Hexagon Purus Terminates Deal with Daimler, Focuses on Growth

In a recent report, Hexagon Purus ASA announced the termination of its deal with Daimler Truck North America but is optimistic about future growth, projecting revenue growth of at least 50% and improvements in EBITDA margins.

Date: 04-10-2024

AI Rating: 7

The report indicates that Hexagon Purus ASA (HXGBF.PK) has mutually agreed to terminate a strategic deal with Daimler Truck North America (DTRUY) to supply battery electric vocational vehicles. Although this may appear negative at first, the company highlighted that this termination allows them to focus on more attractive battery electric commercial vehicle programs with potentially higher volumes and margins.

Hexagon has reaffirmed its outlook for the full year, projecting revenue growth of at least 50%. This strong growth projection suggests that the company is anticipating increased demand or successful strategies in the market, which can positively impact its stock price.

Additionally, the company expects a significant improvement in its EBITDA margin, indicating better efficiency in operations and profitability. This improvement is also projected for full-year 2025, where Hexagon expects another year of revenue growth of at least 50%.

Moreover, Hexagon aims to reach EBITDA break-even by 2026, suggesting a clear pathway to operational sustainability. While the termination of the Daimler deal could be seen as a setback, the overall narrative points towards a positive outlook, backed by strong revenue growth expectations and operational improvements.

Stocks: HXGBF DTRUY