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 experienced subdued demand and a 28% decline in order intake.

• Revenue declined organically by 7% year-over-year, mainly due to timing and order mix, with total revenue at DKK 3,279m, down 12% from Q1 2025.

• Adjusted EBITA/EBITDA margin improved to 15.2% from 14.6% in Q1 2025, in line with forecasts.

• Sale of the former corporate headquarters completed, providing a significant cash inflow and boosting net income.

• Executive leadership changes were made to support the new strategic direction.

Financial highlights

• Q1 order intake reached DKK 3.9 billion, with organic growth of 8%.

• Gross profit margin rose to 36.1% from 35.2% in Q1 2025.

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

• Cash flow from operations reached DKK 103m, up from DKK -12m in Q1 2025; free cash flow was DKK 746m, supported by the property sale.

• SG&A costs declined both sequentially and year-over-year due to ongoing simplification and new corporate model.

Outlook and guidance

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

• Service revenue expected to grow 2–5%, Products to decline 5–15%, and PC&V to grow 4–7%.

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

• Guidance assumes stable macroeconomic and political environment.

• Adj. EBITA margin to benefit from stable Service/PC&V margins, Products profitability improvements, and operational efficiency.