Danfoss Due Diligence

Run due diligence on Danfoss: check compliance and get alerts when suppliers or ownership change.

Denmark · owned by BITTEN OG MADS CLAUSENS FOND (Denmark) · www.danfoss.com · 17 vendors

Danfoss is a Danish multinational company that engineers and manufactures energy-efficient solutions. Their products and technologies are used globally in areas such as refrigeration, air conditioning, heating, power conversion, motor control, and mobile machinery to increase productivity, reduce emissions, and lower energy consumption.

Resilience scores

Technology vendors

Services catalogue

8 services in catalogue across 2 categories; runs on 17 sub-vendors.

Insights

Last updated 2026-09-13 · revision 7

17 direct vendors, 226 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

13 in-scope frameworks identified; showing 3.

US Export Administration Regulations — No public evidence

Evidence: https://www.danfoss.com/en/about-danfoss/our-businesses/semikron-danfoss/, https://www.danfoss.com/en/about-danfoss/our-businesses/power-solutions/

GDPR (source) — Evidence found

Evidence: https://www.danfoss.com/en/terms/privacy/, https://datasubjectrequest.danfoss.com, https://danfoss.whistleblowernetwork.net/frontpage, https://www.danfoss.com/en/terms/

EU F-Gas Regulation — No public evidence

Evidence: https://www.danfoss.com/en/about-danfoss/our-businesses/climate-solutions/, https://www.danfoss.com/en/industries/refrigeration-and-air-conditioning/

Financials

Three-year financials

Financial Resilience Score: 7/10

Danfoss demonstrates solid financial resilience underpinned by a strong balance sheet (equity ratio 47.7% at YE2024), manageable leverage (NIBD/EBITDA of 2.0x), and an S&P BBB/stable rating. The company's family-foundation ownership structure enables a long-term investment horizon, consistent with sustained R&D spending at ~5.0-5.3% of sales and continued capex through cyclical downturns. Scale (EUR 9.4-10.7bn sales), diversification across three complementary segments (Power Solutions, Climate Solutions, Power Electronics & Drives), and global manufacturing footprint across 50+ countries provide meaningful buffers against regional shocks. However, 2024 revealed significant cyclicality: sales fell 9.2%, EBIT dropped 39.8%, and net profit collapsed 54.8% amid weakness in agriculture, construction, and EV/auto end markets. Return on equity fell from 15.3% to 6.0%, and the effective tax rate spiked to 37.5% due to write-off of deferred tax assets. Goodwill of EUR 3.24bn (~28% of total assets), largely from the Eaton Hydraulics, Vacon, and Semikron acquisitions, poses impairment risk. The SMA Solar associate stake value declined dramatically from EUR 2,101m to EUR 471m over 2024. Recovery is underway: FY2025 preliminary results show organic growth of +3%, Op. EBITA margin improvement to 12.9%, net profit +21% YoY to EUR 446m, and record free operating cash flow of EUR 734m (+57%). This cash generation strength, combined with the company's decarbonization/electrification/data-center tailwinds (data center sales ~7% of revenue, doubled YoY), supports a resilience score of 7/10.

Key strengths: Strong equity ratio of 47.7% and manageable NIBD/EBITDA of 2.0x, S&P BBB/stable credit rating, Family-foundation ownership enabling long-term investment horizon, Diversified across 3 segments, 50+ countries, 39,360 employees, R&D intensity of ~5.0-5.3% of sales sustained through the cycle, Record FY2025 free operating cash flow of EUR 734m (+57%), Structural tailwinds from energy efficiency, electrification, and data centers, Regionalized manufacturing footprint reduces tariff/FX exposure

Risk factors: Cyclical exposure to agriculture, construction, and EV/auto markets (2024 sales -9%, net profit -55%), EUR 3.24bn goodwill (~28% of total assets) creates impairment risk, Restructuring charges of ~EUR 185m impacted 2024 EBITA, SMA Solar associate stake value dropped from EUR 2,101m to EUR 471m in 2024, USD FX headwind (-3% impact on 2025 sales), Effective tax rate spiked to 37.5% in 2024 due to deferred tax write-offs, Semikron-Danfoss minority losses from EV market weakness, Geopolitical risks including trade wars, tariffs, and supply-chain disruption

Revenue by geography

Revenue by product/service

Workforce by country

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