Danfoss reports robust results despite ‘volatile environment’

The company has also announced its new LEAP 2030 strategy, designed to drive the next era of growth and value creation

Danfoss has posted solid results for the first half of 2025, with strong performances from its Climate Solutions and Drives businesses helping the company navigate a challenging global environment. Sales for the six-month period reportedly reached €4.8 billion, with an operational EBITA margin of 10.6% for H1 and 11.5% in Q2.

President and CEO Kim Fausing praised the company’s global workforce, stating: “As we navigate the current volatile environment, our customers remain our top priority. I am incredibly proud of our global team’s execution in recent months, delivering robust results despite the volatile environment. Their dedication and hard work have been instrumental in ensuring our customers continue to receive the high-quality service and solutions they expect from Danfoss. With our new operating model, we have strengthened end-to-end accountability in our businesses and secured faster decision-making close to our customers

The Climate Solutions segment delivered high single-digit growth in the first half, driven by strong momentum in data centers and the ongoing refrigerant transition across multiple regions. Danfoss highlighted increasing demand for efficient and sustainable cooling technologies, particularly in applications supporting artificial intelligence and hyperscale computing.

The company has also ramped up its research and development investment to 5.6% of sales, expanding its compressor portfolio, including its Turbocor oil-free, scroll, and BOCK semi-hermetic ranges.

China posted high single-digit growth, while North America returned to positive growth in Q2. Europe showed weaker signs of recovery, with tariffs continuing to impact performance despite localized production.

A central theme of the half-year results was the launch of Danfoss’s new LEAP 2030 strategy, designed to drive the next era of growth and value creation. The company is focusing on strategic investments in data centers, India, and regionalised manufacturing. New compressor and sensor facilities in Mexico and an expanded China campus also underline Danfoss’s regional resilience approach.

Danfoss reinforced its sustainability credentials, announcing that all its North American sites are now powered by renewable energy, bringing two-thirds of the company’s global electricity consumption from green sources.

The company confirmed full-year guidance, with sales expected to reach between €9.5bn and €11.0bn and an operational EBITA margin between 10.8% and 12.3%.

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