H1 2026: Strong organic growth and profitability; strategic M&A; full-year outlook upgraded

President and CEO Kim Fausing comments: 

“Driven by our commitment to putting customers first, we delivered an excellent first half through the strong execution of our LEAP 2030 strategy and the dedication and determination of our global team.

“We continue to see heightened demand in the market for our innovative, competitive, and sustainable solutions, with solid growth momentum across our businesses, including data centers. This is driving significant organic growth and profitability, with strong contributions from North America and Asia, particularly in China and India.

“Two strategic acquisitions will further strengthen our offering, accelerate growth, and enhance our resilience and competitiveness. First, we completed the acquisition of the outstanding  minority shares of Semikron Danfoss. We are now positioned to accelerate investments and build a leading position in advanced power electronics. Second, we look forward to completing  the acquisition of Alfagomma, a company we have long admired for its 4,500 dedicated and  highly capable people, close customer partnerships, and industry-leading expertise and service. With this acquisition, we are creating a leading global player in fluid conveyance.”

Danfoss grew 15% organically in the first half of the year with sales of EUR 5.3 billion, with growth and strong order intake in all three business segments. Disciplined operational execution led to an operational EBITA increase of 44%, reaching a 15.3% margin, an improvement of 3.5 percentage points over the same period last year. Cash flow improved to EUR 164 million, up from EUR -168 million in H1 2025, driven by earnings and trade working capital.

In addition to robust growth across our markets, all three business segments delivered significant growth from the rapid build-out of data centers. We work closely with our customers, including the world’s leading hyperscalers, co-locaters, and chip manufacturers, to meet the increasing demand. We provide and continue to develop our broad portfolio of energy-efficient solutions for both air- and liquid-cooled data centers, including power conversion, energy storage, and heat recovery. 

Danfoss Power Solutions significantly improved financial performance in the first half led by growth in data centers as well as the construction and mining markets across regions. The agriculture market remains soft with low demand for large equipment. Danfoss Climate Solutions continued to deliver excellent performance, driven by data centers and an uptake in heat pumps in buildings and industrial applications. Our Power Electronics and Drives segment delivered growth in data centers, electrification, and in its core industrial business.

In line with LEAP 2030 and our focus on putting customers first, we continue to strengthen our portfolio and Danfoss’ global leading positions.

In the first quarter of the year, we acquired the outstanding minority shares of Semikron Danfoss, a global technology leader in power semiconductor modules and solutions. This acquisition strengthens Danfoss’ electrification portfolio and ability to serve customers with industrial-scale power electronics solutions. The acquisition reflects our focus on electrification as a high-value growth opportunity.

The recent signing of a definitive agreement to acquire Italian fluid conveyance manufacturer Alfagomma was another significant strategic milestone. Together we will create a leading global player in fluid conveyance. The acquisition is subject to necessary approvals and is expected to close during Q4 2026.

Our commitment to delivering value to our customers through innovation and technology leadership is a strategic priority that drives our continued high level of investment in innovation and R&D across our three segments. We also continued to regionalize our footprint and increase capacity across our more than 100 factories globally to strengthen our local-for-local supply chains, improve customer service levels, and enhance our resilience.

Sustainability remains at the core of our business and our LEAP 2030 strategy, driving value and competitiveness. Danfoss technologies and solutions are engineered to do more with less, aiming to accelerate competitive decarbonization across industries, thereby saving energy and costs, and reducing emissions. 

We continue to see progress within sustainability. In the first half, we reduced our own emissions (scope 1 and 2), mainly driven by the increase in the share of renewable electricity
from 67% in 2025 to 75%. We continue to focus on safety and are pleased to see the number of incidents per million hours worked reduced to 0.8, an all-time low. 

We now expect sales to end in the upper half of the EUR 9.1-10.6 billion range. The expectation for our full-year operational EBITA margin range has increased to 14.6-15.6% (previously 12.8-14.3%) on the back of our strong operational performance in the first half.

• Sales reached EUR 5,254 million, an organic growth of 15% (H1 2025: 4,703m).
• Investments in innovation (R&D) continued on a high level at EUR 257 million (H1 2025: 259m), corresponding to 4.9% of sales (H1 2025: 5.5%).
• Operational EBITA up 44% reaching EUR 802 million (H1 2025: 556m), leading to an operational EBITA margin of 15.3%, up 3.5 percentage points (H1 2025: 11.8%).
• Net profit reached EUR 436 million, an increase of 62% (H1 2025: 269m).
• Investments (CapEx) excluding M&A were EUR 108 million (H1 2025: 151m).
• Free operating cash flow after financial items and tax (before M&A) amounted to EUR 164 million (H1 2025: -168m).