FLSmidth & Co A/S
CSE:FLS
FLSmidth & Co A/S
FLSmidth & Co A/S, hailing from the industrious roots of Denmark, has woven itself into the very fabric of the global engineering and technology sectors. Originating in 1882, the company initially grounded its expertise in the cement and mining industries, establishing a robust blueprint that has shaped its century-long journey. Today, FLSmidth stands as a leader in delivering sustainable productivity within these sectors, leveraging a comprehensive portfolio that encompasses everything from project building and engineering to handling maintenance and optimization. Their primary proposition lies in providing equipment and full-service strategies that empower their clients to enhance production efficiency while ensuring environmental compliance, addressing the modern-day demand for sustainability.
The financial engine of FLSmidth is fueled by its dual focus on the cement and mining divisions, each accounting for significant revenue streams. The mining sector offers an expansive range of equipment and systems for mineral processing, seamlessly integrating with the demands of a fluctuating global mining industry. Simultaneously, the cement division provides pioneering technologies and services that help plants maximize operational efficiency and reduce emissions. FLSmidth's ability to generate revenue is intricately linked to its proactive investment in research and development, ensuring its solutions are on the cutting edge of innovation. Through comprehensive aftermarket services and long-term client partnerships, the company not only secures steady cash flows but also positions itself as an essential partner in the continuous optimization of its client’s operations.
FLSmidth & Co A/S, hailing from the industrious roots of Denmark, has woven itself into the very fabric of the global engineering and technology sectors. Originating in 1882, the company initially grounded its expertise in the cement and mining industries, establishing a robust blueprint that has shaped its century-long journey. Today, FLSmidth stands as a leader in delivering sustainable productivity within these sectors, leveraging a comprehensive portfolio that encompasses everything from project building and engineering to handling maintenance and optimization. Their primary proposition lies in providing equipment and full-service strategies that empower their clients to enhance production efficiency while ensuring environmental compliance, addressing the modern-day demand for sustainability.
The financial engine of FLSmidth is fueled by its dual focus on the cement and mining divisions, each accounting for significant revenue streams. The mining sector offers an expansive range of equipment and systems for mineral processing, seamlessly integrating with the demands of a fluctuating global mining industry. Simultaneously, the cement division provides pioneering technologies and services that help plants maximize operational efficiency and reduce emissions. FLSmidth's ability to generate revenue is intricately linked to its proactive investment in research and development, ensuring its solutions are on the cutting edge of innovation. Through comprehensive aftermarket services and long-term client partnerships, the company not only secures steady cash flows but also positions itself as an essential partner in the continuous optimization of its client’s operations.
Revenue Guidance: FLSmidth expects full-year revenue at the lower end of its previous range, now guiding for around DKK 14.5 billion.
Margins: Q3 adjusted EBITDA margin was 15.3%, in line with expectations, and full-year margin guidance of 15.0%–15.5% is unchanged.
Service & PCV Strength: 80% of business now comes from high-margin, low-risk, recurring service and PCV segments, with service orders up 10% organically.
Product Business: Product orders remain soft, and the company does not expect growth in this area until at least late 2026; cost reductions are ongoing.
Cash Flow: Strong cash flow from operations, with free cash flow at DKK 358 million in Q3; full-year CFFO is now expected slightly above DKK 1 billion.
Cost Reductions: The company is actively reducing costs, including cutting 250–300 positions mainly in products, with further SG&A reductions expected.
Backlog Timing: Some project and service revenues delayed to 2026 due to customer timing and internal execution, but not lost.
