Flowserve(US:FLS) Globenewswire·2025-11-12 06:33Core Insights - FLSmidth reported a solid strategic and operational momentum in Q3 2025 despite a challenging equipment market, with a focus on profitable growth and business simplification [2][6][22] - The company experienced a significant decline in Products order intake, down 38% organically, while Service order intake grew by 10%, indicating a shift in demand towards productivity-enhancing solutions [2][4][6] - The divestment of the Cement business has positioned FLSmidth as a pure-play supplier of technologies and services to the global mining industry, impacting financial guidance for the year [2][20][22] Commercial Performance - Service order intake increased by 10% organically in Q3 2025, driven by higher orders in upgrades and professional services, while the order backlog decreased to DKK 4,919 million [3][6] - Products order intake decreased by 43% compared to Q3 2024, with no large orders announced in Q3 2025, leading to a book-to-bill ratio of 61.4% [4][6] - PC&V order intake decreased by 9% year-on-year, primarily due to a tough comparison with a larger project-related order in Q3 2024, but year-to-date organic order growth remains at 9% [5][6] Financial Performance - Consolidated revenue decreased by 15% in Q3 2025 compared to Q3 2024, with a gross profit of DKK 1,198 million and a gross margin of 34.7% [11][28] - Adjusted EBITA margin improved to 15.3% in Q3 2025, reflecting a year-on-year increase, while EBITA increased to DKK 500 million [8][28] - Profit for the period from continuing activities rose to DKK 298 million, a 24% increase compared to Q3 2024 [11][28] Financial Guidance - FLSmidth adjusted its full-year revenue guidance to around DKK 14.5 billion, reflecting expectations of delayed project execution and adverse foreign exchange movements, while maintaining an Adjusted EBITA margin outlook of 15.0-15.5% [22][24] - The ongoing transformation activities and separation costs are expected to amount to approximately DKK 200 million for the full year 2025 [24] Other Business Developments - The company successfully closed the divestment of its Cement business on October 31, 2025, marking a strategic shift in its operational focus [20][22] - Changes in the board included the replacement of employee-elected members, effective October 31, 2025 [21]