1 January – 30 June 2026
Company Announcement no. 40-2026
Interim Report
H1 2026
Management review
Highlights
Highlights Q2 2026 4
Financial highlights Q2 2026 5
Sustainability highlights H1 2026 6
Sustainability performance highlights H1 2026 7
Key figures 8
2026 financial guidance 9
Performance
Service business 11
Products business 13
PC&V business 15
Consolidated financial performance Q2 2026 17
Consolidated financial performance H1 2026 22
Consolidated Condensed
Financial statements
Income statement 24
Statement of comprehensive income 24
Cash flow statement 25
Balance sheet 26
Equity statement 27
Notes
1. Key accounting estimates and judgements 29
2. Income statement by function 29
3. Segment information 30
4. Revenue 31
5. Other operating net income 32
6. Provisions 33
7. Contractual commitments and
contingent assets & liabilities 33
8. Net working capital 34
9. Business acquisition 34
10. Shareholders’ equity 35
11. Events after the balance sheet date 35
12. Accounting policies 35
Statement by Management 37
Forward looking statements 38
Contents
Frontpage: Thickeners and clarifiers at the
dewatering site at Mina Los Pelambres, Chile
Mill lining solution. Installation
by service centre Engineering team
Service business continues
to show strong commercial
performance with 14% organic
growth in order intake in Q2
2026
FLS awarded DKK 300m order
to supply key technologies
for an iron ore beneficiation
project in South Asia
PC&V business showing
continued market share gains
with 18% organic growth in
order intake in Q2 2026
Revenue increased organically
by 16% in Q2 2026, supported
by growth across all three
business lines
The adjusted EBITA margin
improved to 17.3% in Q2 2026
versus 15.2% in Q2 2025
Cash flow from operating
activities of DKK -84m was
adversely impacted by
increase in net working capital
Market and
commercial
highlights
Share buy-back programme
of up to DKK 1bn launched in
May 2026
Four new appointments to the
Executive Leadership Team to
support accelerated growth
journey
2026 financial guidance is
adjusted with organic revenue
growth expected at 0-4% and
Adj. EBITA margin expected at
16.0-16.5%
Strategic
and corporate
highlights
Financial
highlights
Highlights Q2 2026
The second quarter of 2026 saw continued strong commercial perfor-
mance in the Service and PC&V businesses, with organic order intake
growth of 14% and 18%, respectively. In the Products business, order intake grew
organically by 5%, and remained impacted by the timing of final investment decisions on
several larger customer projects. While these projects have yet to materialise, the pipe-
line continues to develop positively, particularly within copper and gold, and we remain
confident in the short-to-medium-term project outlook.
Revenue growth accelerated across all three business lines in the second quarter,
resulting in organic revenue growth of 16%. Service delivered organic revenue growth
of 11%, reflecting improved revenue conversion and backlog execution. In Products,
revenue grew organically by 34%, driven by focused execution and supply chain
improvements, as well as a relatively low comparative base. Finally, PC&V continued its
positive momentum with organic revenue growth of 14%. The strong revenue perfor-
mance across the Group contributed to an Adjusted EBITA margin of 17.3% in Q2 2026.
During the recent months, we have continued to strengthen our Executive Leadership
Team with the appointments of four new members to the team. I am pleased to welcome
them all to FLSmidth and look forward to working with them as we execute our strategic
priorities.
Overall, we are very pleased with the performance in the second quarter. With the
resilience of our Service and PC&V businesses, improving operational performance and a
strengthening Products pipeline, we are well positioned for the second half of 2026, and
against this backdrop, we are adjusting our full-year financial guidance.
Toni Laaksonen, Chief Executive Officer
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 4
Q2 2025 Q2 2025 Q2 2025
Q2 2025
Q2 2025
Q2 2025
H1 2025
H1 2025
H1 2025
Q2 2025
Q2 2025
Q2 2025
Q2 2025
Q2 2025
Q2 2025
Q2 2026 Q2 2026 Q2 2026
Q2 2026
Q2 2026
Q2 2026
H1 2026
H1 2026
H1 2026
Q2 2026
Q2 2026
Q2 2026
Q2 2026
Q2 2026
Q2 2026
20%
35%
17%
28%
27%
14%
41%
18%
34%
26%
24%
16%
Financial highlights Q2 2026
Order intake DKKm
â–²
3.1% (organic 5.1%)
702
Order intake DKKm
â–² 14.5% (organic 13.2%)
4,026
Order intake DKKm
â–² 16.5% (organic 14.0%)
2,409
Order intake DKKm
â–² 19.1% (organic 18.2%)
915
Revenue DKKm
â–²
32.1% (organic 33.6%)
802
Revenue DKKm
â–²
16.8% (organic 15.7%)
3,944
Revenue DKKm
â–²
12.7% (organic 11.0%)
2,324
Revenue DKKm
â–²
15.5% (organic 14.0%)
818
Products FLSmidth GroupService PC&V
EBITA & EBITA margin DKKm – %
â–² 124.0%
12
1.5% (adj. 1.9%)
EBITA
1
& EBITA margin DKKm – %
â–² 33.9% improvement
699
17.7% (a d j . 17.3 %)
EBITA & EBITA margin DKKm – %
â–²
16.8%
480
20.7% (adj. 20.5%)
EBITA & EBITA margin DKKm – %
â–²
18.0%
190
23.2% (adj. 23.3%)
Cash flow from operating activities (CFFO)
2
DKK -84m
â–²
from DKK 385m in Q2 2025
Earnings per share (diluted EPS)
DKK 8.1
â–²
from DKK 4.4 in Q2 2025
Net working capital ratio (%)
3
24.4% â–² from 12.0% end of Q2 2025
NIBD/EBITDA
3
0.6x similar to end of Q2 2025
161
190
768
915
3,517
3,378
522
7, 294
7,086
1,030
4,026
3,944
699
7,924
7, 223
1,866
681
702
607
802
(50)
12
2,068
2,409
2,063
2,324
411
480
Revenue per region %
NAMER
SAMER
EMEA
APAC
Revenue per region %
NAMER
SAMER
EMEA
APAC
Revenue per region %
NAMER
SAMER
EMEA
APAC
1
In Q2 2026, adjustments related to non-segmental businesses are categorised under Unallocated Items as Other operating net income and included in the FLSmidth Group consolidated result for Q2 2026 (ref. note 3).
2
The CFFO of DKK 385m for Q2 2025 reflects FLSmidth’s current activities. In comparison, the cash flow statement on page 25 includes both cash flow from current and divested activities.
3
Figures related to the balance sheet have not been restated and therefore include both continuing and discontinued activities at the end Q2 2025. Figures related to the income statement have been restated and reflect the continuing activities only.
708
818
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 5
H1 2026
H1 2026 H1 2026 H1 2026
H1 2026
H1 2025
2025 2025 H1 2025
2025
Sustainability highlights H1 2026
Safety Water withdrawalWomen managers
Scope 1 & 2 Greenhouse
gas emissions
Spend with suppliers with
science-based targets
Rate of recordable work-related accidents
/million working hours
2.0 (target <1.0)
â–²
0.3 point improvement
m
3
57, 956 (2026 target 122,187)
â–²
3.6% deterioration
Percentage of all managers
15.3 (t a r g e t >1 7.6 %)
â–²
0.3%-point deterioration
tCO
2
e (market-based)
12,252 (2026 target <21,363)
â–²
2.4% deterioration
Percentage of total spend
23.6 (target >30%)
â–²
1.6%-point deterioration
Note: H1 2025 and 2025 comparative figures have been disclosed for the continuing activities only. For definitions of terms, refer to pages 68, 72, 78, 96 and 99 in the Annual Report 2025.
H1 2026 performance showed
mixed results: safety rates
improved, showing progress from
ongoing initiatives, while Scope 1
& 2 Greenhouse Gas emissions and
Water Withdrawal were adversely
impacted by seasonality. Spend
with Suppliers with SBTi and
Percentage of Women Managers
showed negative movements during
the period.
2.0
2.3
15.3%
15.6%
57, 956
55,968
12,252
11,970
23.6%
25.2%
Scope 1 & 2 GHG emissions year to date have been
negatively impacted by a more extreme weather
seasonality in 2026. A harsher winter and earlier
summer have seen a greater need for heating
and cooling. This has been mitigated somewhat
by increased generation of renewable energy
onsite and improvements in the energy efficiency
of parts of the building portfolio. FLSmidth is
on track to reduce emissions from 2025 but to
support the 2026 target objectives, additional
sites are being assessed for coverage by renew-
able energy certificates.
Spend with suppliers with science-based targets
decreased by 1.6 percentage points compared to
the end of 2025. Spend during the current quarter
was impacted by a lower allocation of spend
to existing core suppliers with science-based
targets, reversing the positive movement during
the first quarter in 2026. To support performance
during the second half of the year FLSmidth will
increase targeted engagement with key suppliers.
Safety, total recordable injury rate improved by
0.3 points compared to the end of 2025. June 2026
marked the first full month without a Recordable
Injury since September 2024, reflecting improved
safety performance and the positive impact
of the ongoing health and safety initiatives.
However, despite recent improvements FLSmidth
remains behind the year-end target.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 6
Sustainability performance highlights H1 2026
Percentage of Women Managers (12-month
rolling) decreased by 0.3 percentage points
compared to year-end 2025. The decline was
primarily driven by organizational changes and
shifts in the composition of management roles
during 2025. FLSmidth remains committed to
fostering a diverse and inclusive workplace
through targeted talent management, leadership
development, and succession planning initiatives
to support long-term progress on this KPI.
Water Withdrawal year to date increased by
3.6% compared to the comparable period in 2025,
reversing the improvements seen in the first
quarter. The increase is driven by the early summer
in the northern hemisphere but also in part to
increased business activity, increasing the need
for testing water. Ongoing site efficiency initia-
tives and water management measures helped
partially mitigate the increase during the period.
