ETQ Continues its Growth Momentum in Second Quarter of 2025, Scales its Leadership Position in Quality Management
ETQ, a subsidiary of Hexagon (HEXA), reported significant growth milestones in Q2 2025, expanding its customer base across multiple sectors including heavy industry, life sciences, and manufacturing. The company launched an enhanced version of its ETQ Reliance NXG® quality management system, featuring a new Quality Data Lake powered by Snowflake.
Key developments include new customer acquisitions such as AALTO HAPS and W.L. Gore, alongside expanded deployments with existing clients like A.O. Smith and Medline Industries. The company's annual quality survey revealed a strategic shift in manufacturing, with quality becoming a key driver of revenue growth. Additionally, ETQ will be part of Hexagon's planned spin-off 'Octave', expected to be completed in H1 2026.
ETQ, una controllata di Hexagon (HEXA), ha riportato importanti traguardi di crescita nel secondo trimestre 2025, ampliando la propria base clienti in diversi settori tra cui l'industria pesante, le scienze della vita e la produzione. L'azienda ha lanciato una versione migliorata del suo sistema di gestione della qualità ETQ Reliance NXG®, che include un nuovo Quality Data Lake basato su Snowflake.
Tra gli sviluppi principali si annoverano nuove acquisizioni di clienti come AALTO HAPS e W.L. Gore, insieme a un'espansione delle implementazioni con clienti esistenti come A.O. Smith e Medline Industries. Il sondaggio annuale sulla qualità dell'azienda ha evidenziato un cambiamento strategico nella produzione, con la qualità che diventa un fattore chiave per la crescita dei ricavi. Inoltre, ETQ farà parte della prevista scissione di Hexagon, denominata 'Octave', che dovrebbe essere completata nella prima metà del 2026.
ETQ, una subsidiaria de Hexagon (HEXA), reportó hitos significativos de crecimiento en el segundo trimestre de 2025, ampliando su base de clientes en múltiples sectores, incluyendo la industria pesada, las ciencias de la vida y la manufactura. La compañía lanzó una versión mejorada de su sistema de gestión de calidad ETQ Reliance NXG®, que presenta un nuevo Quality Data Lake impulsado por Snowflake.
Los desarrollos clave incluyen nuevas adquisiciones de clientes como AALTO HAPS y W.L. Gore, junto con despliegues ampliados con clientes existentes como A.O. Smith y Medline Industries. La encuesta anual de calidad de la compañía reveló un cambio estratégico en la manufactura, con la calidad convirtiéndose en un motor clave del crecimiento de ingresos. Además, ETQ formará parte de la escisión planificada de Hexagon llamada 'Octave', que se espera completar en la primera mitad de 2026.
ETQ는 Hexagon (HEXA)의 자회사로, 2025년 2분기에 중대한 성장 이정표를 달성하며 중공업, 생명과학, 제조업 등 여러 분야에서 고객 기반을 확장했습니다. 회사는 Snowflake가 지원하는 새로운 Quality Data Lake를 포함한 향상된 ETQ Reliance NXG® 품질 관리 시스템 버전을 출시했습니다.
주요 발전 사항으로는 AALTO HAPS와 W.L. Gore 같은 신규 고객 확보와 A.O. Smith 및 Medline Industries와 같은 기존 고객과의 배포 확대가 포함됩니다. 회사의 연례 품질 설문조사는 제조업에서 품질이 매출 성장의 핵심 동력이 되는 전략적 변화를 보여주었습니다. 또한 ETQ는 2026년 상반기 완료 예정인 Hexagon의 분사 계획인 'Octave'의 일부가 될 예정입니다.
ETQ, une filiale de Hexagon (HEXA), a annoncé des étapes de croissance significatives au deuxième trimestre 2025, élargissant sa base de clients dans plusieurs secteurs, notamment l'industrie lourde, les sciences de la vie et la fabrication. L'entreprise a lancé une version améliorée de son système de gestion de la qualité ETQ Reliance NXG®, intégrant un nouveau Quality Data Lake propulsé par Snowflake.
