Ladies and gentlemen, welcome to the Half Year 2025/2026 Investor and Analyst Conference Call for dormakaba Holding AG. I am Sandra, the Chorus Call operator. I would like to remind you that all participants have been listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. I would like to remind you that the conference call does include forward-looking statements, which are subject to risk and uncertainties. Listeners and readers are therefore strongly encouraged to refer to disclaimer included in the presentation. At this time, it is my pleasure to hand over to Till Reuter, CEO. Please go ahead, sir.
Thank you. Good morning, everybody. It's my pleasure to welcome you to our Half Year Results 2025, 2026, and this investor conference call. Today, I'm joined again by my colleague and CFO René Peter. We are very happy to share with you our financial results of the first half year of 2025, 2026. I will start with the key highlights and developments of 2025, 2026. After that, René will give you more insights on the financial performance. Then we have enough time for Q&A. In the first half of 2025, 2026, we continued to execute on our transformation while delivering Adjusted EBITDA margin expansion. Let me point out some of the key highlights.
In a challenging environment, with uncertainties stemming from trade tariffs and ongoing geopolitical tensions, the company delivered organic net sales growth of +2% and Adjusted EBITDA margin of 15.6%. We see great project wins in key verticals. You know, we are strong on the partner with distribution, but we see strong wins in key verticals like airports, healthcare, and marine. We are also very happy to announce that our data center sales are gaining momentum, and we'll have more to share with you later. We delivered CHF 185 million of cost savings from the transformation program, and we're ahead of plan, exceeding the initial target of CHF 170 million. Our M&A got traction. We have bolt-on acquisitions, are gathering pace, and we completed six transactions since July 2025.
Our U.S. growth plan is in execution with further treatment in the hardware and automatic business. I think I will also tell you more about our closing product gaps and also supported by first boat and acquisitions like AvantGuard Systems. Our outlook for the full year, we reiterate our guidance based on stronger volume growth in the second half, which is expected because of our good order backlog and order book, also here, more details for you later. We have seen solid order intake for Access Solutions in the first half year, supported by project wins in key verticals. As a result, our order book is 6% up. Some examples on airports, we have project wins around the world. We have major airports secured in Germany, Frankfurt Terminal 3, Munich, Düsseldorf.
We have project wins in the U.S., installation of state-of-the-art unmanned exit lanes at Halifax and Fort Worth with Argus eGates. We have project wins with American Airlines and ID.me. Canada upcoming, and then also airport-related, we have a topic where we are modernizing the U.K.'s border control system. On the healthcare side, we gain market share in Switzerland, and I think here it's very important, and also if you look about the broader picture, because we could focus on cross-selling and hybrid solutions, which are in the end, the portfolio of access control solution, key solutions and automatic, where we really can have the full portfolio of products delivering for the hospital. With this offering, we could secure multiple hospitals.
In the U.S., on AIS and healthcare, we closed the product gap with ICU doors, which are in the end, the emergency room. This has also been closed, we got good project sales in New York and Texas. We made progress in marine, a very interesting vertical. Cruise ships, we get some contracts, Maersk, Carnival, Disney, I think that is a good progress on the vertical approach, which is in addition to our, you know, our muscle, our partners business. I think here it's very important. The more end customers we have, we're happy and our partners are happy because we can deliver both ways, direct and indirect. On the data center, last but not least, I think it's important to spend a little more time. In data centers, we gain momentum.
Our exposure is still, like, smaller with the below 1% of group sales, but I think here we see a big opportunity, and also, you know that on airports, we have something like CHF 60 million revenue on airports. Here in data centers, I think that vertical will be bigger than airports, I think we have the right ingredients to grow this vertical. You know, we have already seen some project wins in the region, just in the U.S., with Equinix, EdgeConnect in Germany. We have the Schwarz Group, and we have also Middle East with Elysium in Abu Dhabi, seen many projects, and I think we will see more projects. What's important? When you look at data centers, everybody talks about data centers.
