Return to Organic Growth: Hexagon reported a 3% organic growth in Q2, indicating a stabilization in performance after previous volatility, however, this growth is still below their target of 5% to 7% annual growth through 2026. The growth was driven by sectors like Manufacturing Intelligence and Asset Lifecycle Intelligence, but Geosystems faced weaknesses due to declining construction demand in Europe.

Financial Performance and Margins: The company maintained stable gross margins at 67%, but EBIT declined by 10% to EUR 360.6 million, influenced by a 130 basis point negative impact from currency fluctuations. Cost base misalignment is a concern, leading to the initiation of a cost improvement program to address inefficiencies.

Cost Improvement Program: Anders Svensson highlighted the need for a cost reduction initiative, with specific details expected by the next earnings announcement in October. While no quantitative targets were set, he emphasized swift execution to align costs with organic growth.