1 January – 31 March 2025
Company Announcement no. 8
Interim Report
Q1 2025
Contents
Management review
Highlights and guidance
Highlights Q1 2025 4
Financial performance highlights Q1 2025 5
Sustainability performance highlights Q1 2025 6
Key figures 8
2025 financial guidance 9
Performance
Mining financial performance 11
Cement financial performance 13
Consolidated quarterly financial performance 15
Consolidated Condensed
Financial statements
Income statement 19
Statement of comprehensive income 19
Cash flow statement 20
Balance sheet 21
Equity statement 22
Notes
1. Key accounting estimates and judgements 24
2. Income statement by function 24
3. Segment information 25
4. Revenue 26
5. Provisions 27
6. Contractual Commitments and
contingent liabilities 27
7. Net working capital 28
8. Business Acquisitions 28
9. Disposal of activities 28
10. Shareholders’ equity 29
11. Events after the balance sheet date 29
12. Accounting policies 29
Statement by Management 31
Forward looking statements 32
Service orders in line with expectations supported
by growth within consumables and PC&V
14% growth in Service revenue driven by effective
backlog management and order execution
Adjusted EBITA margin of 15.1% reflecting
continued profitability improvements
Significant expansion of service centre network
announced in Q1 2025
Order intake in line with expectations
Negative growth in topline and order intake
continues to reflect de-risking and impact from
divestments
Adjusted EBITA margin of 9.5% reflecting good
strategic execution, with reduced SG&A costs
and effective de-risking
FLSmidth has entered exclusive negotiations for
the potential divestment of the Cement business
The financial guidance for the full year 2025 was
raised on 14 May 2025
Julian Soles joined as President, Mining Products
on 1 May 2025. Toni Laaksonen is expected to join
soon as President, Mining Service
Non-Core Activities ceased as planned in early Q1
2025, with the remaining, insignificant contract
portfolio moved into the Mining segment
Further progression on our Science Based Targets
New mill liner recycling service launched in
Antofagasta in Chile
The coarseAIR™ Flotation Cell for coarse particle
recovery offically launched
Order for 18 tower mills, showing 25-50% reduction
in energy consumption, awarded in India
Mining
Performance and otherSustainability
Cement
Highlights Q1 2025
The year has started better than anticipated, with strong financial results
and a solid commercial performance driving an upgraded full-year finan-
cial outlook. This robust performance was achieved in a quarter with increasing uncer-
tainty and turbulence from US tariff measures.
The US accounted for approximately 20% of our sales in 2024, with approximately half of
our sales to the US being imports. Our flexible supply chains and proactive tariff miti-
gation measures – reducing China-US supply flows, potentially passing on tariff costs
to customers and optimising our supply chain efficiency – will help mitigate the associ-
ated risks, and we currently see limited direct impacts on our operations. However, we
recognise that continued tariff-related uncertainty may further delay larger investment
decisions and impact the overall market sentiment if prolonged.
Amid this market backdrop, it was encouraging to see growth in orders within our
consumables and pumps, cyclones & valves (PC&V) 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.
Our Cement business also showed further improvements in financial performance, with
an Adjusted EBITA margin of 9.5% in the quarter. We have made further progress towards
the potential sale of the Cement business and have entered into exclusive negotiations
with Pacific Avenue Capital Partners. There is still no certainty that any transaction will
transpire and will make further announcements as and when appropriate.
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.
Mikko Keto, Group CEO
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 4
2025
2024
2025
2024
2025
2024
3,777
4,176
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
Financial performance highlights Q1 2025
Order intake DKKm
▲
-18.2%
852
Order intake DKKm
▲
-11.8%
4,629
Order intake DKKm
▲
-9.6%
3,777
Revenue DKKm
▲
-15.5%
1,021
Revenue DKKm
▲
-2.3%
4,729
Revenue DKKm
▲ 3.5%
3,708
Cement GroupMining
EBITA & EBITA margin DKKm – %
▲ 54.4%
88
8.6% (adj. 9.5%)
EBITA & EBITA margin DKKm – %
▲ 63.3%
596
12.6% (adj. 13.9%)
EBITA & EBITA margin DKKm – %
▲ 3 7. 3%
508
13.7% (adj. 15.1%)
Revenue split by Service & Products %
Service
Products
Revenue split by Service & Products %
Service
Products
Cash flow from operating activities
DKKm (12) ▲ from DKKm (352) in Q1 2024
Earnings per share
DKK 6.1 ▲ from DKK 3.4 in Q1 2024
Net working capital ratio
12.0% ▲ from 8.4% end of Q1 2024
NIBD/EBITDA
0.4x
▲
from 0.5x end of Q1 2024
3,708
3,581
508
370
852
1,042
1,021
1,208
4,629
5,248
4,729
4,839
88
57
596
365
30%
(40%)
26%
(33%)
70%
(60%)
74%
(67%)
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 5
Q1 2025
2024
Q1 2025
2024
Q1 2025
Q1 2024
Q1 2025
Q1 2024
Q1 2025
2024
Q1 2025
2024
Sustainability performance highlights Q1 2025
Safety Water withdrawalWomen managers
1
Scope 1 & 2 Greenhouse
gas emissions
Spend with suppliers with
science-based targets
Scope 3 Economic intensity
(use of sold products)
2
Rate of recordable work-related
accidents/million working hours
2.6 (target <1.0)
▲
0.3 deterioration
m
3
30,229 (target 183,101)
▲ 1.0% improvement
%
15.9 (target >19.5%)
▲ 0.2%-points improvement
tCO
2
e (market-based)
7,76 5 (target <32,871)
▲ 13.2% improvement
%
22.7 (target >30%)
▲ 0.2%-points improvement
tCO
2
e/DKKm order intake
2,002 (target <4,065 by 2030)
▲ 32.9% improvement
1. Women managers KPI now reflects a 12-month rolling average. 2024 figure has been restated to reflect the new methodology
In Q1 2025, we progressed
positively in all our KPIs linked
to the Science Based Targets
initiative. Whilst we continue
to focus on safety, our
numbers slightly deteriorated,
and performance remains
behind target. The number of
women managers increased
during the first quarter.
2.6
2.3
15.9%
15.7%
30,229
30,523
7,7 6 5
8,947
2,002
2,985
22.7%
22.5%
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 6
Sustainability performance highlights Q1 2025
Mission Zero and Sustainability
developments at FLSmidth
FLS awarded large order for
an iron ore plant in India
FLSmidth recently received the largest single
order for our tower mills in the world - both in
installed power and mill quantity. Our tower
mills are vertical fine grinding solutions which
reduce energy and water consumption during
wet grinding of minerals and can reduce energy
consumption in fine grinding of minerals by
25-50% when compared to traditional horizontal
ball mills.
In addition to these mills, the order includes the
delivery of multiple UMD pumps and gMAX hydro-
cyclones; two products that have undergone EU
Taxonomy alignment assessments.
FLS launch new mill liner recycling
service in Antofagasta, Chile
Our comprehensive recycling solution for
composite and rubber grinding mill liners will serve
customers across South America with plans for
global expansion.
Recycling composite liners, rather than sending
them to landfill, results in carbon emissions
savings of up to 61% compared to producing
the mill liners from virgin materials. Recycling
promotes a circular economy and reduces the
impact by reducing the need for new raw material
extraction.
FLS formally launch the coarseAIR™ Flotation
Cell for coarse particle recovery coarseAIR™
Flotation Cells significantly improve mineral
recovery and allow for coarser grinding in the
grinding circuit, leading to increased plant
throughput. The resulting effects are reduced
operating costs and an increase in ESG benefits
from energy savings per tonne material
processed, potentially lowering the operational
carbon footprint. Further, it has the potential
to enhance tailings and water management.
Coarser tailings allow more water to be recovered,
reducing water loss, and improving tailings
stability.
Scope 1 and 2 GHG emissions for the first
quarter of 2025 decreased by 13.2% compared
to Q1 2024. The improvement reflects initiatives
implemented in the second half of 2024 where
the positive impact to emission reduction is now
being fully realised. These include site consolida-
tion; head count reduction and the completion of
two solar panel projects, one in the US and one in
South Africa.