In the German way, it was more like the data center, which existed for the last 50 years. We don't only talk about new data centers, but also refurbishment of data center, which means, like, there's also a big potential for modernization and retrofit. Currently, we've seen installed base of around 12,000 data centers, many of them, the data center, have been there for a long time. Here we see a rising need for security and technology upgrades. I think that is a driver for refurbishment, and here we see a good potential, and we'll tell you why in a second. In addition to the data center and the older data centers, clearly, we see a big wave, especially from the hyperscaler, with double-digit growth.
We see that by 2030, the amount of data centers around the globe will expect to increase to around 16,000, and this will result in a great potential and opportunity for dormakaba. Why do we believe we have a good offering? We have a very complete and comprehensive product portfolio for the data centers to cover all security layers of a data center. From the perimeter and entrance security with our full-height turnstile and Argus eGates, to Rex lock, produced by TANlock, one of our latest acquisitions. I think we have rack access being a key multiplier in allowing for multiple cross-selling.
I think really the rack closing and the lock on the rack is one of the most important parts for the offering, and you will see that we are really have a complete offering, very much on the security side of the data center. We will help our customer to secure people flow from street to rack out of one hand, full compliance, allowing to exactly know who was where, for how long, as well as who was in, and higher safety standards and compliance with local regulations and requirements. On M&A, just we talked about TANlock, but we have done six transactions since July 25.
Still smaller transactions, but we are, think we are speeding up and want to do more one, but it's very important to have the right balance between organic growth, which is our focus, and that has to be strengthened with additional M&A. TANlock, I talked about bolt-on acquisition, enhances our offering for verticals in data centers and critical infrastructure. You know, our Kyra approach, which is organically new offering, where you can really send the keys to the person, doing on the service line. I think with Kyra, TANlock, we have a good offering. We are also in the U.S. We have something in addition to the standard portfolio, which also our competitors do have. We acquired a minority stake in RealSense, spin-off of Intel. Talk about how can we install, you know, biometric and eye technologies into our products.
We don't want to own 100% of whatever, of a camera company or vision company. It's important to have this part in our ecosystem, that we, together with RealSense, can work on solutions for our customers. It's on Metamatic, which is a service business to capture more market share in Germany. AvantGuard, support on acquisition automatics in the U.S., headquartered Indiana. I think it's important that we have some low double-digit revenue number over AvantGuard. It's important for our growth plan in America to have more coverage in the U.S., in automatic to integration and service. It will strengthen our entrance systems control capabilities, also help us to position in this high-margin business to grow in the vertical, like airports, and more important, or even same important, data centers. Vintech, it's a go-to-market hospitality in Australia, a smaller one.
Lately, yesterday, we were signing our Swiss Connect minority stake, which is one on the technology side. Once you have, you know, clearly one user interface for the customer, then you have an interoperability, means like you can align or you can connect different access solutions and have one user interface for the customer. I think it's all that we are working on the M&A side. For all these acquisitions important, they are bolt-on, they are supporting in the market. They are not increasing complexity too much, I think that we want to continue to have a good balance between organic growth and further M&A. Another part which is important in our medium to long-term strategy is the U.S. growth plan. We all know that we have leading market positions in Europe. We have good position in Asia.
We are distant number three in the U.S., therefore, we focus on this single biggest, most lucrative U.S. market with our growth initiatives. We made some progress here. We see that in hardware and automatic, we are on good track. We are a little softer on hospitality. We talk more about hospitality later, because here we had a refurbishment cycle last year, and we will see that the volumes are coming back in the second half of the year. I think here we have kind of a special situation. On hardware automatic, we are on track and are doing what we had in our plan. On the hardware side, we launched new exit devices. We closed portfolio gaps. I think that's very important to be competitive in the core channels, to have a full product roadmap.
We have to have more products coming in March and in the second quarter to further close the gaps we have seen or we have in the U.S. I think that's one of the key parts, working on the portfolio, securing new wins, for example, University of Southern California, where you also need kind of the product. Working on the efficiency of our distributor program, having the right ownership, and having plans to improve efficiencies to grow on the hardware piece, which is close to 50% of the U.S. business in the next years. On the automatic side, we also had good project wins. I talked about the ICU door as one product already before, but also nice project wins with American Airlines and AvantGuard.
