FLSmidth (FLS) has delivered a stronger second quarter in 2025, reporting an adjusted EBITA margin of 15.2 per cent as the mining technology provider accelerates its transition to a pure-play focus.
The company credited the margin lift to disciplined execution of its strategic priorities, cost reductions and strong performance in pumps, cyclones & valves (PC&V), which posted a 7 per cent increase compared to the second quarter of 2024.
“In the second quarter of 2025, we advanced our strategy despite ongoing macroeconomic and geopolitical uncertainty. Profitability strengthened with an adjusted EBITA margin of 15.2 per cent, reflecting continued momentum,” FLSmidth chief executive officer Mikko Keto said.
“Orders grew by 3 per cent year-on-year, driven especially by higher products orders, while pumps, cyclones & valves delivered 13 per cent organic growth from targeted sales force investments.
“Service orders declined by 1 per cent due to delayed modernisation projects in North America linked to tariff uncertainty, though these remain in the pipeline and recovery is expected in the coming quarters.”
The quarter also saw FLSmidth announce three major milestones: the $DKK730 million sale of its Copenhagen headquarters, the divestment of its Cement business and the launch of its first share buy-back program since 2012.
“These results underline our delivery on strategy and the creation of a stronger, more resilient FLSmidth,” Keto said.
As part of its transformation, the group has restructured reporting to reflect its mining-only future, with three operating segments: service, products and PC&V. While products revenue fell on delayed order execution, the company expects a rebound in the second half of 2025.
FLSmidth’s full-year financial guidance was upgraded earlier this month, with revenue now expected between $DKK14.5–15 billion and an adjusted EBITA margin of 15–15.5 per cent, up from prior forecasts of 14–14.5 per cent.
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