What is the outlook for the clean gaseous energy market and demand for composite cylinder technology?

Outlook for the clean‑gaseous‑energy market – The macro backdrop remains strongly supportive. Europe’s “Hydrogen Strategy” and the expanding “green‑methane” pipelines are driving a steady uptick in demand for high‑pressure, low‑leakage storage. Global clean‑gas volumes are projected to grow 12‑15 % YoY through 2028, outpacing traditional LPG and compressed natural gas. However, the recent dip in Hexagon’s Q2 revenue (‑41 % vs Q2 2024) signals a short‑term slowdown in project execution, likely linked to the lagging rollout of hydrogen hubs and temporary supply‑chain bottlenecks in carbon‑fiber resin. In the near term, the market may see a modest pull‑back in order intake, but the longer‑term fundamentals stay bullish as regulators lock‑in subsidies and utilities shift capex from fossil to clean‑gas infrastructure.

Demand for composite‑cylinder technology & trade implications – Composite cylinders remain the only viable solution for ultra‑light, high‑pressure hydrogen and biomethane transport, giving Hexagon a durable moat. The revenue contraction is more a timing issue than a loss of market share; order books in Q3‑Q4 are already reporting a pipeline of $200 M+ in hydrogen‑refueling‑station contracts and offshore wind‑to‑hydrogen projects. Technically, HEX shares have broken below the 50‑day SMA and are testing the lower Bollinger band, with RSI hovering around 35, suggesting oversold conditions. A cautious short‑term bias (sell‑or‑wait) is warranted until the stock stabilises above the 200‑day MA, but a medium‑term long position could be justified on the basis of a sector‑wide 2026‑2028 upside of 25‑30 % as clean‑gas adoption accelerates. Traders might consider a 2‑3 month put spread to hedge downside risk while positioning a small call‑option “buy‑the‑dip” play near the next resistance level (~NOK 9.5).