG-driven efficiency gains.
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Strong margin structure
High software share (over 40% of sales) ensures stable margins and predictable income from subscriptions and maintenance contracts.
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Innovative strength
Hexagon consistently invests in AI, cloud solutions and autonomous systems - e.g. for construction robots, self-driving mining vehicles or digital construction site monitoring.
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Defensive business model
Many customers come from areas such as infrastructure, energy, the public sector or manufacturing - in other words, they are relatively resistant to economic cycles.
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Risks & challenges
- Interest rate sensitivity: Higher interest rates generally weigh on tech and software valuations.
- Competition: Competition from specialized software providers and big tech (e.g. Autodesk, Trimble, Bentley Systems).
- Integration risks with acquisitions: Many acquisitions require smooth integration in order to realize synergies.
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Conclusion for investors
Hexagon is a technology leader with a solid balance sheet, recurring revenues and attractive growth prospects in the industrial and infrastructure sector. For long-term investors with a focus on digitalization, automation and "Industry 4.0", the share offers an exciting, albeit not risk-free, investment.