Despite the increase, performance remains on
track against the 2026 target.
FLSmidth updates climate ambitions including SBTi-validated Net-Zero targets
In 2021, FLSmidth committed to the Science
Based Targets initiative (SBTi), and as part
of the five-year renewal cycle and following
the divestment of the Cement business in
2025, FLSmidth has taken the opportunity to
strengthen its climate strategy with a new set of
Science Based Targets. The new validated targets
cover scopes 1, 2 and 3 and establish a clear and
accountable roadmap for decarbonisation across
the value chain.
FLSmidth has committed to reducing 80% of
scope 1 and 2 emissions by 2030 from an
updated 2019 baseline
1
. Remaining emissions
will be addressed using high-integrity carbon
credits from 2030 onwards, supporting carbon
neutrality for residual hard-to-abate sources.
Within Scope 3, we have committed to a 30%
absolute reduction by 2030 compared to an
updated 2019 baseline
2
.
Looking ahead, FLSmidth has set a net-zero
target across scopes 1, 2 and 3 by 2050, linking
near-term delivery with long-term transformation.
FLSmidth commits to achieve net-zero green-
house gas emissions by reducing absolute GHG
emissions by 90%, with the remaining 10% of
residual emissions neutralised through carbon
removals.
Clear operational levers to 2030
Delivery of these targets is underpinned by
a focused set of operational levers including
renewable electricity sourcing and direct
emissions reduction through electrification of
fleet and operational assets and energy efficiency
improvements across facilities, such as the recent
relocation this quarter of the Chennai facility to
an Indian Green Building Council (IGBC) platinum
pre-certified building.
These actions provide a structured pathway to
materially reduce emissions while maintaining
operational performance and supporting greater
resilience to wider sustainability risks.
Scaling commitment in the value chain
FLSmidth has strengthened its commitment to
value chain decarbonization.
We are shifting focus from the Economic Inten-
sity measure, covering Category 11: use of sold
products to absolute targets covering all mate-
rial scope 3 categories. Additionally this includes
Category 1: purchased goods and services. This
new approach ensures FLSmidth takes full owner-
ship of the value chain and drive progress through:
• Product efficiency improvements and
increased electrification of technologies
• Greater use of recycled and lower-carbon
materials in the supply chain
• Expansion of service-based offerings,
supporting lower lifecycle emissions
• Engagement with customers and suppliers to
encourage renewable energy use and adoption
of science-based targets
With SBTi validation in place, FLSmidth has clear
milestones and is well positioned to embed
climate performance as a core driver of business
value and competitiveness in a decarbonising
economy.
1
2019 baseline has been updated to reflect the divestment of the Cement business in 2025.
2
Economic intensity has been removed from the quarterly KPIs as it is no longer part of our SBTi targets. Scope 3 GHG emissions is reported annually in the Annual Report.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 7
Key figures
DKKm Q2 2026 Q2 2025 H1 2026 H1 2025 2025
Income statement
Revenue 3,944 3,378 7, 2 23 7, 0 8 6 14,612
Gross profit 1,439 1,199 2,624 2,503 5,110
EBITDA 765 581 2,009 1,148 2,571
EB ITA 699 522 1,866 1,030 2,337
Other operating net income 27 59 708 77 262
Adjusted EBITA
1
683 514 1,183 1,054 2,319
EBIT 631 469 1,736 925 2,054
Financial items, net 17 (74) 43 (61) (83)
EBT 648 395 1,779 864 1,971
Profit/(loss) for the period, continuing activities 441 260 1,426 570 714
Profit/(loss) for the period, discontinued activities 0 (715) 0 (674) (706)
Profit/(loss) for the period 441 (455) 1,426 (104) 8
Orders
Order intake 4,026 3,517 7, 9 24 7, 2 94 15,045
Order backlog 11,515 10,650 10,893
Earning ratios
Gross margin 36.5% 35.5% 36.3% 35.3% 35.0%
EBITDA margin 19.4% 17. 2 % 27.8% 16.2% 17.6%
EBITA margin 17.7 % 15.5% 25.8% 14.5% 16.0%
Adjusted EBITA margin
1
17.3% 15.2% 16.4% 14.9% 15.9%
EBIT margin 16.0% 13.9% 24.0% 13.1% 14.1%
EBT margin 16.4% 11.7% 24.6% 12.2% 13.5%
Cash flow
Cash flow from operating activities (CFFO) (84) 527 19 515 996
Acquisitions of property, plant and equipment (34) (145) (92) (233) (392)
Cash flow from investing activities (CFFI) (77) (218) 566 (328) (517)
Free cash flow
2
(161) 309 585 187 479
Free cash flow adjusted for acquisitions and
disposals of enterprises and activities (135) 332 615 212 640
Balance sheet
Net working capital (NWC) 3,603 1,841 2,406
Net interest-bearing debt (NIBD) (2,228) (1,286) (2,014)
Total assets 23,358 24,389 22,088
CAPEX 193 328 738
Equity 10,474 10,287 9,500
Dividend attributable to FLS shareholders, paid 0 457 217 457 457
DKKm Q2 2026 Q2 2025 H1 2026 H1 2025 2025
Financial ratios
Book-to-bill 102.1% 104.1% 109.7% 102.9% 103.0%
Order backlog / Revenue 78.1% 69.3% 74 .5%
Return on equity 14.8% 5.1% 0.1%
Equity ratio 44.8% 42.2% 43.0%
ROCE, average 17.8% 11.4% 12.9%
Net working capital ratio, end 24.4% 12.0% 16.5%
NIBD / EBITDA 0.6x 0.6x 0.8x
Capital employed, average 17, 8 6 8 1 7, 70 9 18,047
Number of employees 5,295 5,825 5,494
Share ratios
Cash flow per share, diluted (1.5) 9.2 0.3 9.0 17.6
Earnings per share (EPS), diluted 8.1 (8.0) 26.2 (2.0) 0.0
Share price 478 387 445
Number of shares (1,000), end 5 7, 6 50 57, 6 50 57, 6 5 0
Market capitalisation, end 2 7, 5 5 7 22,311 25,654
Sustainability key figures
3
Scope 1 and 2 greenhouse gas emissions (tCO
2
e)
market-based 12,252 11,970 25,575
Spend with suppliers with science-based targets 23.6% 25.2% 25.2%
Safety, Rate of recordable work-related
accidents/million working hours 2.0 2.3 2.3
Women managers 15.3% 15.6% 15.6%
Water withdrawal (m
3
) 5 7, 9 5 6 55,968 128,618
Use of alternative performance measures. Throughout the report we present financial measures which are not defined according to IFRS. For
further information, please refer to note 7.6 Alternative performance measures, and note 7.10 Definition of terms in the Annual Report 2025.
The financial ratios have been computed in accordance with the guidelines of the Danish Finance Society. For definitions of terms, please
refer to note 7.10 in the Annual Report 2025.
For financial ratios where the numerator or denominator is derived from the income statement and based on a 12 month rolling average, only
figures relating to the continuing activities are used except the ratios Return on equity and Earnings per share, both based on continuing and
discontinued activities. Refer to note 7.2 Discontinued activities and key figures in the Annual Report 2025.
1
To illustrate the underlying business performance, we present an adjusted EBITA margin, which excludes costs related to the ongoing
roll-out of the updated ERP platform as well as items reported as other operating net income.
2
Free cash flow for H1 2026 is positively impacted by the cash received from the sale of the FLSmidth's former headquarters (DKK 719m).
3
H1 2025 and 2025 comparative figures have been disclosed for the continuing activities only.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 8
2026 financial guidance
The financial guidance for the full
year 2026 is adjusted. As FLSmidth
has now entered the final year of
the CORE'26 strategy, the financial
target for the full year 2026 (ref.
Company Announcement no.
2-2023) is replaced by the 2026
financial guidance.
2026 Organic revenue growth
Organic revenue growth is now expected to be
in the range of 0% to 4% (previously -1% to 4%).
Organic revenue growth is measured at constant
exchange rates and excludes the effects from
acquisitions and disposals. The organic revenue
guidance is partly secured through the order
backlog, totalling DKK 11,515m at the end of
H1 2026, of which 43% is expected to convert
to revenue for the remainder of 2026. As such,
achieving the 2026 guidance range requires that
additional orders are secured within all business
lines. As a result of the current exchange rates
versus the Danish krone, and assuming that the
current exchange rates are unchanged for the
remainder of the year, the reported revenue
growth is expected to be around one percentage
2026
financial
guidance
Organic revenue growth
0% to 4%
(previously -1% to 4%)
Adj. EBITA margin
16.0% to 16.5%
(previously 15.5% to 16.5%)
point higher than the expected organic revenue
growth.
The organic revenue growth guidance reflects the
expectation of:
• Organic revenue growth of 3% to 5% in the
Service business, supported by continued
demand for productivity enhancing solutions to
improve operational efficiency.
• Organic revenue growth in the Products busi
-
ness of -15% to -5% due to a reduced order
backlog, which has resulted from the compre
-
hensive pruning and de-risking of the product
portfolio completed as well as the persistently
low level of investment activity in the industry.
• Organic revenue growth of 5% to 8% in the
Pumps, Cyclones & Valves (PC&V) business,
supported by continued robust and active
market conditions.
2026 Adjusted EBITA margin
The Adjusted EBITA margin is now expected to
be in the level of 16.0% to 16.5% (previously 15.5%
to 16.5%). The Adjusted EBITA margin is expected
to benefit from strong, stable earnings margins
in the Service and PC&V businesses and planned
profitability improvements in the Products busi-
ness, supported by continued implementation
of the corporate model, driving simplification,
operational efficiency and improved commercial
execution. The Adjusted EBITA margin excludes
costs related to the ongoing upgrade of the ERP
platform. These costs are expected to amount
to DKK 100m for the full year 2026. In addition,
the Adjusted EBITA margin excludes Other
operating net income totalling DKK 708m for H1
2026, whereof DKK 675m relate to the sale of the
Company’s former corporate headquarters in
Valby, Denmark (ref. Company Announcement no.
