Flsmidth & Company A/s Stock Earnings Reports

FLS reported a strong start to 2026 in order intake, driven by double-digit organic growth in Services (19%) and Pumps, Cyclones & Valves (PCV) (16%), reflecting continued brownfield investment activity and some market-share gains in PCV. Product orders and revenue were subdued, though FLS won a repeat iron-ore product order in May. Group revenue declined organically by 7% in Q1 due to timing and order mix, but adjusted EBITA margin improved to 15.2%, in line with guidance. Cash flow improved year‑on‑year, aided by completion of the sale of the former Copenhagen head office; cleaned operating cash flow was DKK 103m for the quarter. Net working capital rose (mainly inventory) because many orders were back‑end loaded. Management reiterated full‑year 2026 guidance: organic revenue growth -1% to +4% and adjusted EBITA margin 15.5%–16.5%. They expect Service margins to revert to a 19%–20% target range as revenues normalize, see PCV continuing strong performance and market‑share gains, and expect product market activity to pick up later in the year. The company disclosed an ongoing internal investigation of a potential sanctions‑related compliance matter tied to tender materials for projects in Kazakhstan (no contracts, deliveries, or financial impact expected), has engaged authorities, and is strengthening compliance. Safety performance deteriorated in Q1 and will be a priority. Leverage remains low (~0.6x), CapEx is ~3% of revenue, projected full‑year operating cash flow up to DKK 1bn, and management says there is room for both share buybacks and targeted M&A tied to the upcoming strategy.