Denmark · Delayed Price · Currency is DKK FLSmidth & Co. Earnings Call Transcripts
Fiscal Year 2026
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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, supported by a strong cash position and a new share buyback program. Financial guidance for 2025 is unchanged, with a focus on growth, M&A, and operational efficiency.
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Q1 saw strong revenue and profitability driven by service growth, portfolio pruning, and operational improvements. Guidance for the year was raised, with mining margins boosted by high service content and disciplined order intake. Exclusive negotiations for the cement business sale are underway.
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Strong financial results in 2024 were driven by transformation and focus on mining, with a doubling of dividends and continued divestment of the cement business. Strategic investments, board changes, and sustainability progress were highlighted, while challenges included market uncertainty and organizational change.
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 saw strong profitability improvements, with adjusted EBITDA margin rising to 12.6% and significant progress in business transformation. Service order intake remains stable, while capital markets are subdued, with a rebound expected in late 2025 or 2026.
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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.