Dormakaba profit more than doubles; lifts dividend and sees up to 5% sales growth

Published 02/09/2025, 07:04

Investing.com -- Dormakaba Holding AG (SIX:DOKA) on Tuesday reported more than doubled its profit in the 2024-25 financial year and forecast organic sales growth of 3% to 5% for 2025-26, with an adjusted EBITDA margin expected to exceed 16%.

Net profit rose to CHF 188 million from CHF 82.2 million a year earlier. Net profit after minorities increased to CHF 97.9 million from CHF 42.2 million. 

Basic earnings per share climbed to CHF 23.4 from CHF 10.1, while diluted earnings per share advanced to CHF 23.2 from CHF 10.

Sales increased 1.2% to CHF 2.87 billion, with organic growth of 4.1%. Gross margin rose 3% to CHF 1.18 billion, equal to 41% of sales compared with 40.2% the prior year. Personnel expenses fell 5.4% to CHF 1,145.2 million.

Adjusted EBITDA rose to CHF 445 million from CHF 416.9 million, with the margin improving to 15.5% from 14.7%. 

Reported EBITDA increased 36.6% to CHF 400.3 million. Return on capital employed improved to 30.6% from 29%, ahead of the company’s target.

Cash generation slowed. Adjusted operating cash flow slipped 1.5% to CHF 336 million, equal to an 11.7% margin. 

Free cash flow declined 10.2% to CHF 176.9 million. Net debt decreased 21.2% to CHF 358.2 million, lowering the net debt-to-EBITDA ratio to 0.8 from 1.1. 

Total assets expanded 10.6% to CHF 2,174.5 million, while total liabilities rose 9.2% to CHF 1,773.2 million. 

Equity increased 17.2% to CHF 401.3 million. Net working capital fell 6.2% to CHF 660.8 million, equal to 23% of sales.

The board will propose a dividend of CHF 9.20 a share, up from CHF 8, representing a payout ratio of 39.1% compared with 51.1% a year earlier. A 1-to-10 share split will also be proposed at the 2025 annual general meeting.

Access Solutions, the company’s largest business, reported 4.4% organic sales growth to CHF 2,440.7 million, with an adjusted EBITDA margin of 15.7%. 

Germany grew 7.4%, the United Kingdom and Ireland 9.7%, and North America 4.2%. Switzerland posted 4.2%, India delivered double-digit growth, and China closed with high single-digit growth.

Key & Wall Solutions and OEM recorded organic growth of 3.3% to CHF 488.4 million and achieved record profitability with a margin of 21%. 

Movable Walls and Key Systems drove the increase, while OEM sales weakened due to lower North American demand and trade tariffs.

For 2025-26, the company expects organic sales growth between 3% and 5%, an adjusted EBITDA margin above 16%, and an adjusted operating cash flow margin of 11.5% to 12.5%.

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