Q3 2024 Hexagon Composites ASA Earnings Call Transcript
Key Points
- Hexagon Composites ASA (HXGCF) reported a record high EBITDA for Q3 2024, driven by increased volume and improved operational efficiencies.
- The company achieved a 15% EBITDA margin, meeting its target and reflecting strong financial performance.
- Hexagon Composites ASA (HXGCF) received a major order from a US refuse collector company, valued at approximately USD 18 million, indicating strong demand in the RNG sector.
- Hexagon Purus, a major shareholder of Hexagon Composites ASA (HXGCF), successfully raised capital, ensuring funding well beyond the cash flow break-even stage.
- The RNG business is experiencing significant growth, with new orders from fleets adopting the X15 engine, including 40% new adopters transitioning from diesel to RNG.
- Despite strong performance, there is concern about potential margin compression in Q4 2024, as implied by the company's guidance.
- The company faces uncertainty regarding the timing of larger orders from fleet operators currently in the pilot phase with the X15 engine.
- Hexagon Composites ASA (HXGCF) is still in the early stages of its investment in Cryo Shelter, which may require additional funding before becoming profitable.
- There is potential risk associated with political changes in the US, such as the impact of a new presidential administration on the business environment.
- The company's guidance for 2024 EBITDA of NOK 560 million is perceived as conservative, suggesting possible underestimation of future performance.
Good morning, and welcome to Hexagon Composites Q3 2024 presentation. My name is Karen Romer. I'm the SVP of Communications. I'll be your moderator for today. Joining me here in the room is Knut Flakk, the Chairman of our board and David Bandele, our CFO. Knut will present today the Q3 highlights and the market update. And then David will join us for the financials and the outlook. I'm sorry. And then Knut will sum up the day.
Afterwards, there will be a Q&A and for those of you in the audience, just raise your hand and Emily here will come over with the microphone. And for those of you on the digital audience, there is a field on your screen. Please feel free throughout the broadcast to type in your questions there and we will take them at the end.
And then I'd just now like to invite Knut to join us on the stage.
Thank you, Karen and good morning, everyone.
I am really proud to be here and
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