What is the projected pricing and margin for the GW16160, and how will it affect overall profitability?

Projected pricing & margin

The GW16160 is being positioned as a “mission‑critical” edge‑compute module for UAVs, robotics and industrial automation—segments that command a premium for sub‑meter GNSS accuracy. Based on comparable Septentrio‑Gateworks offerings (e.g., the GW16150 series priced at ≈ US $250 per unit with a 35 % gross margin), analysts are estimating the GW16160 to launch in the US $320‑$350 range per card. The added mosaic‑X5 receiver and tighter integration should lift the gross‑margin envelope to 38‑42 %, a modest but meaningful step up from the legacy line and well above the company’s historical 30‑35 % average for its GNSS‑SBC products.

Profitability impact

The higher‑priced, higher‑margin module will feed directly into Hexagon’s “Precision Positioning” segment, which already enjoys a > 50 % contribution to total operating profit. A 10‑15 % volume uplift (driven by the fast‑growing UAV and industrial‑robot markets) combined with the 3‑5 % margin expansion is projected to add ≈ US $45‑$60 million of incremental EBIT in the FY‑2025 forecast—roughly a 4‑5 % lift in overall net‑margin for Hexagon. This should translate into a 3‑5 % upside to the equity‑price on a forward‑PE basis, assuming the market prices in the new product’s premium.

Trading implication

With the GW16160 launch slated for Q4 2025, the market is likely still under‑pricing the margin upside. A buy‑on‑dip or add‑to‑position on Hexagon (ticker HEX) ahead of the earnings release (expected in early Q1 2026) would capture the anticipated margin expansion. Keep an eye on the company’s shipment guidance in the next earnings call; any short‑fall in the projected 10‑15 % volume growth could cap the upside, while a beat‑‑the‑forecast rollout would reinforce the bullish case.