HEXA-B.ST

Hexagon develops precision measurement and reality capture technologies that digitize physical assets for manufacturing, construction, and geospatial applications. The company controls critical sensor and software infrastructure that captures and processes real-world data into actionable digital twins, creating high switching costs once embedded in customer workflows. Management expects the recently launched HxGN LIVE platform to accelerate software subscription growth as industrial customers shift from perpetual licenses to recurring revenue models. Trading at 12x earnings with 66% gross margins, the stock offers compelling value despite flat revenue growth, as the business model transition should drive margin expansion and more predictable cash flows. The industrial digitization trend remains early-stage, with Hexagon's sensor-to-software stack uniquely positioned to capture this multi-year opportunity.