Scope 3 Economic Intensity (use of sold
products) reflects the life-time emissions of
our product sales and performance is sensitive
to order mix. During the first quarter of 2025,
Economic intensity decreased by 32.9% compared
to the end of 2024. A combination of lower sales in
high economic intensity product groups, such as
pyro systems and our mills range, combined with
a higher share of order intake from lower intensity
products, such as our pumps range, and service
business line drove performance.
Spend with suppliers with science-based
targets increased by 0.2%-points compared to
the end of 2024. Engagement with our key large
suppliers in setting targets continues to drive
core performance. This is further supported by a
wider trend of suppliers continuing to set science-
based targets..
Safety, Total recordable injury rate increased
by 0.3%-points compared to the end of 2024. We
continue to focus on initiatives to embed safety
everyday operations. These include, our Global
Hand Safety Campaign; an implementation of an
Incident Review Board in all regions; and a Global
Safety Recognition programme to motivate
employees to promote better safety practices.
Further, FLS has implemented a new HSE compli-
ance audit program with eight sites selected for
review in 2025; two being completed in the first
quarter. The goal is to globally align corporate
standards, policies and best practices to support
future performance.
Percentage of Women Managers increased
0.2%- points since the end of 2024 and reflects
our commitments to increase the proportion of
women managers in the organisation. We now
track development by using a 12-month rolling
average to remove short-term volatility and track
longer term development. The positive perfor-
mance highlights an ongoing positive trend to
work towards our year-end target.
Water withdrawal decreased by 1% compared to
Q1 2024. Similar to our GHG emissions reductions,
performance has been supported by headcount
reduction and site consolidation. This has been
slightly offset by increased service activity which
often utilises more water.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 7
Key figures
DKKm Q1 2025 Q1 2024 2024
Income statement
Revenue 4,729 4,839 20,187
Gross profit
1
1,629 1,384 6,465
EBITDA 664 442 2,257
EB ITA 596 365 1,969
Adjusted EBITA* 656 443 2,230
EBIT 533 305 1,738
Financial items, net (1) (2) (180)
EBT 532 303 1,558
Profit for the year 351 194 1,030
Orders
Order intake 4,629 5,248 19,133
Order backlog 14,762 17, 4 8 2 15,214
Earning ratios
Gross margin
1
34.4% 28.6% 32.0%
EBITDA margin 14.0% 9.1% 11.2%
EBITA margin 12.6% 7. 5 % 9.8%
Adjusted EBITA margin 13.9% 9.2% 11.0%
EBIT margin 11.3% 6.3% 8.6%
EBT margin 11.2% 6.3% 7.7 %
Cash flow
Cash flow from operating activities (CFFO) (12) (352) 640
Acquisitions of property, plant and equipment (88) (58) (384)
Cash flow from investing activities (CFFI) (110) 46 (508)
Free cash flow (122) (306) 132
Free cash flow adjusted for acquisitions and
disposals of enterprises and activities (120) (454) 7
Balance sheet
Net working capital 2,415 1,935 2,107
Net interest-bearing debt (NIBD) (1,043) (830) (847)
Total as sets 26,379 26,904 26,935
CAPEX 187 109 831
Equity 11,842 11,085 11,781
Dividend to shareholders, proposed - - 461
1
Q1 2024 information has been restated to reflect a reclassification of DKK 31m from Administrations costs to Production
costs.
DKKm Q1 2025 Q1 2024 2024
Financial ratios
Book-to-bill 97. 9 % 108.5% 94.8%
Order backlog / Revenue 73.5% 76.2% 75.4%
Return on equity 10.0% 7. 1 % 9.1%
Equity ratio 44.9% 41.2% 43.7%
ROCE, average 12.1% 7. 8 % 11.0%
Net working capital ratio, end 12.0% 8.4% 10.4%
NIBD / EBITDA 0.4x 0.5x 0.4x
Capital employed, average 18,203 18,078 17, 86 7
Number of employees 7,6 8 2 8,769 7,7 3 9
Share ratios
Cash flow per share, diluted (0.2) (6.2) 11.2
Earnings per share (EPS), diluted 6.1 3.4 1 7. 8
Share price 329 344 356
Number of shares (1,000), end 5 7, 6 5 0 5 7, 6 5 0 5 7, 6 5 0
Market capitalisation, end 18,967 19,832 20,523
Sustainability key figures
Scope 1 and 2 greenhouse gas emissions (tCO
2
e) market-based 7,7 6 5 8,947 30,638
Scope 3: Economic intensity Use of sold products (tCO
2
e/DKKm order intake)** 2,002 2,530 2,985
Spend with suppliers with science-based targets 22.7% 19.0% 22.5%
Safety, Rate of recordable work-related accidents/million working hours 2.6 2.3 2.3
Women managers 15.9 15.5% 15.7%
Water withdrawal (m
3
) 30,229 30,523 156,062
Other key figures
Quality, DIFOT Delivery In Full On Time 81,6% 83.2% 82.7%
Throughout the report, we present financial measures which are not defined according to IFRS. We refer to note 7.4, Alternative
performance measures, and note 7.8, Definition of terms, in the 2024 Annual Report for further information.
The financial ratios have been computed in accordance with the guidelines of the Danish Finance Society. Refer to note 7.8 in the 2024 Annual
Report for definitions of terms.
* To reflect the underlying business performance, we present an adjusted EBITA margin by excluding costs related to our ongoing transfor-
mation activities and the separation of Mining and Cement.
** From 2024, we measure Scope 3 Economic intensity quarterly as a year-to-date figure
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 8
2025 financial guidance
The financial guidance for the full year 2025, that was upgraded on 14 May 2025 (ref. Company Announcement no. 7-2025), is maintained. The financial
guidance for the full year 2025 reflects the ongoing business simplification and transformation efforts, continued improvement in the core Mining business
and the effects from the strategic initiatives implemented in the Cement business.
Compared to 2024, we expect market demand in the Mining
Service business to remain stable and active, whereas market
demand in the Mining Products business is expected to remain
soft.
The guidance for the Adjusted EBITA margin excludes transfor-
mation and separation costs of around DKK 200m for the full year
2025. Further, the Adjusted EBITA margin is expected to be posi-
tively impacted by additional business simplification initiatives,
organisational restructuring and enhanced commercial execution.
We expect the short-term outlook for the cement industry to
remain impacted by macroeconomic uncertainty. The guidance
for revenue reflects the divestment of the MAAG business
completed in 2024.
The guidance for the Adjusted EBITA margin excludes transfor-
mation and separation costs of around DKK 50m for the full year
2025.
The Consolidated Group guidance reflects the sum of the guid-
ance for the two business segments.
The guidance for 2025 is subject to uncertainty from macroeco-
nomic and geopolitical turmoil.
Mining
Revenue (DKKbn)
~15.0
(DKK 3.7bn)
Adj. EBITA margin
14.0-14.5%
(15.1%)
Cement
Revenue (DKKbn)
~4.0
(DKK 1.0bn)
Adj. EBITA margin
9.0-9.5%
(9.5%)
Group
Revenue (DKKbn)
~19.0
(DKK 4.7bn)
Adj. EBITA margin
13.0-13.5%
(13.9%)
EBITA margin
11.5-12.0%
(12.6%)
Note: Numbers in brackets represent actual year-to-date financial results as of Q1 2025.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 9
72%
(2024: 67%)
28% (2024: 33%)
37%
13%
8%
3%
16%
23%
25%
28%
16%
31%
NAMER
SAMER
EMEA
APAC
Service
Products
Copper
Gold
Coal
Fertiliser
Iron ore
Other Minerals
Mining financial performance
Market activity in the first quarter
remained consistent with levels
seen at the end of 2024. However,
recent macroeconomic and tariff-
related uncertainties may cause
adverse effects on economic
development and mining activity.
Throughout Q1 2025, the mining service market
has remained stable and active, albeit with a
relative softness in North America, which is likely
a result of macroeconomic and cost uncertainty
stemming from tariff measures.
