FLSmidth (FLS) Q3 2025 earnings summary

Executive summary

• Transformation nearly complete, with 80% of business in high-margin, low-risk, recurring service and PCV segments, offering strong growth potential.

• Service orders grew organically by 10% in Q3 2025, reflecting positive market momentum and stable demand.

• Divestment of the Cement business finalized, positioning the company as a pure-play mining technology and services provider.

• Product portfolio pruned to focus on high-tech, aftermarket-rich products; material handling and conveyors exited.

• PCV segment showed 9% organic order intake growth year-to-date, with stable aftermarket demand.

Financial highlights

• Q3 2025 revenue from continuing business was DKK 3,453m, down 15% year-over-year; 9M 2025 revenue was DKK 10,539m, down 8%.

• Gross margin improved by 3.6 percentage points to 34.7% due to a higher share of Service and PC & V revenue.

• Adjusted EBITDA/EBITA margin rose to 15.3% in Q3 2025 (up 3.2 percentage points year-over-year).

• Net profit from continuing operations after tax and finance was DKK 298 million; total group profit was DKK 394 million.

• Cash flow from operations was DKK 478 million in Q3 2025; free cash flow for 9M 2025 was DKK 545 million.

Outlook and guidance

• 2025 revenue guidance narrowed to around DKK 14.5 billion due to delayed project execution and FX headwinds.

• Adjusted EBITDA/EBITA margin guidance remains at 15.0–15.5%.

• No growth expected in product volumes for 2026; market seen as flat until a potential pickup late 2026 or 2027.

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

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