FLSmidth & Co. raised its full-year 2026 revenue and profitability guidance after reporting second-quarter adjusted earnings that exceeded analyst expectations, sending its shares up more than 9% in early European trading.
The Danish engineering group posted adjusted earnings before interest, taxes, depreciation and amortization (EBITA) of 683 million Danish crowns for the quarter, a 33% increase from the same period last year and 22% above consensus estimates. Revenue rose 16% year-over-year to 3.9 billion crowns on an organic constant-currency basis, while order intake climbed 13% to 4.0 billion crowns.
Cash flow from operations was negative 83 million crowns, below the company-compiled consensus of 258 million crowns due to higher working capital requirements. The adjusted EBITA margin reached 17.3%, reflecting improved operational efficiency.
For the full year 2026, FLSmidth upgraded its organic constant-currency revenue growth guidance to a range of 0% to 4%, up from the prior range of negative 1% to 4%. The company also raised its service segment growth target to 3% to 5% from 2% to 5% previously, and lifted its pumps, cyclones and valves (PC&V) growth guidance to 5% to 8% from 4% to 7%. The products segment guidance remained unchanged at negative 15% to negative 5%.
Group adjusted EBITA margin guidance was increased to 16.0% to 16.5% from the prior 15.5% to 16.5% range. Analysts at Jefferies noted that the results represented a strong performance, with organic order intake, revenue growth and adjusted EBITA margin all comfortably beating consensus estimates. They added that while guidance had been upgraded, they expected only low-single-digit adjustments to consensus margins.
