Hexagon Purus ASA, a leading provider of hydrogen Type 4 high-pressure cylinders, battery systems, and vehicle integration solutions, has reported a record-breaking Q3 2023 revenue of NOK 380 million ($43 million), a significant 71% year-over-year increase. The company's year-to-date (YTD) revenue has also seen a substantial rise, reaching NOK 954 million ($108 million), up by 61%.
The growth is primarily attributed to the company's hydrogen infrastructure solutions and increased activity in mobility applications such as heavy-duty vehicles, transit buses, and aerospace applications. A notable contribution came from a EUR 6.4 million ($7.3 million) order from Solaris for hydrogen fuel storage systems.
CEO Morten Holum announced the inauguration of a hydrogen cylinder production hub in Kassel, Germany, along with a ten-year lease for a vehicle integration facility in Dallas to support major contracts announced in 2023. As part of Hexagon Purus' capacity expansion program, five new production facilities are expected to be operational by 2024.
Q3 concluded with an impressive order backlog of NOK 1.1 billion ($125 million) and total assets tallying NOK 3,786 million ($430 million), marking a year-over-year increase driven by property and equipment acquisitions related to the capacity expansion program.
Despite the positive growth figures, the company faced increased operating expenses standing at NOK 496 million ($56 million), resulting in an EBITDA of NOK -116 million (-$13 million). The company's equity and non-current liabilities were impacted by a convertible bond issuance of NOK 800 million ($91 million) and increased lease liabilities, maintaining an equity ratio of 56%.
The company's customer demand is projected to accelerate due to strong legislative tailwinds, with several long-term agreements already secured. This boost in confidence has led to an expectation of approximately 50% YoY revenue growth for 2023. However, investments related to growth initiatives are expected to impact profitability over the near-to-medium term.
InvestingPro Insights
Based on the latest data from InvestingPro, Hexagon Purus ASA's 1 Week Price Total Return as of Q4 2023 was 3.78%, while the 1 Month Price Total Return was 2.6%. The company's Price % of 52 Week High was 80.36%, indicating a strong market performance.
Turning to InvestingPro Tips, it's worth noting that Hexagon Purus ASA's revenue growth has been slowing down recently, which aligns with the company's investment in growth initiatives that are expected to impact profitability in the near-to-medium term. Additionally, while Hexagon Purus ASA does not pay a dividend to shareholders, the company's liquid assets exceed short term obligations, suggesting a healthy financial standing.
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