9-2025), which were recognised in Q1 2026.
Key assumptions for the financial
outlook for the full year 2026
The above expectations are based on assump-
tions that the global or regional macroeconomic
and political environment will not materially
change business conditions for FLSmidth during
2026. This includes stable market conditions and
customer investment levels in the mining industry,
with no major regulatory or trade -policy changes
that could affect project execution or operations.
For more information about the expected sensitiv-
ities from key invoicing currencies, please refer to
note 5.3 in the 2025 Annual Report.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 9
22%
32%
17%
29%
Service business
The Service business delivered a strong commercial performance in
Q2 2026, with order intake growing organically by 14% in the quarter,
supported by our continued focus on driving growth across the
full service portfolio. Looking into H2 2026, we remain confident in
the Service market outlook, supported by a solid pipeline, resilient
demand for lifecycle solutions and continued customer focus on
productivity, reliability and cost efficiency.
Market outlook and trends
Underlying market demand remained stable in Q2
2026, supported by continued customer focus on
performance-enhancing solutions that improve
productivity, reduce operating costs and help
capture the benefits of elevated metal prices.
Activity within gold projects remained healthy
despite increased price volatility. Copper-inten-
sive regions, including the African copperbelt and
Central Asia, also remained active, supported by
continued strong copper prices and sustained
demand for spare parts, wear-part solutions and
refurbishment services.
North America maintained steady momentum,
driven by rebuilds, retrofits and professional
services, although decision cycles for larger
upgrades remained extended. Activity in Western
and Central Europe was comparatively subdued,
while growth in the broader region was led by the
Middle East and Southern Europe.
Some mining customers continued to delay
approval of larger capital expenditure programs,
affecting the timing of the execution of selected
modernisation and upgrade projects as well as
certain first-time spare parts deliveries. However,
project viability and market confidence remained
intact, with opportunities generally moving later in
the year rather than into 2027.
Order intake split by
region Q2 2026
NAMER
SAMER
EMEA
APAC
Growth in order intake and revenue
in Q2 2026 (vs. Q2 2025)
Order
intake Revenue
Organic 14% 11%
Currency 2% 2%
Total grow th 16% 13%
Service
(DKKm) Q2 2026 Q2 2025 Change (%) H1 2026 H1 2025 Change (%)
Order intake 2,409 2,068 16% 4,860 4,217 15%
Order backlog 5,555 4,781 16% 5,555 4,781 16%
Revenue 2,324 2,063 13% 4,345 4,245 2%
Book-to-bill 103.7% 100.2% 111.9% 99.3%
Adjusted EBITA 477 404 18% 813 847 -4%
Adjusted EBITA margin 20.5% 19.6% 18.7% 20.0%
Other operating net income 9 34 -74% 12 36 -67%
Adjustment items (6) (27) -78 % (14) (52) -73 %
EBITA 480 411 17% 811 831 -2%
EBITA margin 20.7% 19.9% 18.7% 19.6%
Note: Adjusted EBITA and EBITA margin are presented to show underlying business performance. For Q2 and H1 2026, adjustments exclude
costs related to the ERP platform upgrade and items classified as other operating net income, while adjustments in Q2 and H1 2025 related to
transformation and separation activities.
0
500
1,000
1,500
2,000
2,500
-5
0
5
10
15
20
Revenue Organic growth %
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Revenue and organic revenue growth
DKKm %
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 11
Service technician at the Gruyere
Gold mine, Perth Service Centre
Service business
Order intake development in Q2 2026
Organically, Service order intake increased by
14% compared to Q2 2025, supported by broad-
based performance across most sales areas. Total
Service order intake increased by 16% compared
to Q2 2025.
Order backlog
The order backlog increased to DKK 5,555m by end
of Q2 2026 compared to DKK 4,781m by end of Q2
2025. The book-to-bill ratio was 103.7% compared
to 100.2% in Q2 2025.
Revenue development in Q2 2026
Organically, Service revenue increased by 11%
compared to Q2 2025, driven by improved backlog
execution across most sales regions and primarily
by a higher level of revenue from consumables.
Total revenue increased by 13% to DKK 2,324m
compared to Q2 2025.
EBITA development in Q2 2026
The adjusted EBITA margin improved to 20.5%,
when excluding ERP costs of DKK 6m and other
operating net income of DKK 9m. The increase
versus Q2 2025 was driven by the higher revenue
partly offset by unfavourable revenue mix with
consumables comprising a relatively larger share
of revenue in the quarter. Including adjustment
items and other operating net income, EBITA
increased to DKK 480m corresponding to an EBITA
margin of 20.7% compared to DKK 411m in Q2 2025,
which corresponded to an EBITA margin of 19.9%.
Order intake development in H1 2026
Organically, Service order intake increased by
17% compared to H1 2025, which was primarily a
result of a higher order intake within consumables
across most sales regions as well as within spare
parts and modernisation projects. Total Service
order intake increased by 15% to DKK 4,860m
compared to H1 2025.
Revenue development in H1 2026
Organically, Service revenue increased by 4%
compared to H1 2025, which was primarily
driven by higher revenue from consumables and
upgrades & retrofits, driven by improved backlog
management and improved execution of orders
with relatively longer lead times. Total Service
revenue increased by 2% to DKK 4,345m compared
to H1 2025.
EBITA development in H1 2026
The adjusted EBITA margin declined to 18.7% in
H1 2026, when excluding ERP costs of DKK 14m
and other operating net income of DKK 12m. The
decline versus H1 2025 was driven by unfavour-
able sales mix, with consumables comprising a
relatively larger share of Service revenue, partly
offset by higher revenue. Including adjustment
items and other operating net income, EBITA was
DKK 811m, corresponding to an EBITA margin
of 18.7%, compared to DKK 831m and an EBITA
margin of 19.6% in H1 2025.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 12
31%
7%
46%
16%
Products business
Order intake in Q2 2026 developed broadly as anticipated. While order intake
has not yet gained meaningful traction, the project pipeline continued to
build, supported by resilient commodity prices and strengthening momentum
across core mining regions. Copper and gold in particular continue to benefit
from favourable pricing dynamics, driven by structural supply constraints
and steady demand from electrification and the energy transition, which is
expected to fuel higher investment activity across the sector.
Market outlook and trends
Market conditions for the Products business
remained relatively subdued in the second quarter
of 2026, reflecting continued low levels of large-
scale investment activity across the mining
industry. Customer capex spending continues to
be primarily allocated towards maintenance and
optimisation of existing mining projects, rather
than into expansion of mining activities, resulting in
limited demand for larger equipment orders in the
near term.
Meanwhile, the project pipeline is advancing across
key commodities: copper projects are scaling up
towards sanctioning, while gold projects are gener-
ally further along and closer to near-term activity.
Several large-scale copper projects are moving
well through development and, as they approach
sanctioning, could translate into larger orders.
Meanwhile, a number of gold projects are now at
advanced stages, and could potentially support
order activity sooner, helped by a pricing environ-
ment that remains constructive. Together, these
dynamics suggest momentum is building, albeit
unevenly, across parts of the market.
As a result, near-term order intake for Products is
likely to stay muted. The outlook improves further
out, as more large-scale projects approach poten-
tial sanctioning in late 2026 or into 2027. FLSmidth
remains focused on disciplined order intake and
Order intake split by
region Q2 2026
NAMER
SAMER
EMEA
APAC
Growth in order intake and revenue
in Q2 2026 (vs. Q2 2025)
Order
intake Revenue
Organic 5% 34%
Currency -2% -2%
Total grow th 3% 32%
Products
(DKKm) Q2 2026 Q2 2025 Change (%) H1 2026 H1 2025 Change (%)
Order intake 702 681 3% 1,296 1,546 -16%
Order backlog 4,731 4,869 -3% 4,731 4,869 -3%
Revenue 802 607 32% 1,359 1,408 -3%
Book-to-bill 8 7. 5 % 112.2% 95.4% 109.8%
Adjusted EBITA 15 (59) 125% 11 (140) 108%
Adjusted EBITA margin 1.9% -9.7% 0.8% -9.9%
Other operating net income 0 25 -100% 3 41 -93%
Adjustment items (3) (16) -81% (6) (32) -81%
EBITA 12 (50) 124% 8 (131) 106%
EBITA margin 1.5% -8.2% 0.6% -9.3%
Note: Adjusted EBITA and EBITA margin are presented to show underlying business performance. For Q2 and H1 2026, adjustments exclude
costs related to the ERP platform upgrade and items classified as other operating net income, while adjustments in Q2 and H1 2025 related to
transformation and separation activities.
0
300
600
900
1,200
-40
-20
0
20
40
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Revenue Organic growth %
Revenue and organic revenue growth
DKKm %
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 13
Raptor® Cone Crusher - the most
reliable cone crushers on the market
Products business
leveraging its strengthened product portfolio to
capture opportunities as customer investment
activity increases.
Order intake development in Q2 2026
Organically, Products order intake increased by
5% compared to Q2 2025, driven primarily by one
large order valued at DKK 300m announced in the
quarter (ref. press release 5 May 2026), while no
large orders were announced in Q2 2025. Total
Products order intake increased by 3% to DKK
702m compared to Q2 2025.
Order backlog
The order backlog decreased by 3% to DKK 4,731m
by end of Q2 2026, compared to DKK 4,869m by
end of Q2 2025, and was adversely impacted by
the subdued market demand. In addition, the order
backlog has been reduced following the cancel-
lation of one order in the quarter. The book-to-bill
ratio was 87.5% compared to 112.2% in Q2 2025.
