Hexagon Purus Q2 2025 slides: Revenue plunges 63% as company expands cost cuts

Hexagon Purus (OB:HPUR) reported a significant Q2 2025 financial deterioration, with revenue down 63% year-over-year to NOK 193 million and EBITDA worsening to negative NOK 161 million, largely driven by steep declines in its hydrogen segments, which has sent its stock plunging. In response, the company is aggressively expanding its cost reduction program to NOK 350 million and reducing its workforce by 30%, while initiating strategic reviews of its Battery Systems and Hydrogen Mobility businesses. Despite these challenges, Hexagon Purus secured its highest quarterly order intake since 2023, building a NOK 1,056 million backlog, and projects improved activity in H2 2025, though the majority of this backlog is for delivery beyond 2027.

Analysis

Hexagon Purus (HPUR) reported a severe deterioration in its Q2 2025 financial performance, with revenue plummeting 63% year-over-year to NOK 193 million and EBITDA worsening to a loss of NOK 161 million from a NOK 97 million loss in the prior year. The decline was driven by a near-total collapse in its core hydrogen segments, with hydrogen infrastructure revenue falling 95% and hydrogen mobility revenue down 40%. In response, management is implementing drastic measures, including expanding its cost reduction target to NOK 350 million and increasing planned workforce reductions to 30%. Furthermore, the company has initiated a strategic review of its Battery Systems and Vehicle Integration (BVI) and Hydrogen Mobility business units, signaling potential divestitures or restructuring to preserve its NOK 527 million cash position. While a 33% sequential increase in the order backlog to NOK 1,056 million provides some positive forward-looking indication, its impact is muted by the fact that 69% of this backlog is scheduled for delivery beyond 2027, offering little relief to near-term financial pressures.

Key Decisions for Investors

• Given the significant revenue contraction and widening EBITDA losses, investors should treat HPUR as a high-risk, special situation play, with the company's survival dependent on successful execution of its aggressive cost-cutting and strategic review.
• Monitor the outcome of the strategic review of the BVI and Hydrogen segments, as a potential asset sale could provide a critical cash infusion and de-risk the balance sheet, representing a key potential catalyst.
• Investors should scrutinize H2 2025 results for evidence that management can translate its growing order backlog into revenue and stabilize cash burn, as failure to do so could jeopardize the company's solvency.