The acquisition from December, January, is helping to have more markets go to market and more reach over integration and service business. Both hardware and automatic are on plan to deliver what we were planning. Hospitality was lower spending because we had, in the last year, a higher refurbishment cycle. We expect that the refurbishment, the next cycle, will start in the second half, and therefore, also with volume, will come back in hospitality. Multihousing, we had some good project wins, if you talk about hardware, automatic, and then ACS hospitality, we also came up with a new strategy. Besides the existing go-to markets, we are concentrating on our commercial component strategy.
Commercial is a CHF 2 billion market, where we today only have CHF 15 million revenue and we want to grow. I think our goal is to have a market share of 5%-10%, which is part of the program, to come from CHF 7.2 million- CHF 1 billion. We're working on unified eLocks, eKey readers, and credential platform, you know, having the technical building blocks we have with Farpa and Lepsi and TANlock in our hand. We're working on it, talking to the customers. I think here we will have a focused go-to-market to the PACS. I think with maximum leverage and minimal complexity, also besides hardware and automatic, also the commercial, the component strategy is accelerating, and we will have the ISC West very soon to further work on the component strategy.
America, now, coming to the cost side, we already achieved, delivered CHF 185 million of cost savings. We're ahead of plan. I think it's important cost savings. You know, we are really on plan, on budget with the cost program. I think it's very important. It's, I think, to remind you and all of us, compared to the July 2023 baseline on cost margin, we improved 100 basis points. On the G&A expense, we went down 280 basis points. What does it mean? I think we have our costs under control. If you look at the half year, clearly we are not happy with the volume, which is, which is on ACS 0. We have an ACS 2.6 overpricing. On the KW, slightly negative.
We lowered our inventory, had pretty low volume, same time, increased our margin. That means we are very efficient. We're working on the cost side. We are ready to take the volume to, in the end, get the volume into margin, and what you see, the platform gets more efficient and leaner, and I think that is a very good base. With the stronger order backlog for the second half, we expect to be on the corridor between 3%-5%. With this cost basis, we should deliver 16 and above 16 for the full year.
I think what we are doing on the cost program, it's going to the program stops end of this business year, but it's very important that once the cost program stops, we are shifting from a program to a standard efficiency. We'll be becoming part of the normal business. There's not a program, but there will be cost targets for all functions as part of the ongoing business. On the cost program, you know that we were starting on operations, HR, IT, and finance in 2023. The commercial transformation was starting later, and clearly, we have, we are continuing on the program, and to have more cost savings in the coming year until 2027, 2028, also from commercial, which will be a part of our ongoing efficiency.
With this one, I will hand over to René for the more input on the financial performance.
Thank you, Till. Also from my side, a warm welcome to our half year results, 2025-2026, analyst and investor conference. As Till mentioned, our results reflect continued strong execution of our transformation program by the dormakaba team, resulting in a further Adjusted EBITDA margin improvement. Let's have a look at our key figures, first half of 2025-2026. We delivered organic net sales growth of 2.0% and an Adjusted EBITDA margin of 15.6%, an improvement of 40 basis points over the last year. Return on capital employed increased to 30.3%. Net profit amounted to CHF 77.4 million. Our adjusted operating cash flow margin stood at 4.5%. Our net stats declined versus prior year to CHF 458.1 billion.
Let's look at some details, starting first with the top line development. Net sales reached CHF 1,362.7 million, facing a challenging economic environment marked by trade tariffs and geopolitical tensions. Organic growth amounted to 2.0%, largely driven by strong pricing of 2.6%. Volume remained stable in Access Solutions, but declined in Key & Wall Solutions and OEM. The appreciation of the Swiss franc against all major currencies led to a negative currency translation effect of -5.0%. The total impact from M&A amounted to -CHF 13.8 million. Let's have a closer look at different businesses. Access Solutions delivered organic net sales growth of 2.6%, led by our European markets and driven by strong pricing of 2.6%.
