Chennai, 27.3.2026: “In 2025, we improved our financial performance quarter-by-quarter, delivering record-high cash flow. I’m proud of the disciplined execution demonstrated by our global teams in this volatile environment. I’m also pleased with how our new LEAP 2030 strategy and our decentralized operating model are already showing impact. Our achievements and our resilience in 2025 are the result of the continued dedication of our highly engaged global teams,” says Kim Fausing, President and CEO at Danfoss.
India continues to be a transformational growth market for Danfoss, driven by rapid industrialization, infrastructure development, and increasing focus on energy efficiency and decarbonization. The company is strengthening its local footprint through continued investments in manufacturing, innovation, and application development capabilities, enabling it to serve customers with locally relevant and sustainable solutions. A recent visit by the Danfoss Board of Directors to India further reinforced the strategic importance of the market and provided deeper insights into key growth segments and long-term opportunities.
Mr Ravichandran Purushothaman, President, Danfoss India, said, “India continues to be one of the most strategic growth markets for Danfoss, driven by strong macroeconomic fundamentals and an accelerated push towards sustainability, electrification, and energy efficiency. We are committed to strengthening our local presence through investments in manufacturing, innovation, and talent, enabling us to deliver solutions that are both globally advanced and locally relevant.”
In 2025, growth momentum strengthened significantly, with second‑half growth accelerating to 9%. Total sales reached EUR 9.4 billion, representing 3% organic growth. While a weaker US dollar had a negative impact of 3% on sales, our regionalized manufacturing footprint helped limit the impact on the EBITA margin. Operational EBITA margin improved by 0.4 percentage points to 12.9%, with operational EBITA reaching EUR 1,213 million. Cash flow rose to a record EUR 734 million, and together with a strong balance sheet, positions us well to continue investing in the business and support both organic and inorganic growth.
Our performance in Asia improved throughout the year, driven by China which saw 13% sales growth. The signs of recovery in Europe remained less pronounced, ending the year with -2% growth. In North America, Danfoss Climate Solutions delivered 26% organic growth, driven by strong data center demand. Danfoss Power Solutions also experienced strong demand from data centers in North America, but this was offset by the negative impact from the downturn in the agricultural market, resulting in a negative sales growth of 2% in Danfoss Power Solutions.
The India region saw strong double-digit growth in local currency, driven by strong momentum with OEMs and investments in the marine and infrastructure segments. Data centre cooling was also central to growth in India.
Across our segments, Danfoss Climate Solutions delivered a strong and resilient performance, supported by the demand for energy efficiency, electrification, and data centre solutions. In the Danfoss Power Electronics and Drives segment, a robust performance was delivered, driven particularly by the Drives business.
In 2025, we continued to scale our data centre business, growing and partnering with hyperscalers, co-locaters, and chip suppliers across our regions. Global data centre sales reached approximately 7% of our total sales, almost doubling year-on-year. Our innovative and sustainable technologies for both air and liquid-cooled data centres remain one of our high-growth opportunities across our three business segments.
“With a strong balance sheet and record-high cash flow, we are well positioned to continue investing in our business, driving organic growth and M&A. Global megatrends continue to create significant opportunities for Danfoss, and we have never been more relevant with our broad product offering and global presence. We continue to strengthen our customer partnerships and are well positioned for the future. As we have entered 2026, I feel both confident and energized by the engagement I have seen across Danfoss,” says Kim Fausing.
Leading with the broadest portfolio
We invest to deliver the broadest portfolio of innovative, sustainable, and competitive technologies and solutions in the industries we serve and focus on strengthening our leading positions in our three business segments. In line with our LEAP 2030 strategy, our R&D investments increased to 5.3% of sales.
In 2025, our Danfoss Power Solutions segment acquired hose fittings manufacturer Hydro Holding, strengthening our leading position in fluid conveyance for mobile and industrial hydraulics as well as data centres.
Strengthening our regional footprint
With a CapEx of EUR 342 million, we further expanded our global factory footprint across the Americas, Europe, and Asia to better serve customers locally, increase competitiveness, and strengthen resilience. We also continued to expand capacity in our Application Development Centres (ADCs) and laboratories. This is where customers experience our technologies within their own applications.
Strong digital backbone in place
We continued to realize the benefits of our significant investment in our digital infrastructure, clean data, and automated processes. We can now apply AI seamlessly where it creates real value – enhancing speed and accuracy to improve the customer experience and productivity. Today, 75% of all customer orders are received and handled digitally with significant additional potential by deploying AI.
Sustainability as a driver of competitiveness
Sustainability is embedded in our LEAP 2030 strategy as this is an integrated part of our value proposition. In 2025, five years ahead of plan, we achieved our former SBTi-validated target to reduce our own emissions (scope 1 and 2) by 46.2% by 2030, demonstrating the effectiveness of our decarbonization initiatives. In 2025 alone, we reduced our own emissions by 33%. We reaffirmed our commitment to decarbonization with an updated near-term SBTi-validated target and a new long-term SBTi-validated target, to achieve net-zero across the value chain by 2050. We also improved our ratings scores with EcoVadis and CDP.
In line with its global sustainability ambitions, Danfoss is also advancing its green transition in India through renewable energy adoption and energy-efficient technologies. The company has signed green power agreements for its facilities, contributing to its broader commitment to decarbonize operations while supporting customers in achieving their climate goals. With a strong alignment to national priorities around sustainability, electrification, and digitalization, India remains central to Danfoss’ growth strategy for the years ahead.
Outlook 2026
Danfoss has a continued ambition to expand or maintain our market share. Sales are expected to be in the range of EUR 9.1-10.6b for the full year. The operational EBITA margin is expected to be in the range of 12.8-14.3%, following our continued investments in new products and solutions. We remain committed to our ambitious target to competitively decarbonize our global operations by 2030.
Key figures from 2025:
- Sales reached EUR 9,430m (2024: 9,496m) with an organic growth of 3%.
- Investments in innovation (R&D) increased to EUR 503m (2024: 476m), corresponding to 5.3% of sales (2024: 5.0%).
- Operational EBITA reached EUR 1,213m (2024: 1,185m), leading to an operational EBITA margin of 12.9% (2024: 12.5%), an increase of 0.4% points.
- Net profit reached EUR 446m (2024: 370m), an increase of 21%.
- Investments (CapEx) excluding M&A were EUR 342m (2024: 362m), amounting to 3.6% of sales.
- Free operating cash flow after financial items and tax (before M&A) amounted to EUR 734m (2024: 467m), an increase of 57%.
