Hexagon Reveals Possibility of 2026 Company Spinoff

As Hexagon AB prepares for the potential spin-off of Hexagon’s Asset Lifecycle Intelligence and Safety, Infrastructure & Geospatial divisions and related businesses, the company has announced that the new business will operate as Octave. According to Hexagon, this new name communicates the company’s plan to increase, accelerate, and optimize customer outcomes. 

As previously announced, in addition to Hexagon’s existing Asset Lifecycle Intelligence and Safety, Infrastructure and Geospatial divisions, Octave will also include ETQ (currently operating under the Manufacturing Intelligence division) and Bricsys (currently operating under the Geosystems division).

This new business will be a pureplay software and software-as-a-service company. The Octave portfolio will help customers design, build, operate and protect assets. 

“As we prepare for the potential separation from Hexagon AB, Octave will be a powerful identity to reflect the significant growth opportunity,” says Mattias Stenberg, current President of Hexagon’s Asset Lifecycle Intelligence and Safety, Infrastructure & Geospatial divisions and incoming Octave Chief Executive Officer. “As a separate, stand-alone company Octave will have the depth, scale, and expertise necessary to capitalize on software and services opportunities across the industrial and public sector spaces and deliver intelligence at scale.”

Collectively, Hexagon AB reports that Octave had approximately 7,200 employees as of December 31, 2024, and revenues of approximately EUR 1,448 million with an adjusted operating margin (EBIT1) of approximately 31% for the year ended December 31, 2024, before consideration of standalone costs and using IFRS accounting standards.

If approved by stakeholders, the Hexagon Board expects that the separation and listing process will be completed in the first half of 2026. Hexagon will give additional details on the cost of the separation process and other key matters in due course.

The separation, spin-off and listing remain subject to the ongoing process and final approval of the Hexagon Board and shareholders, as well as being subject to other conditions, consents and regulatory approvals. To date, there is not a guarantee that a separation, spin-off or listing will take place.

For more information, visit octave.com.  

Sources: Press materials received from the company and additional information gleaned from the company’s website.