Revenue development in Q2 2026
Organically, Products revenue increased by 34%
compared to Q2 2025, driven by focused execu-
tion and the implementation of key supply chain
initiatives January 2026 as well as a relatively low
level of revenue in the comparative quarter. Total
Products revenue increased by 32% to DKK 802m
compared to Q2 2025.
EBITA development in Q2 2026
The adjusted EBITA margin increased to 1.9% when
excluding ERP costs of DKK 3m. The year-on-year
increase in EBITA margin largely reflected the
strong revenue performance in Q2 2026 and the
positive impact of cost initiatives implemented
in the Products business over the recent year.
Including adjustment items, EBITA increased to
DKK 12m, corresponding to an EBITA margin of
1.5%, compared to DKK -50m, corresponding to an
EBITA margin of -8.2% in Q2 2025.
Order intake development in H1 2026
Organically, Products order intake decreased
by 13% compared to H1 2025. The year-on-year
decline partly reflects the announcement of a
single large order valued at DKK 300m during H1
2026, whereas one large order with undisclosed
amount was announced in H1 2025, as well as
continued subdued market conditions. Total
Products order intake decreased by 16% to DKK
1,296m compared to H1 2025.
Revenue development in H1 2026
Organically, Products revenue increased by 1%
compared to H1 2025, driven especially by the
increase in revenue achieved in Q2 2026. Total
Products revenue decreased by 3% to DKK 1,359m
compared to H1 2025.
EBITA development in H1 2026
The adjusted EBITA margin increased to 0.8%
when excluding adjusted items of DKK 6m as well
as other operating net income of DKK 3m. The
year-on-year improvement reflected the positive
impact from cost initiatives implemented over the
recent periods. Including adjustment items and
other operating net income, EBITA increased to
DKK 8m corresponding to an EBITA margin of 0.6%
compared to DKK -131m corresponding to an EBITA
margin of -9.3% in H1 2025.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 14
33%
27%
21%
19%
PC&V business
The Pumps, Cyclones & Valves (PC&V) business continued to deliver
very strong organic order intake growth, with an increase of 18% in
Q2 2026 compared to Q2 2025. The momentum from the first quarter
reflects robust demand for new equipment, and the enhanced
commercial footprint is expected to support continued growth in
equipment sales and build further momentum in aftermarket-related
sales, as the installed base continues to expand.
Market outlook and trends
In Q2 2026, the market for pumps, cyclones and
valves remained resilient, supported by stable to
slightly higher production volumes and continued
elevated metal prices.
The demand for small- to mid-scale equipment
solutions that enhance throughput and oper-
ating efficiency continues to be strong, whereas
market activity within larger projects remains
impacted by a continued low level of mining
expansion capex. Nevertheless, several projects
are progressing through planning and approval
stages and are expected to move into execution
stage later in 2026 or into 2027.
Order intake development in Q2 2026
Organically, PC&V order intake increased by
18% compared to Q2 2025, driven by continued
demand for new equipment and strong after-
market-related order intake relating to previous
equipment-related orders. The development
reflects continued market-share gains, supported
by an increased level of equipment-related orders
over the past year, which in turn are expected to
drive a higher level of aftermarket-related orders
going forward. Total PC&V order intake increased
by 19% to DKK 915m compared to Q2 2025.
Order intake split by
region Q2 2026
NAMER
SAMER
EMEA
APAC
Growth in order intake and revenue
in Q2 2026 (vs. Q2 2025)
Order
intake Revenue
Organic 18% 14%
Currency 1% 2%
Total grow th 19% 16%
PC&V
(DKKm) Q2 2026 Q2 2025 Change (%) H1 2026 H1 2025 Change (%)
Order intake 915 768 19% 1,768 1,531 15%
Order backlog 1,229 1,000 23% 1,229 1,000 23%
Revenue 818 708 16% 1,519 1,433 6%
Book-to-bill 111.9% 108.5% 116.4% 106.8%
Adjusted EBITA 191 169 13% 359 347 3%
Adjusted EBITA margin 23.3% 23.9% 23.6% 24.2%
Other operating net income 1 0 - 1 0 -
Adjustment items (2) (8) -75% (5) (17) -71%
EBITA 190 161 18% 355 330 8%
EBITA margin 23.2% 22.7% 23.4% 23.0%
Note: Adjusted EBITA and EBITA margin are presented to show underlying business performance. For Q2 and H1 2026, adjustments exclude
costs related to the ERP platform upgrade and items classified as other operating net income, while adjustments in Q2 and H1 2025 related to
transformation and separation activities.
0
200
400
600
800
1,000
0
5
10
15
20
25
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Revenue Organic growth %
Revenue and organic revenue growth
DKKm %
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 15
siden eksporteres som hi-res
KREBS® UMD900 mill discharge pump assembled
by the team at PC&V Renca Service Center, Chile
PC&V business
Order backlog
The order backlog increased to DKK 1,229m by
end of Q2 2026 compared to DKK 1,000m at the
end of Q2 2025. The book-to-bill ratio was 111.9%
compared to 108.5% in Q2 2025.
Revenue development in Q2 2026
Organically, PC&V revenue increased by 14%
compared to Q2 2025, driven especially by the
conversion of equipment-related order backlog
from prior quarters and increasing demand for
aftermarket components related to the growing
installed base. Total PC&V revenue increased by
16% to DKK 818m compared to DKK 708m in Q2
2025.
EBITA development in Q2 2026
The adjusted EBITA margin declined to 23.3%,
when excluding ERP costs of DKK 2m and other
operating net income of DKK 1m. The year-on-year
decline was primarily driven by revenue mix, with
equipment-related revenue comprising a relatively
larger share of total PC&V revenue in the quarter.
Including adjustment items and other operating
net income, EBITA was DKK 190m, corresponding
to an EBITA margin of 23.2%, compared to DKK
161m and a margin of 22.7% in Q2 2025.
Order intake development in H1 2026
Organically, PC&V order intake increased by 17%
compared to H1 2025. The year-on-year increase
was driven by a higher level of both equip-
ment- and aftermarket-related orders as well as
strong demand across the North America and
South America regions. Total PC&V order intake
increased by 15% to DKK 1,768m compared to H1
2025.
Revenue development in H1 2026
Organically, PC&V revenue increased by 8%
compared to H1 2025. The year-on-year increase
was driven by the delivery of equipment-related
orders booked in late 2025 and early 2026. In addi-
tion, the increase was primarily a result of higher
revenue in the North America and Asia Pacific
regions. Total PC&V revenue increased by 6%
compared to H1 2025 to DKK 1,519m.
EBITA development in H1 2026
The adjusted EBITA margin was 23.6%, when
excluding adjusted items of DKK 5m and other
operating net income of DKK 1m. The year-on-year
decline was primarily driven by revenue mix, with
equipment-related revenue comprising a relatively
larger share of total PC&V revenue in the period.
Including adjustment items and other operating
net income, EBITA was DKK 355m, corresponding
to an EBITA margin of 23.4%, compared with DKK
330m and a margin of 23.0% in H1 2025.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 16
36%
20%
6%
13%
25%
Service Products PC&V
0
1,000
2,000
3,000
4,000
5,000
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Consolidated financial performance Q2 2026
FLSmidth Group
(DKKm) Q2 2026 Q2 2025 Change (%) H1 2026 H1 2025 Change (%)
Order intake 4,026 3,517 14% 7,924 7, 2 94 9%
Hereof service order intake 2,409 2,068 16% 4,860 4,217 15%
Hereof products order intake 702 681 3% 1,296 1,546 -16%
Hereof PC&V order intake 915 768 19% 1,768 1,531 15%
Order backlog 11,515 10,650 8% 11,515 10,650 8%
Revenue 3,944 3,378 17% 7, 2 23 7,086 2%
Hereof service revenue 2,324 2,063 13% 4,345 4,245 2%
Hereof products revenue 802 607 32% 1,359 1,408 -3%
Hereof PC&V revenue 818 708 16% 1,519 1,433 6%
Book-to-bill 102.1% 104.1% 109.7% 102.9%
Gross profit 1,439 1,199 20% 2,624 2,503 5%
Gross margin 36.5% 35.5% 36.3% 35.3%
SG&A cost (701) (677) 4% (1,323) (1,432) -8%
SG&A ratio 17. 8 % 20.0% 18.3% 20.2%
Adjusted EBITA 683 514 33% 1,183 1,054 12%
Adjusted EBITA margin 17. 3 % 15.2% 16.4% 14.9%
Other operating net income 27 59 -54% 708 77 819%
Adjustment items (11) (51) -78% (25) (101) -75%
EBITA 699 522 34% 1,866 1,030 81%
EBITA margin 1 7. 7 % 15.5% 25.8% 14.5%
Number of employees 5,295 5,825 5,295 5,825
Note: Adjusted EBITA and EBITA margin are presented to show underlying business performance. For Q2 and H1 2026, adjustments exclude
costs related to the ERP platform upgrade and items classified as other operating net income, while adjustments in Q2 and H1 2025 related to
transformation and separation activities.
Order intake split by segments
DKKm
Order intake in Q2 2026
Order intake increased organically by 13% in
Q2 2026 compared with Q2 2025, supported by
organic growth in order intake across all three
segments. During Q2 2026, FLSmidth announced
one large Products order of DKK 300m, whereas
no large Products orders were announced in Q2
2025. Total order intake increased by 14% year-on-
year to DKK 4,026m.
Service, Products and PC&V comprised 60%, 17%
and 23% of total order intake in Q2 2026, respec-
tively, compared to 59%, 19% and 22% in Q2 2025,
respectively.
