Strong income and strategic …

Appearance date: May 14, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Flsmidth & Co AS (FRA: F6O1) exceeded expectations in the first quarter of 2025 with a strong execution in the service and in the backlog management, which led to a higher than expected income.

• The company reached an adjusted EBITDA margin of 15.1%and marked a significant milestone in order to become a high -quality company.

• Flsmidth & Co increased his instructions for the year as a whole, which reflects trust in its performance and management of the supply chain.

• The company has completed exclusive negotiations on the sale of its cement business, which indicates progress in its strategic sales plans.

• The service turnover, especially for consumables, pumps and cyclones, drives profitability and shows the growth of the year compared to the previous year.

• Security within the company's company continues to be aware of it, which indicates an area to improve sustainability efforts.

• The cement segment experienced a disappointing quarter with a low order recording, although recovery in the upcoming quarters is expected.

• There are hesitation in terms of capital equipment investments that could affect renovation and modernization activities.

• The company's restructuring regulations are expected to be issued this year, which indicates the continuing costs in connection with organizational changes.

• Despite strong margins, the company acknowledges that the performance of the Q1 was supported by the sale of assets, which may not be sustainable in future quarters.

Q: Can you specify further details about the mining service mix and the status of basic employment contracts? A: We only have a large employment contract that indicates a shift towards professional services. The service mix primarily exists spare parts and consumables, with professional services, upgrades and renovations make the rest. We have not seen any hesitation in upgrades and renovations, and the spare parts are usually recurring every year. Unidientified_1

Q: How should we think about the SGNA costs for progress? A: Savings will gradually come in the course of the year. We did considerable work in the fourth quarter and in the first quarter, and more trimmed all year round. The administrative costs decrease and sales are running easily, but the combination will decrease during the year. Unidientified_2

Q: Can you explain the growth within pumps and cyclones and the type of growth in more detail? A: The growth is mainly due to conversions because the project sales are below the normal level. We successfully convert other brands to the Krebs Flsmidth brand, which are driven by site sales and conversions. Unidientified_1