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FLSmidth signs agreement to divest its Cement business to become a pure-play supplier of technology and services to the mining industry
COMPANY ANNOUNCEMENT NO. 10-2025
FLSmidth & Co. A/S
20 June 2025
Copenhagen, Denmark
In early 2023, FLSmidth embarked on a strategic journey with the announcement of new pure-play strategies for its Mining and Cement businesses (ref. Company Announcement no. 2-2023). Since then, FLSmidth has simplified and rightsized both businesses to further strengthen their respective market positions, with a strategic focus on the core technologies and services required in the mining and cement industries. This has resulted in a significantly improved and more stable commercial and financial performance for both businesses.
On 29 January 2024 (ref. Company Announcement no. 1-2024), FLSmidth announced its intention to explore the available divestment options for its Cement business, with the objectives of enabling the Cement business to maximise its full potential as well as to further strengthen our Mining business’ market-leading position as a full flowsheet technology and service provider to the global mining industry.
Chair of the Board of Directors of FLSmidth, Mads Nipper, comments: “
CEO of FLSmidth, Mikko Keto, comments: “ ”
Jason Leach, Partner and Investment Committee Member at Pacific Avenue Capital Partners, comments: “
Chris Sznewajs, Founder and Managing Partner, at Pacific Avenue Capital Partners, comments:
The transaction includes all related employees, assets, intellectual property and technology. Certain legacy contracts and the Air Pollution Control (APC) asset will be retained by FLSmidth with immaterial impact on the continuing Mining business.
The transaction is expected to close during the second half 2025, subject to customary closing conditions, including regulatory approval from the relevant authorities.
The net cash proceeds from the divestment are subject to final adjustments, debt-like items and transaction costs. It is expected that after these adjustments the result is a limited net cash gain from the transaction. Further, the transaction includes a deferred cash consideration of up to EUR 75 million, or approximately DKK 550 million, which is conditional upon the achievement of certain undisclosed objectives.
As a consequence of the transaction, FLSmidth Cement will be classified as held-for-sale and discontinued operations in the Q2 2025 Interim Financial Report. As a result of the transaction, a fair value adjustment of asset and liabilities will result in an impairment charge of approximately DKK 700 million with no cash impact, which will be accounted for in the profit/(loss) from discontinued operations in the Q2 2025 Interim Financial Report.
FLSmidth’s financial guidance for the full year 2025 does not include discontinued operations and will thus be adjusted to only reflect the financial outlook for the Mining business. The financial guidance for the full year 2025 for the Mining business is unchanged (ref. Company Announcement no. 8-2025). FLSmidth thus expects revenue for the full year 2025 of DKK ~15.0 billion and an Adjusted EBITA margin in the range of 14.0% to 14.5%. The Adjusted EBITA margin excludes transformation and separation costs of around DKK 200m for the full year 2025.
In addition, and as a consequence of the transaction, the long-term financial target for FLSmidth Cement of an EBITA margin of ~8% for the full year 2026 is withdrawn. The long-term financial target for the Mining business of an EBITA margin of 13-15% for the full year 2026 remains unchanged (ref. Company Announcement no. 2-2023).
Further impact of the transactions will be communicated in connection with the release of FLSmidth’s Q2 2025 Interim Financial Report on 20 August 2025.
Until closing of the transactions, FLSmidth Cement will continue to execute on its GREEN’26 strategy. Further, during the period to closing of the transactions and for a limited time thereafter, FLSmidth will continue to provide support and services to FLSmidth Cement.
On 20 June 2025 at 13.30 CEST, Mr. Mikko Keto (CEO) and Mr. Roland M. Andersen (CFO) will host a conference call to comment on this announcement. The presentation will be followed by a short Q&A session. The presentation will be held in English.
The presentation can be followed live or as a replay here.
If you wish to ask questions or just listen to the presentation via telephone, please register here. After registration, you will receive phone numbers, pin codes and a calendar invite. Please note that you will receive two codes (a pass code and a PIN code), both of which are needed when dialling into the webcast.
The presentation slides will be made available shortly after the conference call has ended at www.fls.com/en/investors/financial-downloads.
Andreas Holkjær, +45 24 85 03 84, andh@flsmidth.com
Jannick Denholt, +45 21 69 66 57, jli@flsmidth.com
Jannick Denholt, +45 21 69 66 57, jli@flsmidth.com
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