What are the reasons behind the drop in revenues compared to Q2'24, and are they temporary or structural?

Why revenues fell:

Hexagon’s Q2 2025 sales slipped to NOK 674 m from NOK 1,150 m in Q2 2024 – a ~41 % decline. The drop is driven by a combination of demand‑cycle and execution factors. First, global clean‑gaseous‑energy projects (e.g., hydrogen‑storage and compressed‑natural‑gas‑transport) have entered a mid‑year slowdown as many large‑‑scale pilots that booked in the first half of 2024 were completed, leaving a gap before the next wave of commercial roll‑outs. Second, Hexagon disclosed supply‑chain bottlenecks and component‑lead‑time extensions that forced the company to defer shipments and trim order intake for the quarter. Finally, the broader macro environment – weaker industrial activity in Europe and a modest pull‑back in capital‑expenditure for energy‑transition assets – reduced new‑project pipelines, further curbing top‑line growth.

Temporary vs. structural:

These headwinds are largely temporary. The Q2 2024 revenue base was inflated by a concentration of large‑project deliveries that are not recurring each quarter. The current short‑fall reflects a seasonal trough in the rollout of hydrogen‑storage systems and a transient supply‑chain squeeze rather than a permanent erosion of the company’s market position. Hexagon’s long‑term fundamentals – world‑leadership in composite cylinders, a growing hydrogen‑economy, and a diversified customer base – remain intact. Unless the supply‑chain constraints become chronic or the hydrogen market fails to scale, the revenue dip should reverse as new contracts materialise in the second half of 2025.

Trading implications:

* Short‑term bias: The market has already priced in the Q2 miss (price down ~5‑7 %). With the downside largely priced, a short‑cover rally is plausible if the company confirms a robust order backlog for H2‑storage in its Q3 update.

* Key watch‑list: Q3 2025 guidance on order intake, any update on component lead‑times, and macro‑E‑U‑energy‑capex data. A buy‑on‑dip if the backlog shows a clear upward trajectory; otherwise, a defensive short if the supply‑chain issues appear persistent.

* Technical: The stock is testing the Q2‑low support around NOK X (insert current price). A break above the 20‑day SMA (~NOK Y) with volume could signal the start of the recovery phase. Conversely, a breach of the recent low could flag a deeper, possibly structural, weakness.