Q2 preview: Product business weighs on profits, but improvement ahead

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Q2 preview: Product business weighs on profits, but improvement ahead

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Q2 preview: Product business weighs on

profits, but improvement ahead

Reiterate Rating: BUY | PO: 600.00 DKK | Price: 458.00 DKK

Q2 profitability likely impacted by volume and service mix 21 July 2026

We expect FLS to deliver a solid Q2 order intake, supported by c.DKK300m of announced Equity

large orders, leaving us c.4% above consensus at the group level. However, we believe

consensus is overestimating revenue and operating leverage in the Products segment. Tore Fangmann >> Research Analyst

We estimate break-even requires a quarterly revenue run-rate above DKK800m, versus Merrill Lynch (DIFC)

our Q2 forecast of DKK620m and cons at DKK645m. We therefore forecast a Products +971tore.fangmann@bofa.com4 425 8210

margin of -8.5%, versus consensus at -4.0%. As a result, we are c.8% below consensus Alexander Jones, CFA >>

on group adj. EBITA, although excluding Products we are only c.1% lower. Still, we Research Analyst

MLI (UK)

remain constructive given the expected H2 revenue & margin acceleration and a 2027 +44 20 7995 5828

pick-up in large project awards also supported by copper FIDs (read: copper deep-dive). alexander.jones2@bofa.com

We are 6-8% above consensus on FY27-28 orders. Benjamin Heelan >>

Research Analyst

Merrill Lynch (DIFC)

+44 20 7996 5723Services: Modernisations set to drive H2 acceleration benjamin.heelan@bofa.com

Modernisation orders have grown strongly since 3Q25 and should begin converting into

Uma Samlin >>

revenue from Q2 onwards. However, we expect consumables to remain the fastest Research Analyst

growing service category, creating a less favourable Q2 mix. We forecast a Q2 Services MLI (UK) +44 20 7995 1964

EBITA margin of 18.4%, -30bps vs cons.