FLSmidth (FLS) Q4 2025 earnings summary

Executive summary

• Completed transition to a pure-play mining supplier with the divestment of the cement business, marking a major strategic milestone.

• Achieved strong financial results with solid EBITDA/EBITA margin and robust cash flow, driven by Service and PC & V segments, while Products remained subdued.

• Launched and nearly completed a DKK 1.4 billion share buyback program, with a new DKK 1 billion program planned pending AGM approval.

• Appointed Toni Laaksonen as new CEO.

• Continued emphasis on sustainability, including new mill liner recycling service in Chile and efforts to improve safety and reduce Scope 3 emissions.

Financial highlights

• Group revenue for the year was DKK 14.6 billion, with order intake at DKK 15,045 million (-1.9% year-over-year).

• Adjusted EBITDA/EBITA margin for the year was 15.9%, with Q4 reaching 18%.

• Gross margin improved to 34.6% in Q4 2025 (+0.7pp year-over-year), driven by a favorable mix with services contributing a larger share.

• SG&A costs reduced by 18-19% year-over-year, with further reductions expected.

• Profit for the year was DKK 8 million, impacted by a DKK 600 million deferred tax asset impairment.

• Free cash flow (excluding M&A) was DKK 640 million, up from DKK 7 million in 2024.

Outlook and guidance

• Organic revenue growth guidance for 2026 is -1% to +4%, with adjusted EBITDA/EBITA margin expected between 15.5% and 16.5%.

• Products business line expected to decline by -5% to -15%, while PC & V is forecasted to grow 4%-7% and Service revenue to grow 2%-5% organically.

• Reported EBITDA margin, after adjusting for one-offs, expected to be around 19%-20%.

• CapEx guidance set at 2%-3% of revenue.

• Ordinary dividend of DKK 4 per share proposed for 2025/2026, with a new DKK 1 billion share buyback planned.