Germany, Switzerland, and the U.K. and Ireland all delivered solid, volume-driven, organic net sales growth in tough markets and against a very strong prior year comparison. Germany grew 4%, supported by airport projects and market share gains in the access hardware solution area. Switzerland was up 5.3%, leveraging its robust installed base in access control. The U.K., Ireland, saw 4.3% growth, thanks to strong hospitality business. automatics performed strongly in all three markets. North America saw good organic growth in the hardware and automatic business in the mid to high single digit range. This was partially offset by lower volume in hospitality. Australia and New Zealand recorded organic net sales decline of -0.4%, primarily driven by a downturn in the local residential market, in particular in Victoria.
Rest of the world reported good volume growth in North, South, and Eastern Europe, as well as Middle East and India. China, there we saw a double-digit decline, due to weak market demand, similar to Southeast Asia and Latin, where we also saw some decline in organic net sales growth. Access Solutions achieved an Adjusted EBITA margin of 16%, representing a further increase of 70 basis points. Also, KWO, the business segment, reported an organic net sales decline of -1.4%. Good pricing of +2.2% could not offset a volume decrease of -3.6%, which resulted from challenging market conditions in the OEM business and project delays in Movable Walls, North America. Adjusted EBITDA amounted to CHF 211.9 million.
Excluding currency translation and divestment impact, Adjusted EBITDA improved by CHF 10.5 million. The impact from the negative volume was CHF 0.9 million negative. Price and efficiency gain exceeded inflation, investments, and lower absorption due to volume on the inventory reduction, resulting in a positive price over cost of CHF 12.3 million. As a result, Adjusted EBITDA margin improved by 40 basis points and amounted to 15.6%. Let's have a look at our profit and loss statements, and allow me to focus on few items. Let's start first with the Cross Margin. Even with softer volume and inventory reduction, we managed to maintain our Cross Margin level, reflecting strong contribution from our Shape for Growth transformation program. Functional expenses continued to decrease.
We saw a solid reduction in General and Administrative expenses in % of sales, leveraging our shared service centers for finance and HR. Sales and marketing is still impacted by commercial transformation costs. We expect to see the full benefit in sales and marketing materializing going forward. Effective tax rate remains broadly stable at 26.5%. Adjusted operating cash flow margin amounted to 4.5%, representing a decline of 290 basis points versus prior year. Changes in other assets and liabilities, particularly relating to withholding taxes and prepayments, negatively impacted adjusted operating cash flow. These effects are expected to reverse in the second half of the financial year. Capital expenditure increased due to investments in our process harmonization program and factory automation, whereas prior year included CHF 13 million from the sale of real estate in North America...
Return on capital employed rose by 40 basis points, driven by higher adjusted EBIT over the last 12 months and stable capital employed. Our balance sheet remains strong. We continue to strengthen our financial profile and further reduce net debt to CHF 458.1 million versus prior year. As a result, our leverage ratio further went down to a healthy 1.0x Adjusted EBITA, particularly driven by improved inventory management. S&P Global Ratings assigned dormakaba a BBB investment grade rating, confirming our strengthened financial profile. With this, I would like to return back the call to Till.
Thank you, René. Now let's conclude with our outlook for 2025, 2026. What we see is a more challenging economic environment, and I think also, like, the geopolitical tensions are, you know, we have surprise nearly every day. What we see that, you know, clearly the overall environment is getting more challenging. What's good on our side, we are very much local for local. That means, like, that 60%, as an example, U.S., comes from U.S. for U.S., and 85% out of Canada, Mexico. You have to believe that we have a kind of a good hedge on against any tensions, because we are, have a good position, local for local. We have a good order backlog, a good order book.
That means, like, even we see the challenges, we see stronger volume growth for the second half of the year. Based on the book and on the order book, but also based on this important project wins, which we talked about in the airport, healthcare, marine and other ones, which we have to execute in the second half of the year. We reiterate our guidance for the full year, 2025-2026, to have organic net sales growth of 3%-5%, rather on the lower end of the guidance, an Adjusted EBITA margin above 16%, and adjusted operating cash flow margin of 11.5%-12.5% for the full year. With this one, thank you for your attention. Last but not least, I did forget something.
