Danfoss underscores growth in first half of 2026
Danfoss Power Solutions reported it significantly improved its financial performance in the first half of 2026, led by growth in data centers as well as the construction and mining markets across regions.
In a press statement, the company highlighted:
• Organic growth of 15% driven by North America and Asia, including both China and India
• Operational EBITA up 44% with a margin of 15.3%, up 3.5 percentage points
• Cash flow reached EUR 164m (H1 2025: -168m) driven by earnings and trade working capital
• Continued strengthening of their portfolio with the acquisition of remaining shares of Semikron Danfoss and entering into an agreement to acquire Alfagomma
• Full-year guidance upgraded: sales expected at upper half of range (EUR 9.1-10.6b) and outlook for operational EBITA margin raised to 14.6-15.6% (previously 12.8-14.3%)
The company said Danfoss Climate Solutions continued to deliver excellent performance, driven by data centers and an uptake in heat pumps in buildings and industrial applications. Its Power Electronics and Drives segment delivered growth in data centers, electrification, and in its core industrial business.
“With our commitment to putting customers first, we delivered an excellent first half, driven by the strong execution of our LEAP 2030 strategy and the dedication and determination of our global team," said President and CEO Kim Fausing. “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, including both China and India.
“Two strategic acquisitions will further strengthen our offering, accelerate growth, and enhance our resilience and competitiveness," Fausing continued. "First, we completed the acquisition of the remaining 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.”
Delivering Strong Organic Growth and Profitability
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 amounted 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 its markets, all three business segments delivered significant growth from the rapid build-out of data centers. They are working closely with their customers, including the world’s leading hyperscalers, co-locaters, and chip manufacturers, to meet the increasing demand. We provide and continue to develop their broad portfolio of energy-efficient solutions for both air- and liquid-cooled data centers, including power conversion, energy storage, and heat recovery.
Strengthening Portfolio and Customer Offering
In line with LEAP 2030 and its focus on putting customers first, Danfoss said it continues to strengthen its portfolio and the company's global leading positions.
In the first quarter of the year, they acquired the remaining 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 the companies intend to create a leading global player in fluid conveyance. The acquisition is subject to necessary approvals and is expected to close during Q4 2026.
The company states its commitment to delivering value to customers through innovation and technology leadership is a strategic priority that drives their 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," Danfoss stated.
Outlook for the Year Upgraded
Danfoss said it now expects sales to end in the upper half of the EUR 9.1-10.6 billion range. The expectation for its full-year operational EBITA margin range has increased to 14.6-15.6% (previously 12.8-14.3%) on the back of their strong operational performance in the first half.
Key figures for the first six months of 2026:
- 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).
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