Les développements clés incluent l'acquisition de nouveaux clients tels que AALTO HAPS et W.L. Gore, ainsi que l'expansion des déploiements auprès de clients existants comme A.O. Smith et Medline Industries. L'enquête annuelle sur la qualité de l'entreprise a révélé un changement stratégique dans la fabrication, la qualité devenant un moteur clé de la croissance des revenus. De plus, ETQ fera partie de la scission prévue par Hexagon, nommée 'Octave', dont l'achèvement est prévu pour le premier semestre 2026.
ETQ, eine Tochtergesellschaft von Hexagon (HEXA), meldete im zweiten Quartal 2025 bedeutende Wachstumserfolge und erweiterte seine Kundenbasis in mehreren Branchen, darunter Schwerindustrie, Biowissenschaften und Fertigung. Das Unternehmen brachte eine verbesserte Version seines Qualitätsmanagementsystems ETQ Reliance NXG® auf den Markt, die einen neuen Quality Data Lake enthält, der von Snowflake betrieben wird.
Zu den wichtigsten Entwicklungen zählen neue Kundenakquisitionen wie AALTO HAPS und W.L. Gore sowie erweiterte Einsätze bei bestehenden Kunden wie A.O. Smith und Medline Industries. Die jährliche Qualitätsumfrage des Unternehmens zeigte eine strategische Veränderung in der Fertigung, bei der Qualität zu einem wichtigen Treiber für Umsatzwachstum wird. Darüber hinaus wird ETQ Teil des geplanten Spin-offs von Hexagon namens 'Octave' sein, dessen Abschluss für das erste Halbjahr 2026 erwartet wird.
- Expansion of customer base across multiple sectors with notable new clients
- Enhanced product capabilities with Snowflake-powered Quality Data Lake integration
- Strategic elevation of quality management from tactical to revenue-driving function
- Planned spin-off into Octave creates focused pure-play software and SaaS company
- Survey reveals persistent labor shortage challenges in manufacturing
- Industry continues to face issues with product recalls and safety incidents
- Manufacturing sector experiencing plant shutdowns and personnel layoffs
Insights
ETQ's Q2 growth and Hexagon's spin-off plan create positive momentum, though financial specifics are missing to fully evaluate impact.
ETQ, Hexagon's quality management software division, is showing solid momentum with multiple growth indicators in Q2 2025. The company has expanded its customer base across seven diverse sectors including heavy industry, life sciences, and aerospace, adding notable names such as W.L. Gore and Associates. Importantly, ETQ is also seeing existing clients like Hitachi Energy and Medline Industries deepen their implementation - a strong indicator of product satisfaction and potential recurring revenue expansion.
The release of ETQ Reliance NXG with Snowflake integration represents significant product enhancement. This partnership with a leading data cloud platform delivers enhanced analytics capabilities to customers - a critical competitive advantage in the quality management space where data-driven insights increasingly drive value. The integration should improve customer stickiness and potentially command premium pricing.
Most strategically significant is Hexagon's plan to spin off ETQ along with several other divisions into a new pure-play software and SaaS company called Octave. This restructuring, targeted for H1 2026, likely aims to unlock shareholder value by creating a focused SaaS entity with more predictable recurring revenue streams and potentially higher valuation multiples than Hexagon's blended business.
The second annual ETQ Pulse survey findings highlight that quality management is evolving from a tactical function to a strategic revenue driver - a narrative that supports ETQ's market positioning and growth potential. The persistent manufacturing labor shortage identified in the survey also creates demand tailwinds for automation solutions like ETQ's.
While the press release demonstrates positive momentum, it lacks specific financial metrics that would help quantify the business impact - there's no mention of revenue growth rates, customer acquisition costs, or profit margins.