We continue to observe a soft products market
with persistent hesitation by some customers to
allocate capital expenditures to larger brownfield
and greenfield projects. However, customers
continue to show good interest in smaller
product solutions that drive efficiency, increase
throughput or reduce maintenance costs, such
as pumps, cone crushers and flotation and thick-
ening upgrades.
Looking further into 2025, we expect market
activity to remain broadly in line with current
levels, assuming no significant external changes.
Our supply chain remains relatively flexible, and
we are actively implementing measures to miti-
gate the operational impact from tariffs. These
initiatives include reducing the supply flows from
China to the US, potentially passing tariff costs
on to customers and further optimising our supply
chain efficiency. Nonetheless, we recognise that
continued tariff-induced cost uncertainty may
pose a risk of further delaying customers' larger
investment decisions, which, if prolonged, may
impact the overall market sentiment.
Optimism on the longer-term demand outlook
persists, with metals prices (especially for copper
and gold) remaining relatively high and indications
from engineering, procurement and construc-
tion managers (EPCMs) that larger projects may
progress over the next couple of years, albeit with
uncertain timing.
Mining
(DKKm) Q1 2025 Q1 2024 Change (%)
Order intake 3,777 4,176 -10%
Hereof service order intake 2,732 2,784 -2%
Hereof products order intake 1,045 1,392 -25%
Order backlog 11,165 12,581 -11%
Revenue 3,708 3,581 4%
Hereof service revenue 2,748 2,404 14%
Hereof products revenue 960 1,177 -18%
Gross profit* 1,304 1,153 13%
Gross margin* 35.2% 32.2%
SG&A cost* (755) (721) 5%
SG&A ratio* 20.4% 20.1%
Adjusted EBITA 559 412 36%
Adjusted EBITA margin 15.1% 11.5%
EBITA 508 370 37%
EBITA margin 13.7% 10.3%
Number of employees 5,700 6,553 -13%
* Q1 2024 information has been restated to reflect a reclassification of DKK 27m from Administrations costs to Production costs.
Order intake split by
Region, Q1 2025
Order intake split by
Commodity, Q1 2025
Order intake split by
Service and Products, Q1 2025
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 11
0
1,200
2,400
3,600
4,800
0
4
8
12
16
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Products revenue
Service revenue
EBITA %
Adjusted EBITA %
74%
(2024: 67%)
26% (2024: 33%)
Service
Products
Non-core Activities ceased as planned in early Q1
2025, with the remaining, insignificant contract
portfolio moved into the Mining segment.
Order intake development in Q1 2025
Mining order intake decreased by 10% compared
to Q1 2024. Currencies had no impact on Mining
order intake in Q1 2025.
Service order intake decreased by 2% compared
to Q1 2024, partly driven by our exit from basic
labour contracts. The year-on-year decline was
partly offset by a higher order intake within
consumbles. The overall decline in Service order
intake can primarily be attributed to lower activity
in North America.
Products order intake decreased by 25%
compared to Q1 2024. The year-on-year decline
reflects the continued softness of the mining
products market as well as the continued
de-risking of our order backlog. The decline was
partly offset by a 10% increase in pumps, cyclones
& values (PC&V)-related orders compared to Q1
2024. No large Products orders were announced
in Q1 2025, whereas two large orders with a
combined value of DKK 680m were announced in
Q1 2024.
During the quarter, Service and Products orders
accounted for 72% and 28% of the total order
intake, respectively, compared to 67% and 33% in
Q1 2024.
Revenue development in Q1 2025
Mining revenue increased by 4% compared to Q1
2024. Currencies had no impact on Mining revenue
in Q1 2025.
Service revenue increased by 14% compared to
Q1 2024 to DKK 2,748m. The year-on-year increase
was primarily attributable to higher revenue from
consumables, spare parts and upgrades & retro-
fits, driven by effective backlog management
and enhanced order execution. Additionally, order
turnaround times showed continued improvement
in Q1 2025 compared to the same period last
year. The year-on-year increase was partly offset
by relatively lower revenue within professional
services, which can be partly explained by our exit
from basic labour services.
Products revenue decreased by 18% compared to
Q1 2024. The decrease was primarily a reflection
of the de-risking of our products portfolio, as well
as the timing of execution for certain large-scale
Product orders.
In Q1 2025, Service and Products revenue
accounted for 74% and 26% of the total Mining
revenue, respectively, compared to 67% and 33%
in Q1 2024.
Gross profit development in Q1 2025
Gross profit increased by 13% to DKK 1,304m,
from DKK 1,153m in Q1 2024. The corresponding
gross margin increased from 32.2% in Q1 2024
to 35.2% in Q1 2025, which in large parts was a
reflection of the relatively higher share of Service
revenue in the quarter.
The gross margin represents the highest level
achieved for our Mining business in several years,
and was a result of good margin execution, mix
and our de-risking strategy.
EBITA development in Q1 2025
The Adjusted EBITA margin was 15.1% when
excluding transformation and separation costs
of DKK 51m. The improvement compared to Q1
2024 was primarily attributable to the higher
gross profit and a relatively stable level for sales,
general, and administrative (SG&A) costs. The
EBITA margin increased to 13.7%, compared to
10.3% in Q1 2024.
Employees
The number of employees in Mining has been
reduced by 853 since the end of Q1 2024. This
reduction is largely attributable to the continued
streamlining of our operating model and strategic
footprint optimisation, undertaken to enhance
operational efficiency and support sustained,
long-term profitability.
Growth in order intake and revenue
in Q1 2025 (vs. Q1 2024)
Order intake Revenue
Organic -10% 4%
Currency 0% 0%
Total growth -10% 4%
Revenue and EBITA margin
DKKm EBITA margin %
Revenue split by
Service and Products, Q1 2025
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 12
9%
11%
10%
5%
7%
14%
27%
17%
India
Turkey
Denmark
China
Indonesia
Export cluster
Brazil
US
Service
Products
73%
(2024: 69%)
27% (2024: 31%)
Cement financial performance
Order intake split by
cluster in Q1 2025
* For more information on clusters, please refer to page 31 in
the 2024 Annual Report
Order intake split by
Service and Products, Q1 2025
Following a year of muted growth
for the cement industry in 2024,
Q1 2025 has continued a similarly
mixed picture, with the market
sentiment being characterised
by macroeconomic uncertainties
stemming from tariff measures.
performed below expectations, with especially
China showing continued decline.
The impact of the US-imposed tariffs is currently
expected to be limited, as majority of tariff costs
are expected to be passed on to customers.
Further, the risk to our supply-chain is also
assumed to be limited, as import from tariff-im-
pacted countries is limited and alternative supply-
sources for our products and services are being
identified. We continue to follow the situation
closely, as visibility on future tariff developments
remains limited.
Leading indicators looking at developments in
the residential, non-residential and infrastructure
sectors are tentative, broadly pointing to 2025 as
a year with low single-digit growth expectations,
with similar geographical variations as in 2024.
In addition to market demand, the impact of
regulatory and commercial pressures on delivering
net-zero ambitions are other significant long-term
growth drivers. Across the world, cement plants
are focused on optimisation projects, seeking to
decarbonise firstly through clinker substitution,
fossil fuels replacement and reduced energy
consumption, while keeping an eye on developing
carbon capture and storage technologies.
Cement
(DKKm) Q1 2025 Q1 2024 Change (%)
Order intake 852 1,042 -18%
Hereof service order intake 619 721 -14%
Hereof products order intake 233 321 -27%
Order backlog 3,597 4,422 -19%
Revenue 1,021 1,208 -15%
Hereof service revenue 716 721 -1%
Hereof products revenue 305 487 -37%
Gross profit* 325 271 20%
Gross margin* 31.8% 22.4%
SG&A cost* (223) (236) -6%
SG&A ratio* 21.8% 19.5%
Adjusted EBITA 97 93 4%
Adjusted EBITA margin 9.5% 7. 7 %
EBITA 88 57 54%
EBITA margin 8.6% 4.7%
Number of employees 1,982 2,128 -7 %
* Q1 2024 information has been restated to reflect a reclassification of DKK 4m from Administrations costs to Production costs.
