FLSmidth & Co. A/S: Strong Q1 2025 Performance and Strategic Moves Justify Buy Rating

In a report released today, David Farrell from Jefferies maintained a Buy rating on FLSmidth & Co. A/S (0OJA – Research Report), with a price target of DKK380.00.

David Farrell has given his Buy rating due to a combination of factors that highlight FLSmidth & Co. A/S’s strong performance and promising outlook. The company reported a significant 24% beat in adjusted EBITA for the first quarter of 2025, primarily driven by a robust 15.1% EBITA margin in its core Mining division, which surpassed market expectations. This impressive performance has led to an upward revision of the full-year 2025 adjusted EBITA expectations, with margins now anticipated to be higher than previously forecasted.
Additionally, the company’s order intake in the Mining division exceeded expectations by 5%, and FLSmidth has entered exclusive negotiations to sell its Cement business, a move seen as positive amid recent macroeconomic uncertainties. These developments, along with consistent cash flow from operations, suggest a strong financial position and strategic focus, justifying the Buy rating.