Significant Customer Deployments, Release of Quality Survey Findings and New Product Capabilities Round Out Another Growth Quarter
"Manufacturers across all sectors around the world realize that quality creates tangible and measurable business value, while minimizing much of the risk encountered during economically uncertain times," said Vick Vaishnavi, CEO, ETQ. "The key milestones we've achieved in the second quarter of 2025 are living proof of that realization, and the powerful role ETQ has played in helping manufacturers reduce the cost of quality, ensure optimal quality and compliance at scale and gain brand reputation leadership in their respective markets."
New and Existing Customers Fuel ETQ's Growth
In the second quarter of 2025, ETQ expanded its global customer base with new customer wins across the heavy industry, life sciences, general manufacturing, food & beverage, electronics, aerospace and other sectors. New customers include AALTO HAPS, ACC, Alkegen, Industrial Electric Manufacturing, Placon, Smiths Interconnect and W.L. Gore and Associates.
ETQ also saw existing customers extend the impact of ETQ Reliance® on their businesses to achieve optimal quality and compliance at scale, expand into new geographies and facilities and integrate additional applications. A sample of these customers includes A.O. Smith, Bekaert SA, Celsius, Charter Manufacturing, Danisco
New Version of ETQ Reliance NXG, Powered by Snowflake is Launched
In May 2025, ETQ released a new version of ETQ Reliance NXG, featuring an enhanced, next-generation Quality Data Lake (QDL) now powered by Snowflake, a world leading cloud-based data warehousing platform. The new ETQ QDL provides an analytics-ready database. With cutting-edge Snowflake data cloud technology, customers can more easily access, manage, share and analyze their quality management data to draw more value through richer, actionable insights.
Pulse of Quality in Manufacturing 2025 Affirms Growing Role of Quality
During the quarter, ETQ shared the results of its second annual ETQ Pulse of Quality in Manufacturing survey, which revealed the opportunities and challenges of today's manufacturers. These include a persistent labor shortage, as well as a growing reliance on automation, AI and predictive analytics to help offset the shortage. In a major shift from last year's survey, respondents also confirmed that quality has become a strategic driver to corporate revenue and business growth, as opposed to a more tactical process.
In line with last year's survey, the ETQ Pulse of Quality in Manufacturing 2025 also revealed issues which continue to plague manufacturers around the world, including stubborn product recalls and safety incidents in the plant; and their consequences, such as damage to brand reputation, delayed product introductions, plant shutdowns and personnel lay-offs.
Octave, New Name of Hexagon Spin-Off, Introduced at Hexagon Live Conference
During the Hexagon LIVE conference in June, the company revealed the name of its planned spin-off, which will bring together ETQ, with Hexagon's Asset Lifecycle Intelligence (ALI) division; Safety, Infrastructure & Geospatial division; and related Hexagon businesses. Operating as Octave the new business will be a pure-play software and SaaS company focused on helping customers make smarter, more data-driven decisions across their organizations. If approved by relevant stakeholders, it is the Hexagon Board's current expectation that the separation and public listing process will be completed in the first half of 2026
ETQ Shares Thought Leadership, Names Innovation Award Winner
In addition to participation at Hexagon LIVE, ETQ executives presented their insights and expertise at a variety of industry forums during the quarter, including the ASQ World Conference on Quality and Improvement, where ETQ presented alongside leaders from Hitachi Energy; and the Quality Show South. ETQ also brought together customers to showcase their quality leadership as part of its annual customer conference, which was held in conjunction with Hexagon LIVE. During the event, ETQ named the winner of its Innovation Excellence Award program, Cree LED, a Penguin Solutions brand and a leading provider of application-optimized LED chips and components.
About ETQ
ETQ, part of Hexagon, is a leading provider of integrated quality management, health, safety and environmental solutions for manufacturers. Firms around the world rely on ETQ to ensure optimal quality at scale, reduce costs and improve the velocity of data-driven decisions. Learn more at etq.com.
Hexagon is a global leader in digital reality solutions, combining sensor, software and autonomous technologies. Hexagon (Nasdaq Stockholm: HEXA B) has approximately 24,000 employees in 50 countries and net sales of approximately
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SOURCE ETQ, LLC
FAQ
What major developments did ETQ (HEXA) announce in Q2 2025?
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