Hexagon Sets Ambitious 2026-2030 Targets Amid Portfolio Overhaul
Event summary
- Hexagon unveils 2026-2030 targets: 4-6% organic revenue growth, 24-26% EBITAC margin, 90-100% cash conversion.
- Company to spin off Octave and sell Design & Engineering business, focusing on precision measurement and positioning.
- Introduces EBITAC as primary profitability metric, excluding capitalized R&D costs.
- Commits to 70% reduction in Scope 1 & 2 emissions by 2030, net-zero by 2050.
- Robotics division excluded from financial targets due to rapid evolution.
The big picture
Hexagon is sharpening its focus on precision measurement and positioning technologies as it spins off non-core assets and sets ambitious financial targets. The company's push toward industrial autonomy aligns with broader industry trends toward automation and digital transformation. With a €3.7bn revenue base and a €38bn serviceable addressable market by 2030, Hexagon's strategic realignment could position it as a key player in enabling industrial autonomy.
What we're watching
- Execution Risk
- Whether Hexagon can deliver on its ambitious 4-6% organic growth target amid portfolio changes.
- Robotics Potential
- The pace at which Hexagon's Robotics Division can transition from investment phase to profitability.
- Sustainability Commitments
- How Hexagon will achieve its 70% Scope 1 & 2 emissions reduction by 2030.