2025 has gotten off to a mixed start, not least due
to the macroeconomic and geopolitical uncertain-
ties introduced by the new US administration. In
Q1 2025, the US saw a decline in cement produc-
tion while European markets were broadly stable.
Demand in Latin America has been mixed, with
especially Brazil remaining strong. India continued
to show good performance, while the rest of Asia
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 13
Service
Products
0
500
1,000
1,500
2,000
0
4
8
12
16
Products revenue
Service revenue
EBITA %
Adjusted EBITA %
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
70%
(2024: 60%)
30% (2024: 40%)
We are well-positioned to enable the industry and
our clients to achieve their sustainability objec-
tives through our extensive portfolio of services
and products. Our offerings drive optimisation,
enhance energy efficiency, provide alternative
fuel solutions and facilitate clinker substitution,
including through technologies for materials such
as calcined clay.
Order intake development in Q1 2025
Cement organic order intake decreased by 18% in
Q1 2025 compared to Q1 2024. Excluding currency
and divestment effects, order intake decreased
organically by 12%.
Service order intake decreased by 14% compared
to Q1 2024, primarily reflecting the divestment of
the MAAG business in Q1 2024. Customer hesi-
tancy concerning US tariff measures as well as
considerations about cement sales levels have
impacted decision-making, especially for larger
orders relating to upgrades and retrofits. While
this has resulted in the postponement of certain
orders, we have continued to see growth in the US
and India compared to Q1 2024, and we see strong
pipelines in both countries. We also continue to
see an overall stable market in South America.
Products order intake decreased by 27%
compared to Q1 2024, driven in part by the divest-
ments of the MAAG business in Q1 2024, as well
as by the simplification of the Pyro and Grinding
businesses as part of our strategic focus on prof-
itability and continuous risk mitigation.
Service and Products comprised 73% and 27% of
the total Cement order intake in Q1 2025, respec-
tively, compared to 69% and 31% in Q1 2024,
respectively.
Revenue development in Q1 2025
Revenue decreased by 15% compared to Q1 2024.
Excluding currency and divestment effects,
revenue decreased organically by 11%.
Service revenue decreased by 1% compared to Q1
2024 due to the divestment of the MAAG business
in Q1 2024. Excluding the effect of the divestment
of the MAAG business, Service revenue increased
by 6%.
Products revenue decreased by 37% compared to
Q1 2024 driven in part by the continued pruning of
the product portfolio as well by the divestment of
the MAAG business.
Service and Products comprised 70% and 30% of
the total Cement revenue in Q1 2025, respectively,
compared to 60% and 40% in Q1 2024, respec-
tively.
Gross profit development in Q1 2025
Gross profit increased by 20% in Q1 2025
compared to Q1 2024 due to a more favorable
sales mix and significantly lower inventory write-
downs. The corresponding gross margin increased
by 9.4%-points to 31.8% in Q1 2025.
EBITA development in Q1 2025
The Adjusted EBITA margin was 9.5% when
excluding transformation and separation costs
of DKK 9m. EBITA increased by 54% in Q1 2025 to
DKK 88m compared to DKK 57m in Q1 2024. The
increase was driven by improved gross profit and
lower SG&A costs due to simplification of the
operating model. The corresponding EBITA margin
improved by 3.9%-points to 8.6% compared to Q1
2024.
Excluding the net gain of DKK 28m from the sale of
the MAAG business in Q1 2024, the EBITA margin
improved by 6.2%-points year-on-year.
Employees
The number of employees in the Cement business
was relatively unchanged and totalled 1,982 by
the end of Q1 2025.
Growth in order intake and revenue
in Q1 2025 (vs. Q1 2024)
Order intake Revenue
Organic -12% -11%
Divestments -6% -4%
Currency 0% 0%
Total growth -18% -15%
Revenue and EBITA margin
DKKm EBITA margin %
Revenue split by
Service and Products, Q1 2025
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 14
Service order intake Products order intake
0
1,500
3,000
4,500
6,000
7,500
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Consolidated quarterly financial performance
Order intake in Q1 2025
Order intake decreased by 12% in Q1 2025 to
DKK 4,629m compared to DKK 5,248m in Q1 2024.
Excluding currency effects and effects from
divestments, order intake decreased organically
by 11%.
Service order intake decreased by 4% compared
to Q1 2024, driven by relatively lower order intake
in both the Mining and Cement businesses.
Products order intake decreased by 27%
compared to Q1 2024 driven by lower Products
orders in both the Mining and Cement businesses.
Service and Products represented 72% and 28% of
the total order intake, respectively, compared to
67% and 33% respectively in Q1 2024.
Order backlog and maturity in Q1 2025
The order backlog decreased by 16% to DKK
14,762m compared to Q1 2024, mainly driven
by our de-risking strategy. The order backlog
decreased by 3% since the end of Q4 2024,
primarily driven by currency effects.
Backlog maturity Mining Cement
FLSmidth
Group
2025 56% 52% 55%
2026 39% 25% 36%
2027
& beyond 5% 23% 9%
Revenue in Q1 2025
Revenue decreased by 2% to DKK 4,729m in Q1
2025, compared to Q1 2024, driven by lower
revenue in the Cement business. Excluding
currency effects and effects from divestments,
revenue decreased organically by 1% compared to
Q1 2024.
Service revenue increased by 11% compared to
Q1 2024 driven by higher Service revenue in the
Mining business. The year-on-year increase was
partly offset by lower Service revenue in the
Cement business, which can be largely attributed
Growth in order intake in Q1 2025
(vs. Q1 2024)
Mining Cement
FLSmidth
Group
Organic -10% -12% -11%
Divestments 0% -6% -1%
Currency 0% 0% 0%
Total growth -10% -18% -12%
Growth in revenue in Q1 2025
(vs. Q1 2024)
Mining Cement
FLSmidth
Group
Organic 4% -11% -1%
Divestments 0% -4% -1%
Currency 0% 0% 0%
Total growth 4% -15% -2%
Group
(DKKm) Q1 2025 Q1 2024 Change (%)
Order intake 4,629 5,248 -12%
Hereof service order intake 3,351 3,505 -4%
Hereof products order intake 1,278 1,743 -27%
Order backlog 14,762 17, 4 82 -16%
Revenue 4,729 4,839 -2%
Hereof service revenue 3,464 3,130 11%
Hereof products revenue 1,265 1,709 -26%
Gross profit* 1,629 1,384 18%
Gross margin* 34.4% 28.6%
SG&A cost* (978) (977) 0%
SG&A ratio* 20.7% 20.2%
Adjusted EBITA 656 443 48%
Adjusted EBITA margin 13.9% 9.2%
EBITA 596 365 63%
EBITA margin 12.6% 7.5 %
Number of employees 7,6 8 2 8,769 -12%
* Q1 2024 information has been restated to reflect a reclassification of DKK 31m from Administration costs to Production costs.
Order intake split by
Service and Products, Q1 2025
DKKm
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 15
0
1,500
3,000
4,500
6,000
7,500
0
3
6
9
12
15
Revenue EBITA %
Adjusted EBITA %
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Mining Mining adj. Cement Cement adj. NCA
-300
0
300
600
900
1,200
1,500
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Mining Cement NCA
0
5,000
10,000
15,000
20,000
25,000
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
to the divestment of the MAAG business in Q1
2024.
Products revenue decreased by 26% compared to
Q1 2024. For Mining, the decrease was driven by
our de-risking portfolio strategy and the timing of
the execution of certain larger Products orders.
For Cement, the decrease was driven by the
continued pruning of the product portfolio, our
exit from project-oriented businesses with signif-
icant risk profiles and lower margins, and MAAG
divestment in Q1 2024.
Service and Products revenue accounted for 73%
and 27% of the total revenue in Q1 2025, respec-
tively, compared to 65% and 35%, respectively, in
Q1 2024.
