Year in review

For more than 90 years, our commitment to strong partnerships with our customers and continued investments in the future has been instrumental in ensuring our resilience and ongoing success. Our continuous focus on engineering solutions that increase machine productivity, reduce emissions, lower energy consumption, and enable electrification delivers long-term economic and sustainable value for all our stakeholders.

In 2024, we delivered a solid operational performance despite challenging market conditions. Most of our core businesses demonstrated resilience throughout the year. However, lower demand was particularly evident in the agriculture and construction markets, as well as in the automotive/electric vehicle market. 

Despite the significant challenges in several of the markets we operate in, we have proactively managed our business performance throughout the cycle. By learning from the past, we have taken decisive actions to evolve our operating model to better serve our customers, improve competitiveness, and enable faster decision-making and a more responsive organization. 

With strong partnerships and bold investments, we continue to expand our offering of competitive, innovative, and best-in-class technology and solutions. We are committed to driving competitive decarbonization together with our customers, creating value with leading positions, sustainable innovation, and leading application know-how. In this 2024 integrated annual report, we are proud to share the financial and sustainability outcomes and to highlight the achievements of our global teams. This report underscores our dedication to creating long-term value for our customers, partners, and other stakeholders — and I am glad to start with a few highlights.

We further solidified our partnerships with OEMs and distribution partners around the world. It was inspiring to see how most of our core divisions demonstrated resilient performance throughout the year, and we successfully completed the full integration of the Eaton Hydraulics acquisition within the Danfoss Power Solutions segment. Furthermore, we reinforced our position in selected high-growth market segments like data centers, commercial heat pumps, and selected electrification and marine applications.

To serve our customers even better and to set Danfoss up for the future, we transformed our operating model in 2024 through further decentralization. This transformation prepares us for the significant growth potential that lies ahead of us. Our goal is to move closer to our customers and become easier to do business with. We aim to strengthen innovation and our entrepreneurial mindset, as well as improve our cost competitiveness and responsiveness by increasing speed in decision-making. Going forward, we will operate Danfoss in three business segments and 16 divisions, supported by a lean corporate center.

In 2024, we continued to make significant investments in innovation and new technology to lead in sustainability, electrification, and digitalization, thereby increasing our customers’ competitiveness. 

Let me share a few examples:

• We continue to make significant investments in our core hydraulics and electrification product portfolio. In Industrial Hydraulics, we launched the next generation PVM Variable Displacement Piston Pump with a variety of control options to optimize efficiency. In electrification, we launched the Editron ED3 onboard charger, delivering the highest AC charging power available on today’s market, which allows heavy-duty electric vehicles to be charged overnight using readily available AC power outlets. We strengthened our offering in autonomous solutions for on- and off-highway applications, which cover autonomous software, hardware, and engineering services for the machines of tomorrow.
• We invested in optimizing solutions for large commercial heat pumps and chillers with a strong portfolio of heat exchangers, controls, compressors, and variable speed drives. Oil-free turbo chillers have been proven to deliver the best efficiencies in demanding applications. After pioneering oil-free technology with our Turbocor® compressor, Danfoss now offers a wide portfolio of components for use in oil-free systems.
• We have continued the conversion to our new iC motor drives platforms. Our new platform of intelligent converters is optimized for cybersecurity, edge computing, and industrial IoT. The platform provides future-proof power conversion and motor control.

Today, Danfoss is a global company with balanced sales and a strong local presence across the Americas, Europe, and Asia, serving customers worldwide. This is why we have continued to invest in regionalizing our factory footprint, increase capacity, and implementing factory automation to better serve our customers, improve resilience, and reduce emissions.

We continue to make significant progress in sustainability. We are ahead of our plans to decarbonize our own operations, which includes significant achievements in China.

Results are created by people and our high-performing, diverse teams. As I reflect on our achievements in 2024, many of which are highlighted in this report, I am proud of what we have accomplished together.

The engagement, resilience, and determination in overcoming challenges and driving impact exemplify the exceptional talent that is fueling our success.

The diverse backgrounds of our global teams, their experiences, and perspectives are a source of innovation and competitive advantage, while our Behaviors are fostering the entrepreneurial spirit and growth mindset, in a highly inclusive working culture.

I sincerely thank our customers and partners for their support and collaboration throughout the year. I am excited to see how we continue to deepen our relationships with all of you.

While global economic uncertainties and geopolitical instability may cause market fluctuations, I am convinced that our business is well-positioned to support our customers in building a better and more sustainable future.

I am confident that Danfoss’ best days lie ahead.

Kim Fausing
President & CEO