The hydrogen storage specialist Hexagon Purus is navigating an increasingly split business — and a balance sheet that demands urgent attention. While its infrastructure segment posted a blistering 140% revenue jump to 101 million Norwegian kroner in the first quarter, mobility sales slumped 40% to just 57 million kroner. That operational divergence helps explain why the company is simultaneously pushing ahead with structural changes — including a reverse stock split and a revamp of its China joint venture — while grappling with nearly 1.9 billion kroner in convertible debt due in 2028 and 2029.
Group revenue including other income reached 405 million kroner, up 76% year on year. Strip out the 134 million kroner in exceptional gains from the sale of the US space business to SpaceX and the deconsolidation of the Chinese joint venture, and adjusted revenue came in at 271 million kroner — a still respectable 18% gain. The headline figure got an additional lift from the China restructuring: after CIMC Enric injected fresh financing into the joint venture, Hexagon Purus’s stake fell below 50%, triggering a deconsolidation gain of 62 million kroner. The company retains the right to buy back its original stake at a later date.
That liquidity injection, combined with the space business sale, pushed cash on hand to 364 million kroner. Management now believes the buffer is sufficient for ongoing operations, especially after trimming the cost base and lowering the EBITDA break-even level compared with early 2025. But the larger structural problem remains: equity stood at just 255 million kroner at the end of the first quarter, an equity ratio of only 9%. Against that, long-term borrowings totalled roughly 2.3 billion kroner, of which the two convertible bonds account for the lion’s share.
The bonds’ maturity dates — Q1 2028 and Q1 2029 — are still years away, but the pressure is already building. The company has explicitly stated it is reviewing “structural measures” around the convertibles to strengthen the balance sheet and improve the equity base. Every month of continued losses adds to the urgency, and with a backlog of only 463 million kroner — far too thin to cover current costs — new orders are desperately needed.
The reverse stock split approved at the April 24 annual meeting was registered in Norway on May 20 at a 10:1 ratio. That reduces the share count to roughly 42.85 million, each with a par value of 1.00 kroner. While a consolidation has no direct effect on enterprise value, it simplifies the capital structure and can alter market perception. For a stock trading around 1.252 kroner — giving a market capitalisation of about 536 million kroner — the move comes as the company tries to present a cleaner picture to investors and analysts.
Should investors sell immediately? Or is it worth buying Hexagon Purus?
Two analysts cover the stock, both with a “Buy” rating and a 12-month price target of 1.85 kroner, implying nearly 48% upside from the current price. That kind of potential hinges on whether the convertible bond issue can be resolved without severe dilution for existing shareholders.
External conditions are a mixed bag. In Europe, the German Hydrogen Acceleration Act passed on February 26 gives hydrogen priority status, and member states must transpose new EU infrastructure rules along the TEN-T road network into national law by mid-2026. That regulatory tailwind should accelerate projects from planning into construction, supporting Hexagon Purus’s infrastructure business. The company has already delivered over 650 high-pressure distribution systems globally and won a first-quarter order for 6.2 million euro worth of hydrogen dispensing units from a leading European energy company.
Across the Atlantic, the picture is darker. The Trump administration cut $3 billion from existing hydrogen funding in March 2026 and proposed slashing another $3 billion earmarked for hydrogen hubs. Hexagon Purus sees little near-term potential for hydrogen mobility in North America — a view consistent with the decision to sell its US space operations.
One emerging avenue is defense. Management has flagged possible applications for carbon‑fibre pressure vessels in military uses, but qualification and market entry will take time.
For now, the focus remains squarely on the balance sheet. The liquidity gained from asset sales and the China restructuring buys breathing room, but the convertible bonds are the single biggest risk. The next market-moving event will likely be any announcement regarding their restructuring — one that could swing the share price sharply in either direction.
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