Will the improved adjusted EBITA margin lead to a revision of earnings forecasts for FY2025?

Fundamental outlook – The jump in adjusted EBITA margin to 15.2 % in Q2 2025 signals that FLSmidth is successfully extracting more profit from its revenue base, a key driver for earnings. The margin improvement is well‑above the prior‐year level and exceeds the consensus range for the sector. Given that the company has already highlighted “continued execution of strategic priorities” and the margin lift is tied to higher‑margin projects and cost‑discipline, analysts are likely to up‑rate FY 2025 EPS forecasts. The upside to earnings will be further reinforced if the trend persists into H2, because the margin uplift already covers roughly half of the FY estimate and leaves headroom for a 5‑10 % earnings boost overall.

Market & technical dynamics – The stock is currently trading near its 50‑day EMA and just below a key resistance at 1,350 DKK, with volume modestly above average on the recent earnings release. The upbeat margin news has already lifted sentiment (70 % positive) and pushed the price about 3 % higher on the day. A forward‑looking earnings revision would likely trigger a break above the resistance, opening the path to the next psychological level around 1,425 DKK, while a failed hold could see the price retest the 1,300 DKK support.

Actionable take‑away – For momentum‑oriented traders, a long position with a stop just below the 1,300 DKK support is justified, targeting the 1,425 DKK zone if the earnings outlook is officially upgraded in the upcoming FY 2025 guidance. Value‑focused investors may consider adding to positions now, anticipating an analyst consensus lift that could push the target price higher and create a valuation edge. Monitoring the company’s FY 2025 earnings guidance release (expected Q4 2025) will be critical for confirming the forecast revision.