Danish engineering group FLSmidth & Co. on Wednesday raised its full-year profit forecast while lowering its revenue outlook, citing customer-driven project delays and currency headwinds.
The company, which recently completed its transformation into a pure-play mining supplier, now expects an adjusted EBITA margin of 15.0% to 15.5% for 2025, up from a previous range of 14.0% to 14.5%.
The full-year revenue forecast was lowered to between 14.5 billion and 15.0 billion Danish kroner from a prior expectation of around 15.0 billion kroner, according to the company.
FLSmidth attributed the improved profitability outlook to stronger-than-anticipated benefits from business simplification and operational efficiency measures.
The guidance update came as the company reported a second-quarter adjusted EBITA margin of 15.2%, up from 10.3% a year earlier, despite a 12% drop in revenue to 3.4 billion Danish kroner.
"We also achieved three strategic milestones: the DKK 730 million sale of our headquarters, strengthening the balance sheet; the divestment of FLSmidth Cement, advancing our transition to a pure-play mining technology and service provider; and the launch of our first share buy-back programme since 2012, reinforcing our commitment to shareholder returns," Group CEO Mikko Keto said.
The company said it expects market demand for aftermarket services to remain stable, while the market for new equipment is expected to remain soft.
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