Hexagon Purus third quarter 2021 results indicate strong year-over-year revenue growth for hydrogen solutions

Hexagon Purus (Ålesund, Norway) provides hydrogen Type IV high-pressure cylinders, battery packs and vehicle systems integration for fuel cell electric and battery electric vehicles (FCEV, BEV). The company recently delivered strong year-over-year revenue growth in Q3 2021 and announced the transformative acquisition of Wystrach GmbH (Weeze, Germany).

Third quarter highlights include:

• Revenue grew 96% year over year to NOK 103 million (approx. $12 million).
• Robust hydrogen distribution and transit bus activity.
• Entered into an agreement to acquire 100% of Wystrach, a European systems and solutions provider for compressed industrial gases with strong exposure to hydrogen applications. Wystrach is recognized as a leader in the industrial and transportation segments serving blue chip customers like Air Liquide, Linde, Alstom and Daimler. Wystrach recorded revenue of €24.1 million and EBITDA of €2.1 million in fiscal year (FY) 2020. The acquisition will approximately double Hexagon Purus’ revenue (on a pro forma basis) and headcount in FY 2020.
• Broke ground on a new 60,000-square-foot manufacturing facility in Kelowna, Canada, for the production of battery packs and hydrogen fuel storage systems for medium- and heavy-duty vehicle applications.

In the third quarter of 2021, Hexagon Purus Group generated NOK 103 (53) million (~$12 million) in revenue and recorded operating profit before depreciation (EBITDA) of NOK -80 (-25) million (~$9 million). Revenue growth of 96% was driven by increased activity in hydrogen distribution and transit bus applications.

Reported revenue for the first nine months of 2021 grew 69% to NOK 249 (147) million (~$29 million) driven by increased distribution, transit bus and aerospace business, while EBITDA was NOK –211 (-88) million (~$25 million).

Continued investments in personnel and infrastructure to support and accelerate Hexagon Purus’ future growth drive negative profitability in the near-term, as expected.

Other recent key developments:

• Received orders from a leading gas distributor to deliver Type IV hydrogen cylinders for industrial and mobility applications. The orders have a value of approximately €2 million.
• Received an order for hydrogen fuel cell electric yard trucks from a North American customer. The order has a value of approximately $2.1 million.
• Subsequently received an order from the same customer for a hydrogen fuel cell drayage truck, including a service and support program that incorporates performance monitoring and reporting. The order has a value of approximately $1.2 million.