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Investing.com -- FLSmidth (CSE:FLS) shares fell more than 6% on Wednesday after the Danish mining technology group reported third-quarter results that missed expectations on orders and revenue, held back by project execution delays and weakness in its Products business.
The company’s order intake for the quarter declined 11% year over year to DKK 3.3 billion, about 7% below expectations.
Revenue fell 15% to DKK 3.5 billion, 4% short of consensus. Adjusted EBITA increased 8% to DKK 530 million, 2% below forecasts, with a margin of 15.3%.
Kepler Cheuvreux attributed the shortfall to “timing effects on project deliveries” within the Products segment, which saw order intake fall 43% to DKK 472 million and revenue drop 40% to DKK 769 million.
The division reported an adjusted EBITA loss of DKK 26 million, with a margin decline of 3.4%. Management said the “subdued products market, plus execution delays in certain product groups,” contributed to the decline, adding that “the majority of delayed orders are expected to execute in Q4’25-Q1’26.”
The Service division delivered steadier results. Orders rose 3% to DKK 2,141 million, while revenue slipped 3% to DKK 1,933 million. Adjusted EBITA was DKK 372 million, down 11% versus consensus, with a 19.2% margin.
Kepler Cheuvreux noted that “mix and pricing kept profitability resilient,” with “market activity broadly steady, and gold-related work a relative bright spot.”
The Pumps, Cyclones and Ventilation unit reported revenue up 2% to DKK 751 million and adjusted EBITA of DKK 184 million, representing a 23.7% margin.
The brokerage said growth “was driven by aftermarket strength off an expanding installed base,” adding that nine-month order intake was up organically by 9%.
FLSmidth narrowed its full-year 2025 revenue guidance to about DKK 14.5 billion from a previous range of DKK 14.5 billion to DKK 15 billion, citing project timing and adverse foreign-exchange effects.
The adjusted EBITA margin range of 15.0%–15.5% was maintained. Consensus forecasts stand at DKK 14.55 billion in revenue and a 15.2% margin.
Jefferies described the results as “slightly disappointing” but noted that the updated guidance remains aligned with expectations.
Cash flow from operations totaled DKK 993 million for the first nine months of 2025, up from DKK 640 million a year earlier, keeping the company on track to reach its full-year goal of below DKK 1 billion.
FLSmidth completed its transition into a pure-play mining company earlier this year and continues its share buyback program.
Kepler Cheuvreux viewed the trimmed guidance as consistent with management’s commentary that “margin range intact, aftermarket firm, and PC&V performance ok.”