Order backlog and maturity in Q2 2026
The order backlog increased by 6% compared to
Q4 2025 to DKK 11,515m and 8% compared to Q2
2025. The increase was primarily driven by strong
order intake in the Service and PC&V businesses,
partly offset by a low level of order intake in the
Products business following a prolonged period
of subdued market demand. In addition, the order
backlog has been reduced following the cancel-
lation of one Products order in the quarter. The
book-to-bill ratio was 102.1% compared to 104.1%
in Q2 2025.
Order intake by commodity
%
Copper
Gold
Coal
Iron ore
Other minerals
0
2,000
4,000
6,000
8,000
10,000
12,000
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Service Products PC&V
Backlog
DKKm
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 17
0
900
1,800
2,700
3,600
4,500
0
8
16
24
32
40
Revenue EBITA %
Adjusted EBITA %
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
-100
100
300
500
700
900
1,100
1,300
Service Products PC&V Unallocated items
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Backlog maturity
FLSmidth Group
Next six months 2026 43%
2027 46%
2028 and beyond 11%
Revenue in Q2 2026
Organically, revenue increased by 16% in Q2 2026
compared to Q2 2025, driven by organic growth
across all three segments. Total revenue increased
by 17% to DKK 3,944m compared to DKK 3,378m in
Q2 2025.
Service, Products and PC&V comprised 59%, 20%
and 21% of total revenue in Q2 2026, respectively,
compared to 61%, 18% and 21%, respectively, in
Q2 2025.
Profit in Q2 2026
Gross profit and margin
Gross profit increased by 20% to DKK 1,439m in
Q2 2026 compared to DKK 1,199m in Q2 2025. The
corresponding gross margin increased to 36.5%
compared to 35.5% in Q2 2025. The improvement
was supported by higher revenue across all three
segments.
In Q2 2026, total research and development costs
(R&D) amounted to DKK 36m compared to DKK
83m in Q2 2025, corresponding to 0.9% of revenue
(Q2 2025: 2.5%). The decline in R&D costs partly
reflects a shift toward technology development
conducted in close collaboration with customers
on specific projects, with the related costs recog-
nised as cost of goods sold rather than within
R&D.
Research & development costs
DKKm Q2 2026 Q2 2025
Production costs 22 24
Capitalised 14 59
Total R&D 36 83
SG&A costs
SG&A costs increased by 4% to DKK 701m in Q2
2026 compared to DKK 677m in Q2 2025. The SG&A
ratio decreased to 17.8% from 20.0% as a result of
the higher revenue as well as improved operating
leverage and continued benefits from the simpli-
fication of the operating model. Currencies had a
limited impact on SG&A of DKK -2m in the quarter.
Revenue & EBITA margin
DKKm EBITA margin %
EBITA
DKKm
Consolidated financial performance Q2 2026
EBITA and margin
The adjusted EBITA margin increased to 17.3% in
Q2 2026, when excluding ERP costs of DKK 11m
and other operating net income of DKK 27m. The
increase versus Q2 2025 was a result of the higher
revenue and improved gross margin as well as a
significant improvement in adjusted EBITA in the
Products business. Including adjustment items
and other operating net income, EBITA increased
to DKK 699m, corresponding to an improved EBITA
margin of 17.7%, compared to DKK 522m and an
EBITA margin of 15.5% in Q2 2025.
Amortisation of intangible assets
Amortisation of intangible assets amounted to
DKK 68m (Q2 2025: DKK 53m).
Growth in order intake in Q2 2026
(vs. Q2 2025)
Service Products PC&V
FLSmidth
Group
Organic 14% 5% 18% 13%
Currency 2% -2% 1% 1%
Total grow th 16% 3% 19% 14%
Growth in revenue in Q2 2026
(vs. Q2 2025)
Service Products PC&V
FLSmidth
Group
Organic 11% 34% 14% 16%
Currency 2% -2% 2% 1%
Total grow th 13% 32% 16% 17%
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 18
Financial items
Net financial items amounted to a gain of DKK 17m
in Q2 2026 (Q2 2025: DKK -74m). Net interest of DKK
5m (Q2 2025: DKK -35m) was positively impacted by
interest income from settlement of a legal dispute.
Foreign exchange and fair value adjustments
amounted to DKK 12m (Q2 2025: DKK -39m) and
financial items from associates amounted to DKK
0m (Q2 2025: DKK 0m).
Tax
Tax expenses for Q2 2026 amounted to DKK 207m
(Q2 2025: DKK 135m), corresponding to an effec-
tive tax rate of 32% (Q2 2025: 34%). This includes
impact from withholding tax in both periods.
Profit for the period
Profit for the period increased to DKK 441m in
Q2 2026 compared to DKK 260m for the contin-
uing activities in Q2 2025. The improvement was
mainly driven by stronger operating performance,
including higher revenue, improved gross margin
and higher EBITA, supported by positive develop-
ment across all three segments.
Earnings per share (diluted) increased to DKK 8.1
compared to DKK 4.4 in Q2 2025.
Cash flow in Q2 2026
Cash flow from operating activities
Cash flow from operating activities (CFFO)
amounted to DKK -84m in Q2 2026 (Q2 2025: DKK
527m). The year-on-year decline was primarily
a result of a negative effect from change in net
working capital, partly offset by higher earnings
for the period.
Cash flow from investing activities
Cash flow from investing activities amounted to
DKK -77m (Q2 2025: DKK -218m). The reduction in
investing activities was driven by a lower level of
capex investments for both tangible and intan-
gible assets.
Cash flow from financing activities
Cash flow from financing activities amounted to
an inflow of DKK 251m in Q2 2026 compared to an
outflow of DKK 308m in Q2 2025.
The development was mainly driven by a net
increase in interest-bearing debt, partly offset by
the acquisition of treasury shares. In Q2 2025, the
cash outflow mainly reflected dividend payments
partly offset by increased borrowings.
Free cash flow
Free cash flow (the sum of cash flow from oper-
ating and investing activities) amounted to DKK
-161m for Q2 2026 (Q2 2025: DKK 309m).
Free cash flow adjusted for business acquisitions
and disposals amounted to DKK -135m in Q2 2026
(Q2 2025: DKK 332m).
Other business
Subsequent events
With reference to the press release issued on
14 July 2026, the Executive Leadership Team
has been expanded, and Kristoffer Hessedahl is
appointed Chief Strategy & M&A Officer. In addi-
tion, Line Berg Madsen has been appointed Group
General Counsel. Line Berg Madsen has served as
interim General Counsel in FLSmidth since May
2026 and will transition into the permanent role
during the third quarter of 2026.
With reference to the press release issued on
13 August 2026, FLSmidth has appointed Petri
Virrankoski as new President, Service Business
Line. Petri is expected to join FLSmidth during
Consolidated financial performance Q2 2026
2027. Until then, Alanas Kraujalis will remain interim
President, Service Business Line.
With reference to the press release issued on 19
August 2026, Lise Linnebjerg has been appointed
Chief People Officer, joining FLSmidth on 1
November 2026. Until then, Prathima Adluri will
continue serving as Interim Chief People Officer.
We are not aware of any other subsequent
matters, that could be of material importance to
FLSmidth’s financial position.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 19
Order intake
Order intake increased organically by 11% in H1
2026 driven by organic growth in order intake in
the Service and PC&V businesses. One large Prod-
ucts order valued at DKK 300m was announced
in H1 2026, while a single large order with undis-
closed amount was announced in H1 2025. Total
order intake increased by 9% compared to H1 2025
to DKK 7,924m.
Service, Products and PC&V comprised 61%, 17%
and 22% of total order intake in H1 2026, respec-
tively, compared to 58%, 21% and 21%, respec-
tively, in H1 2025.
Order backlog
The order backlog increased by 8% to DKK
11,515m at the end of H1 2026 compared to
DKK 10,650m at the end of H1 2025, and by 6%
compared to the end of 2025. The increase was
mainly driven by strong order intake in the Service
and PC&V businesses, partly offset by a low level
of order intake in the Products business following
a prolonged period of subdued market demand.
In addition, the order backlog has been reduced
following the cancellation of one Products order in
the Q2 2026. The book-to-bill ratio was 109.7% in
H1 2026 against 102.9% in H1 2025.
43% of the backlog is expected to be converted
into revenue during the remainder of 2026, while
46% is expected to convert in 2027 and 11% in
2028 and beyond.
Revenue
Organically, revenue increased by 4% to DKK
7,223m in H1 2026 compared to H1 2025. The
year-on-year increase was driven by organic
revenue growth across all three businesses. Total
revenue increased by 2% to DKK 7,223m in H1 2026
compared to DKK 7,086m in H1 2025.
Service, Products and PC&V comprised 60%, 19%
and 21% of the total revenue in H1 2026, respec-
tively, compared to 60%, 20% and 20%, respec-
tively, in H1 2025.
Profit in H1 2026
Gross profit and margin
Gross profit increased by 5% to DKK 2,624m in H1
2026 compared to DKK 2,503m in H1 2025. The
corresponding gross margin increased to 36.3%
in H1 2026 from 35.3% in H1 2025, supported by
favorable revenue mix, with PC&V comprising
relatively larger shares of total revenue in the half-
year period.
In H1 2026, total R&D costs decreased to DKK
74m from DKK 116m in H1 2025, driven by lower
production-related R&D costs of DKK 35m and
lower capitalised development costs of DKK 39m.
The decline in R&D costs partly reflects a shift
toward technology development conducted in
close collaboration with customers on specific
projects, with the related costs recognised as
cost of goods sold rather than within R&D.
Research & development costs
DKKm H1 2026 H1 2025
Production costs 35 49
Capitalised 39 67
Total R&D 74 116
SG&A costs
Sales, general and administrative costs (SG&A)
decreased by 8% to DKK 1,323m compared to DKK
1,432m in H1 2025, reflecting the positive effects
from the ongoing simplification of FLSmidth's
operating model, especially within support func-
tions and the Products business.
