Copenhagen, Denmark
Today, the Board of Directors of FLSmidth have approved the Q3 2025 Interim Financial Report.
Highlights in Q3 2025:
Service orders increased by 10% organically in Q3 2025, affirming the positive market momentum
While engineering and planning activity continued at high levels in the quarter, the timing of project sanctioning remains highly uncertain, adversely impacting our Products order intake
Growth in PC&V affected by strong comparison quarter, but year-to-date order intake growth remains solid at 9% organically, reflecting a stable and active market
Full year 2025 revenue guidance adjusted to around DKK 14.5bn, while Adjusted EBITA margin guidance is maintained at 15.0-15.5%
Strong cash flow generation with cash flow from operating activities of DKK 478m in Q3 2025
FLSmidth has now closed the divestment of the Cement business to become a pure-play supplier of technologies and services to the global mining industry
Continued progression on all our science-based sustainability targets
FLSmidth CEO, Mikko Keto, comments: "We sustained solid strategic and operational momentum through the quarter, despite a persistently soft equipment market. Our focus remains on driving profitable growth, simplifying our business, and executing with discipline to create long-term value. Engineering and planning activity remained high, yet the uncertain timing of project sanctioning weighed on Products order intake, which declined organically by 38%. In contrast, Service order intake grew organically by 10%, underscoring continued demand for productivity-enhancing solutions. Our PC&V business also delivered a solid performance, with year-to-date organic order growth of 9%, despite a tough comparison quarter with large project-related orders. Our simplification initiatives are delivering tangible results, reflected in an 11% year-on-year reduction in SG&A and an improved Adjusted EBITA margin of 15.3%. The closing of the divestment of our Cement business marks the beginning of our next chapter as a pure-play supplier of technologies and services to the global mining industry. Our full-year financial guidance has been adjusted. As such, we now expect full-year revenue at the lower end of the previously guided range, while maintaining our earnings outlook."
Results in Q3 2025
Commercial performance
Service order intake increased by 3% compared to Q3 2024, corresponding to an increase of 10% if currency effects and effects from divestments are excluded. The year-on-year increase was primarily due to a higher level of orders within upgrades & retrofits as well as professional services. The order backlog decreased to DKK 4,919m compared to DKK 5,061m at the end of Q3 2024. The book-to-bill ratio was 110.8% in Q3 2025.
Products order intake decreased by 43% compared to Q3 2024, corresponding to a decrease of 38% if currency effects and effects from divestments are excluded. No large orders were announced in Q3 2025, whereas one large order valued at approximately DKK 340m was announced in Q3 2024. The order backlog of DKK 5,112m was at the same level as at the end of Q3 2024. The book-to-bill ratio was 61.4% in Q3 2025.
PC&V order intake decreased by 9% compared to Q3 2024, corresponding to a decrease of 4% if currency effects and effects from divestments are excluded. The year-on-year decrease was primarily due to the booking of a larger project-related order in Q3 2024, whereas project-related sales in 2025 has been subdued. The year-on-year decline was partly offset by a higher level of on-site sales, underlining the benefits of the recent strengthening of the PC&V sales force. The order backlog decreased to DKK 1,012m compared to DKK 1,127m in Q3 2024. The book-to-bill ratio was 97.9% in Q3 2025.
Consolidated order intake decreased by 11% in Q3 2025, corresponding to a decrease of 4%% if currency effects and effects from divestments are excluded. The year-on-year decrease was primarily a result of a lower order intake in Products. Further, Non-Core Activities contributed with DKK 22m in order intake in Q3 2024. The order backlog decreased by 6% to DKK 11,043m compared to Q3 2024. The book-to-bill ratio was 97.0% in Q3 2025.
Financial performance
Service revenue decreased by 3% compared to Q3 2024, corresponding to an increase of 4% if currency effects and effects from divestments are excluded. The year-on-year decline is primarily a reflection of the timing of the execution of certain modernisation and spare-parts orders as well as currency effects. The Adjusted EBITA margin was 19.2% when excluding transformation and separation costs of DKK 26m as well as other operating net income of DKK 21m. Including these items, EBITA increased to DKK 367 corresponding to an EBITA margin of 19.0% compared to DKK 333m corresponding to an EBITA margin of 16.7% in Q3 2024.
Products revenue decreased by 40% compared to Q3 2024, corresponding to a decrease of 36% if currency effects and effects from divestments are excluded. The year-on-year decline was primarily a reflection of the subdued market conditions, resulting in a reduced order intake through the year as well as delayed execution of orders within certain product groups. FLSmidth expects the majority of these orders will be executed during Q4 2025 and Q1 2026. The Adjusted EBITA margin was -3.4% when excluding transformation and separation costs of DKK 19m. There was no impact from other operating net income in the quarter. Including these items, EBITA increased to DKK -45m corresponding to an EBITA margin of -5.9% compared to DKK -31m corresponding to an EBITA margin of -2.4% in Q2 2024.
