Negative Points

• dorma+kaba Holding AG ( DRMKY ) faced a challenging first half of the year due to weaker hospitality demand in the US and a softer OEM business, which impacted overall growth performance.

• The stronger Swiss franc negatively impacted reported sales by minus 4.9%, and the company expects continued currency headwinds to affect financial results.

• The company incurred significant costs related to the closure of its Russian operation and increased M&A activities, which elevated items affecting comparability to CHF53.3 million.

• dorma+kaba Holding AG ( DRMKY ) experienced sales declines in China and Southeast Asia, and the UK and Ireland market declined by 2% due to the completion of major hospitality projects.

• The company faced significant burdens from multiple US trade tariffs, which created direct and indirect costs, and although refunds were received, they were considered a recovery of costs charged to customers rather than a profit boost.

• Management provided a cautious growth guidance of 'above 3%' for the upcoming year, citing a volatile environment with sticky inflation and geopolitical uncertainties, despite a strong order book.

Q & A Highlights

Q: Can you provide an update on market trends and order book growth following the acceleration seen in the second half of fiscal 2025/26? Additionally, do you see the NIS 2 regulation in Europe as a tailwind for demand? A: Till Reuter (CEO) noted that after a softer first half, the company saw acceleration in the second half and a very strong fourth quarter, with a good start to the new fiscal year. Strong performance in the DACH region continues, and regulatory tailwinds like NIS 2 are expected to be supportive. Rene Peter (CFO) added that the order book is at high single-digit growth year-on-year, driven by core markets including North America, Switzerland, Germany, and Australia, with strength in Access Solutions.

Q: What is the pricing and volume outlook implied in your organic growth guidance for fiscal 2026/27, and how are you handling tariff-related refunds? A: Rene Peter (CFO) stated that the guidance of above 3% organic growth implies roughly 2% to 2.5% from pricing and around 1% from volume. Regarding tariffs, the company applied for refunds and received a lower mid-single-digit million amount in 2025/26. He clarified that since Dormakaba faced significant direct and indirect costs from various US tariffs, the refunds are considered a recovery of costs charged to customers rather than a cost reduction.

Q: Can you clarify the transition to IFRS reporting and how the new operating profit margin guidance reconciles with the previous adjusted EBITDA framework? A: Rene Peter (CFO) explained that fiscal 2025/26 is the last year reporting under Swiss GAAP FER, with a switch to IFRS (including early adoption of IFRS 18) for 2026/27. The company will stop guiding on adjusted figures and will manage the full P&L. The restated IFRS operating profit margin for 2025/26 is 10.0%, and the guidance is for an improvement of at least 100 basis points in 2026/27. The operating cash flow margin guidance is 10.5% to 11.5%, which includes expected exit taxation on IP rights; excluding this, it would be 11.5% to 12.5%.

Q: What is the rationale and structure behind the proposed simplification of the shareholder structure, and what is the CHF30 million payment to the family related to? A: Till Reuter (CEO) stated that the agreement simplifies the ownership structure by aligning ownership and economic interest at the listed holding company level. Both German and Swiss shareholder groups fully support the proposal. The transaction involves a capital contribution with share and cash components, resulting in the German shareholders holding approximately 52%. The cash payment addresses potential tax impacts in Germany and will be justified by a fairness opinion. Reuter also highlighted that the contribution will generate CHF2 billion in capital reserves, enabling tax-free dividend distributions for Swiss shareholders in the future.

Q: What factors prevent you from guiding more confidently above the 3% organic growth level, and can you provide more color on the data center vertical? A: Till Reuter (CEO) cited a volatile environment with sticky inflation and unpredictable geopolitics as reasons for a cautious start, despite a strong order book. He noted the midterm guidance remains 3% to 5%. On data centers, Reuter highlighted the TANlock acquisition provides an end-to-end solution from entry point to rack. The company has seen many project wins in the US, Europe, and the Middle East and continues to grow year-on-year, with more detailed guidance to be provided at the Capital Markets Day in November.

Q: Since you will no longer guide on adjusted figures, what should we expect regarding one-offs and the 100 basis point margin improvement guidance? A: Rene Peter (CFO) confirmed the company will not report adjusted figures anymore, as the P&L should reflect the total cost of assets. The expected improvement will come partly from operational performance and partly from lower items affecting comparability. He did not provide a specific split.

Q: What will be included in the new Q1 trading update in October? A: Rene Peter (CFO) stated the Q1 update will report organic growth and provide a net sales bridge covering FX impact, M&A impact, and organic growth at group and segment levels. It will also include an update on strategic execution, but no profitability figures.

Q: Why have you shifted guidance from EBITDA margin to EBIT margin? Is this related to the accounting change? A: Rene Peter (CFO) clarified this was a management decision to improve comparability with peers and better align KPIs with value creation metrics like return on capital employed. The goal is to reflect all expense items under management control.

Q: How free is the Mankel family to reduce their 52% stake in the future, and are there any lock-up agreements? A: Till Reuter (CEO) stated there are no lock-ups. The family is as flexible as possible and can decide to reduce their shareholding below 50% if they choose. However, both shareholder groups have committed to the company, and there is no indication of any change in their intentions.

Q: Were there any extra costs in the last business year related to the change in shareholding structure, and will the starting base for the margin guidance be affected? A: Rene Peter (CFO) confirmed there were costs, which are part of items affecting comparability and excluded from adjusted figures. He disclosed the amount is in the lower single-digit million range.

Q: Will the CHF2.1 billion capital reserve from the new structure be fully distributable as dividends, and are there any restrictions? A: Rene Peter (CFO) confirmed the capital contribution reserve is fully distributable as it is foreign-sourced. The company expects future dividend payments to be made out of this capital reserve without withholding tax for Swiss shareholders.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .