Q1 2026 FLSmidth & Co A/S Earnings Call Transcript
Key Points
- FLSmidth & Co AS (FLIDF) reported strong organic growth in its service and PCV business lines, with order intake growing by double digits.
- The company achieved a 19% organic growth in services and a 16% growth in PCV compared to the previous year.
- The EBITDA margin improved to 15.2% in Q1, aligning with the company's financial forecasts.
- Cash flow showed satisfactory development, improving year-on-year.
- The sale of the former corporate headquarters was completed, providing a significant cash inflow.
- The product business line experienced a decline in order intake and revenue, indicating subdued market conditions.
- Overall revenue declined organically by 7%, driven by timing and order mix issues.
- The service business line's profitability was lower than previous quarters due to low revenue figures.
- There is an ongoing investigation related to a potential sanctions compliance issue in Kazakhstan, which could pose reputational risks.
- Safety performance declined, highlighting a need for improved safety practices and policies.
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Good morning everyone and welcome to the Q1 investor call from FLS. My name is Toni Laksonen and I will be presenting today with our CFO Roland Andersen.
And we start from the Q1 highlights.
So first going to the market and commercial highlights.
On the service and PCV side, we saw very strong development with our organic growth. So in both.
Business lines there, the order intake was growing with double-digit numbers.
With services, we captured 19% organic growth compared to last year, and with PCV 16%. So very strong development, which reflects that the market activity remains high at the brownfield sites.
Then with the products. We saw different development there that the market is more like a subdued and we didn't capture growth. The order intake was declining compared to last year, but still the underlying market activity remains positive.
Then when going to the revenue figures, our revenue declined organically by 7% and
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