Denmark · Delayed Price · Currency is DKK FLSmidth & Co. Earnings Call Transcripts
Fiscal Year 2026
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Q1 saw strong order intake in services and PCV, but revenue declined 7% year-over-year due to timing and mix. Profitability improved, with a 15.2% adjusted EBITDA margin, and guidance for 2026 is maintained. Cash flow and leverage remain solid, supporting both M&A and share buybacks.
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The AGM highlighted a successful strategic transformation, strong financial results, and a shift to focus on mining technologies. All board proposals, including dividend, remuneration, and capital structure changes, were approved. Employee adaptation and market uncertainties remain key challenges.
Fiscal Year 2025
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Transformation to a pure-play mining supplier drove strong EBITDA margin and cash flow, with services and PCV segments outperforming while products lagged. Guidance for 2026 targets modest organic growth and continued margin strength, supported by active capital returns and M&A pipeline.
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Transformation nearly complete with 80% of business now in high-margin, recurring segments. Revenue and margins are strong, with guidance narrowed to the lower end and cost reductions ongoing. Service and PCV drive growth, while product volumes are expected to remain flat in 2026.
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Q2 saw strong margins and cash flow, with adjusted EBITDA margin up to 15.2% and gross margin at 35%. Service and PCV segments performed well, while Product remains challenged by low volumes. Full-year guidance was updated, and the cement divestment is complete.
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Completion of the cement business sale marks a strategic shift to a pure-play mining company, with financial guidance for 2025 unchanged and a significant share buyback program announced. The company is now debt-free, focused on mining growth, and actively managing capital allocation.
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Q1 saw strong revenue and profitability driven by service growth, portfolio focus, and operational improvements. Guidance was raised for the year, with mining margins and gross profit at record levels, and exclusive negotiations underway for the cement business divestment.
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The AGM highlighted strong financial performance, a doubled dividend, and ongoing transformation with a focus on mining and sustainability. Shareholders approved all proposals, while leadership transitions and employee concerns about restructuring were addressed.
Fiscal Year 2024
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Record profitability achieved in 2024, driven by strong service margins and operational improvements, despite weak market conditions and price deflation in capital equipment. 2025 guidance anticipates stable margins, continued transformation costs, and no near-term recovery in Mining capital orders.
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Q3 delivered strong profitability improvements, with adjusted EBITDA margin rising to 12.6% and significant progress in business transformation. Service order intake remained stable, while capital markets stayed subdued, and the cement divestment process advanced as planned.
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Q2 2024 saw strong service-driven growth and margin improvement, with adjusted EBITA at 10.2% and robust performance in both mining and cement. Guidance was updated: mining revenue lowered but margin raised, and the cement divestment remains on track for year-end.