Before your questions are coming, which we are expecting and happy to take the question, but as we did in the last year, we want to do a Capital Markets Day to inform you about our next steps and what we want to do from a top line perspective, region-wise, and also from operations side. Happy to invite you to Capital Markets Day 2026, and we'll give you also an update on next for dormakaba. The Capital Markets Day will take place on November eighteenth in London. More details to follow by Svetlana and us. This one, thank you for listening, and we are happy to get your questions.
We will now begin the question and answer session. Anyone who wishes to ask a question or make a comment, may press star and one on the telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to disable the loudspeaker mode while asking a question. In the interest of time, please limit yourselves to two questions. Anyone with a question may press star and one at this time. Our first question comes from George Featherstone from Barclays. Please go ahead.
Hi. Morning, everyone. Thanks for taking the questions. I just wondered, firstly, you've taken a lot of cost out of the business, and as you said, you're ahead of plan. You're also guiding some volume growth in the second half. How should we think about the level of operating leverage you now expect for the business on that volume growth in the second half, please? That'd be the first one.
Awesome.
Okay, thanks a lot, George, for your question. If I understood you correctly, you were raising the question about of volume growth in relation to also the operating leverage which we have in our finances in our PNL. As you know, dormakaba is strongly vertically integrated. Therefore, we see on the one hand on operating leverage, actually, a situation where we see that volume has an impact on our bottom line result. Particularly when we look at the complexity, however, we see not yet on the op side, that we are able to really fully translate that into a over proportional improvement on EBITDA.
When we look now at the second half, here we see very strong order intake, as mentioned by Till, very strong order book, good project pipeline, and therefore we are confident that you will see a price over cost, which will be exceeding what we have seen in the first half year.
Okay, thank you. Then just a second one on that pricing point. You appeared a guidance to a little bit lower price than what you're currently achieving. I just wondered what it is about your business that gives you that entitlement for higher pricing than some of the other market leaders, and then maybe what the outlook here is for price as we go through the rest of 2026 year on a system basis?
As we have in the past, guided that our price impact will be in the range of 1.5%-2%. What you see, 2.6% is actually including surcharges. That means if you were to exclude surcharges, we would be in that range of 1.5%-2%. That's what we was expecting for the second half year.
I think also in addition, pricing is not, you know, we have a global number, but pricing is very much depending on the region. We have this kind of a special situation in America where I think the whole market is working with surcharges, giving pricing to the customers. We see, I think we see support on the volume side and could, on the pricing side, be relatively stable.
Okay, thanks very much.
The next question comes from Martin Flückiger from Kepler Cheuvreux. Please go ahead.
Good morning, gentlemen. Thanks for taking my questions. I've got two. First one is on the realized incremental cost savings of CHF 37 million. Now, I'm a little bit confused. I thought I heard Till saying that you were on target with regards to the cost savings, but then, you know, we have seen that you've actually outperformed by what? CHF 15 million or so compared to your CHF 170 million savings target. I was just wondering whether you could provide some granularity, you know, where that CHF 15 million came from. Sorry if I've missed it in your earlier speech, but, you know, just wondering here, what's exactly going on.
You know, does that mean we're gonna see less incremental savings from the other transformation programs, or is everything else unchanged? That's my first question.
Good question.
Go ahead.
Let me talk on the cost. We have the initial program in 2023 was CHF 170 million, which was operations, finance, HR, and IT. Then we were additional CHF 40 million for the commercial side, another CHF 10 million for door closer complexity, adding up to CHF 210 million. We are fully in plan. I think if you look about where we are also, that we are doing CHF 170 million for 2025, 2026 with regard to this number, we are ahead. However, in our program of the CHF 210 million in total or CHF 220 million, we are on plan, and we're going to deliver in the second half and also some of the cost savings in 2026, 2027. Yeah, so CHF 170 million.
Okay.
+10.
Right.
We are also delivering-.
Okay, basically, you've pre-drawn some of the savings, yeah, or achieved earlier than expected. Okay.
Oh, just-
The total of 220 is unchanged?
