Hexatronic Group AB (publ) Interim report Q2 ...
Second quarter April 1 – June 30, 2026
- Net sales of SEK 2,245 million (1,906), an organic growth of 11 percent.
- Adjusted EBITA of SEK 224 million (169) increased by 33 percent.1
- Adjusted EBITA margin of 10.0 percent (8.9), sequentially higher than Q1 2026 and Q4 2025.1
- Fiber Solutions grew 11 percent organically driven by strong performance in the US market. Adjusted EBITA grew 56 percent to SEK 122 million (78) driven by the performance improvement program and higher volumes. Adjusted EBITA margin increased to 9.1 percent (6.4).
- Continued strong performance in Data Center with 27 percent organic net sales growth and an adjusted EBITA margin of 15.5 percent.
- Harsh Environment net sales declined 4 percent organically. Adjusted EBITA margin of 10.0 percent, a decline due to continued headwinds from unfavorable product mix, albeit with a sequential improvement.
- Profit for the period amounted to SEK 131 million (77).
- Adjusted leverage reduced to 1.7x driven by the directed share issuance and stronger EBITDA and cash flow.2
- Cash flow from operating activities amounted to SEK 181 million (131).
Significant events in the quarter
- Completed the acquisition of JOWO Systemtechnik AG.
- Hexatronic carried out a directed share issue, raising gross proceeds of approximately SEK 600 million.
- Hexatronic announced and closed the acquisition of Superior Fiber & Data Services.
- Deputy CEO Martin Åberg decided to leave Hexatronic.
- Hexatronic signed a strategic partnership with NKT and will expand its submarine cable production footprint in Hudiksvall, Sweden.
Significant events after the quarter
- Oscar Wärme was appointed acting Head of Data Center and member of the Executive Management Team, effective August 1, 2026.
Comments from the CEO
Strong organic growth and continued margin improvement
Q2 2026 was a strong quarter for Hexatronic, characterised by rapidly improving financial performance and several key milestones achieved. Net sales were SEK 2,245 million with an organic growth of 11 percent and an adjusted EBITA of SEK 224 million which is an increase of 33 percent over last year. It was particularly encouraging to see our Fiber Solutions business improving both top and bottom line. The Data Center business continues its stellar growth trajectory and broke through SEK 500 million of quarterly sales for the first time.
We also completed a directed share issue, which was oversubscribed several times, raising approximately SEK 600 million in gross proceeds. The proceeds funded the acquisition of Superior Fiber & Data Services, while also strengthening our financial headroom for continued acquisitions.
Continued reshaping of the Hexatronic business
We continue the journey of driving our business mix towards higher margin and higher growth segments. In the second quarter, our Data Center and Harsh Environment businesses generated about 40 percent of Group net sales and almost 50 percent of adjusted EBITA before group eliminations, even after the strengthened profitability in Fiber Solutions. Our North American business is now strongly back to growth and accounted for 44 percent of global net sales, up from 34 percent in Q2 2025.
Strong organic growth and margin in Fiber Solutions
Fiber Solutions has turned a corner and saw 11 percent organic net sales growth and adjusted EBITA improvement. The strong results were driven by higher volumes, particularly in the US market, and the cost savings from our performance improvement program. As volumes now increase, capacity utilization improves which strengthens operating leverage, supporting the margin expansion. Demand in the US remains upbeat, driven by both ongoing FTTH build-out and increased investments in transport networks as data centre growth places higher demands on data transmission. We have not yet seen this effect in Europe, where demand remains softer.
Continued strong results in Data Center
Data Center’s strong growth trajectory continued in the quarter and exceeded SEK 500 million for the first time. Demand remains high, particularly in the US, supported by continued investments in digital infrastructure and computing power across our customer segments. During the quarter, we closed the acquisition of Superior Fiber and Data Services which was consolidated into the group from June 1. We are very excited by this acquisition which gives us access to new customers and offerings.
Adjusted EBITA grew 16 percent in absolute terms while the margin declined somewhat compared to last year as Q2 2025 was an exceptionally strong quarter. We also continue to invest in organic growth opportunities.