PC&V revenue increased by 2% compared to Q3 2024, corresponding to an increase of 7% if currency effects and effects from divestments are excluded. The year-on-year increase was driven by a significant increase in aftermarket-related revenue, reflecting the positive momentum gained from the increased installed base. The Adjusted EBITA margin was 24.5% when excluding transformation and separation costs of DKK 7m as well as other operating net income of DKK 1m. Including these items, EBITA increased to DKK 178m corresponding to an EBITA margin of 23.7% compared to DKK 194m corresponding to an EBITA margin of 26.3% in Q3 2024.
Consolidated revenue decreased by 15% compared to Q3 2024, corresponding to a decrease of 8% if currency effects and effects from divestments are excluded. The year-on-year decline was primarily driven by lower revenue in Products. In addition, Non-Core Activities contributed with DKK 36m in revenue in Q3 2024. The decline was partly offset by higher revenue in the PC&V business. The gross profit amounted to DKK 1,198m (DKK 1,258m in Q3 2024), corresponding to a gross margin of 34.7% (31.1% in Q3 2024). Excluding transformation and separation costs of DKK 52m and other operating net income of DKK 22m, the Adjusted EBITA margin was 15.3% in Q3 2025. Including these items, the EBITA margin was 14.5% compared to 12.1% in Q2 2024. Non-Core Activities impacted EBITA negatively by DKK 8m in Q3 2024. Excluding Non-Core Activities, the EBITA margin would have been 12.3% in Q3 2024. Profit from the continuing business was DKK 298m in Q3 2025 (Q3 2024: DKK 240m). Discontinued activities reported a total gain of DKK 96m compared to a gain of DKK 49m in Q3 2024. The gain was driven by the reversal of provisions associated with project closures in connection with the divestment of the Cement business, partly offset by an impairment charge of DKK 126m, also related to divestment of the Cement activities.
Results in 9M 2025
Commercial performance
Service order intake decreased by 4% compared to 9M 2024, corresponding to an increase of 1% if currency effects and effects from divestments are excluded. The decline was primarily a result of a lower order intake for spare parts, and primarily in North America, as well as currency effects. All other regions reported a higher order intake compared to 9M 2024.
Products order intake decreased by 20% compared to 9M 2024, corresponding to a decrease of 17% if currency effects and effects from divestments are excluded. The year-on-year decline reflects that a single large order was announced during 9M 2025 (albeit with undisclosed total value), whereas three large orders with a combined value of approximately DKK 1.0bn were announced in 9M 2024.
PC&V order intake increased by 4% compared to 9M 2024, corresponding to an increase of 9% if currency effects and effects from divestments are excluded. 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 7% compared to 9M 2024, corresponding to a decrease of 2% if currency effects and effects from divestments are excluded. The year-on-year decrease was primarily a result of a lower order intake in Products. In addition, Non-Core Activities contributed with DKK 58m in order intake in 9M 2024. The decline was partly offset by a higher order intake in the PC&V business.
Financial performance
Service revenue increased by 2% compared to 9M 2024, corresponding to an increase of 7% if currency effects and effects from divestments are excluded. The higher revenue was primarily driven by higher revenue from consumables, driven by effective backlog management and improved order execution, partly offset by lower revenue in spare parts and professional services. The Adjusted EBITA margin was 19.7% when excluding transformation and separation costs of DKK 78m as well as other operating net income of DKK 57m, which primarily related to sale of certain properties during the period. Including these items, EBITA increased to DKK 1,198m, corresponding to an EBITA margin of 19.4% compared to DKK 1,049m corresponding to an EBITA margin of 17.4% in 9M 2024.
Products revenue decreased by 35% compared to 9M 2024, corresponding to a decrease of 33% if currency effects and effects from divestments are excluded. The year-on-year decline was primarily a reflection of the continued softness in the market conditions, resulting in a reduced order intake through the year, as well as delayed execution of certain orders. FLSmidth expects the majority of these orders to be executed during Q4 2025 and Q1 2026. The Adjusted EBITA margin was -7.6% when excluding transformation and separation costs of DKK 51m as well as other operating net income of DKK 41m, which primarily related to sale of certain properties during the period. Including these items, EBITA increased to DKK -176m corresponding to an EBITA margin of -8.1% compared to DKK -239m corresponding to an EBITA margin of -7.1% in 9M 2024.
PC&V revenue increased by 11% compared to 9M 2024, corresponding to an increase of 16% if currency effects and effects from divestments are excluded. The year-on-year increase was driven by a higher level of aftermarket-related revenue. The Adjusted EBITA margin was 24.3% when excluding transformation and separation costs of ...
