FLSmidth raises full-year guidance after strong Q2 results; shares jump

Flsmidth's stock surged over 9% in early European trading after the company raised its full-year guidance following impressive Q2 performance. The firm reported a 13% year-over-year increase in organic order intake to 4.0 billion Danish crowns, revenue grew 16% to 3.9 billion crowns, and adjusted EBITA climbed 33% to 683 million crowns, exceeding consensus estimates by 22%.

Adjusted EBITA margin hit 17.3%. However, cash flow from operations turned negative at 83 million crowns, lower than the 258 million crowns consensus, due to rising working capital. Flsmidth upgraded its FY2026 guidance, now forecasting organic constant-currency revenue growth of 0% to 4%, up from a prior range of -1% to 4%. The company also raised Service and PC&V growth guidance to 3% to 5% and 5% to 8%, respectively, while keeping Products guidance at -15% to -5%.

Adjusted EBITA margin guidance expanded to 16.0% to 16.5%, from 15.5% to 16.5%. Flsmidth's strong Q2 results, exceeding analyst expectations on all fronts, led to the significant positive update.