FLSmidth rallies on 'whooping 'Q1 profit beat, exclusive cement negotiations

FLSmidth & Co. A/S

14/05/2025 08:30

** Shares in FLSmidth FLS.CO are up 7.8% after it posted Q1 adjusted EBITA of DKK 656 million ($98.3 million), a 24% beat to company-compiled consensus

** A "whopping" adj. EBITA beat Jefferies says, and adds it expects a very healthy share price reaction to 1Q25results

** The broker says 1Q adj. EBITA has blown-away consensus with a massive beat, driven primarily by a 15.1% EBITA margin in the core Mining division

     ** The Danish mining and cement technology supplier also raised its full year adjusted EBITA margin guidance, citing strong financial performance in the Mining business in Q1

** FLSmidth also said that it has entered into exclusive negotiations with Pacific Avenue Capital Partners to divest its Cement business

** Jefferies says the divestment talks should be taken as a positive factor as macroeconomic uncertainty had lowered market expectations that this deal would progress on the prior timeline

** Shares on track for a best day since May 2023

($1 = 6.6706 Danish crowns)

 (Reporting by Anna Chaberska)

 ((Anna.chaberska@thomsonreuters.com;))