Flsmidth & Co A/S B Shs (FLIDF) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning from Copenhagen and welcome to the FLS Q3 earnings call. I'm extremely upbeat about the FLS result and where we are at the moment. And if we reflect where we are coming from, we are fairly close to completing the major transformation of the company. And I'm especially happy about service and PCV performance, which are now at a good level, 80% of the business. 80% of the business is high margin, low risk, recurring with a fantastic growth potential. Also another major milestone has been closing of the cement cell. So that is a major milestone for the FLS. For the quarter, We are extremely proud about the service development. Service orders increased organically 10% and the positive market momentum will continue. We are also looking that this positive development would continue in Q4 and then also that we will highlight our growth ambitions in service in our capital market day in Q1. When we look at the product business, we've done lots of portfolio pruning over the last 2-3 years. We stopped taking material handling orders, we closed down the business, we don't do any conveyors. So we focus only on high technology products with a big aftermarket potential. It has been quiet on that side in terms of orders, but we are extremely busy with the engineering orders and engineering work that we do for the future orders. PCV, fantastic performance year to date, nine months. Not so high on the quarter because of a lack of the project orders. But one of the best developments in PCV has been that we are converting a lot. We continue to be successful converting Brownfield third-party install base out and replacing third-party pumps for the F.L. Smith Krebs pumps. So that is a big success in that part of the business. We are in the low end of the guidance in terms of ...