FLSmidth (FLS) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw strong organic order intake growth in Service (19%) and PC&V (16%), while Products remained subdued with a 28% decline in order intake.

• Organic revenue declined 7% year-over-year, mainly due to timing and order mix, but adjusted EBITA margin improved to 15.2% from 14.6% in Q1 2025.

• Sale of the former headquarters completed, significantly boosting net profit and cash flow for the period.

• Ongoing internal investigation into potential sanctions-related compliance matters in Kazakhstan, with no material business impact or provisions made.

• Leadership changes implemented to support new strategic direction.

Financial highlights

• Order intake reached DKK 3,898m, up 3% year-over-year; organic growth was 8%.

• Revenue was DKK 3,279m, down 12% year-over-year; organic revenue declined 7%.

• Adjusted EBITA margin improved to 15.2% (Q1 2025: 14.6%); adjusted EBITA was DKK 500m.

• Profit for the period was DKK 985m, up from DKK 351m, driven by the property sale.

• Free cash flow was DKK 746m, supported by the headquarters sale; operating cash flow (excluding the sale) was DKK 103m.

Outlook and guidance

• 2026 guidance maintained: organic revenue growth of -1% to +4%, adjusted EBITA margin of 15.5%-16.5%.

• Service organic revenue growth expected at 2–5%; PC&V at 4–7%; Products at -15% to -5%.

• Revenue and deliveries expected to be back-end loaded, with stronger performance in Q3 and Q4.

• Guidance assumes stable macroeconomic and political environment.

• Cash flow from operations for the year guided at DKK 1 billion; CapEx around 3% of revenue.