Actually, Martin, the higher saving realization mainly comes from pro-procurement, where we have actually overperformed over the last two years. There is no impact on the remaining Shape for Growth saving streams.
Okay, that's helpful. Thanks so much. The second question is on, you know, I was wondering whether you could provide a trading update for the start of H2. you know, what you've seen in the first two months or almost first two months, with regards to customer sentiment, and I guess also with regards to order intake, in the first six, seven, eight weeks.
You know, I think it is, we have a call today, so it's in line with our expectations. I think it's, based on the half year, first half year, and also the start of the year. We are confident to reach our guidance.
Okay, thanks.
The next question comes from Martin Hüsler from ZKB. Please go ahead.
Yes, good morning, everyone, and thank you for having me. Two questions, actually. First of all, on acquisitions in the U.S.A. So far, you rather did bolt-ons. My question here is, should we expect the bigger acquisitions to follow in order to achieve your ambitious growth path? Then maybe with the acquisition of Avant-Garde, just to help us to understand what a platform or an independent solution provider like Avant-Garde is bringing to dormakaba. Will you replace other products by dormakaba products, or how will you leverage this platform? That's the first question.
Okay, I think thank you, Martin, for the question, you know, I talked about the U.S., and we have the plan from September 2022 to $1 billion. This is, we want to reach over organic growth, and I talked about the product portfolio and additional products we're doing in hardware. I talked also about the ICU door and automatics, additional product to, in the end, fill our gaps and to work on the gaps. We will introduce more products in the coming month and quarter in the U.S. I think that is, that's one part of it. AvantGuard is a good example of a smaller double-digit revenue, which is helping us on the service integration piece.
Now we are number three in the U.S., and we have to work on the nationwide coverage, and Avantgarde is clearly someone who is helping us over service, over a new customer and over partners to cover a bigger area of the U.S. I think there could be two or three more avant-garde style, like a smaller double-digit number of revenue to grow in automatics, which I would like. I think it's more like it will be not a one big solution, it will rather be a couple of smaller acquisitions, which we are looking at, to grow in the businesses constantly and consistently. Besides the hardware automatic, hospitality, we have a leading position. I talked about the component strategy.
I think that is the third pillar of our U.S. growth plan, where we want to get out the commercial, again, organically, to 5%-10%. We have the product, but we were selling it only bundled. We are going to unbundle and work over APIs to connect to the big platforms like a Lenel Honeywell, like a JCI and other ones. I think that's a different go-to market with a focused approach on the tax, which we have not done in the past, which is a change in go-to market. Consistent hardware, automatic product portfolio work, smaller add-ons, plus the hospitality, plus components, will bring us to the CHF 1 billion. If there would be a big M&A, it will be even bigger.
Okay, thank you. That's very ...
The next question comes from Patrick Rafaisz from UBS. Please go ahead.
Yes, thanks. Good morning, everybody. Two follow-ups from me. The first on the cost savings. I think it was very clear how you explained the impact so far and what's coming with the commercial and the door closer business. I was just wondering, what will then, after that, be the next bigger, let's say, complexity reduction opportunities, after the door closer has been completed? Have you identified anything, and if yes, what? That's the first question.
I think, Patrick, if you remember on our investor presentation, we had the three layers. One is the pure cost, Elevate Performance, where the 170+ the 40, plus the 10. We have the second pillar is the complexity reduction. I'll talk in a minute, and we have growth. While on the cost side, taking people out, working on shared service centers, low cost, which we're going to continue, to be clear on this one. Our assembly site in Sofia will be finished in September, so it will be, we'll start, and we also continue to work on our shared service center in Sofia for, in the end, the white collar work, so I think that's ongoing. On the topics we have on our list are, you know, door closer, if you start with the hardware.
