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(Oslo, Norway) has announced an all-time-high quarterly revenue of NOK 407 million ($37.5 million) in Q1 2024, up 67% from Q1 2023. In particular, the company’s hydrogen mobility and infrastructure (HMI) segment is up 66% with infrastructure up 38% and mobility — which covers revenue from CFRP Type 4 cylinders and systems in vehicles — was up 213%. Moreover, construction of all new production facilities is complete and extensive ramp-up continues across the new manufacturing footprint; backlog of firm purchase orders worth ~NOK 1.2 billion  (~$100.4 million) is positive for full-year revenue ambitions.

“We have just reported a record quarter for Hexagon Purus, keeping us well on track to meet our targets for 2024,” says Morten Holum, CEO of Hexagon Purus. “We continue our extensive ramp-up activities across the new manufacturing sites … and remain laser focused on driving profitability through volume growth … I remain confident that we will be able to meet our operational and financial targets for the year.”

Hydrogen (H₂) infrastructure and H₂ mobility solutions, leading up to the aforementioned 67% revenue increase, were the main drivers of growth year over year for the company, combined with continued positive momentum in aerospace applications. Total assets at the end of the Q1 2024 totaled NOK 4,832 (3,935) million. The year-over-year increase in total assets is mainly driven by increases to property, plant and equipment and right-of-use assets as a result of the company’s capacity expansion program, combined with an increase in working capital to cater for a higher activity level. Trade receivables increased to NOK 359 (226) million and inventory stood at NOK 577 (403) million. The company’s working capital position reflects its sustained growth track record, which is expected to continue in 2024.

Net cash flow from operating activities in Q1 2024 was NOK -211 (-119) million, of which NOK -109 (-18) million was due to an increase in net working capital, driven by an increase in inventory and trade receivables.

Net cash flow from investing activities was NOK -132 (-106) million in Q1 2024 with NOK -130 million relating to investments in production equipment and facilities related to the capacity expansion program. Net cash flow from financing in the quarter was NOK 985 (1,244) million and positive inflow from financing was due to the issuance of the NOK 1 billion convertible bond (2024/2029) while cash and equivalents stood at NOK 965 (1,366) million at the end of the quarter.

H₂ Mobility and Infrastructure (HMI)

Revenue for the HMI segment in Q1 2024 totaled NOK 388 million, up 66% year over year. Fifty-four percent (65%) of the HMI segment revenue in Q1 2024 stemmed from H₂ infrastructure solutions, which grew 38% year over year. Hydrogen mobility, which covers revenue from the sale of Type 4 H₂ cylinders and cylinder systems for H₂-propelled on-road and off-road vehicles, made up 26% (14%) of HMI segment revenue in the first quarter of 2024, and saw year-over-year growth of 213%.

EBITDA for the HMI segment in the first quarter of 2024 ended at NOK -16 (-35) million, equivalent to an EBITDA margin of -4% (-15%). As more customer deliveries with solid gross margins come online, scale and fixed cost absorption increases, leading to improved profitability.

Outlook

With the completion of the company’s capacity expansion program this year, significant revenue capacity is added and will serve as a key enabler for the company to reach its short- to medium-term targets.

H₂ infrastructure solutions will be a key growth driver for 2024, Hexagon Purus believes. The new H₂ infrastructure and systems manufacturing hub that Hexagon Purus recently opened in Weeze, Germany, will more than double (at run-rate) the company’s production capacity for H₂ distribution modules and will help meet the growing demand expected for H₂ infrastructure solutions. Close to 90% of this year’s production capacity for H₂ distribution modules has either already been sold to customers or are in the final stages of being sold.

Simultaneously, the new state-of-the-art H₂ cylinder production facility in Kassel will boost production of cylinders for both H₂ infrastructure and mobility solutions. Growth from H₂ storage solutions for transit bus and heavy-duty vehicles is another key growth driver for 2024.

The company’s backlog of firm customer purchase orders stood at ~NOK 1.2 billion — with the vast majority for execution in 2024 — which is expected to continue to grow as 2024 progresses, mainly driven by call-offs from already secured long-term agreements with companies like Air Liquide, Linde, Lhyfe, Solaris, Nikola, Hino and Daimler. Hexagon Purus continues to focus on improving profitability, combined with prudent and restrictive capital deployment.

For the full-year 2024, the company expects revenue growth of at least 50% over 2023, as well as significant improvement in the EBITDA margin.