FLSmidth A/S reported a 16% year-over-year increase in organic revenue to DKK 3,944 million for the second quarter of 2026, alongside a 2.1 percentage-point improvement in adjusted EBITA margin to 17.3%. The company posted a profit of DKK 441 million, reversing a DKK 455 million loss in the same period of 2025.
Order intake rose 14% to DKK 4,026 million, while gross profit margin expanded to 36.5% from 35.5% a year earlier. Selling, general and administrative costs increased to DKK 701 million but declined to 17.8% of revenue from 20.0% in Q2 2025. Net working capital increased to DKK 3,603 million, representing 24.4% of trailing 12-month revenue, up from 12.0% in the prior-year quarter.
The Service segment delivered organic revenue growth of 11% to DKK 2,324 million and an adjusted EBITA margin of 20.7%, while the Products segment reported a 34% organic revenue increase to DKK 802 million and a positive 1.9% margin, improving from a negative 8.2% in Q2 2025. The Pumps, Cyclones & Valves segment grew organic revenue by 14% to DKK 818 million with a stable 23.3% margin.
CEO Toni Laaksonen highlighted the Service business's "excellent development" with margins returning to the company's long-term target range above 20%, while noting the Products segment's "excellent achievement" in turning around performance. CFO Roland M. Andersen emphasized the company's financial flexibility, with net leverage at 0.6x EBITDA and approximately 40.7% of a DKK 1 billion share buyback program completed as of August 18, 2026.
FLSmidth raised its full-year 2026 organic revenue growth guidance to 0% to 4% from -1% to 4% previously, and lifted its adjusted EBITA margin target to 16.0% to 16.5% from 15.5% to 16.5%. The company also increased its outlook for Service revenue growth to 3% to 5% organically and PC&V growth to 5% to 8%, while maintaining a projected 5% to 15% decline for the Products segment.
