Danfoss also continues to make significant investments, amounting to 5% of their annual sales towards developing innovative solutions that deliver competitive sustainability edge to their customers, as well as regionalizes their factory footprint, thereby continuing to execute on their green growth strategy.
Mr Kim Fausing, President & CEO of Danfoss, said, “I’m excited about our strong performance in Climate Solutions and Drives, with growth in high-growth markets like data centers and marine electrification. We’ve maintained high investment in innovation, driving competitive solutions. I’m proud of our team’s resilience, determination, and exceptional talent. I thank our customers and partners for their trust and collaboration. Despite global uncertainties, we’re committed to our long-term growth strategy, believing in Danfoss’ future prospects.”
As a testament to Danfoss commitment to innovation and sustainability, Danfoss India continued to achieve a strong double-digit growth, as the biggest growth region for Danfoss in 2024, thereby driving energy-efficiency in the region and contributing to the country’s ambitious sustainability goals.
Commenting on the company’s success, Mr. Ravichandran Purushothaman, President, Danfoss India, said, “Danfoss India with its strong double-digit growth in 2024 has moved up to Top 6 in Danfoss global ranking this year. With additional investments in capacity expansion, deep localization, expansion of our sourcing footprint & enhancement of our local supplier ecosystem, India is poised to reach amongst the Top 3 growth regions for Danfoss by 2028. We are also expanding our channel business to 80 cities and investing with our partners in building Circularity business. I am proud of what our team has accomplished this year. Their resilience, determination, and expertise in sustainable solutions have been instrumental in driving growth. As we navigate India’s dynamic market, we remain committed to innovation and sustainability, ensuring long-term value for our customers and stakeholders.”
With their new operating model, Danfoss has decentralized further to move closer to their customers and become easier to do business with. Their focus on strengthening innovation and entrepreneurial mindset as well as improving cost competitiveness and responsiveness through increasing speed in decision-making. Today, Danfoss operates through three segments and 16 divisions. Their businesses now operate within a significantly simplified structure, supported by leaner Shared and Corporate functions.
Key Figures for 2024
- Sales for 2024 were EUR 9,674 million.
- Operational EBITA was EUR 1,097 million, representing an 11.3% margin.
- Capital expenditures totaled EUR 434 million.
- Net profit for the year was EUR 370 million.
- Free operating cash flow was EUR 467 million.
For Danfoss, sustainability is a key driver of competitiveness and an integrated part of their strategy. They continued to decouple organic growth from emissions, reducing scope 1 and 2 emissions by 19% as they work toward their ambitious 90% reduction target by 2030. Danfoss Chennai campus is now operating 100% on renewable energy and above 90% carbon neutral in our scope 1 and 2 emissions. We are also working with our suppliers to reduce our scope 3 emissions.
Echoing this sentiment, Ravichandran Purushothaman said, “As we look ahead, we are excited about the potential for sustainable growth in India. Our commitment to reducing carbon emissions and promoting energy efficiency aligns with the country’s ambitious sustainability goals. We look forward to collaborating with stakeholders to create a more prosperous and environmentally responsible future.”
In 2024, Danfoss also launched an unique ‘Green Ask’ initiative with strategic suppliers, which covers 40% of their EUR 3.5 billion spend to enhance data on sourced products and identify decarbonization opportunities.
Over the past five years, Danfoss doubled their size, achieving balanced sales and a strong local presence across the Americas, Europe, and Asia. Danfoss firmly believes in the long-term growth opportunities and in offering great service to their customers all over the world. This is why they continue to invest in factory automation and in regionalizing the supply chain to become more resilient. Additionally, Danfoss successfully completed the integration of the Eaton Hydraulics acquisition into the Danfoss Power Solutions segment.
Danfoss also delivered solid operational results, with most core businesses remaining resilient. However, higher interest rates and lower farm income impacted off-highway machine sales, and reduced government incentives slowed electric vehicle sales. Danfoss proactively managed the cycle, maintaining its long-term focus and taking decisive actions to evolve its operating model, enhancing customer service, competitiveness, and responsiveness to set the company up for future success.