SG&A costs as a percentage of revenue
decreased to 18.3% in H1 2026 compared to 20.2%
in H1 2025. Currencies had a favourable impact on
SG&A of DKK 27m in H1 2026.
EBITA and margin
The adjusted EBITA margin for H1 2026 increased
to 16.4% in H1 2026, when excluding ERP costs of
DKK 25m and other operating net income of DKK
708m primarily relating to the sale of the Compa-
ny's former headquarters in Valby, Denmark. The
increase versus H1 2025 was a result of the higher
Consolidated financial performance H1 2026
Growth in order intake H1 2026
(vs. H1 2025)
Service Products PC&V
FLSmidth
Group
Organic 17% -13% 17% 11%
Currency -2% -3% -2% -2%
Total grow th 15% -16% 15% 9%
Growth in revenue in H1 2026
(vs. H1 2025)
Service Products PC&V
FLSmidth
Group
Organic 4% 1% 8% 4%
Currency -2% -4% -2% -2%
Total grow th 2% -3% 6% 2%
0
500
1,000
1,500
2,000
0
5
10
15
20
25
SG&A cost SG&A ratio
H1 2025 H1 2026
SG&A cost and SG&A ratio
DKKm %
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 20
0
10
20
30
40
50
Equity ratio
Q4 2025 Q1 2026 Q2 2026
Net interest-bearing debt (NIBD)
0
500
1,000
1,500
2,000
2,500
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Leverage ratio (NIBD/EBITDA)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0
5
10
15
20
25
Net working capital Net working capital ratio, end
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Net interest-bearing debt
DKKm Ratio (x)
Net working capital
DKKm NWC %
Equity ratio
%
Consolidated financial performance H1 2026
revenue and improved gross margin as well as a
significant improvement in adjusted EBITA in the
Products business. Including adjustment items
and other operating net income, EBITA increased
to DKK 1,866m, corresponding to an EBITA margin
of 25.8%, compared to DKK 1,030m and an EBITA
margin of 14.5% in H1 2025.
Financial items
Net financial items amounted to a gain of DKK
43m (H1 2025: DKK -61m), of which net interest
amounted to DKK -22m (H1 2025: DKK -49m).
Foreign exchange and fair value adjustments
amounted to DKK 58m (H1 2025: DKK -12m). Finan-
cial items also include a gain from associates of
DKK 7m (H1 2025: DKK 0m).
Tax
Tax expenses amounted to DKK 353m in H1 2026
(H1 2025: DKK 294m), corresponding to an effec-
tive tax rate of 20% (H1 2025: 34%). This includes
impact from withholding tax in both periods. The
effective tax rate was positively impacted by the
gain from the sale of FLSmidth's former headquar-
ters in Valby, Denmark. Adjusted for the gain from
the sale, the effective tax rate was 32%.
Profit for the period
Profit for the period increased to DKK 1,426m in H1
2026 compared to DKK 570m in H1 2025, excluding
discontinued activities. The improvement was
primarily driven by higher EBITA, supported by
stronger underlying operating performance, a
higher gross profit, lower SG&A costs, as well as
the gain from the sale of FLSmidth’s former head-
quarters in Valby, Denmark.
Earnings per share
Earnings per share (diluted) increased to DKK 26.2
in H1 2026 from DKK 9.8 in H1 2025. The improve-
ment was mainly driven by the significant increase
in profit for the period and the gain from the
sale of FLSmidth’s former headquarters in Valby,
Denmark.
Employees
The number of employees decreased to 5,295 at
the end of H1 2026, compared to 5,825 at the end
of H1 2025, as a result of the business simplifica-
tion and the implementation of FLSmidth's new
operating model.
Capital in H1 2026
Balance sheet
Total assets amounted to DKK 23.4bn at the end
of H1 2026, compared to DKK 22.1bn at year-end
2025. The increase is mainly driven by an increase
in current assets, including inventories and work in
progress, reflecting increased activity levels.
Net working capital
Net working capital increased to DKK 3,603m at
the end of H1 2026 from DKK 2,406m at year-end
2025, corresponding to a higher NWC ratio of
24.4% at the end of H1 2026 compared to a NWC
ratio of 16.5% at the end of 2025. The increase was
mainly driven by increases in inventories and work
in progress to support deliveries later in 2026 as
well as to support FLSmidth's longer-term growth
ambitions in especially the Service and the PC&V
businesses. The increase was partly offset by a
higher level of trade payables.
Return on capital employed
The average return on capital employed (ROCE)
increased to 17.8% at H1 2026, up from 12.9%
at year-end 2025. The improvement is driven
by strong EBITA growth, while average capital
employed remained broadly stable at DKK 18bn.
Net interest-bearing debt
Net interest-bearing debt (NIBD) amounted to DKK
2,228m at the end of H1 2026 compared to DKK
2,014m at year-end 2025, mainly driven by share
repurchases in connection with the ongoing share
buy-back programme (ref. Company Announce-
ment no. 26-2026) and dividend payout, but partly
offset by the sale of property. The leverage ratio
(NIBD/EBITDA) was 0.6x at the end of H1 2026 (end
of 2025: 0.8x) and remains comfortably below
FLSmidth's target level of less than 2.0x.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 21
Consolidated financial performance H1 2026
Cash ow from investing activities
-400
-200
0
200
400
600
800
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Free cash ow
-200
0
200
400
600
800
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Cash ow from operating activities
-100
0
100
200
300
400
500
600
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
CFFO
DKKm
Free cash flow
DKKm
CFFI
DKKm
Financial position
By the end of H1 2026, FLSmidth had DKK 6.1bn of
available committed credit facilities (H1 2025: DKK
6.1bn) of which DKK 3.6bn remained undrawn (H1
2025: DKK 4.3bn). The committed credit facilities
have a weighted average time to maturity of 4.1
years (H1 2025: 1.8 years).
Equity
The equity at the end of H1 2026 increased to
DKK 10,475m (end of 2025: DKK 9,500m), driven
by profit for the period, partly offset by share
repurchases in connection with the ongoing share
buy-back programme and dividend paid. The
equity ratio was 44.8% at the end of H1 2026 (end
of 2025: 43.0%).
Treasury shares
The holding of treasury shares increased to
3,805,671 shares at the end of H1 2026 (end of H1
2025: 654,002), corresponding to approximately
6.6% of the total share capital (end of H1 2025:
1.14%). Treasury shares not intended to cover
obligations related to the company’s share-
based incentive programmes are intended to be
proposed for cancellation at a General Meeting
following the completion of the ongoing share
buy-back programme.
Share buy-back programme
On 18 May 2026, FLSmidth launched the previ-
ously announced share buy-back programme of
up to DKK 1.0 billion to be completed before the
end of 2026 (ref. Company Announcement no.
26-2026).
Cash flow in H1 2026
Cash flow from operating activities
Cash flow from operating activities (CFFO) totalled
DKK 19m in H1 2026 (H1 2025: DKK 515m). The year-
on-year decline was primarily a result of changes
in net working capital, partly offset by increased
earnings in the period as well as a lower level of
taxes paid.
Cash flow from investing activities
Cash flow from investing activities (CFFI) totalled
DKK 566m in H1 2026, compared to DKK -328m
in H1 2025, driven by proceeds from the sale
of FLSmidth's former headquarters in Valby,
Denmark, and lower investments in tangible and
intangible assets.
0
1,000
2,000
3,000
4,000
0
2
4
6
8
Number of shares Share in % of share capital
2025 2026
Q1 Q1Q2 Q3 Q4 Q2
Treasury shares
Number of shares (1,000) %
Cash flow from financing activities
Cash flow from financing activities totalled
DKK -541m in H1 2026 compared to DKK -374m
in H1 2025, mainly driven by share repurchases
in connection with the ongoing share buy-back
programme as well as dividends paid.
Free cash flow
Free cash flow totalled DKK 585m for H1 2026
(H1 2025: DKK 187m). Free cash flow adjusted for
business acquisitions and disposals amounted
to DKK 615m in Q2 2026 (H1 2025: DKK 212m).