Profit in Q1 2025
Gross profit and margin
Gross profit increased by 18% to DKK 1,629m in
Q1 2025, compared to DKK 1,384m in Q1 2024,
as a results of favourable mix, impact from our
de-risking strategy and a lower level of write-
down of inventories, but was partly offset by the
lower revenue in quarter. The corresponding gross
margin increased to 34.4% in Q1 2025 compared to
28.6% in Q1 2024, representing the highest gross
margin achieved in several years.
Research & development costs
In Q1 2025, total research and development costs
(R&D) amounted to DKK 52m, representing 1.1% of
revenue (Q1 2024: 1.5%).
(DKKm) Q1 2025 Q1 2024
Production costs 38 45
Capitalised 14 26
Total R&D 52 71
SG&A costs
Sales, general and administrative costs (SG&A) of
DKK 978m were in line with Q1 2024, reflecting the
positive effects from the ongoing simplification
of our operating model, offset by strategic hirings
in the Mining business and effects from inflation.
Currencies had a favorable impact on SG&A of
DKK 18m in the quarter.
SG&A costs as a percentage of revenue increased
slightly to 20.7% in Q1 2025 compared to 20.2% in
Q1 2024 due to the lower revenue.
EBITA and margin
Excluding transformation and separation costs of
DKK 60m, the Adjusted EBITA margin was 13.9%
in Q1 2025 compared to 9.2% in Q1 2024. Including
these costs, the EBITA margin was 12.6% in Q1
2025 compared to 7.5% in Q1 2024. Excluding the
net gain of DKK 28m from the sale of the MAAG
business in Q1 2024, the EBITA margin improved
from 7.0% to 12.6%.
Amortisation of intangible assets
Amortisation of intangible assets amounted to
DKK 63m (Q1 2024: DKK 60m).
Financial items
Net financial items amounted to DKK -1m (Q1
2025: DKK -2m), of which net interest amounted to
DKK -17m (Q1 2024: DKK -34m), foreign exchange
and fair value adjustments amounted to DKK 16m
(Q1 2024: DKK 32m).
Tax
Tax in Q1 2025 totalled DKK -181m (Q1 2024:
-109m), corresponding to an effective tax rate of
34.0% (Q1 2024: 36.0%). This includes impact from
withholding tax in both periods.
Profit for the period
Profit in Q1 2025 was DKK 351m (Q1 2024: DKK
194m) driven by the improved gross profit.
Return on capital employed
Return on capital employed (ROCE) increased to
12.1% (Q1 2024: 7.8%) due to the higher EBITA.
Employees
The number of employees decreased slightly to
7,682 at the end of Q1 2025, compared to 7,739 at
the end of Q4 2024.
Capital in Q1 2025
Cash flow from operating activities
Cash flow from operating activities (CFFO)
amounted to DKK -12m in Q1 2025 (Q1 2024: DKK
-352m). The improvement compared to the prior-
year period was a reflection of the higher earnings
and a relatively smaller increase in net working
capital.
Backlog
DKKm
Revenue & EBITA margin
DKKm EBITA margin %
EBITA
DKKm
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 16
Net interest-bearing debt (NIBD)
0
300
600
900
1,200
1,500
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
0
500
1,000
1,500
2,000
2,500
3,000
0
2
4
6
8
10
12
Net working capital Net working capital ratio, end
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Cash ow from operating activities
-600
-300
0
300
600
900
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Cash flow from investing activities
Cash flow from investing activities amounted to
DKK -110m (Q1 2024: DKK 46m), with the majority
of the investment activity in the first quarter of
2025 relating to a new mill liner manufacturing
facility in Chile and the construction of a manu-
facturing facility in the US Cement business.
The positive cash flow in Q1 2024 was affected
by cash flow from disposal of enterprises and
activities stemming from the sale of the MAAG
business.
Cash flow from financing activities
Cash flow from financing activities amounted to
DKK -66m (Q1 2024: DKK 513m). Cash flow from
financing activities in Q1 2024 included a net
increase in interest-bearing debt of DKK 541m.
Free cash flow
Free cash flow (the sum of cash flow from oper-
ating and investing activities) amounted to DKK
-122m in the quarter (Q1 2024: DKK -306m). Free
cash flow adjusted for business acquisitions and
disposals amounted to DKK -120m in Q1 2025 (Q1
2024: DKK -454m).
Net working capital
Net working capital increased by DKK 308m to
DKK 2,415m at the end of Q1 2025 compared to
DKK 2,107m at the end of Q4 2024. The increase
was primarily driven by payments to suppliers
leading to a reduction in trade payables and
reduced prepayments from customers, partly
offset by a reduction in trade receivables from
increased cash collection and work in progress.
The corresponding net working capital ratio
increased from 10.4% of revenue in Q4 2024 to
12.0% in Q1 2025.
Utilisation of supply chain financing decreased to
DKK 425m in Q1 2025 (Q4 2024: 515m).
Net interest-bearing debt
Net interest-bearing debt (NIBD) at 31 March 2025
increased to DKK 1,043m (Q4 2024: DKK 847m). The
financial gearing end of Q1 2025 amounted to 0.4x
(Q4 2024: 0.4x) and remains comfortably below our
target level of less than 2.0x.
Financial position
By the end of Q1 2025, FLSmidth had DKK 6.3bn of
available committed credit facilities of which DKK
4.8bn remained undrawn. The committed credit
facilities have a weighted average time to matu-
rity of 2.2 years.
Credit facilities of DKK 5.0bn and DKK 1.1bn
will mature in 2027 and 2030, respectively. The
remaining DKK 0.2bn mature in later years. The
DKK 5.0bn credit facility is expected to be refi-
nanced before year end. Additionally, FLSmidth
has DKK 0.8bn of uncommitted credit facilities
available.
Equity ratio
Equity at the end of Q1 2025 increased to DKK
11,842m (end of Q4 2024: DKK 11,781m), driven
primarily by profit for the period, partly offset from
currency adjustments. The equity ratio was 44.9%
at the end of Q1 2025 (end of Q4 2024: 43.7%).
Treasury shares
The holding of treasury shares as of 31 March
2025 decreased from the end of 2024 and
amounted to 563,870 shares (Q4 2024: 813,075
shares), representing 0.98% of the total share
capital. Treasury shares are used to cover our
obligations under the company’s share-based
incentive programmes.
Other business
Updates on new Mining
business line Presidents
With reference to the press release issued on
18 February 2025, Julian Soles formally joined
FLSmidth on 1 May 2025 as President, Mining
Products Business Line. Further, Toni Laaksonen,
who has been appointed as new President,
Mining Service Business Line, is expected to join
FLSmidth soon.
Update on potential divestment
of the Cement business
In the first quarter of 2025, FLSmidth has made
further progress towards the potential divest-
ment of the Cement business. To this end, we have
entered into exclusive negotiations with Pacific
Avenue Capital Partners, a global investment fund
specialised in industrial carve-outs. There is no
certainty that any transaction will transpire. Any
further announcements will be made as and when
appropriate.
Cash flow
DKKm
Net interest-bearing debt
DKKm
Net working capital
DKKm NWC%
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 17
Income statement Statement of comprehensive income
Notes DKKm Q1 2025 Q1 2024
3,4 Revenue 4,729 4,839
Production costs (3,100 ) (3,455 )
Gross profit* 1,629 1,384
Sales costs (433 ) (416 )
Administrative costs* (545 ) (561 )
9 Other operating net income 13 35
EBITDA 664 442
Depreciation and impairment of property, plant and equipment
and lease assets (68 ) (77 )
EBITA 596 365
Amortisation and impairment of intangible assets (63 ) (60 )
EBIT 533 305
Financial income 298 224
Financial costs (299 ) (226 )
EBT 532 303
Tax for the year (181 ) (109 )
Profit for the period 351 194
Attributable to:
Shareholders in FLSmidth & Co. A/S 347 194
Minority interests 4 0
Earnings per share (EPS):
Earnings per share (DKK) 6.1 3.4
Earnings per share, diluted (DKK) 6.1 3.4
* Q1 2024 information has been restated to reflect a reclassification of DKK 31m from Administration costs to Production costs.
