FLSmidth (FLS) Q4 2024 earnings summary

Executive summary

• Achieved record profitability and highest Group EBITA margin and net profit in over a decade for 2024, driven by strong Mining and improved Cement performance, despite weak market conditions.

• Focused on growth in HPGR, pumps, and mill liners, with record order intake and increased market share; Mining Service order intake rose 2% year-over-year.

• Service business showed strong order intake and revenue, now comprising a higher share of the business mix.

• Cement transformation led to stronger financials; divestment process is on track, with a focus on profitable service and product revenues.

• Non-core activities wind-down nearly complete, backlog reduced by 94%, and segment set to exit reporting.

Financial highlights

• Q4 2024 revenue was DKK 5,331 million, down 11% year-over-year; full-year revenue was DKK 20,187 million, down 16%.

• Adjusted EBITDA/EBITA margin improved to 12.1% in Q4 2024 (9.2% in Q4 2023); full-year margin at 11.0%.

• Group profit after tax and financial costs was DKK 360 million for Q4 2024; full-year profit DKK 1,030 million.

• Free cash flow for Q4 2024 was DKK 399 million, used to reduce debt, ending the year with a leverage ratio of 0.4x and NIBD of DKK 847 million.

• Service revenue reached DKK 2.8 billion in Q4, with service margins above 40%.

Outlook and guidance

• 2025 group revenue expected at ~DKK 19 billion, with adjusted EBITDA/EBITA margin of 12.5%-13%.

• Mining revenue guidance ~DKK 15 billion, adjusted EBITDA/EBITA margin 13.5%-14%.

• Cement revenue guidance ~DKK 4 billion, adjusted EBITDA/EBITA margin 9%-9.5%.

• One-off transformation and separation costs of DKK 200 million in Mining and DKK 50 million in Cement expected in 2025.

• No improvement expected in Mining capital orders in 2025; recovery anticipated in 2026.