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 22
Consolidated Condensed Financial statements
Income statement 24
Statement of comprehensive income 24
Cash flow statement 25
Balance sheet 26
Equity statement 27
Consolidated
condensed
financial
statements
Transport of gold ore from the open
cast mine in the Barrick Cowal Gold
Mine, New South Wales, Australia
Income statement Statement of comprehensive income
Notes DKKm Q2 2026 Q2 2025 H1 2026 H1 2025
3, 4 Revenue 3,944
Production costs (2,505 )
(2,179 )
(4,599 )
(4,583 )
Gross profit 1,439
Sales costs (323 )
(310 )
(636 )
(651 )
Administrative costs (378 )
(367 )
(687 )
(781 )
5 Other operating net income 27
EBITDA 765
2
Depreciation and impairment of property, plant and
equipment and lease assets (66 )
(59 )
(143 )
(118 )
EBITA 699
2 Amortisation and impairment of intangible assets (68 )
(53 )
(130 )
(105 )
EBIT 631
Financial income 330
Financial costs (313 )
(413 )
(643 )
(639 )
EBT 648
Tax for the period (207 )
(135 )
(353 )
(294 )
Profit/(loss) for the period, continuing activities 441
Profit/(loss) for the period, discontinued activities 0
(715 )
(674 )
Profit/(loss) for the period 441
(455 )
(104 )
Attributable to:
Shareholders in FLSmidth & Co. A/S 440
(460 )
(113 )
Minority interests 1
(455 )
(104 )
Earnings per share (DKK):
EPS continuing activities 8.1 4.5 26.3 9.8
DEPS continuing activities 8.1 4.4 26.2 9.8
EPS continuing and discontinued activities 8.1 (8.1 ) 26.3 (2.0 )
DEPS continuing and discontinued activities 8.1 (8.0 ) 26.2 (2.0 )
Notes DKKm Q2 2026 Q2 2025 H1 2026 H1 2025
Profit/(loss) for the period 441 (455 ) 1,426 (104 )
Items that will not be reclassified to
profit or loss:
Actuarial gains and losses on defined benefit plans 4 (1 ) (11 ) (6 )
Tax of actuarial gains and losses on defined
benefit plans (2 ) 1 1 1
Items that are or may be reclassified
subsequently to profit or loss:
Currency adjustments regarding translation of
entities 111 (621 ) 310 (914 )
Cash flow hedging:
Value adjustments for the period (2 ) 2 (4 ) (9 )
Value adjustments transferred to work in progress 0 (5 ) 0 (4 )
Tax hereof 1 0 2 3
Other comprehensive income
for the period after tax 112 (624 ) 298 (929 )
Comprehensive income for the period 553 (1,079 ) 1,724 (1,033 )
Attributable to:
Shareholders in FLSmidth & Co. A/S 552 (1,084 ) 1,723 (1,043 )
Minority interests 1 5 1 10
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 24
Cash flow statement
Notes DKKm Q2 2026 Q2 2025 H1 2026 H1 2025
EBITDA, continuing activities 765 581 2,009 1,148
EBITDA, discontinued activities 0 98 0 195
Adjustment for gain on sale of activities and prop-
erty, plant and equipment and other non-cash items 22 (27 ) (649 ) (29 )
Change in provisions, pension and employee
benefits 8 (80 ) (77 ) (84 )
8 Change in net working capital (764 ) 185 (1,045 ) (244 )
Cash flow from operating activities before
financial items and tax 31 757 238 986
Financial items received and paid 5 (35 ) (24 ) (54 )
Taxe s paid (120 ) (195 ) (195 ) (417 )
Cash flow from operating activities (84 ) 527 19 515
9 Acquisition of enterprises and activities 0 (23 ) (4 ) (25 )
Acquisition of intangible assets (11 ) (96 ) (44 ) (137 )
Acquisition of property, plant and equipment (34 ) (145 ) (92 ) (233 )
Acquisition of financial assets (3 ) 0 (3 ) (4 )
Disposal of enterprises and activities (26 ) 0 (26 ) 0
Disposal of property, plant and equipment (3 ) 46 735 71
Cash flow from investing activities (77 ) (218 ) 566 (328 )
Dividend paid 0 (457 ) (217 ) (457 )
Acquisition of treasury shares (189 ) (34 ) (558 ) (34 )
Repayment of lease liabilities (23 ) (23 ) (56 ) (51 )
Change in interest-bearing debt 463 206 290 168
Cash flow from financing activities 251 (308 ) (541 ) (374 )
Change in cash and cash equivalents 90 1 44 (187 )
Cash and cash equivalents at beginning of period 554 859 594 1,070
Foreign exchange adjustment, cash and cash
equivalents 8 (44 ) 14 (67 )
Cash and cash equivalents at end of period 652 816 652 816
The cash flow statement cannot be inferred from the published financial information only.
DKKm Q2 2026 Q2 2025 H1 2026 H1 2025
Cash and cash equivalents 652 660 652 660
Cash and cash equivalents included in assets held for sale - 156 - 156
Cash and cash equivalents at 30 June 652 816 652 816
Free cash flow:
Cash flow from operating activities (84 ) 527 19 515
Cash flow from investing activities (77 ) (218 ) 566 (328 )
Free cash flow (161 ) 309 585 187
Add back acquisition of enterprises and activities 0 23 4 25
Add back disposal of enterprises and activities 26 0 26 0
Free cash flow, adjusted for acquisitions and disposals
of enterprises and activities (135 ) 332 615 212
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 25
Balance sheet
Notes DKKm 30/06 2026 30/06 2025 31/12 2025
Assets
Goodwill 6,404 6,274 6,293
Patents and rights 484 514 432
Customer relations 205 247 222
Other intangible assets 12 60 45
Completed development projects 264 174 373
Intangible assets under development 489 740 462
Intangible assets 7,858 8,009 7,827
Land and buildings 1,636 1,390 1,538
Plant and machinery 372 305 374
Operating equipment, fixtures and fittings 153 89 108
Tangible assets in course of construction 234 332 299
Property, plant and equipment 2,395 2,116 2,319
Deferred tax assets 1,226 2,001 1,265
Investments in associates 44 31 35
Other securities and investments 67 55 60
Other non-current assets 1,337 2,087 1,360
Non-current assets 11,590 12,212 11,506
Inventories 3,829 3,168 3,435
Trade receivables 3,084 2,821 3,102
Work in progress 2,543 1,780 1,873
Prepayments 427 628 433
Income tax receivables 300 511 224
Other receivables 933 714 873
Cash and cash equivalents 652 660 594
Current assets 11,768 10,282 10,534
Assets classified as held for sale 0 1,895 48
Total assets 23,358 24,389 22,088
Notes DKKm 30/06 2026 30/06 2025 31/12 2025
Equity and liabilities
Share capital 115
Foreign exchange adjustments (1,311 )
(1,698 )
(1,621 )
Cash flow hedging (42 )
(41 )
(38 )
Retained earnings 11,723
Shareholders in FLSmidth & Co. A/S 10,485
Minority interests (11 )
(10 )
(12 )
10 Equity 10,474
Deferred tax liabilities 191
Pension obligations 323
6 Provisions 614
Lease liabilities 176
Bank loans and mortgage debt 2,508
Prepayments from customers 119
Income tax liabilities 153
Other liabilities 32
Non-current liabilities 4,116
Pension obligations 0
6 Provisions 1,151
Lease liabilities 88
Bank loans and mortgage debt 64
Prepayments from customers 777
Work in progress 2,167
Trade payables 2,971
Income tax liabilities 241
Other liabilities 1,309
Current liabilities 8,768
Liabilities directly associated with assets
classified as held for sale 0 1,753
Total liabilities 12,884 14,102 12,588
Total equity and liabilities 23,358 24,389 22,088
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 26
Equity statement
H1 2026 H1 2025
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 (1,621 ) (38 ) 10,018 9,512 (12 ) 9,500 1,153 (783 ) (28 ) 11,459 11,801 (20 ) 11,781
Comprehensive income for the period
Profit/(loss) for the period 1,425 1,425 1 1,426 (113 ) (113 ) 9 (104 )
Other comprehensive income
Actuarial gain/(loss) on defined benefit plans (11 ) (11 ) (11 ) (6 ) (6 ) (6 )
Tax of actuarial gains & losses on defined benefit plans 1 1 1 1 1 1
Currency adjustments regarding translation of entities 310 310 0 310 (915 ) (915 ) 1 (914 )
Cash flow hedging:
Value adjustments for the period (4 ) (4 ) (4 ) (9 ) (9 ) (9 )
Value adjustments transferred to work in progress - - - (4 ) (4 ) (4 )
Tax on other comprehensive income 2 2 2 3 3 3
Other comprehensive income for the period 0 310 (4 ) (8 ) 298 0 298 0 (915 ) (13 ) (2 ) (930 ) 1 (929 )
Comprehensive income for the period 0 310 (4 ) 1,417 1,723 1 1,724 0 (915 ) (13 ) (115 ) (1,043 ) 10 (1,033 )
Transactions with owners:
Dividend paid (217 ) (217 ) (217 ) (457 ) (457 ) (457 )
Reduction of share capital (1,038 ) 1,038 0 0 - - - -
Share-based payment 25 25 25 30 30 30
Acquisition of treasury shares (558 ) (558 ) (558 ) (34 ) (34 ) (34 )
Equity at end of period 115 (1,311 ) (42 ) 11,723 10,485 (11 ) 10,474 1,153 (1,698 ) (41 ) 10,883 10,297 (10 ) 10,287
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 27
1. Key accounting estimates and judgements 29
2. Income statement by function 29
3. Segment information 30
4. Revenue 31
5. Other operating net income 32
6. Provisions 33
7. Contractual commitments and
contingent assets & liabilities 33
8. Net working capital 34
9. Business acquisition 34
10. Shareholders’ equity 35
11. Events after the balance sheet date 35
12. Accounting policies 35
Notes
Lithium is extracted from
underground lithium-rich brine
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 H1 of 2026. 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 2025.
