dormakaba's first-half sales were weak, maintaining the full-year performance guidance

Investing.com – dormakaba Holding AG (SIX:DOKA) announced its first-half results on Tuesday, which fell short of expectations. According to analyst data, revenue and adjusted EBITDA were both 2% below forecasts.

Despite weak performance, the company maintained its full-year guidance.

For the first half of fiscal years 2025/26, net sales reached CHF 1.363 billion, below the market consensus of CHF 1.384 billion. Organic growth was 2.0%, in line with analyst expectations, mainly driven by a 2.6% price increase.

Sales volume growth declined by 0.6%, reversing the 1.5% growth recorded in the second half of 2024 and the 3.3% increase in the first half of 2024/25. Currency fluctuations negatively impacted sales by 5.0%, while net contributions from acquisitions were negative 1%.

The Access Solutions division achieved sales of CHF 1.161 billion, with organic growth of 2.6%, supported by a 2.6% price increase. Europe performed strongly, winning multiple projects across several key verticals.

North America saw organic growth of 1%, affected by a sluggish hotel market, while the Australian residential market also pressured sales.

The Keys and Wall Solutions division reported sales of CHF 228.6 million, with organic decline of 1.4%. Key systems provided the main growth contribution, while organic sales of activity walls and OEM businesses declined.

The group’s adjusted EBITDA for the first half totaled CHF 212 million, below the market consensus of CHF 217 million. The adjusted EBITDA margin was 15.6%, roughly in line with the market expectation of 15.7%, representing a 40 basis point increase year-over-year.

The EBITDA margin for the Access Solutions division was 16.0%, up 70 basis points year-over-year but 3% below market expectations. The Keys and Wall Solutions division saw its margin narrow by 80 basis points to 20.3%, exceeding market expectations by 5%.

Adjusted operating cash flow decreased by 290 basis points to 4.5%, below the company’s target range of 11.5% to 12.5%. The company attributed this decline to changes in other assets and liabilities, expecting a reversal in the second half. Leverage ratio stood at 1.0x, up from 0.8x at the end of fiscal 2025.

dormakaba reaffirmed its full-year guidance, expecting organic net sales growth of 3% to 5%, adjusted EBITDA margin above 16%, and adjusted operating cash flow margin of 11.5% to 12.5%. To meet this guidance, an increase of about 80 basis points from the first-half margin of 15.6% is needed.

Since the start of its transformation plan, cost savings have totaled CHF 185 million, up from CHF 148 million in fiscal 2024/25, exceeding the planned CHF 170 million target for 2025/26. The shared services center has played a key role in achieving these cost reductions.

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