FLSmidth (FLS) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw strong organic order intake growth in Service (19%) and PC&V (16%), while Products remained subdued with a 28% decline in order intake.

• Organic revenue declined by 7% year-over-year, mainly due to timing and order mix, with total revenue at DKK 3,279m, down 12%.

• Adjusted EBITA/EBITDA margin improved to 15.2% from 14.6% in Q1 2025, in line with forecasts.

• Cash flow from operations reached DKK 103m, up from DKK -12m in Q1 2025, supported by the sale of the former headquarters.

• Sale of former headquarters completed, boosting net profit to DKK 985m and free cash flow to DKK 746m.

Financial highlights

• Order intake reached DKK 3.9 billion, up 3% year-over-year, with 8% organic growth.

• Gross profit margin rose to 36.1% from 35.2% in Q1 2025.

• SG&A costs declined by 18% year-over-year, reflecting ongoing simplification.

• Net working capital increased to DKK 2,786m, mainly due to inventory build-up.

• Leverage (NIBD/EBITDA) at 0.5x–0.6x, providing flexibility for M&A and share buybacks.

Outlook and guidance

• 2026 guidance maintained: organic revenue growth of -1% to +4%, adjusted EBITA/EBITDA margin of 15.5%–16.5%.

• Service revenue expected to grow 2–5%, PC&V 4–7%, Products -5% to -15%.

• Revenue and deliveries expected to be back-end loaded, with stronger performance in Q3 and Q4.

• Cash flow from operations for the year guided at DKK 1 billion; CapEx around 3% of revenue.