FLSmidth (FLS) Q2 2025 earnings summary

Executive summary

• Major strategic milestones achieved, including divestment of Cement and Air Pollution Control businesses, sale of headquarters, and launch of a share buy-back program.

• Transitioned to a pure-play mining technology and services provider, with updated segment reporting for Service, Products, and PC & V.

• Profitability improved, with adjusted EBITA margin at 15.2% in Q2 2025 and strong cash flow generation.

• Orders grew 3% year-over-year (organic growth 9%), driven by Products and PC & V, while Service order intake declined due to project delays in North America.

• Sustainability KPIs improved, including EcoVadis silver medal and reductions in greenhouse gas emissions and water withdrawal.

Financial highlights

• Q2 2025 revenue from continuing business: DKK 3,378m, down 12% year-over-year; H1 2025 revenue: DKK 7,086m, down 5%.

• Adjusted EBITA margin rose to 15.2% in Q2 2025 (Q2 2024: 10.3%); EBITA margin at 15.5%.

• Net loss for the period of DKK 455m, mainly due to DKK 715m loss from discontinued activities.

• Free cash flow in Q2 2025: DKK 309m (Q2 2024: DKK -89m); H1 2025: DKK 187m (H1 2024: DKK -395m).

• Net working capital ratio at 12.0% at end Q2 2025 (Q2 2024: 9.4%).

Outlook and guidance

• 2025 revenue guidance updated to DKK 14.5–15.0bn, reflecting customer-driven delays and FX headwinds.

• Adjusted EBITA margin guidance upgraded to 15.0–15.5%, driven by business simplification and operational efficiency.

• Transformation and separation costs for 2025 expected at around DKK 200m.

• Operational cash flow for the year expected between DKK 600 million and DKK 1 billion.

• Aftermarket services demand expected to remain stable; equipment demand to stay soft.