FLSmidth shares rise on strong Q4 results

Published 20/02/2025, 11:56
© Reuters.

Investing.com -- Shares of FLSmidth & Co A/S (COPENHAGEN:FLS) climbed 6% following the release of their fourth-quarter results, which surpassed market expectations.

The Danish engineering company reported orders totaling DKK 4,860 million, sales of DKK 5,331 million, and adjusted EBITA of DKK 645 million. These figures represent a 6%, 2%, and 10% increase over consensus forecasts, respectively.

The company’s positive performance was driven by a significant beat on both orders and profitability. FLSmidth’s 2025 outlook is also optimistic, projecting sales of approximately DKK 19.0 billion, which is slightly under the consensus estimate of DKK 19.3 billion.

However, the expected adjusted EBITA margin of 12.5%-13.0% aligns with the consensus of 12.5%. The group’s reported EBITA margin is anticipated to be between 11.0%-11.5%, which is below the consensus estimate of 12.1%.

RBC analysts commented on the results, stating, "Positive overall due to the good beat on both orders and profitability, while the guidance for 2025 suggests consensus adj. EBITA could move a little higher. The main negative we see is that guidance for transformation costs is considerably higher than expected."

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