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
2025, Key accounting estimates and judgements, page
128 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 Q2 2026 Q2 2025 H1 2026 H1 2025
Revenue 3,944 3,378 7, 223 7,0 8 6
Production costs, including depreciation and amortisation (2,549) (2,243) (4,724) (4,705)
Gross profit 1,395 1,135 2,499 2,381
Sales costs, including depreciation and amortisation (325) (311) (640) (656)
Administrative costs, depreciation and amortisation (466) (414) (831) (877)
Other operating net income 27 59 708 77
EBIT 631 469 1,736 925
Depreciation, amortisation and impairment consist of:
Depreciation and impairment of property, plant and equipment and lease assets (66) (59) (143) (118)
Amortisation and impairment of intangible assets (68) (53) (130) (105)
(134) (112) (273) (223)
Depreciation, amortisation and impairment are divided into:
Production costs (44) (64) (125) (122)
Sales costs (2) (1) (4) (5)
Administrative costs (88) (47) (144) (96)
(134) (112) (273) (223)
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 29
3. Segment information
H1 2026 H1 2025 H1 2025
DKKm Service Products PC&V
Unallocated
items
1
FLSmidth
Group Service Products PC&V
Continuing
activities
Discontinued
activities
FLSmidth
Group
Income statement
Revenue 4,345 1,359 1,519 - 7, 223 4,245 1,408 1,433 7, 086 1,920 9,006
Other operating net income 12 3 1 692 708 36 41 0 77 (35) 42
EBITA 811 8 355 692 1,866 831 (131) 330 1,030 178 1,208
Order intake 4,860 1,296 1,768 - 7, 9 24 4,217 1,546 1,531 7, 2 94 1,658 8,952
Order backlog 5,555 4,731 1,229 - 11,515 4,781 4,869 1,000 10,650 3,343 13,993
EBITA margin 18.7% 0.6% 23.4% - 25.8% 19.6% -9.3% 23.0% 14.5% 9.3% 13.4%
Number of employees at 30 June 5,295 5,825 1,688 7,513
Reconciliation of profit for the period
EBITA 1,866 1,030 178 1,208
Amortisation and impairment of
intangible assets (130) (105) (516) 621
EBIT 1,736 925 (338) 587
Financial income 686 578 110 688
Financial costs (643) (639) (119) (758)
EBT 1,779 864 (347) 517
1
The gain from the sale of FLSmidth's former headquarters in Valby, Denmark and adjustments related to non-segmental businesses are categorised under Unallocated Items, totalling DKK 692m.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 30
25%
30%
22%
23%
28%
29%
20%
23%
The years
after ~
Next year
Remainder of
current year
0
2,000
4,000
6,000
8,000
10,000
12,000
H1 2025 H1 2026
NAMER
SAMER
EMEA
APAC
NAMER
SAMER
EMEA
APAC
4. Revenue
FLSmidth is a leading, full flowsheet minerals processing
supplier to the global mining industry and delivers tech-
nological solutions and services to customers across
the lifecycle of mining operations. The sales offering
can broadly be categorised as products (provision of
equipment) and services (aftermarket sales including
spare parts, maintenance and upgrades). FLSmidth sells
a broad range of goods and services within the three
segments; Service, Products and PC&V.
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 2025.
Backlog
The order backlog at the end of H1 2026 amounted to
DKK 11,515m (end of 2025: DKK 10,893m).
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
FLSmidth 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 by Regions H1 2026
%
Revenue split by Regions H1 2025
%
Backlog maturity
DKKm
Revenue split on timing of revenue recognition principle
H1 2026 H1 2025
DKKm Service Products PC&V
FLSmidth
Group Service Products PC&V
FLSmidth
Group
Point in time 3,197 104 1,434 4,735 2,890 666 1,147 4,703
Percentage of completion:
Service, single machines and product bundles 1,148 1,191 85 2,424 1,355 498 286 2,139
Product bundles with engineering under enhanced risk govern-
ance 0 64 0 64 0 244 0 244
Total 4,345 1,359 1,519 7, 22 3 4,245 1,408 1,433 7,08 6
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 31
Water treatment solution
5. Other operating net income
In Q2 2026, other operating net income was primarily driven by non-segmental
businesses.
H1 2026 was positively impacted by the gain from the sale of FLSmidth's former
headquarters in Valby, Denmark (DKK 675m).
Other operating net income
DKKm
Q2
2026
Q2
2025
H1
2026
H1
2025
Gain on sale of properties 0 47 675 65
Other income 42 19 37 29
Other expenses (15) (7) (4) (17)
Total 27 59 708 77
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 32
6. Provisions
Total provisions decreased to DKK 1,765m at the end of
H1 2026 (year-end 2025: DKK 1,824m) mainly driven by
the utilisation of restructuring provisions related to the
ongoing organisational simplification process.
The table below shows the movements in provisions by
category for FLSmidth.
More information and a description of the main provision
categories can be found in note 2.7 in the Annual Report
2025.
Provisions
DKKm 30/06 2026 30/06 2025 31/12 2025
Provisions at 1 January 1,824 2,375 2,375
Foreign exchange adjustments 30 (88) (83)
Additions 322 303 770
Used (281) (264) (691)
Reversals (130) (117) (321)
Transferred to liabilities held for sale 0 (226) (226)
Total 1,765 1,983 1,824
The split of provisions is as follows:
Warranties 708 747 685
Restructuring 63 210 169
Other provisions 994 1,026 970
1,765 1,983 1,824
Classified as:
Non-current provisions 614 569 598
Current provisions 1,151 1,414 1,226
1,765 1,983 1,824
7. Contractual commitments and contingent assets & liabilities
Contingent assets
The contingent assets related to the sale of the Cement
business and the Air Pollution Control business remain
unchanged since the end of 2025. These assets continue
to be conditional, as their realisation depends on future
events. More information on these contingent assets can
be found in note 2.9 in the Annual Report 2025.
Contingent liabilities
Contingent liabilities amounted to DKK 1,435m at the
end of H1 2026 (end of 2025: DKK 1,416m). Contingent
liabilities primarily relate to customary performance and
payment guarantees. The volume of such guarantees
amounted to DKK 1,176m (end of 2025: DKK 1,148m).
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 6.
Other contingent liabilities of DKK 259m (end of 2025:
DKK 268m) relate to FLSmidth's 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
FLSmidth.
With reference to the press release issued on 1 May 2026,
FLSmith has initiated an internal investigation into poten-
tial sanctions-related compliance matters involving
pre-contract tender activities linked to a limited number
of projects in Kazakhstan. FLSmidth has voluntarily
notified relevant authorities, discontinued the affected
tenders and is strengthening its compliance framework.
No specific provisions are made as a result of the prelimi-
nary findings of the internal investigation.
No significant changes have occurred to the nature and
extent of FLSmidth's contractual commitments and
contingent assets and liabilities compared to what was
disclosed in note 2.9 in the Annual Report 2025.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 33
8. Net working capital
Net working capital represents the assets and liabili-
ties necessary to support FLSmidth’s daily operations.
The impact on FLSmidth’s cash flows from net working
capital is showed in the table below.
Net working capital increased by DKK 1.2bn compared to
the end of 2025, mainly driven by higher work in progress
on projects and increased inventory to support the
delivery of orders later this year in Service and PC&V.
Utilisation of supply chain financing increased to DKK
308m at the end of H1 2026, up from DKK 234m by end
of 2025.
Net working capital
DKKm 30/06 2026 30/06 2025 31/12 2025
Inventories 3,829 3,168 3,435
Trade receivables 3,084 2,821 3,102
Work in progress, assets 2,543 1,780 1,873
Prepayments 427 628 433
Other receivables 827 691 762
Derivative financial instruments 32 23 29
Prepayments from customers (896) (1,292) (1,097)
Trade payables (2,971) (2,384) (2,585)
Work in progress, liability (2,167) (2,249) (2,046)
Other liabilities (1,091) (1,287) (1,458)
Derivative financial instruments (14) (58) (42)
Net working capital 3,603 1,841 2,406
Change in net working capital (1,197) 266 (299)
Acquisitions/disposal of activities, financial instruments and
foreign exchange effect on cash flow 152 (510) (647)
Cash flow effect from change in net working capital (1,045) (244) (946)
9. Business acquisition
Acquisitions in H1 2026
There has been no business acquisitions in H1 2026.
A cash payment of DKK 4m relate to deferred consider-
ation from the Farnell-Thompson Applied Technologies
Inc. acquisition in 2024 took place in Q1 2026. The last
tranche of the deferred consideration is due for payment
in Q1 2027 (DKK 2m).
Acquisitions in H1 2025
On 2 June 2025, FLSmidth acquired Scott Specialized
Rubber & Engineering (SSRE), a manufacturing company
based in Pretoria, South Africa. The impact on net profit
is insignificant.
Cash payment of DKK 2m related to deferred consider-
ation from the Farnell-Thompson Applied Technologies
Inc. acquisition in 2024, took place in Q1 2025.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 34
10. Shareholders’ equity
At the Annual General Meeting 24 March 2026, a dividend
of DKK 4 per share was declared. The total dividend
amounting to DKK 217m, excluding the proportion related
to FLSmidth’s holding of treasury shares, was paid out in
March 2026.
In 2025, the Annual General Meeting was held in April and
the total dividend paid was DKK 457m.
11. Events after the
balance sheet date
We are not aware of any other subsequent matters that
could be of material importance to the FLSmidth's finan-
cial position at 30 June 2026.
12. Accounting policies
The condensed interim report of the Group for the first
six months of 2026 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 2025 Annual Report. Reference is made to note
7.7, Material accounting policies, note 7.8, Impact from
new IFRS Accounting Standards, note 7.9, New IFRS
Accounting Standards not yet adopted and to specific
notes in the 2025 Annual Report for further details.
Changes in accounting policies
The IASB has issued several new standards and amend-
ments that are not yet effective or adopted by the EU
and therefore do not affect the preparation of the H1
2026 Interim Financial Report. Management does not
expect these standards and amendments to have a
significant impact on the Group’s recognition and meas-
urement policies.
FLSmidth will adopt these accounting standards and
interpretations as they become mandatory.
• IFRS 18, which replaces IAS 1 Presentation of Financial
Statements, introduces new presentation require-
ments for the statement of profit or loss, including
income and expense categories for operating,
financing and investing activities. It also requires
disclosure of management-defined performance
(MPMs) measures and sets new requirements for
aggregating and disaggregating financial information.
• Amendments to IAS 7 Statement of Cash Flows
change the starting point for operating cash flows
under the indirect method and remove optionality in
classifying dividend and interest cash flows. These
changes have also led to amendments to other stand-
ards. Adoption is not expected to significantly change
existing accounting policies or affect net profit, but
the new profit or loss categories are expected to
require reclassification of certain accounts and redefi-
nition of key financial measures.
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 35
Statement by Management
Executive Leadership
Board of directors
Management review Consolidated Condensed Financial Statements Notes Statements FLSmidth Interim Report H1 2026 37
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 H1 2026 38
Interim Report H1 2026
1 January - 30 June 2026
FLSmidth & Co. A/S
Havneholmen 2, 1-3
2450 Copenhagen SV
Denmark
Tel.: +45 36 18 18 00
corppr@flsmidth.com
www.flsmidth.com
CVR no. 58180912