Notes DKKm Q1 2025 Q1 2024
Profit for the period 351 194
Items that will not be reclassified to profit or loss:
Actuarial gains and losses on defined benefit plans (5 ) 5
Tax of actuarial gains and losses on defined benefit plans
Items that are or may be reclassified subsequently to profit or loss:
Currency adjustments regarding translation of entities (293 ) 65
Reclassification of currency adjustments on disposal 0 (18 )
Cash flow hedging:
Value adjustments for the year (11 ) (5 )
Value adjustments transferred to work in progress 1 3
Tax hereof 3 (1 )
Other comprehensive income for the period after tax (305 ) 49
Comprehensive income for the period 46 243
Attributable to:
Shareholders in FLSmidth & Co. A/S 41 242
Minority interests 5 1
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 19
Cash flow statement
Notes DKKm Q1 2025 Q1 2024
EBITDA 664 442
Adjustment for gain on sale of activities and property, plant and
equipment and other non-cash items (2 ) (17 )
Change in provisions, pension and employee benefits (4 ) 120
7 Change in net working capital (429 ) (650 )
Cash flow from operating activities before financial items and tax 229 (105 )
Financial items received and paid (19 ) (34 )
Taxe s p aid (222 ) (213 )
Cash flow from operating activities (12 ) (352 )
8 Acquisition of enterprises and activities (2 ) (93 )
Acquisition of intangible assets (41 ) (42 )
Acquisition of property, plant and equipment (88 ) (58 )
Acquisition of financial assets (4 ) (2 )
9 Disposal of enterprises and activities 0 241
Disposal of intangible assets 0 0
Disposal of property, plant and equipment 25 0
Disposal of financial assets 0 0
Dividend from associates 0 0
Cash flow from investing activities (110 ) 46
Dividend paid 0 0
Buyout of minority interests 0 0
Acquisition of treasury shares 0 0
Repayment of lease liabilities (28 ) (28 )
Change in interest-bearing debt (38 ) 541
Cash flow from financing activities (66 ) 513
Change in cash and cash equivalents (188 ) 207
Cash and cash equivalents at beginning of period 1,070 1,352
Foreign exchange adjustment, cash and cash equivalents (23 ) 1
Cash and cash equivalents at 31 March 859 1,560
The cash flow statement cannot be inferred from the published financial information only.
Free cash flow
DKKm Q1 2025 Q1 2024
Free cash flow (122 ) (306 )
Free cash flow, adjusted for acquisitions and disposals of enterprises
and activities (120 ) (454 )
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 20
Balance sheet
Notes DKKm 31/03 2025 31/12 2024 31/03 2024
Assets
Goodwill 6,448 6,559 6,505
Patents and rights 605 623 666
Customer relations 269 287 320
Other intangible assets 77 90 130
Completed development projects 269 241 153
Intangible assets under development 817 826 695
Intangible assets 8,485 8,626 8,469
Land and buildings 1,641 1,654 1,702
Plant and machinery 335 357 339
Operating equipment, fixtures and fittings 106 108 100
Tangible assets in course of construction 408 352 139
Property, plant and equipment 2,490 2,471 2,280
Deferred tax assets 2,306 2,358 2,173
Investments in associates 33 36 78
Other securities and investments 58 56 56
Other non-current assets 2,397 2,450 2,307
Non-current assets 13,372 13,547 13,056
Inventories 3,587 3,572 3,447
Trade receivables 3,940 4,073 4,156
Work in progress 2,716 3,009 2,785
Prepayments 458 351 502
Income tax receivables 523 423 440
Other receivables 924 890 958
Cash and cash equivalents 859 1,070 1,560
Current assets 13,007 13,388 13,848
Total assets 26,379 26,935 26,904
Notes DKKm 31/03 2025 31/12 2024 31/03 2024
Equity and liabilities
Share capital 1,153 1,153 1,153
Foreign exchange adjustments (1,077 ) (783 ) (833 )
Cash flow hedging (38 ) (28 ) (34 )
10 Retained earnings 11,819 11,459 10,827
Shareholders in FLSmidth & Co. A/S 11,857 11,801 11,113
Minority interests (15 ) (20 ) (28 )
Equity 11,842 11,781 11,085
Deferred tax liabilities 189 220 203
Pension obligations 331 322 352
5 Provisions 722 705 696
Lease liabilities 158 133 83
Bank loans and mortgage debt 1,520 1,508 2,058
Prepayments from customers 313 303 380
Income tax liabilities 120 120 110
Other liabilities 45 48 46
Non-current liabilities 3,398 3,359 3,928
Pension obligations 3 3 2
5 Provisions 1,656 1,670 1,723
Lease liabilities 93 85 86
Bank loans and mortgage debt 66 47 44
Prepayments from customers 1,294 1,480 1,704
Work in progress 2,720 2,791 2,849
Trade payables 3,203 3,538 3,369
Income tax liabilities 237 193 273
Other liabilities 1,867 1,988 1,841
Current liabilities 11,139 11,795 11,891
Total liabilities 14,537 15,154 15,819
Total equity and liabilities 26,379 26,935 26,904
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 21
Equity statement
Q1 2025 Q1 2024
DKKm
Share
capital
Foreign
exchange
adjust-
ments
Cash flow
hedging
Retained
earnings
Share-
holders in
FLSmidth &
Co A/S
Minority
interests Total
Share
capital
Foreign
exchange
adjust-
ments
Cash flow
hedging
Retained
earnings
Share-
holders in
FLSmidth &
Co A/S
Minority
interests Total
Equity at 1 January 1,153 (783 ) (28 ) 11,459 11,801 (20 ) 11,781 1,153 (879 ) (32 ) 10,615 10,857 (29 ) 10,828
Comprehensive income for the period
Profit/loss for the period 347 347 4 351 194 194 0 194
Other comprehensive income
Actuarial gain/loss on defined benefit plans (5 ) (5 ) (5 ) 5 5 5
Currency adjustments regarding translation of entities (294 ) (294 ) 1 (293 ) 64 64 1 65
Reclassification of currency adjustments on disposal (18 ) (18 ) (18 )
Cash flow hedging:
Value adjustments for the period (11 ) (11 ) (11 ) (5 ) (5 ) (5 )
Value adjustments transferred to work in progress 1 1 1 3 3 3
Tax on other comprehensive income 3 3 3 (1 ) (1 ) (1 )
Other comprehensive income for the period 0 (294 ) (10 ) (2 ) (306 ) 1 (305 ) 0 46 (2 ) 4 48 1 49
Comprehensive income for the period 0 (294 ) (10 ) 345 41 5 46 0 46 (2 ) 198 242 1 243
Transactions with owners:
Dividend paid
Share-based payment 15 15 15 14 14 14
Buyout of minority interests
Acquisition of treasury shares
Equity at 31 March 1,153 (1,077 ) (38 ) 11,819 11,857 (15 ) 11,842 1,153 (833 ) (34 ) 10,827 11,113 (28 ) 11,085
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 22
1. Key accounting estimates and judgements 24
2. Income statement by function 24
3. Segment information 25
4. Revenue 26
5. Provisions 27
6. Contractual Commitments and contingent liabilities 27
7. Net working capital 28
8. Business Acquisitions 28
9. Disposal of activities 28
10. Shareholders’ equity 29
11. Events after the balance sheet date 29
12. Accounting policies 29
Notes
1. Key accounting estimates
and judgements
When preparing the consolidated condensed financial
statements, we are required to make several estimates
and judgements. The estimates and judgements that can
have a significant impact on the consolidated condensed
financial statements are categorised as key accounting
estimates and judgements. Key accounting estimates
and judgements are regularly assessed to adapt to the
market conditions and changes in political and economic
factors.
The uncertainty arising from the geopolitical situation
from various ongoing conflicts, combined with increasing
unrest in many regions and anti-globalisation sentiments,
increased during the first quarter of 2025. However,
FLSmidth is continuously assessing risk-scenarios to
minimise potential negative impacts in a timely manner.
