Danish cement and mining equipment and solutions group FLSmidth has posted its Q1 2025 results, as talks continue over the potential sale of its Cement business.
Flsmidth’s Mining Service revenue increased 14%, driven by effective backlog management and order execution. The Mining Adjusted EBITA margin of 15.1% reflected continued profitability improvements.
A drop in Cement order intake was not so encouraging, and revenue continues to reflect de-risking and the impact of FLSmidth divestments. A Cement-adjusted EBITA margin of 9.5% reflects good strategic execution, reduced SG&A costs, and effective de-risking.
FLSmidth has now entered exclusive negotiations for the potential divestment of its Cement business. The financial guidance for the full year 2025 was raised on 14 May 2025 (ref. Company Announcement no. 7-2025).
During Q1, FLSmidth continued its progression on all its science-based sustainability targets.
FLSmidth Group CEO, Mikko Keto, said: “The year has started better than anticipated, with strong financial results and a solid commercial performance driving an upgraded financial guidance. This robust performance was achieved in a quarter with increased uncertainty and turbulence from US tariff measures. Amid this market backdrop, it was encouraging to see growth in orders within our consumables and pumps, cyclones and valves businesses. Further, effective backlog management and order execution resulted in a 14% growth in Mining Service revenue. Combined with the continued implementation of our corporate model, this was the primary driver behind the realisation of an Adjusted EBITA margin of 15.1% for the quarter. In Cement, we continue to see improvements in financial performance with an Adjusted EBITA margin of 9.5% in the year’s first quarter.
“We have made further progress towards the potential sale of the Cement business and have entered exclusive negotiations with Pacific Avenue Capital Partners. All in all, we are very pleased with the results delivered in the first quarter, and we are well-positioned to deliver our updated targets for the full year.”
The US accounted for approximately 20% of FLSmidth’s sales in 2024. The Group says its flexible supply chains and proactive tariff mitigation measures – reducing China-US supply flows, potentially passing on tariff costs to customers and optimising our supply chain efficiency – will help mitigate the associated risks, and “we currently see limited direct impacts on our operations”. However, FLSmidth recognises that continued tariff-related uncertainty may further delay larger investment decisions and impact the overall market sentiment if prolonged.
As announced on 18 February 2025, FLSmidth has appointed Julian Soles as President, Mining Products Business Line, and Toni Laaksonen as President, Mining Service Business Line. While Julian Soles officially started with FLS on 1 May 2025, Toni will start on 1 June 2025.
