Hexatronic Group (OM:HTRO) Stock Faces Thin 0.6% Margin Despite Q2 Profit Rebound

Hexatronic Group (OM:HTRO) has just posted Q2 2026 revenue of about SEK2.3b and basic EPS of SEK0.61, with the latest trailing twelve month figures showing revenue of roughly SEK7.7b and basic EPS of SEK0.22. Over recent quarters the company has seen revenue move from SEK1,906m in Q2 2025 to SEK1,848m in Q4 2025 and SEK1,698m in Q1 2026 before reaching SEK2,259m in Q2 2026. Quarterly EPS has shifted from SEK0.38 in Q2 2025 through a loss of SEK0.59 in Q3 2025 and SEK0.27 in Q4 2025 to SEK0.45 in Q1 2026 and SEK0.61 in the latest quarter, leaving investors weighing improving profitability against still thin margins on the trailing numbers.

See our full analysis for Hexatronic Group.

With the quarterly picture set, the next step is to line these results up against the prevailing Hexatronic Group narratives to see which stories the numbers support and which they call into question.

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Margins Thin Despite SEK7.7b LTM Revenue

• Over the last twelve months Hexatronic Group generated about SEK7.7b in revenue with net income of SEK46m, which works out to a net margin of 0.6% compared with 4.7% a year earlier.
• Bulls point to forecast earnings growth of 38.8% a year and revenue growth of 9.1% a year, yet the current 0.6% trailing margin keeps that optimistic view on a tight leash.
  • On the bullish side, supporters highlight rapid expansion in data center and harsh environment segments and a pipeline of acquisitions that they expect to lift profitability over time.
  • Set against that, the dip in trailing margin and the reliance on a SEK35m one off gain in the last twelve months mean the recent numbers do not yet reflect the stronger margins that bullish investors are looking for.

For a closer look at how the latest revenue mix and segment trends line up with the upbeat story from bulls, check out the 🐂 Hexatronic Group Bull Case.

Profit Swing From Losses To SEK131m Net Income

• Hexatronic Group moved from net losses of SEK122m and SEK56m in Q3 and Q4 2025 to net income of SEK92m in Q1 2026 and SEK131m in Q2 2026, alongside basic EPS moving from a loss in late 2025 to SEK0.61 in the latest quarter.
• Bears argue that reliance on traditional fiber to the home markets and customer concentration could keep these profits fragile, and the recent sequence of loss making quarters followed by two profitable ones leaves that concern only partly addressed.
  • Critics highlight that Fiber Solutions accounts for around 65% of sales and faces pricing pressure in Europe and North America, which ties back to the earlier period of negative net income in 2025.
  • At the same time, the return to SEK92m and then SEK131m of quarterly net income shows the company can be profitable, so the key question for bearish investors is how sustainable that is if those pressured segments do not stabilise.

Skeptical investors who are focused on those weaker quarters and concentrated end markets may want to weigh them against the recent profit rebound by reading the 🐻 Hexatronic Group Bear Case.

Valuation Gap: 1.3x P/S And DCF Fair Value

• At a share price of SEK45.42 the stock trades on a P/S of 1.3x against a peer average of 3.0x and industry average of 1.4x, while a DCF fair value of SEK58.38 sits above both the current price and the bullish analyst price target of SEK44.00.
• Supporters of the bullish view see this combination of lower P/S and higher DCF fair value as evidence of upside, but the same data also need to be read alongside the five year earnings decline rate of 15.5% a year and recent share price volatility.
  • Consensus narrative notes that analysts expect revenue to grow in a 9.1% to 9.4% range with margins improving over the next three years, a path that would do more to justify both the DCF fair value and the SEK44.00 price target.
  • However, the highly volatile share price over the last three months and the thin 0.6% trailing net margin mean any shortfall versus those growth and margin expectations could have an outsized impact on how quickly the valuation gap closes.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hexatronic Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Hexatronic Group clearly splits opinion, so rather than relying on the loudest narrative, move quickly to review the data, weigh the tensions between concerns and optimism, and check the 3 key rewards and 3 important warning signs.

See What Else Is Out There

Hexatronic Group is working with thin 0.6% trailing margins, uneven recent profitability and a five year earnings decline rate of 15.5% a year.

If those ups and downs make you uneasy, it is worth lining them up against companies screened for stronger financial resilience by checking the 289 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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