Muted demand in Harsh Environment
As expected, Harsh Environment continued to face headwinds in the quarter driven by an unfavourable product mix and timing of some projects. While overall net sales increased, largely due to the acquisition of JOWO Systemtechnik, organic growth was -4 percent. Margin was also slightly lower than last year, but higher sequentially. Within the business area connectivity solutions showed strong performance, primarily driven by customer wins and growing demand from the defense industry. Dynamic cables reported lower net sales driven by a delayed order book from customers in the oil and gas industry. While demand remained somewhat subdued in the quarter, the underlying business fundamentals are unchanged, and we saw a modest acceleration in order intake towards the end of the quarter.
Investing for sustainable growth
With the cost savings actions in Fiber Solutions now largely completed, we are again investing for growth. During the quarter, we announced a strategic partnership with NKT tied to a major expansion of our submarine cable production capacity in Sweden. The investment more than doubles our capacity in this attractive market segment and is supported by long-term volumes for NKT through 2032, providing both visibility and stability. We expect the new production line to be operational in 2028.
We are also investing in our team and adding commercial resources in North America and Asia where we see promising opportunities to expand our customer and distribution base.
The drive to accelerate innovation continues, with several new products launched and a growing pipeline.
Cash flow and leverage
Net debt, excluding IFRS 16, decreased to SEK 1,470 million from SEK 1,672 million compared to Q1 2026, resulting in an adjusted leverage of 1.7x compared to 2.2x. The lower leverage was driven by the directed share issuance, a stronger EBITDA and positive cash flow. Cash flow from operating activities was strong at SEK 181 million, corresponding to a cash conversion of 84 percent, and reflects a solid underlying profitability and continued focus on working capital efficiency.
Outlook
Input costs such as fiber and resin continued to be on elevated levels during the quarter, and it is our ambition to fully pass these increased costs on through price increases.
Within Data Center, we expect the strong growth to continue with similar margins as the last four quarters. We have a solid M&A pipeline of attractive targets and a strong financial position which gives us financial flexibility to fund further growth
For Harsh Environment, long-term growth prospects remain favourable as energy and defense sectors expand. In the short term, we expect to see continued strong demand in the defense sector with somewhat softer demand from the oil and gas industry. We foresee a modest margin improvement in H2 2026 compared to H1 on the basis of a more favourable product mix.
For Fiber Solutions, North America offers attractive growth and market share gain opportunities, supported by fiber deployment in both FTTH buildout but also increasing needs to upgrade the backbone network due to the increased data transmission from data centers. However, we expect the European FTTH market to remain soft in the near term, as focus shifts from network build-out to subscriber connections. Demand for submarine cables remains strong, and our capacity expansion positions us well to capture this growth going forward. In the short term, we expect results in Q3 2026 to be in line with Q2 2026.
The order book at the end of Q2 2026 for the group increased somewhat compared with the previous quarters and amounted to around 4 months of net sales.
In summary, we continue to see good progress on our strategic plans across all three business areas. As the bulk of cost savings activities in Fiber Solutions are now behind us, we are refocusing that business on organic growth. With a lowered financial gearing, we have ample room to invest in the most attractive growth opportunities in a world that is only growing the demand for fast and reliable digital infrastructure.
Rikard Fröberg
President and CEO
Presentation
Hexatronic will present the interim report at a webcast conference call today, Wednesday, July 15, 2026, at 10.00 CEST. CEO Rikard Fröberg, CFO Pernilla Lindén, Deputy CEO Martin Åberg and Head of Investor Relations Patrik Johannesson will participate.
Please use the link below to follow the webcast presentation. During the webcast, participants will have the opportunity to ask written questions.
https://hexatronic-group.events.inderes.com/q2-report-2026/register
To participate via the teleconference, please register using the link below. After registration, you will receive a telephone number and a conference ID to log into the conference. During the conference call, you will have the opportunity to ask questions.
https://events.inderes.com/hexatronic-group/q2-report-2026/dial-in
The webcast and presentation materials will be available on the Hexatronic website.
For more information, please contact:
Patrik Johannesson, Head of Investor Relations
patrik.johannesson@hexatronic.com
+46 73-033 25 18
About Us
Connectivity creates opportunity. Hexatronic delivers future-ready fiber solutions for critical infrastructure, from telecom networks to rugged environments and data centers. Our systems are built to last, designed to scale, and supported by expert training and field services. In close collaboration with our customers, we shape solutions that strengthen communities and drive innovation in a connected world.
This information is information that Hexatronic Group is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-07-15 07:00 CEST.