The door closer, we talked about these CHF 10 million, are only one part of the efficiency. We have CHF 1.2 billion, CHF 1.4 billion of hardware. We looked at the door closer first because it's one of the most complex portfolios which were developed out of this, what I was three regional strategy, and we have more than 10,000 SKUs. The door closer together has a revenue of CHF 300 million. We only looked at the CHF 100 million first rack and pinion, and in the CHF 100 million, we're going to reduce CHF 10 million. CHF 1.4 billion, CHF 300 million, CHF 100 million, CHF 10 million savings. Clearly, we looked at the one which looks most efficient, but we will also, like, extend the cost saving potential on the other door closer ranges.
We already start also other products on the hardware side. There's more potential if you see the CHF 1.2 billion-CHF 1.4 billion on hardware, I think the door closer is only the starting point. Here, we will educate you more in the full year and also in the Capital Markets Day, how much more potential we do have on the hardware side. The same on the software side. We talked about this complexity on having more than 50 software platforms, which you have to maintain and you have to service. Same what we did on the hardware side, limiting or reducing the number of SKUs, reducing the number of platforms we are working on, we will free up resources to work even on more top line, so more applications, more requirements. This both is ongoing.
The third part is, you know, still our procurement. You know, with a project like door closer complexity, we are further working on our suppliers, having less suppliers, which means, like, they have more stake, we have better negotiation power. This is ongoing, where our ambition on the project procurement, so will be higher in the future. Also, like on operations footprint, we did 1 step in 2023, 2024 on the footprint, and now we will do the next footprint because I think when I mentioned, we are still, we worked on the footprint, but still also the complexity. We have some parts, we are deeper, vertical, integrated, and see some potential in reducing complexity on the operation side. I think here we are still lots of potential. You know, we plan to be at 16.
You know that the competition has higher number, and we see still lots of potential, not only taking cost out, but on changing the way we work. I think that's lots of examples where we have more details, maybe on the Capital Markets Day.
Thank you. That's a compelling teaser for the CMD. The second question would be on Key & Wall, where volumes were negative, and you gave the reasons with the OEM business and the delays in Movable Walls. Can you quantify the dilution from these two, or the growth dilution from these two headwinds? Would it be correct to assume that at least for the OEM business, after Q2, calendar 2026, this dilution will be phased out? Because that's when it started last year.
I think, Patrick, one topic before I hand over to Rene. I think it's very important also to emphasize that on the Access Solutions, our core business, we are at 60% EBITDA, really improved our EBITDA margin in this business. I think on Movable Walls, we see project delays, which means, like, you know, good performance. KWO was really, is still on a high level operationally and margin-wise. And on the OEM side, I think the impact overall, like, 1% comes from the OEM piece. I think it is, it should level out, should be lower. I think we, as mentioned, we have to somewhat get used to it to manage volatility. It should be at least after Q2, it should be leveled out.
Still, I think we have a very good MD in China, who is looking for additional business. I think here we also see opportunities. They're not only the risk. Okay?
Yeah, great. Thank you very much. Thanks.
We take now the follow-up question from Martin Hüsler, from ZKB. Please go ahead.
Yes, thank you. A question on items affecting comparability. Can you maybe give us your guidance or expectations for the second half of this year and maybe for next year? Also, I remember that you alluded to shadow costs, which are not reflected in Adjusted EBITDA. Can you give us a ballpark what you think shadow costs have been in the first half this year, in terms of probably basis points on margins?
Thanks a lot, Martin, for this question. The item, start first with items affecting comparability. We reported CHF 228.6 million the first half year. We're expecting for the full year in the range of CHF 40 million-CHF 50 million. Thereafter, as we already communicated, we will not any more report on adjusted figures out of the year 2025, 2026, but for sure, you can expect it will be lower the coming years. Regarding work shadowing, the overall impact was about 40 basis points. 10 basis points still from finance and HR, from a G&A side, and 30 basis points from the commercial shared service center set up.
On the commercial shared service center set up, you will see still a continuous impact on that, we will see now, especially now in the second half year, the savings coming through, based on the first transition to Sofia.
Okay, thank you.
The next question comes from Lars vom Cleff from Deutsche Bank. Please go ahead.
Yes, thank you very much. Good morning. Two quick questions from my side as well. Would you be able to tell us, with regards to your recent bolt-on acquisitions in the U.S., how much revenue, EBITDA, in absolute terms, that will be adding to the group? Are these acquisitions margin-enhancing from the beginning onward?
