FLSmidth & Co. A/S (FLSmidth) reported organic revenue growth of 4% and an Adjusted EBITA margin of 16.4% for the first half of 2026. The Copenhagen-based mining technology supplier adjusted its full-year financial guidance upwards, citing strong commercial performance in the second quarter and resilient demand across its Service and Pumps, Cyclones & Valves (PC&V) business lines.

The Board of Directors approved the interim financial report on August 19, 2026. The revised outlook reflects improved operational execution and robust order intake in key segments, offsetting a projected decline in the Products business due to reduced backlog.

Second Quarter Performance

Q2 2026 delivered accelerated growth compared to the same period last year. Total revenue increased by 17% year-on-year, with organic revenue rising by 16%. This acceleration was supported by organic growth across all three business lines: Service, Products, and PC&V.

Order intake also showed strength, increasing organically by 13% year-on-year. Total order intake rose by 14%. While Service and PC&V generated robust order intake growth, the Products segment faced headwinds from the timing of final investment decisions on larger customer projects.

Profitability metrics improved significantly in the quarter. The Adjusted EBITA margin expanded to 17.3% in Q2 2026, up from 15.2% in Q2 2025. Net profit for the continuing activities reached DKK 441 million, compared to DKK 260 million in the prior year period.

Full-Year Guidance Adjustment

FLSmidth raised its full-year 2026 financial expectations. The company now anticipates organic revenue growth in the range of 0% to 4%, an improvement from the previous guidance of -1% to 4%. Assuming current exchange rates remain unchanged, reported revenue growth is expected to be approximately one percentage point higher than organic growth.

The Adjusted EBITA margin guidance was also tightened at the lower end, now expected to be between 16.0% and 16.5%, previously 15.5% to 16.5%. This margin expansion is attributed to stable earnings in Service and PC&V businesses and planned profitability improvements in the Products segment through operational efficiency measures.

Segment Outlook

The full-year organic revenue growth guidance is segmented as follows:

• Service: Expected growth of 3% to 5%, driven by continued demand for productivity-enhancing solutions.
• Products: Expected degrowth of -15% to -5%, resulting from a reduced order backlog following portfolio pruning and low industry investment activity.
• PC&V: Expected growth of 5% to 8%, supported by robust market conditions.

What the Numbers Show

A notable divergence exists between top-line growth and cash generation in Q2 2026. While net profit surged to DKK 441 million from DKK 260 million year-on-year, cash flow from operating activities swung to a negative DKK 84 million, compared to a positive DKK 527 million in Q2 2025. This reversal highlights a disconnect between accrual-based profitability and actual cash collection or working capital management during the period, despite the strong revenue conversion.

Additionally, the Adjusted EBITA margin excludes other operating net income totalling DKK 708 million for H1 2026. Of this amount, DKK 675 million relates to the sale of the company’s former corporate headquarters in Valby, Denmark, recognised in Q1 2026. Excluding these costs provides a clearer view of underlying operational performance, which remains resilient despite the anticipated contraction in the Products segment.

Strategic Updates

FLSmidth announced four new appointments to the Executive Leadership Team to support its accelerated growth journey. CEO Toni Laaksonen expressed confidence in the short-to-medium-term project outlook, particularly within copper and gold sectors, noting the resilience of the Service and PC&V businesses.

An earnings call to discuss the H1 2026 Interim Financial Report is scheduled for August 19, 2026, at 11:00 am CEST.

FLSmith & Co A/S appointed Lise Linnebjerg as Chief People Officer, effective November 1, 2026. The appointment strengthens the Executive Leadership Team as the mining technology supplier pursues organic growth and strategic acquisitions. Prathima Adluri will continue serving as Interim Chief People Officer until Linnebjerg assumes the role.

Linnebjerg joins from Vestas Wind Systems A/S, where she served as Senior Vice President, People & Culture for Northern & Central Europe since 2019. Her previous roles include Senior Vice President, Global Talent Management at Vestas, and senior positions in global talent acquisition at both Vestas and Danfoss. She holds an MSc in Business Economics from Aarhus University.

Strategic Context

CEO Toni Laaksonen stated that developing a strong, unified culture is critical for the company's next growth phase. Linnebjerg will be responsible for building leadership capability, talent strategy, and cultural foundations to support scaling operations and integrating teams through acquisitions.

Executive Leadership Team

The updated Executive Leadership Team includes:

• Toni Laaksonen, Chief Executive Officer
• Roland M. Andersen, Chief Financial Officer
• Qasim Abrahams, President, Products Business Line
• Petri Virrankoski, President, Service Business Line (joining during 2027)
• Pat Turner, President, Pumps, Cyclones & Valves Business Line
• Line Berg Madsen, Group General Counsel (transitioning to permanent position in Q3'26)
• Kristoffer Hessedahl, Chief Strategy & M&A Officer (joining no later than early 2027)
• Lise Linnebjerg, Chief People Officer (effective November 1, 2026)

FLSmith is a full flowsheet technology and service supplier to the global mining industry. The company aims for carbon neutrality in its own operations by 2030 under its MissionZero sustainability ambition.