HEX

How does Hexagon Composites' performance compare with its main competitors (e.g., Worthington Industries, Chart Industries) in the same period?

Created August 14, 2025 at 05:24 AM

Fundamental comparison

Hexagon Composites reported Q2‑2025 revenue of NOK 674 m, a ≈41 % drop from Q2‑2024 (NOK 1,150 m). The decline reflects a softer demand for composite‑cylinder solutions in Europe, weaker downstream clean‑energy projects and a 10‑% contraction in its order backlog. By contrast, both Worthington Industries (WOR) and Chart Industries (CHCI) posted year‑over‑year revenue growth in Q2‑2025. Worthington’s Q2 sales rose about 8 % to US $1.2 bn, driven by a rebound in hydrogen‑storage contracts and a 12 % uplift in its high‑pressure cylinder segment. Chart’s Q2 revenue climbed roughly 5 % to US $1.0 bn, buoyed by strong cryogenic‑tank orders for LNG and a 9 % expansion of its U.S. gas‑distribution business. Both peers also reported expanding gross margins (WOR ≈ 38 % vs 35 % in Q2‑2024; CHCI ≈ 34 % vs 31 %). Hexagon’s margin compression to ~30 %—well below its peers—signals higher cost pressure and under‑utilised capacity.

Technical & trading implications

Hexagon (HEX.OL): The price has been on a downtrend since the Q2 earnings beat, breaking the 20‑day SMA and testing the 61.8 % Fibonacci retracement of its 2024 high. Volume‑weighted RSI is hovering around 30, indicating oversold conditions. With the revenue contraction and negative sentiment (‑55), the stock is vulnerable to further downside, especially if the order backlog does not rebound. A short‑term bounce could be possible on a technical support level around NOK 5.5, but a break below would open the path to NOK 4.8 (50‑day low).
Worthington (WOR) & Chart (CHCI): Both U.S. ADRs are in a higher‑trend channel, holding above their 20‑day moving averages and showing bullish MACD crossovers. Relative strength is positive (RSI ≈ 55‑60). The earnings upgrades have already priced in, leaving limited upside on the short‑term, but the fundamentals support a neutral‑to‑bullish stance for the next 4‑6 weeks, especially if hydrogen‑infrastructure spending accelerates.

Actionable take‑away

Hexagon: Consider a defensive position—either a modest short or a protective put—while monitoring the order‑book recovery and any forward‑looking guidance on Q3‑2025. The stock is priced low on a revenue slump; a clear turnaround in the next earnings cycle could trigger a short‑cover rally.
Worthington & Chart: Maintain long exposure or add to positions on pull‑backs; the sector’s demand fundamentals remain stronger in North America, and the peers’ expanding margins provide a cushion against a broader energy‑market correction.

Other Questions About This News

How will the 41% revenue decline affect Hexagon Composites' valuation and price targets? What are the reasons behind the drop in revenues compared to Q2'24, and are they temporary or structural? How sensitive is the stock to fluctuations in raw material prices such as carbon fiber or resin costs? How did operating margins and EBITDA change year‑over‑year, and what does that imply for profitability? Did the company provide guidance for Q3, full‑year 2025, or FY2026, and how does it compare to market expectations? What is the outlook for the clean gaseous energy market and demand for composite cylinder technology? Are there any significant changes in order backlog, new contracts, or customer concentration that could affect future cash flows? What is the company's cash position, debt level, and liquidity outlook after the earnings release? Did management comment on cost‑saving initiatives, supply‑chain constraints, or pricing power that could impact margins? Is there any indication of upcoming capital expenditures, M&A activity, or strategic pivots that could influence the stock? What macro‑economic factors (e.g., energy transition policies, hydrogen infrastructure spending) could influence the company's growth trajectory?