Published by Global Banking & Finance Review®
Posted on July 25, 2025
2 min readLast updated: January 22, 2026
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Hexagon exceeded profit forecasts despite market uncertainty, achieving 3% organic growth. Challenges persist in the Geosystems unit, prompting new growth strategies.
(Reuters) -Swedish industrial technology group Hexagon reported a smaller than expected drop in its quarterly operating profit on Friday, but said the continued market uncertainty made it difficult to forecast results for the remainder of the year.
The maker of measurement and positioning systems said its adjusted operating earnings fell 10% to 360.6 million euros ($423.6 million) in the quarter, but beat the 358.1 million euro estimate from 12 analysts polled by LSEG.
"Organic growth in the second quarter was 3%, as the divisions mitigated delays in customer decision making due to ongoing geopolitical uncertainty," Anders Svensson, who took over as CEO earlier in July, said in the earnings statement.
The market environment was most challenging in the Geosystems unit, which develops digital solutions used by customers in the construction sector among others, he added.
In April, Hexagon said that tariff-related uncertainty had impacted demand in key countries, hitting its volumes and operating margins. It warned at the time that the second-quarter earnings would take a hit of up to 15 million euros before mitigation actions.
In order to accelerate organic sales growth, Svensson said Hexagon was working on a cost improvement programme that would be implemented as soon as possible.
($1 = 0.8513 euros)
(Reporting by Marta Frąckowiak in Gdansk; Editing by Milla Nissi-Prussak)
Operating profit is the profit a company makes from its core business operations, excluding deductions of interest and taxes. It reflects the efficiency of the company's operations.
Organic growth refers to the increase in a company's revenue generated from its existing business operations, excluding any revenue from mergers or acquisitions.
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