COMPANY ANNOUNCEMENT NO. 23-2025
FLSmidth & Co. A/S
20 August 2025
Copenhagen, Denmark
Today, the Board of Directors of FLSmidth have approved the H1 2025 Interim Financial Report.
Highlights in Q2 2025:
- Continued and disciplined execution of our strategic priorities despite macroeconomic and geopolitical uncertainties
- Further reduction in SG&A driving strong progression in underlying profitability, with an Adjusted EBITA margin of 15.2%
- Solid organic order intake growth in PC&V and Products, whereas organic Service order intake is slightly down versus Q2 2024
- Solid cash flow generation and launch of the company’s first share buy-back programme since 2012
- Signed agreements to sell the Cement business and corporate headquarters in Copenhagen
- The financial guidance for the full year 2025 was updated on 14 August 2025 (ref. Company Announcement no. 22-2025)
- Continued progression on all our science-based sustainability targets
FLSmidth Group CEO, Mikko Keto, comments: “In Q2 2025, we advanced our strategy despite ongoing macroeconomic and geopolitical uncertainty. Profitability strengthened with an Adjusted EBITA margin of 15.2%, reflecting continued momentum. Orders grew by 3% year-on-year, driven especially by higher Products orders, while Pumps, Cyclones & Valves delivered 13% organic growth from targeted sales force investments. Service orders declined by 1% due to delayed modernisation projects in North America linked to tariff uncertainty, though these remain in the pipeline and recovery is expected in the coming quarters. We also achieved three strategic milestones: the DKK 730 million sale of our headquarters, strengthening the balance sheet; the divestment of FLSmidth Cement, advancing our transition to a pure-play mining technology and service provider; and the launch of our first share buy-back programme since 2012, reinforcing our commitment to shareholder returns. Alongside an upgraded earnings guidance, these results underline our delivery on strategy and the creation of a stronger, more resilient FLSmidth.”
Updated segment reporting
As a result of the signed agreements to divest FLSmidth Cement, including the Air Pollution Control business, the business has been classified as discontinued activities and assets held for sale. Consequently, FLSmidth has as of Q2 2025 changed its segment reporting to reflect that FLSmidth going forward will be a pure-play supplier of technology and services to the mining industry.
As such, FLSmidth will as of Q2 2025 report on the following three continuing segments: Service, Products, and Pumps, Cyclones & Valves (PC&V). On average, the PC&V segment is expected to comprise approximately 25% equipment-related orders and 75% aftermarket-related orders.
The new segments have been defined based on our go-to-market strategy and are consistent with the Group’s internal management and reporting structure going forward.
Results in Q2 2025
Commercial performance
Service order intake decreased by 8% compared to Q2 2024 (decrease of 1% if excluding currency effects and effects from divestments). The year-on-year decline can primarily be attributed to a lower order intake within upgrades & retrofits due to the delays to larger modernisation projects in North America. The order backlog decreased to DKK 4,781m compared to DKK 5,093m at the end of Q2 2024. The book-to-bill ratio was 100.2% in Q2 2025.
Products order intake increased by 44% compared to Q2 2024 (increase of 53% if excluding currency effects and effects from divestments). No large orders were announced in neither Q2 2025 nor in Q2 2024. The order backlog decreased to DKK 4,869m compared to DKK 5,681m at the end of Q2 2024. The book-to-bill ratio was 112.2% in Q2 2025.
PC&V order intake increased by 7% compared to Q2 2024 (increase of 13% if excluding currency effects and effects from divestments). The year-on-year increase was driven by a higher level of equipment orders as well as an unchanged level for aftermarket-related orders. In addition, the increase was primarily driven by higher order intake in the SAMER and EMEA regions, partly offset by a lower order intake in the NAMER region. The order backlog decreased to DKK 1,000m compared to DKK 1,078m at the end of Q2 2024. The book-to-bill ratio was 108.5% in Q2 2025.
Consolidated order intake increased by 3% in Q2 2025 (increase of 9% if excluding currency effects and effects from divestments). The year-on-year increase was primarily a result of a higher order intake in Products and was partly offset by a lower order intake in Service. In addition, Non-Core Activities contributed with DKK 7m in order intake in Q2 2024. The order backlog decreased by 13% to DKK 10,650m compared to Q2 2024. The book-to-bill ratio was 104.1% in Q2 2025.
Financial performance
Service revenue decreased by 3% compared to Q2 2024 (decrease of 1% if excluding currency effects and effects from divestments). The year-on-year decline is primarily a reflection of the timing of the execution of certain orders. The decline was partly offset by higher revenue within professional services and upgrades & retrofits. The Adjusted EBITA margin was 19.6% when excluding transformation and separation costs of DKK 27m as well as other operating net income of DKK 34m, which primarily related to sale of certain properties in Q2 2025. Including these items, EBITA increased to DKK 411m corresponding to an EBITA margin of 19.9% compared to DKK 403m corresponding to an EBITA margin of 19.0% in Q2 2024.
