Danfoss Reports Strong 2024 Performance; India Emerges as Top Growth Market

Danfoss reported a robust performance for 2024, with sales of EUR 9.7 billion and an operational EBITA margin of 11.3%. It recoerded an operational EBITA of EUR 1,097. Capital expenditures worth EUR 434 million were incurred, net profit worth EUR 370 million, and it recorded a free operating cash flow of EUR 467 million.

The company said it continues to invest approximately 5% of its annual sales in developing innovative solutions that provide sustainability advantages to customers, while also expanding its regional manufacturing presence as part of its growth strategy.

Danfoss India achieved strong double-digit growth in 2024, becoming the company's fastest-growing region globally and contributing to India's sustainability goals through energy-efficient solutions. "Danfoss India has moved up to the Top 6 in Danfoss global ranking this year with its strong double-digit growth in 2024. With additional investments in capacity expansion, localization, expanding our sourcing footprint, and enhancing our local supplier ecosystem, India is on track to reach the Top 3 growth regions for Danfoss by 2028," said Mr. Ravichandran Purushothaman, President, Danfoss India.

The company is expanding its channel business to 80 cities and investing with partners in building a Circularity business. Danfoss has implemented a new operating model that decentralizes operations to improve customer proximity and streamline business processes, now operating through three segments and 16 divisions with a simplified structure.

"We're pleased with our strong performance in Climate Solutions and Drives, with growth in emerging markets like data centers and marine electrification. We've maintained significant investment in innovation to drive competitive solutions," said Kim Fausing, President & CEO of Danfoss.

The company said it reduced scope 1 and 2 emissions by 19% as it works toward a 90% reduction target by 2030. The Danfoss Chennai campus now operates entirely on renewable energy and is over 90% carbon neutral in scope 1 and 2 emissions. In 2024, Danfoss launched a 'Green Ask' initiative with strategic suppliers, covering 40% of their Rs 31,500 crore (EUR 3.5 billion) spend to enhance data on sourced products and identify decarbonization opportunities.

Over the past five years, Danfoss has doubled in size, achieving balanced sales across the Americas, Europe, and Asia. The company continues to invest in factory automation and regional supply chains to increase resilience. Danfoss also successfully completed the integration of the Eaton Hydraulics acquisition into its Power Solutions segment. While most core businesses remained resilient, higher interest rates and lower farm income impacted off-highway machine sales, and reduced government incentives slowed electric vehicle sales. The company proactively managed these challenges while maintaining its long-term focus.

Danfoss engineers solutions for refrigeration, air conditioning, heating, power conversion, motor control, industrial machinery, automotive, marine, and off- and on-highway equipment. The company also provides solutions for renewable energy and district-energy infrastructure. Founded in 1933, Danfoss is family and foundation-owned, employing more than 42,000 people globally with 95 factories serving customers in over 100 countries.

Danfoss India is a wholly-owned subsidiary focused on energy-efficient solutions across various industries. Headquartered in Oragadam, Chennai, the company has a nationwide sales and support network, a strong channel partner ecosystem, and over 3,500 employees in India.