Hexagon is a sensor-to-software digital reality leader entering a catalytic two-step transformation—Octave spin + Cadence cash—aimed at unlocking a sum-of-the-parts re-rating while macro and execution risks dominate the near term.
Overview
Hexagon AB is a global leader in “digital reality” solutions that fuse sensor hardware, software, and autonomous technologies to capture and operationalize physical-world data. Founded in 1975 and transformed through aggressive acquisition-led expansion since the early 2000s, the company has evolved into an integrated technology platform serving industrial, manufacturing, infrastructure, and public-sector customers. With ~24,500 employees in ~50 countries, it generated ~€5.43bn net sales in FY2025. Hexagon’s moat is its end-to-end “sensor-to-software” ecosystem: proprietary data capture (LiDAR, laser scanners, total stations, CMMs, GNSS) feeds into software (CAD/CAM, QMS, enterprise platforms) to create high-fidelity digital twins used for simulation, optimization, and real-time monitoring. Revenue is diversified across hardware, perpetual software, SaaS subscriptions, and recurring services, with a strategic push toward recurring, higher-margin revenue; recurring revenue reached €567.4m in Q4’25 and grew organically even amid hardware headwinds. The company is undergoing a major value-unlock transformation: spinning off ALI and SIG plus ETQ and Bricsys into Octave Intelligence (target H1 2026) and selling its D&E business to Cadence for €2.7bn—actions that aim to sharpen focus, improve valuation, and materially strengthen the balance sheet for “Hexagon Core.”