Products revenue decreased by 43% compared to Q2 2024 (decrease of 39% if excluding currency effects and effects from divestments). The year-on-year decline was primarily a reflection of the delayed execution of orders within certain product groups. FLSmidth expects the majority of these orders will be executed during the second half of 2025. The Adjusted EBITA margin was -9.7% when excluding transformation and separation costs of DKK 16m as well as other operating net income of DKK 25m, which primarily related to sale of certain properties in Q2 2025. Including these items, EBITA increased to DKK -50m corresponding to an EBITA margin of -8.2% compared to DKK -103m corresponding to an EBITA margin of -9.7% in Q2 2024.
PC&V revenue increased by 17% compared to Q2 2024 (increase of 24% if excluding currency effects and effects from divestments). The year-on-year increase reflects the positive momentum in the business and was driven by both higher equipment- and aftermarket-related revenue. The Adjusted EBITA margin was 23.7% when excluding transformation and separation costs of DKK 8m. There was no impact from other operating net income in the quarter. Including these items, EBITA increased to DKK 160m corresponding to an EBITA margin of 22.6% compared to DKK 134m corresponding to an EBITA margin of 22.1% in Q2 2024.
Consolidated revenue decreased by 12% compared to Q2 2024 (decrease of 5% if excluding currency effects and effects from divestments). The year-on-year decline was primarily driven by lower revenue in Products. In addition, Non-Core Activities contributed with DKK 44m in revenue in Q2 2024. The decline was partly offset by higher revenue in the PC&V business. The gross profit amounted to DKK 1,199m (unchanged compared to Q2 2024) corresponding to a gross margin of 35.5% (31.3% in Q2 2024). Excluding transformation and separation costs of DKK 50m and other operating net income of DKK 59m, the Adjusted EBITA margin was 15.2% in Q2 2025. Including these items, the EBITA margin was 15.5% compared to 8.8% in Q2 2024. Non-Core Activities impacted EBITA negatively by DKK 99m in Q2 2024. Excluding Non-Core Activities, the EBITA margin would have been 11.5% in Q2 2024. Profit from the continuing business was DKK 262m in Q2 2025 (Q2 2024: DKK 76m). Discontinued activities reported a total loss of DKK 717m compared to a gain of DKK 112m in Q2 2024. The loss includes impairment charges of DKK 495m relating to the divestment of the Cement business and derecognition of certain deferred tax assets.
Results in H1 2025
Commercial performance
Service order intake decreased by 7% compared to H1 2024 (decrease of 4% if excluding currency effects and effects from divestments). The decline was primarily a result of a lower order intake for upgrades & retrofits and spare parts and primarily in North America as well as in South America where orders were particularly strong in H1 2024. The year-on-year decline was partly offset by a higher order intake for consumables.
Products order intake decreased by 9% compared to H1 2024 (decrease of 7% if excluding currency effects and effects from divestments). The year-on-year decline reflects that a single large order was announced during H1 2025 (albeit with undisclosed total value), whereas two large orders with a combined value of approximately DKK 680m were announced in H1 2024.
PC&V order intake increased by 12% compared to H1 2024 (increase of 16% if excluding currency effects and effects from divestments). The year-on-year increase was driven by a higher level of both equipment- and aftermarket-related orders. In addition, the increase was primarily driven by a higher order intake in the EMEA and SAMER regions.
Consolidated order intake decreased by 4% compared to H1 2024 (decrease of 1% if excluding currency effects and effects from divestments). The year-on-year decrease was primarily a result of a lower order intake in Service. In addition, Non-Core Activities contributed with DKK 37m in order intake in H1 2024. The decline was partly offset by a higher order intake in the PC&V business.
Financial performance
Service revenue increased by 5% compared to H1 2024 (increase of 9% if excluding currency effects and effects from divestments). The higher revenue was primarily driven by higher revenue from consumables and upgrades & retrofits, driven by effective backlog management and improved order execution, partly offset by lower revenue in professional services, which can be partly explained by the exit from basic labour services. The Adjusted EBITA margin was 20.0% when excluding transformation and separation costs of DKK 52m as well as other operating net income of DKK 36m, which primarily related to sale of certain properties in H1 2025. Including these items, EBITA increased to DKK 831m corresponding to an EBITA margin of 19.6% compared to DKK 716m corresponding to an EBITA margin of 17.7% in H1 2024.
Products revenue decreased by 33% compared to H1 2024 (decrease of 32% if excluding currency effects and effects from divestments). The year-on-year decline was primarily driven by delayed execution of certain orders. FLSmidth expects the majority of these orders to be executed during the second half of 2025. The Adjusted EBITA margin was -9.9% when excluding transformation and separation costs of DKK 32m as well as other operating net income of DKK 41m, which primarily related to sale of certain properties in Q2 2025. Including these items, EBITA increased to DKK -131m corresponding to an EBITA margin of -9.3% compared to DKK -208m corresponding to an EBITA margin of -9.9% in Q2 2024.
PC&V revenue increased by 17% compared to H1 2024 (increase of 21% if excluding currency effects and effects from divestments). The year-on-year increase was driven by a higher level of aftermarket-related revenue. In addition, the increase was primarily a result of higher revenue in the EMEA region. The Adjusted EBITA margin was 24.2% when excluding transformation and separation costs of DKK 17m. There was …