Danfoss
reported improved financial performance in 2025, citing record-high free operating cash flow after financial items and tax (before M&A) of EUR 734 million, up 57% from 2024. Total sales reached EUR 9.4 billion, up 3% organically, and operational EBITA rose to EUR 1,213 million, lifting the operational EBITA margin by 0.4 percentage points to 12.9%.
The company said sales were down 3% in the first half and grew 9% in the second half, while total sales were negatively impacted by a weakening US dollar rate with an impact of -3%. Asia performance improved through the year, driven by China with 13% sales growth. Europe ended the year with -2% growth. In North America, Danfoss Climate Solutions delivered 26% organic growth driven by strong data center demand, while Danfoss Power Solutions saw strong data center demand offset by a downturn in the agricultural market, resulting in -2% sales growth for the segment.
Danfoss said global data center sales reached approximately 7% of total sales in 2025, almost doubling year-on-year, with growth supported by partnerships with hyperscalers, co-locaters, and chip suppliers. Across segments, Danfoss said Climate Solutions was supported by demand for energy efficiency, electrification, and data center solutions, while Power Electronics and Drives was driven particularly by its Drives business, and Power Solutions returned to growth in the second half.
In line with its LEAP 2030 strategy, Danfoss increased R&D investments to 5.3% of sales (EUR 503 million) and reported CapEx of EUR 342 million to expand its factory footprint across the Americas, Europe, and Asia and to expand Application Development Centers and laboratories. The company said Danfoss Power Solutions acquired hose fittings manufacturer Hydro Holding, and that it has taken steps to find the best future owner of its Automotive Electrification business, which was reclassified as discontinued operations.
Danfoss reported a 33% reduction in scope 1 and 2 carbon emissions in 2025 and said it achieved its former SBTi-validated target to reduce scope 1 and 2 emissions by 46.2% by 2030, five years ahead of plan, and updated its SBTi-validated targets including a net-zero ambition across the value chain by 2050. For 2026, Danfoss expects sales of EUR 9.1–10.6 billion and an operational EBITA margin of 12.8–14.3%.
“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,” said Kim Fausing, President and CEO, Danfoss.
