Top News > Danfoss – Danfoss H1 2026 results are out

Danfoss – Danfoss H1 2026 results are out

August 20, 2026
Danfoss

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

 

Key highlights: 

  • Organic growth of 15% driven by North America and Asia, particularly in China and India
  • Operational EBITA up 44% with a margin of 15.3%, up 3.5 percentage points
  • Cash flow improved to EUR 164m (H1 2025: -168m) driven by earnings and trade working capital
  • Continued strengthening of our portfolio with the acquisition of the outstanding minority 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%

 

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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.”

 

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 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.

 

Strengthening our portfolio and customer offering

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 drives competitiveness

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. 

 

Outlook for the year upgraded

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.

 

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).

 

Half year report 2026

Delivering strong organic growth and profitability. Explore our results for the first half of 2026.

Download the report

 

 

SourceDanfoss

EMR Analysis

More information on Danfoss: See the full profile on EMR Executive Services

More information on Kim Fausing (President and Chief Executive Officer, Danfoss): See the full profile on EMR Executive Services

More information on Jesper V. Christensen (Executive Vice President & Chief Financial Officer, Danfoss): See the full profile on EMR Executive Services

More information on LEAP 2030 by Danfoss: See the full profile on EMR Executive Services

 

 

More information on Danfoss Power Solutions: See the full profile on EMR Executive Services

More information on Daniel Winter (Member of the Group Executive Team (GET), President, Danfoss Power Solutions, Danfoss): See the full profile on EMR Executive Services

More information on Danfoss Fluid Conveyance Division by Danfoss Power Solutions by Danfoss: See the full profile on EMR Executive Services + Danfoss Power Solutions’ Fluid Conveyance division manufactures hoses and fittings for mobile and industrial equipment, vehicles, aircraft, mining, food and beverage, and other applications. Product ranges include hydraulic, industrial, thermoplastic, engine, and air conditioning hoses and fittings; connectors and quick-disconnect couplings; and hose machines, tools, and accessories. The division’s annual sales reached EUR 1.2 billion in 2024. With the addition of Hydro Holding’s 350 employees, Fluid Conveyance will have approximately 6,500 employees.

More information on Domenico Traverso (President Incubation Division, Danfoss Power Solutions, Danfoss + President, Fluid Conveyance Division, Danfoss Power Solutions, Danfoss): See the full profile on EMR Executive Services

More information on Alfagomma by Danfoss Fluid Conveyance Division by Danfoss Power Solutions by Danfoss: https://www.alfagomma.com/en/ + For over 60 years, Alfagomma has been producing and distributing high quality products all over the world, offering an excellent service and customized solutions for every customer needs.

Alfagomma is a global leader in fluid handling systems, delivering high-performance hydraulic and industrial hose solutions across industries. 

Since 1956, we’ve partnered with customers worldwide to drive innovation, efficiency, and reliability. 

Alfagomma, headquartered in Italy, is a leading global manufacturer of hoses, fittings, couplings, and connectors.

ALFAGOMMA strategy is to be a single source integrated system supplier supporting its partners with:

  • Complete product range
    • Hydraulic Rubber & Thermoplastic Hose
    • Hydraulic Fittings & Adapters
    • Quick Release Couplings and Multi-K
    • Swivel & Plug-in Connectors
    • Hydraulic Hose Assemblies
    • Manipulated Tubes
    • Industrial Rubber, Thermoplastic & Composite Hose
    • Industrial Stainless Steel Corrugated Hose
    • Industrial Fittings
    • Industrial Hose Assemblies
  • Continuous new product research and development
  • Technical innovation and customized solutions
  • Constant high quality exceeding ISO 9001 quality standards
  • Full compliance with ISO 14001 environmental norms
  • Global presence and logistic support
  • Communication, training & advertising program
  • Strong OEM expertise and customized solutions
  • Proven customer satisfaction record and commitment to long term partnership
  • Long term strategic approach to the market

ALFAGOMMA Group Brands:

  • ALFAGOMMA
  • DUNLOP HIFLEX
  • ARGUS
  • HIFLEX

ALFAGOMMA Group Figures:

  • 4500 people worldwide
  • 28 plants
  • 90 sales organizations
  • 600 million € turnover
  • 72 active patents in 2019
  • ISO quality certification 9001 and 14001

More information on Guido Gennasio (Owner and President, Alfagomma, Danfoss Fluid Conveyance Division, Danfoss Power Solutions, Danfoss): See the full profile on EMR Executive Services

More information on Enrico Gennasio (Owner and Chief Executive Officer, Alfagomma, Danfoss Fluid Conveyance Division, Danfoss Power Solutions, Danfoss): See the full profile on EMR Executive Services

 

 

More information on Danfoss Climate Solutions by Danfoss: See the full profile on EMR Executive Services

More information on Kristian Strand (Member of the Group Executive Team (GET), President, Danfoss Climate Solutions, Danfoss): See the full profile on EMR Executive Services

 

 

More information on Danfoss Power Electronics and Drives by Danfoss: See the full profile on EMR Executive Services

More information on Mika Kulju (Member of the Group Executive Team, President Danfoss Power Electronics and Drives, Danfoss + Chairman of the Board, Semikron Danfoss, Danfoss): See the full profile on EMR Executive Services

More information on Semikron Danfoss (Danfoss Power Electronics) by Danfoss Power Electronics and Drives by Danfoss: https://www.semikron-danfoss.com/ + Semikron Danfoss is a global technology leader in power electronics. Our product offerings include semiconductor devices, power modules, stacks and systems. In a world that is going electric, Semikron Danfoss technologies are more relevant than ever.

With our innovative solutions for automotive, industrial and renewable applications we help the world utilize energy more efficiently and sustainable and thus to significantly reduce overall CO2 emissions – one of the biggest challenges the world faces today.

We take care of our employees and create value for our customers by investing significantly in innovation, technology, capacity, and service to deliver best-in-industry performance and for a sustainable future.

Semikron Danfoss is a family-owned business, merged by SEMIKRON and Danfoss Silicon Power in 2022. We employ more than 3,500 people across the world. Our global footprint with production sites in Germany, Slovakia, the United States, Italy, China, India, France, and Brazil ensures an unmatched service for our customers and partners. We offer more than 90 years combined expertise in power module packaging, innovation and customer applications – making us the ultimate partner in power electronics.

On August 1, 2026, Danfoss has renamed the business unit from Semikron Danfoss to Danfoss Power Electronics, reflecting being part of the Danfoss Group’s core electrification business. The established Semikron Danfoss brand will be retained for products and solutions. Within the Danfoss Group, the Power Electronics and Drives segment operates two distinct businesses: Danfoss Drives and Danfoss Power Electronics.

More information on Kern Jain (President & Chief Financial Officer, Danfoss Power Electronics (Semikron Danfoss), Danfoss Power Electronics and Drives, Danfoss): See the full profile on EMR Executive Services 

 

 

More information on the Sustainable Strategy, Goals, ESG Reporting 2024 and Climate Transition Plan 2025 by Danfoss: See the full profile on EMR Executive Services

More information on Thomas M. Auerbach (Chief Sustainability Officer & Head of Danfoss Finance Functions, Danfoss): See the full profile on EMR Executive Services

More information on Kitti Tumbász (Senior Director, Head of Group Sustainability, Danfoss): See the full profile on EMR Executive Services

 

 

 

 

 

 

 

 

 

 

 

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