Danfoss Reports EUR 9.7 Billion in Sales for 2024 Amid Market Challenges

Date: 28 February 2025

Danfoss recorded sales of EUR 9,674 million in 2024, a 9% decline compared to the previous year. The company achieved an operational EBITA of EUR 1,097 million, corresponding to a margin of 11.3%, despite facing challenging market conditions.

“We delivered solid operational results in 2024, and most of our core businesses remained resilient. However, factors such as higher interest rates and lower farm income led to a downturn in the construction and agricultural machinery markets. Additionally, the electric vehicle sector was impacted by reduced government incentives,” said Kim Fausing, President & CEO of Danfoss.

Investments and Sustainability Efforts

Danfoss maintained high investments in innovation, allocating EUR 488 million to research and development, equating to 5.0% of sales. The company continued to regionalize its factory footprint and strengthen its supply chain resilience.

Sustainability remained a priority, with Danfoss achieving a 19% reduction in scope 1 and 2 carbon emissions as part of its long-term goal of a 90% reduction by 2030. A power purchase agreement was signed to cover 100% green electricity for two campuses in Haiyan, China, reducing carbon emissions by 40,000 tons annually from 2025. The company also introduced the ‘Green Ask’ initiative with strategic suppliers to enhance decarbonization efforts.

Organizational Changes and Market Position

Danfoss implemented a new operating model aimed at improving customer responsiveness and decision-making speed. The company now operates through three segments and 16 divisions with a streamlined corporate structure.

“Our new model decentralizes decision-making, strengthens our focus on innovation, and enhances cost competitiveness. We are committed to supporting our customers through a simplified structure,” Fausing added.

Despite market challenges, Danfoss expanded its presence in high-growth sectors, including data centers, commercial heat pumps, and marine electrification. The company also completed the integration of Eaton Hydraulics into its Power Solutions segment.

Financial Outlook for 2025

Danfoss anticipates sales between EUR 9.5 billion and EUR 11.0 billion for 2025, with an operational EBITA margin forecasted in the range of 10.8% to 12.3%.

“While global economic uncertainties may cause market fluctuations, we remain confident in Danfoss’ long-term growth potential,” Fausing stated.