Hexagon Is Refocusing on Its Core Businesses of Precision Measurement and Positioning

Sweden-based Hexagon is a global provider of hardware, software, and services across industries such as construction, manufacturing, oil and gas, agriculture, and mining. Its hardware includes sensors, measuring devices, and other equipment typically used in conjunction with its software products. Sensors collect data and positioning information for equipment, which is fed into software that helps manage and optimize operations. Services are typically maintenance contracts on the hardware. The company’s revenue is around 40% hardware, 40% software, and 20% services. In 2026, the company is planning to spin off the software business into a separate company, Octave, enabling it to focus on its core businesses of precision measurement and positioning. Hexagon generates around 80% of revenue through its direct salesforce, which we think is an advantage versus competitors that typically rely more on partners and distributors.