FLSmidth & Co. A/S: Strong Earnings Momentum and Conservative 2026 Guidance Support Buy Rating

Analyst David Farrell of Jefferies maintained a Buy rating on FLSmidth & Co. A/S, retaining the price target of DKK540.00.

David Farrell has given his Buy rating due to a combination of factors that point to stronger-than-expected operating performance and resilient outlook. The company’s preliminary fourth-quarter and full-year 2025 figures show adjusted EBITA meaningfully above market expectations, primarily on the back of better margins, while order intake also exceeded consensus, supported by both Service and Product segments and a solid book-to-bill ratio. Management’s new guidance for 2026, framed on an organic constant-currency basis, broadly aligns with current market growth assumptions and suggests that any foreign-exchange drag on revenue should be limited and manageable, even as the Product division is streamlined.
Farrell also highlights that the company’s margin guidance for 2026 appears cautious considering it is entering the year with significantly higher adjusted EBITA margins and still has additional cost-efficiency measures to realise. This conservatism implies potential upside to the official margin targets if execution remains on track. With consensus estimates for 2026 likely to stay broadly stable and operational momentum intact, the shares offer an attractive risk-reward profile. Against this backdrop, Farrell sees scope for continued earnings strength and possible positive surprises under the new CEO, supporting his Buy recommendation on FLSmidth & Co. A/S.

According to TipRanks, Farrell is a 5-star analyst with an average return of 11.8% and a 69.51% success rate. Farrell covers the Industrials sector, focusing on stocks such as Chemring, FLSmidth & Co. A/S, and Babcock International.