Based on our diversified supply chain and a significant
production capacity both within and outside the US,
we are not currently expecting any significant negative
impacts.
Areas affected by key accounting estimates and judge-
ments are unchanged from the Annual report 2024.
Therefore, key accounting judgements are made in
relation to the accounting of revenue when determining
the recognition method, while key accounting estimates
relate to the estimation of warranty provisions, valuation
of inventories, work in progress and deferred tax.
For further details, reference is made to Annual Report
2024, Key accounting estimates and judgements, page
141 and to specific notes.
2. Income statement by function
It is our policy to prepare the income statement based
on an adjusted classification of the cost by function in
order to show the earnings before depreciation, amorti-
sation and impairment. Depreciation, amortisation, and
impairment are therefore separated from the individual
functions and presented in separate lines.
The income statement prepared on the basis of cost by
function is shown below:
Income statement by function
DKKm Q1 2025 Q1 2024
Revenue 4,729 4,839
Production costs, including depreciation and amortisation* (3,171) (3,527)
Gross profit* 1,558 1,312
Sales costs, including depreciation and amortisation (437) (421)
Administrative costs, depreciation and amortisation* (601) (621)
Other operating net income 13 35
EBIT 533 305
Depreciation, amortisation and impairment consist of:
Depreciation and impairment of property, plant and equipment and lease assets (68) (77)
Amortisation and impairment of intangible assets (63) (60)
(131) (137)
Depreciation, amortisation and impairment are divided into:
Production costs (71) (72)
Sales costs (4) (5)
Administrative costs (56) (60)
(131) (137)
* Q1 2024 information has been restated to reflect a reclassification of DKK 31m from Administration costs to Production costs.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 24
3. Segment information
Q1 2025 Q1 2024
FLSmidth Group FLSmidth Group
DKKm Mining** Cement
Continuing
activities Mining Cement
Non-Core
Activites
Continuing
activities
Income statement
Revenue 3,708 1,021 4,729 3,581 1,208 50 4,839
Production costs* (2,404) (696) (3,100) (2,428) (937) (90) (3,455)
Gross profit* 1,304 325 1,629 1,153 271 (40) 1,384
SG&A costs* (755) (223) (978) (721) (236) (20) (977)
Other operating net income 18 (5) 13 1 34 0 35
EBITDA 567 97 664 433 69 (60) 442
Depreciation and impairment of property, plant and equipment (59) (9) (68) (63) (12) (2) (77)
EBITA 508 88 596 370 57 (62) 365
Amortisation of intangible assets (52) (11) (63) (52) (8) 0 (60)
EBIT 456 77 533 318 49 (62) 305
Order intake 3,777 852 4,629 4,176 1,042 30 5,248
Order backlog 11,165 3,597 14,762 12,581 4,422 479 1 7, 4 8 2
Gross margin* 35.2% 31.8% 34.4% 32.2% 22.4% -80,1% 28.6%
EBITDA margin 15.3% 9.5% 14.0% 12.1% 5.7% -1 20.0% 9.1%
EBITA margin 13.7% 8.6% 12.6% 10.3% 4.7% -1 24.0% 7. 5%
EBIT margin 12.3% 7. 5% 11.3% 8.9% 4.1% -124.0% 6.3%
Number of employees at 31 March 5,700 1,982 7,682 6,553 2,128 88 8,769
Reconciliation of profit/(loss) for the period
EBIT 533 305
Financial income 298 224
Financial costs (299) (226)
EBT 532 303
* Q1 2024 information has been restated to reflect a reclassification of DKK 31m from Administration costs to Production costs.
** Non-Core Activities ceased as planned in early Q1 2025, with the remaining, insignificant contract portfolio moved into the Mining segment.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 25
30%
25%
22%
23%
25%
27%
23%
25%
2027 and
beyond
2026
2025
0
4,000
8,000
12,000
16,000
20,000
Q1 2024 Q1 2025
2,277
9,720
1,342
5,263
5,485
8,157
NAMER
SAMER
EMEA
APAC
NAMER
SAMER
EMEA
APAC
4. Revenue
Revenue arises from sale of life cycle offerings to our
customers. We sell a broad range of goods and services
within the Mining and Cement segments split into the
main businesses Products and Services.
In the graphs on the right, revenue is split by regions in
which delivery takes place.
Revenue is recognised either at a point in time where the
control over the goods and/or services is transferred
to the customer or over time to reflect the percentage
of completion of the performance obligations in the
contracts. Percentage of completion covers a wide range
of different types of contracts, from contracts where
the customer consumes the services over time, such as
fixed price service contracts, to more complex product
bundles with engineering subject to the enhanced risk
governance structure under the Risk Management Board
and to risk quotas. More information on when and how
the two recognition principles are applied can be found in
note 1.4 in the Annual report 2024.
Backlog
The order backlog at 31 March 2025 amounted to DKK
14,762m (end of 2024: DKK 17,482m).
The backlog represents the value of outstanding perfor-
mance obligations on current contracts. The value
of outstanding performance obligations on current
contracts is a combination of value from contracts where
we will transfer control at a future point in time and
the value of the remaining performance obligations on
contracts where we transfer control over time.
Revenue split on industry and category
Q1 2025 Q1 2024
DKKm Mining Cement Group Mining Cement
Non-Core
Activities Group
Products business 960 305 1,265 1,177 487 45 1,709
Service business 2,748 716 3,464 2,404 721 5 3,130
Total revenue 3,708 1,021 4,729 3,581 1,208 50 4,839
Revenue split on timing of revenue recognition principle
Q1 2025 Q1 2024
DKKm Mining Cement Group Mining Cement
Non-Core
Activities Group
Point in time 2,407 552 2,959 2,684 619 5 3,308
Percentage of completion
Service, single machines and product bundles 1,157 421 1,578 606 546 0 1,152
Product bundles with engineering under enhanced risk
governance 144 48 192 291 43 45 379
Total revenue 3,708 1,021 4,729 3,581 1,208 50 4,839
Revenue split by Regions, Q1 2025
%
Revenue split by Regions, Q1 2024
%
Backlog maturity
DKKm
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 26
5. Provisions
Provisions increased by DKK 3m compared to 31
December 2024, primarily driven by other provisions
and warranties but partly offset by a reduction in loss-
making and restructuring provisions.
For a description of the main provision categories see
note 2.7 in the 2024 Annual Report.
6. Contractual Commitments
and contingent liabilities
Contingent liabilities at Q1 2025 amounted to DKK
2,068m (31 December 2024: DKK 2,230m).
Contingent liabilities primarily relate to customary
performance and payment guarantees. The volume of
such guarantees amounted to DKK 1,786m (31 December
2024: DKK 1,947m). It is customary market practice to
issue guarantees to customers, which serve as a security
that we will deliver as promised in terms of performance,
quality, and timing. The volume of the guarantees varies
with the activity level and reflects the outstanding
backlog, finalised projects and deliveries that are
covered by warranties etc. Only a minor share of such
guarantees is expected to materialise into losses. In the
event a guarantee is expected to materialise, a provision
is recognised to cover the risk. Information on provisions
is included in note 5.
Provisions
DKKm 31/03 2025 31/12 2024 31/03 2024
Provisions at 1 January 2,375 2,295 2,295
Foreign exchange adjustments (28) 17 3
Disposal of Group enterprises 0 (12) 0
Acquisition of Group enterprises 0 0 (11)
Additions 191 1,476 395
Used (119) (966) (201)
Reversals (41) (467) (62)
Reclassification to/from other liabilities 0 32 0
Provisions at 31 March 2,378 2,375 2,419
The split of provisions is as follows:
Warranties 859 850 913
Restructuring 358 390 269
Other provisions 1,161 1,135 1,237
2,378 2,375 2,419
The maturity of provisions is specified as follows:
Current liabilities 1,656 1,670 1,723
Non-current liabilities 722 705 696
2,378 2,375 2,419
Other contingent liabilities of DKK 282m (31 December
2024 DKK 283m) relate to our involvement in legal
disputes, which are already pending with courts or other
authorities and other disputes which may or may not lead
to formal legal proceedings being initiated against us.
