During Capital Markets Day, FLSmidth introduced its new pure play strategy for cement as well as long-term financial targets for the FY2026.
“We must prioritize our efforts on our core business, reduce risk and execute with excellence. We have already started to fundamentally transform our business to ensure stronger strategy execution and to achieve our long-term ambitions to the benefit of our stakeholders,” said FLSmidth CEO Mikko Keto.
FLSmidth said it is on a journey to become the preferred service provider and have a clear commitment to drive the green transition in the cement industry. Toward 2026, its new cement strategy focuses on three key areas:
- Operating model transition: Improve profitability and ensure we are fit-for-purpose.
- Service business model transition: Accelerate service growth and advance green offerings.
- Green transition: Fulfil commitment to drive the green transition in the cement industry and leverage the potential from this.
Separately, the company’s new long-term financial targets for the FY2026 have a core focus on quality of earnings and reduced earnings volatility. FLSmidth expects to deliver 13% to 15% EBITA margin in its Mining segment and 8% EBITA margin in Cement. Further, its capital allocation is focused on having a strong balance sheet while allowing for growth investments and value-adding M&A.
