FLSmidth & Co. lowered its full-year revenue forecast on Wednesday, as a weak market for new equipment weighed on its first quarterly report since becoming a pure-play mining supplier.
The Danish engineering group now expects 2025 revenue of around 14.5 billion Danish kroner, down from a previous range of 14.5 billion to 15.0 billion kroner, but maintained its adjusted profit margin guidance of 15.0% to 15.5%.
The mixed outlook reflects third-quarter results where a 10% organic increase in service orders was offset by a 38% organic drop in product orders, which the company attributed to uncertain timing for large project approvals.
“Engineering and planning activity remained high, yet the uncertain timing of project sanctioning weighed on Products order intake, which declined organically by 38%,” CEO Mikko Keto said in a statement.
“In contrast, Service order intake grew organically by 10%, underscoring continued demand for productivity-enhancing solutions.”
The report comes after FLSmidth finalized the divestment of its historic cement business on Oct. 31 to focus exclusively on the global mining industry.
Consolidated revenue for the third quarter fell 15% year-over-year to 3.45 billion Danish kroner.
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