- India remains the fastest-growing region for the Danfoss Group, with strong double-digit growth in H1 driven by increasing opportunities in energy efficiency and electrification, supporting the Group’s ambitious plans to double sales in India by 2025
- After three years of significant growth, organically and through M&A, the first half of 2024 has proven to be challenging for Danfoss due to lower demand in select key markets.
- Group sales amounted to EUR 5 billion, and a half-year EBITA of EUR 533 million corresponding to an EBITA margin of 10.6% as against 12.4% last year. Staying the course, investments in innovation continue at a high level.
- The lower demand is expected to continue for the rest of the year, and actions to adapt to the current market situation are in progress.
Danfoss continues to see robust performance and resilience, especially in their Climate Solutions, Drives, and most of the Electrification businesses. The most important growth drivers continue to be decarbonization in industrial sectors, digitalization/datacenters, and electrification.
The lower demand is seen in selected end-markets like agriculture and construction/roadbuilding, which are in a downcycle impacting Danfoss Power Solutions segment. The European construction market continues to be soft, particularly in Central Europe, impacting especially the heating business, such as residential heat pumps and the district heating market. Finally, the automotive/EV-market, in both Europe and the US, has seen significant reductions in OEM production schedules for 2024 and 2025.
The activity level in Europe and China continues to be soft and is expected to continue for the rest of the year, while the US show signs of a slowdown. We continue to see good growth momentum in India.
“I would like to thank the Danfoss team for showing resilience and strong engagement, maintaining full focus on serving our customers. It is exciting to see how the entire team is fully engaged to stay the course and does what it takes to manage through this cycle. We have successfully navigated various economic cycles before, and we are doing so again. While the current situation may be challenging, it is important to emphasize that we will continue pursuing our long-term growth strategy,” says Kim Fausing, President & CEO of Danfoss.
Our three segments continued to invest in innovation and developing our global footprint, bringing innovative solutions and technology to the market and our customers. Research and development investments amounted to EUR 247 million (H1 2023: 249 million), on par with last year and corresponding to 4.9% of sales (H1 2023: 4.5%).
