Hexatronic will introduce a new segment reporting as of the first quarter of 2025 and make changes to the Executive Management Team. The decision will see the current focus areas evolve into three business areas - Fiber Solutions, Harsh Environment, and Data Center - and further focus Hexatronic's growth strategy for the coming years.
"We have successfully diversified our business into new, adjacent market segments experiencing strong growth. Harsh Environment and Data Center have come to represent a significant part of the group's sales, and the ambition is to continue to grow and develop these areas. We now have an increased focus and clarity in our business while contributing to increased transparency," says Henrik Larsson Lyon, CEO of Hexatronic.
Harsh Environment and Data Center combined account for just over 25 percent of the Group's sales, while Fiber Solutions account for the remainder.
Since 2019, the Hexatronic Group has had an average annual growth rate of 33 percent[1], driven by organic growth and strategic acquisitions. Expansion in Fiber Solutions in North America and Europe has been the main contributor to this growth, but also deliberate investments in adjacent market segments. The acquisitions of UK-based Fibron Cable and US-based Rochester Cable in 2023 established a significant position in the market for advanced subsea cables, which are part of the Harsh Environment business area. In parallel, the offer aimed at the data center market has been gradually developed since 2020 through acquisitions in Europe and the United States. This business is now coordinated in the Data Center business area.
Changes in Executive Management
As part of focusing the business on the Group's business areas and future growth strategy, changes are being made to the Executive Management Team. Anna Bailey, Sourcing and Supply Director, and Tomas Jendel, CTO, will leave Executive Management to continue their corresponding roles in the Fiber Solutions business area. Linn Lundstedt, General Counsel and Company Secretary of Hexatronic Group, will join Executive Management. The changes will take effect immediately.
Linn Lundstedt (born 1984) was recruited to Hexatronic in 2023. She previously worked as corporate counsel at Ericsson and Preem and as an attorney at the law firm Roschier. She holds a Master of Laws from Uppsala University and a Bachelor of Social Science in Business from Uppsala University.
Organizationally, the management of the business areas is represented in the Executive Management Team. Incoming CEO Rikard Fröberg, who starts on March 1, will also lead Fiber Solutions. Martin Åberg is responsible for Data Center and Jakob Skov is responsible for Harsh Environment.
Description of reporting segments
The new segment reporting means that the company will have the following reporting segments:
- Fiber Solutions is the Group 's business in fiber optic cables, ducts and network products for FTTH connectivity, 5G, transport networks, local city networks and submarine cables. Customers are mainly telecom operators, network owners, and distributors. Fiber Solutions provides a wide range of products and services, including training and support. Hexatronic's systems enable cost-effective solutions that provide customers with the lowest possible TCO (total cost of ownership). Hexatronic operates in strategic growth markets such as the US, Germany and the UK, where major investments in fiber optic infrastructure are planned in the coming years.
- Harsh Environment provides advanced cables and solutions adapted to withstand connectivity in the most challenging environments. Customers are mainly companies in the energy sector (offshore), marine technology, defense, and aerospace. Manufacturing of dynamic cables capable of transporting various combinations of electricity, air, gas, liquid chemicals, and data. This also includes the business of advanced fiber optic sensor systems. Demand for advanced dynamic cables in energy, defense, and industry is expected to increase for a long time to come. Hexatronic has a strong global position in these areas and sees good prospects for long-term, stable growth.
- Data Center mainly offers services and tailored products for the data center market, such as cabling and networking products as well as design, installation, and project management. Customers include major global cloud companies, colocation operators, and large enterprises such as banks, automotive manufacturers, and industrial companies. Data Center represents a significant future growth market for Hexatronic. Several trends are driving the need for data center capacity around the world, such as increased connectivity, AI, and machine learning, which are expected to drive the market for many years to come.
Pro forma figures per segment for 2024
Hexatronic will apply the new segment reporting from the first quarter of 2025. To facilitate year-on-year comparisons, pro forma figures for 2024 will be made available in connection with an investor presentation on March 28, 2025. Hexatronic's year-end report will be published on February 7, 2025, following the same structure as previous interim reports.
Investor presentation
Hexatronic plans to hold a digital investor presentation on Friday, March 28, 2025, to provide an in-depth view of the Group's business areas and the markets in which they operate. Among others, incoming CEO Rikard Fröberg and parts of the management will participate. The presentation will start at 13.00 and is expected to last until 16.00 at the latest. Information on how to register and a link to the webcast will be sent out in early March.
[1] Group sales 2019 through the third quarter LTM 2024.
For more information, please contact:
Pernilla Grennfelt, Head of Investor Relations, + 46 702 90 99 55
About Us
Hexatronic creates sustainable networks all over the world. We partner with customers on four continents - from telecom operators to network owners - and offer leading, high-quality fiber technology for every conceivable application. Hexatronic Group AB (publ.) was founded in Sweden in 1993 and the Group is listed on Nasdaq Stockholm. Our global brands include Viper, Stingray, Raptor, InOne, and Wistom®.