We are not disclosing individual financial information by transaction. When we look at that acquisition, which we did in the U.S., this was more a smaller transaction, except AvantGuard, where Orion still mentioned about the low double digit sales figure. When we look at the two acquisition, which we are disclosing now in the financial bridge, this is van den Berg, as well as TANlock. TANlock is actually a project business. There, we are building up now the project pipeline. We have already won some first major wins with the Schwarz Group in Europe. Here, we have seen the first six months was in line with our business plan, still dilutive, but we expect in the next 12 months to see a change in that situation.
Okay, thank you. You spent some time on your data center business and the impressive compound annual growth rate you're expecting. Are you also envisaging to gain market share, or is that rather growth in line with the overall market?
No, I think it's market share. You know, we have the... You know, the strength of dormakaba from the past is the partner model, that we have, mainly in Europe, strong partners for the last 100 years, and people who are working off over generations. We want to keep the partner business for sure, but we are strengthening it with our vertical approach that we have. Talk to verticals like airports, hospitals, but also data centers, where we have an offering suited for the data centers. I think our data center is a good example, we have TANlock....
We can offer the customers, like, from the entrance to the rack, the seamless integration of all the locks, that you can go in, and depending on your, so-called, freedom to operate, or freedom to use part of the building, you are allowed to go in certain areas or not. I think it's something where we have a good offering, which is including lots of security and technical features which we have. This would be somewhere supporting the organic growth in the regions with our vertical. In the end, if you talk in vertical, you know, it's important to talk to the end customer. Sometimes you serve him over a partner, but it's important that people know our offering.
I think what we've seen in many examples, you saw the hospital in Switzerland where we can sell automatic Access Solutions and key. I think it's always good that you have one way to enter the customer, and once you are in, you can sell the full portfolio. Same like data centers, you might win over TANlock, which is I think it's a solution when you can have a lock for the rack. It's not so many. You're getting in with someone with a special, and then you are selling more, and I think that's same for U.S. To have something which is on the technological side, leading, which others do not have, and then you are able to sell more standards, which is our approach.
Okay, thank you. I'll go back into the line.
The next question comes from Delphine Brault from ODDO BHF. Please, go ahead.
Yes, good morning. Thanks for taking my questions. I have two, and will ask them one at a time. First, can you remind us the size of your order book and the visibility it provides? I may have missed it.
I think the order book is something like 6% up.
Yes, but the size of it, in months of sales?
Something like, 55, 50 to CHF 600 million.
Thank you. Second question relates to your EBITDA guidance. Reaching an Adjusted EBITDA margin of slightly above 16 would imply an improvement of roughly 80 bits in H2 margin, which is twice what you achieved in H1. Can you split out the main components of this improvement? Will it be only operating leverage?
I think you know what we have seen in the first half, that our volume in Access Solutions is zero. We were growing over price, KWD is slightly negative. I think if we deliver on our volume the second half, we are confident because we work very much on the operational leverage. We get our costs down, and that means, like, if we growing by 1%, you know, for the full year to 3% to 5%, the volume will be driving our margin. I think that is a main impact, and that's also why you asked on the order book. Having the higher order book and executing on the order book should deliver our 16%+ for the full year.
Okay, thank you.
The next question comes from Ingo Stössel from UBS. Please, go ahead.
Hi, thank you for taking my question. Just one for me. Can you give us some background to your S&P rating? Other issuers here in Swiss franc often do that before they come in euro or dollar. Are you planning to issue in a different currency anytime soon?
As this, Ingo, thanks a lot for the question. Yes, this is one of the consideration which we have. We want to be ready in case there will be maybe some inorganic growth coming. We also felt that it is worth to really now get a public rating, which we can formally communicate, which is also provided by external source, such as Standard & Poor's.
Thank you.
Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Till Reuter for any closing remarks.
Well, thank you for attending. Thank you for listening to our call, for the good questions, and, hope to see you soon, later on the Capital Market Day, but for sure, earlier. Thank you very much, and, see you soon.
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