No significant changes have occurred to the nature and
extent of our contractual commitments and contingent
liabilities compared to what was disclosed in note 2.9 in
the 2024 Annual Report.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 27
7. Net working capital
Net working capital at 31 March 2025 has increased by
DKK 0.3bn compared to 31 December 2024. The increase
relates primarily to payments to suppliers leading to
reduction in trade payables and decrease in prepayments
from customers, partly offset by a reduction in trade
receivables from increased cash collection and work in
progress.
Utilisation of supply chain financing decreased in the
first three months of 2025 to DKK 425m (31 December
2024: 515m).
9. Disposal of activities
There has been no disposal of activities in Q1 2025.
On 22 January 2024, FLSmidth Cement entered into an
agreement to sell the MAAG gears and drives business
to Solix Group AB. The transaction closed on 1 March
2024 and includes all related assets, including intellec-
tual property, technology, employees and customer
contracts.
Total assets and liabilities related to the activities of DKK
463m and DKK 237m, respectively, were derecognised.
The assets include intangible assets of DKK 80m, other
non-current assets of DKK 118m and current assets
of DKK 265m (primarily working capital). The liabilities
include lease liabilities of DKK 55m, provisions of DKK
11m, working capital and other liabilities of DKK 171m.
The transaction led to a gain of DKK 28m.
8. Business Acquisitions
There has been no business acquisitions in Q1 2025.
On 4 March 2024, FLSmidth acquired the Canadian mill
engineering, supply and services provider, Farnell-
Thompson Applied Technologies Inc. Its offerings is
integrated into FLSmidth’s core Mining business. The
acquisition is aligned with our Mining CORE’26 strategy,
which includes targeting service growth through stra-
tegic investments and prioritisation.
Farnell-Thompson is a global supplier of engineering
services, parts and mills to the mining industry. Prior to
the acquisition Farnell-Thompson has been a consulting
partner providing these services to FLSmidth for many
years. Consequently, a seamless integration of the new
business and staff is anticipated.
The purchase price net of cash acquired is DKK 102m
with DKK 9m falling due over the next three years.
The acquisition increased working capital assets and
liabilities by DKK 23m and DKK 18m. The excess of the
purchase price over the net assets is recognised as
goodwill of DKK 96m in the preliminary allocation of the
purchase price. Goodwill represents primarily the value
of the assembled workforce. The initial accounting will
be retrospectively adjusted to reflect new information
obtained in subsequent periods within a maximum period
of 12 months after the acquisition date.
The impact on net profit is insignificant.
Net working capital
DKKm 31/03 2025 31/12 2024 31/03 2024
Inventories 3,587 3,572 3,447
Trade receivables 3,940 4,073 4,156
Work in progress, assets 2,716 3,009 2,785
Prepayments 458 351 502
Other receivables 836 781 860
Derivative financial instruments 32 53 40
Prepayments from customers (1,607) (1,783) (2,084)
Trade payables (3,203) (3,538) (3,369)
Work in progress, liability (2,720) (2,791) (2,849)
Other liabilities (1,556) (1,587) (1,532)
Derivative financial instruments (68) (33) (21)
Net working capital 2,415 2,107 1,935
Change in net working capital (308) (725) (553)
Acquisitions/disposal of activities, financial instruments and
foreign exchange effect on cash flow (121) (49) (97)
Cash flow effect from change in net working capital (429) (774) (650)
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 28
10. Shareholders’ equity
At the Annual General Meeting 2 April 2025, a dividend
of DKK 8 per share was declared. The total dividend
amounting to DKK 455m, excluding the proportion related
to FLSmidth’s holding of treasury shares, was paid out in
April 2025.
In 2024, the Annual General Meeting was held in April and
the total dividend paid was DKK 228m.
11. Events after the
balance sheet date
In the first quarter of 2025, FLSmidth has made further
progress towards the potential divestment of the
Cement business. To this end, we have entered into
exclusive negotiations with Pacific Avenue Capital Part-
ners, a global investment fund specialised in industrial
carve-outs. There is no certainty that any transaction will
transpire. Any further announcements will be made as
and when appropriate.
We are not aware of any other subsequent matters that
could be of material importance to the Group’s financial
position at 31 March 2025.
12. Accounting policies
The condensed interim report of the Group for the first
three months of 2025 is presented in accordance with
IAS 34, Interim Financial Reporting, as approved by the EU
and additional Danish disclosure requirements regarding
interim reporting by listed companies.
Apart from the below mentioned changes, the
accounting policies are unchanged from those applied
in the 2024 Annual Report. Reference is made to note
7.5, Material accounting policies, note 7.6, Impact from
new IFRS Accounting Standards, note 7.7, New IFRS
Accounting Standards not yet adopted and to specific
notes in the 2024 Annual Report for further details.
Changes in accounting policies
As of 1 January 2025, FLSmidth Group has implemented
the changes to:
• IAS 21 (Lack of Exchangeability)
Besides this, there are no changes to IFRS Accounting
Standards with an effective date 1 January 2025.
The implementation has not had and is not expected to
have significant impact on the consolidated condensed
financial statements.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 29
Statement by Management
Executive management
Board of directors
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 31
Forward looking statements
FLSmidth & Co. A/S’ financial reports, whether in the
form of annual reports or interim reports, filed with the
Danish Business Authority and/or announced via the
company’s website and/or NASDAQ Copenhagen, as well
as any presentations based on such financial reports,
and any other written information released, or oral state-
ments made, to the public based on this report or in the
future on behalf of FLSmidth & Co. A/S, may contain
forward-looking statements.
Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’,
‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘antic-
ipate’, ‘can’, ‘intend’, ‘target’ and other words and terms
of similar meaning in connection with any discussion
of future operating or financial performance identify
forward-looking statements. Examples of such forward-
looking statements include, but are not limited to:
• Statements of plans, objectives or goals for future
operations, including those related to FLSmidth & Co.
A/S’ markets, products, product research and product
development.
• Statements containing projections of or targets for
revenues, profit (or loss), CAPEX, dividends, capital
structure or other net financial items.
• Statements regarding future economic performance,
future actions and outcome of contingencies such
as legal proceedings and statements regarding the
underlying assumptions or relating to such state-
ments.
• Statements regarding potential merger & acquisition
activities.
These forward-looking statements are based on current
plans, estimates and projections. By their very nature,
forward-looking statements involve inherent risks and
uncertainties, both general and specific, which may be
outside FLSmidth & Co. A/S’ influence, and which could
materially affect such forward-looking statements.
FLSmidth & Co. A/S cautions that a number of important
factors, including those described in this report, could
cause actual results to differ materially from those
contemplated in any forward-looking statements.
Factors that may affect future results include, but
are not limited to, global as well as local political and
economic conditions, including interest rate and
exchange rate fluctuations, delays or faults in project
execution, fluctuations in raw material prices, delays in
research and/or development of new products or service
concepts, interruptions of supplies and production,
unexpected breach or termination of contracts, market-
driven price reductions for FLSmidth & Co. A/S’ products
and/or services, introduction of competing products,
reliance on information technology, FLSmidth & Co. A/S’
ability to successfully market current and new products,
exposure to product liability and legal proceedings and
investigations, changes in legislation or regulation and
interpretation thereof, intellectual property protection,
perceived or actual failure to adhere to ethical marketing
practices, investments in and divestitures of domestic
and foreign enterprises, unexpected growth in costs
and expenses, failure to recruit and retain the right
employees and failure to maintain a culture of compli-
ance. Unless required by law FLSmidth & Co. A/S is under
no duty and undertakes no obligation to update or revise
any forward-looking statement after the distribution of
this report.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report Q1 2025 32
Interim Report Q1 2025
1 January – 31 March 2025
FLSmidth & Co. A/S
Vigerslev Allé 77
2500 Valby
Denmark
Tel.: +45 36 18 18 00
Information.mails@flsmidth.com
www.flsmidth.com
CVR no. 58180912