dormakaba reported a 20% decline in first-half net profit but expanded margins and exceeded transformation savings targets, as pricing discipline and vertical market wins supported organic growth in its Access Solutions business.
Swiss access solutions provider dormakaba (DOKA.SW) reported a 20% decline in half-year net profit for the period ended Dec. 31, 2025, as softer demand in parts of North America and unfavorable currency translation weighed on results. Net profit totaled approximately $99.8 million (CHF 77.4 million), compared with CHF 96.7 million in the prior-year period.
Despite the decline, the company reiterated its full-year outlook and pointed to continued progress on its strategic transformation initiatives.
CEO Till Reuter emphasized that operational discipline and strategy execution remain central to the company’s performance trajectory.
“We continued to deliver on our transformation in the first half of 2025/26 and expanded our adjusted EBITDA margin. We are on track with our strategy execution, achieved the cost savings from our transformation program and delivered them ahead of plan,” Reuter said.
Adjusted EBITDA reached approximately $273.4 million (CHF 211.9 million), with margin expanding 40 basis points to 15.6%. Cost savings from the transformation program totaled approximately $238.7 million (CHF 185 million), exceeding the original CHF 170 million target. In addition, net working capital optimization and rigorous cost management helped reduce inventory seasonality across the Group.
Access solutions drives core performance
The Access Solutions segment — central to dormakaba’s access control, entrance systems and hardware portfolio — generated approximately $1.50 billion (CHF 1,161.1 million) in net sales and organic growth of 2.6%.
Europe was a primary growth engine. Germany delivered organic growth of 4.0%, Switzerland 5.3%, and the U.K./Ireland 4.3%. Management noted good volume growth across all European geographies, helping offset softer demand in North American hospitality, which posted organic growth of 1.0%, and a weaker residential market in Australia, which declined 0.4%.
Reuter attributed performance in part to the company’s vertical market strategy.
“Our focused vertical market strategy is delivering results. We secured major project wins in key verticals, underscoring the strength of our approach,” he said.
Airports, healthcare and marine were cited as areas of strong business development, while the data center vertical is gaining traction. Strengthened by the TANlock acquisition in July 2025, dormakaba secured multiple project wins globally across both data center refurbishments and new construction projects.
Profitability within the segment improved meaningfully. Adjusted EBITDA in Access Solutions rose to approximately $239.0 million (CHF 185.3 million), with margin expanding 70 basis points to 16.0%. Management credited the ongoing transformation program for delivering tangible and sustainable improvements to segment profitability.
Portfolio expansion and North American momentum
Beyond operational improvements, dormakaba continued reshaping its portfolio to support long-term growth, particularly in North America.
“Bolt on acquisitions are gathering pace, expanding market reach and service delivery and supporting execution of our North American growth plan. Key product gaps across the Access Hardware Solutions and Access Automation Solutions portfolios are now closed, marking further progress in the plan,” Reuter said.
The January 2026 acquisition of Avant-Garde strengthened entrance systems control capabilities within the automatics business. In total, dormakaba completed five transactions aligned with its strategy, investing in technology and service delivery capabilities to drive growth across key markets and verticals.
Key & Wall Solutions navigates challenging conditions
The Key & Wall Solutions and OEM segment reported approximately $294.9 million (CHF 228.6 million) in net sales, with organic net sales declining 1.4%. Pricing improved 2.2%, but volumes fell 3.6% amid ongoing OEM market challenges and delayed construction projects for movable walls in North America.
Adjusted EBITDA declined to approximately $59.9 million (CHF 46.4 million), with margin decreasing 80 basis points to 20.3%. Despite the decline, management described overall profitability levels as strong in the context of market conditions.
Financial profile and outlook
dormakaba’s balance sheet remains solid. Net debt declined to approximately $590.9 million (CHF 458.1 million), with leverage improving to 1.0x net debt to adjusted EBITDA. Return on capital employed increased 40 basis points to 30.3%.
Adjusted operating cash flow margin was 4.5%, down year-over-year due to changes in other assets and liabilities that management expects to reverse in the second half. The company reiterated its full-year 2025/26 guidance, calling for organic net sales growth of 3–5%, adjusted EBITDA margin above 16%, and adjusted operating cash flow margin of 11.5–12.5%.
While acknowledging a more challenging economic environment and persistent geopolitical tensions, management expects stronger volume growth in the second half supported by project wins in key verticals.
*This article was created with the help of generative AI tools and edited by our content team for clarity and accuracy.