FOR IMMEDIATE RELEASE
Global Manufacturer Cuts FX Volatility 42 % with Treasury-Led Dynamic Hedging Roll-Out
Real-time exposure engine integrated with ERP slashes hedge costs and protects FY-26 margin guidance amid record currency swings
Atlanta, November 20, 2025
Marquee Industrial Solutions Inc. (NYSE: MQS) today announced that its corporate treasury team has completed the phased implementation of a cloud-based dynamic foreign-exchange hedging platform, eliminating up to USD 18 million in forecast earnings-at-risk and trimming annual hedging expense by roughly 11 % compared with the static program it replaced.
The initiative—launched in January after the dollar-euro implied-volatility gauge hit a post-pandemic high—gives the Atlanta-based maker of power-transmission equipment an automated, threshold-driven workflow that recalculates net currency exposures every 15 minutes and executes forward or option trades when hedge ratios drift outside pre-approved policy bands. According to a 2025 survey by the Association for Financial Professionals, 63 % of multinationals still adjust hedges manually at month-end, leaving margins vulnerable to intraday swings that now average 0.9 % in major pairs.
“Static hedging served us well when our euro and yen cash-flow forecasts were predictable,” said Laura Kim, CPA, Marquee’s Chief Financial Officer. “But after two straight years where 60 % of quarterly EPS variance came from FX, the board asked treasury to engineer a solution that protects guidance without hand-cuffing operating units. Dynamic hedging lets us lock in upside when rates move in our favor while keeping downside protection firmly in place.”
Marquee’s platform ingests invoice data from SAP S/4HANA, nets exposures across 14 currencies and routes hedge recommendations to a Treasury Execution Committee dashboard. Trades are executed via API with two relationship banks, then automatically uploaded to the company’s Kyriba treasury module for hedge-accounting documentation—reducing month-close effort by 30 staff-hours. Since go-live, the firm has lifted its hedge-ratio flexibility range to 40–80 % from a flat 50 %, enabling treasury to scale coverage when realized volatility breaches 12 % annualized and to taper when it falls below 7 %.
Early results show the program is delivering measurable protection: the company’s Q3 FX-induced EBITDA variance narrowed to ±1.1 % from ±2.9 % a year earlier, while hedge-premium spend fell 9 % despite a 17 % increase in notional volume. Independent back-testing performed by audit partner Deloitte indicates the dynamic model would have out-performed Marquee’s legacy static hedges in 23 of the last 24 rolling 90-day periods.
Market data underscore why corporates are accelerating automation. The Fed’s trade-weighted dollar index has swung 11 % peak-to-trough in 2025, and BNY Mellon iFlow trackers show corporate FX volumes up 28 % year-over-year as treasurers race to recalibrate. “Firms that rely on spreadsheets are effectively trading yesterday’s exposures,” said François Masquelier, CEO of consultancy Simply Treasury, in a recent commentary. “Dynamic hedging—when paired with real-time exposure capture—can cut residual risk almost in half without raising hedge ratios.”
Implementation took eight months from board approval to full overseas deployment. Phase One centralized USD-EUR receivables hedging for the German subsidiary; Phase Two layered in Asian currencies ahead of a new Thailand facility ramp-up; Phase Three embedded IFRS 9 hedge-effectiveness regression scripts to ensure continued audit compliance. Employee training workshops totaled 120 hours, yet trade-approval turnaround has since dropped from 48 hours to under 90 minutes.
Looking ahead, Marquee plans to extend dynamic triggers to commodity price exposures and will explore zero-premium option structures for the Mexican peso and Polish zloty, currencies where forward points currently exceed 250 basis points. The treasury group also intends to publish an anonymized case study with the Association for Corporate Treasurers to widen industry adoption.
Media Contact
Sarha Al-Mansoori
Director of Corporate Communications
G42
Email: media@g42.ai
Phone: +971 2555 0100
Website: www.g42.ai
