First quarter January 1 - March 31, 2026
- Net sales of SEK 1,698 million (1,882), an organic decline of 2 percent.
- Adjusted EBITA amounted to SEK 146 million (184), corresponding to a margin of 8.6 percent (9.8). Margin sequentially higher than Q4 2025 after 5 quarters of decline.
- Continued strong performance in Data Center, now biggest contributor to group Adjusted EBITA with SEK 73 million.
- Strong organic growth in Harsh Environment of 9 percent, adjusted EBITA margin somewhat muted due to unfavourable product mix.
- Fiber Solutions declined 11 percent organically driven by Europe while US market reported organic growth. Adjusted EBITA margin of 6.2 percent was a sequential improvement after 5 quarters of decline.
- Profit for the period amounted to SEK 92 million (86).
- Adjusted leverage amounted to 2.2x based on annualized adjusted EBITDA.
- Cash flow from operating activities amounted to SEK 29 million (-50).
- Initial performance improvement program finalized.
- Hexatronic announced the acquisition of JOWO Systemtechnik AG in Germany.
Events after the end of the quarter
- Hexatronic closed the JOWO Systemtechnik AG acquisition.
Comments from the CEO
Continued organic growth in Data Center and Harsh Environment, with Data Center now being the largest EBITA contributor in Hexatronic.
In Q1 2026, we saw resilient organic growth for Harsh Environment and Data Center while Fiber Solutions continues to be challenged by weaker market conditions, mainly in Europe. Net sales for the group amounted to SEK 1,698 million, a decrease by 10 percent of which 9 percentage points were driven by FX headwinds. Adjusted EBITA amounted to SEK 146 million, corresponding to a margin of 8.6 percent.
Data Center is now the largest contributor to group adjusted EBITA. This reflects the business area's strong growth and margins, which have resulted in it becoming the largest contributor in absolute earnings terms. Harsh Environment continues to see strong organic growth while margins were muted on the back of an unfavourable product mix. Fiber Solutions continues to experience a challenging European market; however, we are starting to see the expected improvement in North America with organic growth in the important US market during the quarter.
Continued staunch performance by Data Center
Data Center continued its rapid growth with net sales of SEK 434 million, corresponding to an organic growth of 20 percent. Market activity continues to be strong, particularly in the US. We expect this favourable trend to continue and see a high level of activity and prospects overall. The adjusted EBITA margin in the quarter was 16.8 percent, which is sequentially higher than Q4 2025, but a slight decline compared to Q1 2025 since we continue to make investments into organic growth initiatives.
Organic growth within Harsh Environment
Harsh Environment delivered strong net sales of SEK 283 million, with an organic growth of 9 percent and an adjusted EBITA margin of 8.5 percent. The strong organic top-line performance was driven by both dynamic cables and connectivity solutions. Adjusted EBITA margin was lower than Q1 2025, mostly due to unfavourable product mix which was exacerbated by timing effects lingering from the US government shutdown that happened in 2025.
We are truly excited to welcome JOWO Systemtechnik AG into the Hexatronic Group, starting April 1. JOWO is a German manufacturer and distributor of connectors and related products serving customers primarily within the defense sector. This acquisition supports our plans to grow the connectivity solutions segment and provides us with complementary technology as well as expanded access to key customer segments.
Restructuring program concluding in Fiber Solutions
Fiber Solutions continued to navigate a challenging market environment, consistent with recent quarters. Net sales amounted to SEK 982 million, corresponding to an organic decline of 11 percent. The weaker performance was primarily driven by softer demand in Europe, where an unusually cold winter added to a slow start to the year. At the same time, we saw gradually increasing momentum in the US and a progressively stronger quarter that resulted in positive organic growth in this market. Compared to Q4 2025, we saw muted submarine cable net sales in this quarter due to timing of shipments. However, we have a strong order book for 2026.
During the quarter, we finalized the initial performance improvement program announced in Q3 2025. These cost savings were a key reason why we saw a sequentially improved EBITA margin of 6.2 percent. In fact, we realized most of these cost savings slightly ahead of original plan, positively impacting the quarter. The adjusted EBITA thus amounted to SEK 61 million, same as in Q4 2025 where we had higher sales on the back of large shipments of submarine cable.
Solid cash flow and leverage
As expected, interest-bearing net debt, excluding IFRS 16, increased slightly to SEK 1,672 million from SEK 1,582 million at the end of 2025, resulting in an adjusted leverage of 2.2x from 1.9x. This was driven mainly by negative FX effects and a comparison with a stronger EBITDA in Q4 2025. We expect leverage to increase slightly during Q2 2026 as we are paying an earnout from a previous acquisition.
Our operating cash flow in the quarter was modestly positive at SEK 29 million with a cash conversion of 26 percent. This is in line with the typical seasonality pattern and also reflects higher accounts receivables due to a strong end to the quarter.
Outlook
The macro environment has undoubtedly become more difficult to predict. Recent developments have caused volatility in input costs and availability of mainly resin and fiber, both of which have seen significant price increases. While these cost movements did not have a material impact in the quarter, they will play a growing role in months to come. We are responding with price increases, obviously with an ambition to fully compensate higher input costs with pricing actions.
We also expect continued currency headwinds from a strengthened SEK affecting net sales, albeit with less impact than what we have seen in the last few quarters. This will however have limited impact on EBITA due to our localization strategy.
In Data Center, we expect the strong growth to continue and margins to slightly improve in Q2 2026. Our order book is strong, and customer activity remains at a high level with no signs of slowing down. We have a robust M&A pipeline of attractive targets with whom we are in active dialogue.
For Fiber Solutions, we expect the challenging FTTH market in Europe to persist, with the market continuing to focus on shifting from building "homes passed" to connecting new subscribers. Conditions in North America are now validating our anticipated gradual improvement and are thus expected to result in a continued positive organic growth in Q2 2026. The demand for submarine cables remains strong and we have a rather full order book for the remainder of 2026 with main shipments scheduled for Q3 2026. As noted, the cost improvements from restructuring were largely completed in Q1 and are expected to continue at a similar level in quarters to come.
For Harsh Environment, long-term growth prospects remain favourable as energy and defense sectors continue to expand. In the short term, we may see some further headwinds from the 2025 US Government shutdown in Q2 2026, after which margins are expected to recover to levels in line with quarters seen previously. We are also actively looking for M&A targets, primarily within connectivity solutions.
The order book at the end of Q1 2026 for the group was in line with the previous quarter and amounted to around 2.5 months of net sales.
In summary, we continue the year with strong positions in our key growth areas and action plans for addressing external challenges. While the geopolitical environment remains uncertain, we are confident in our ability to manage short-term challenges through disciplined execution, an improved cost base and close customer relationships.
With the strategic shift towards Data Center and Harsh Environment again demonstrating progress and Fiber Solutions showing signs of profit stabilization, we are well positioned to deliver long-term value.
Rikard Fröberg
President and CEO
Presentation
Hexatronic will present the interim report at a webcast conference call today, Wednesday, April 29, 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/q1-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/q1-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. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-04-29 07:00 CEST.
