dormakaba Holding AG (DOKA) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome to the Half Year 2025-2026 Investor and Analyst Conference Call of dormakaba Holding AG. I am Sandra, the Chorus Call operator. [Operator Instructions]. The conference is being recorded. [Operator Instructions]. I would like to remind you that the conference call does include forward-looking statements, which are subject to risks and uncertainties. Listeners and readers are, therefore, strongly encouraged to refer to the 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, and good morning, everybody. It's my pleasure to welcome you to our half year results '25-'26 analyst and investor conference call. Today, I'm joined again by my colleague and CFO, Rene Peter, and we are very happy to share with you our financial results of the first half year of '25-'26. I will start with the key highlights and developments of 2025/'26, and after that, Rene will give you more insights on the financial performance, and then we have enough time for Q&A. In the first half of '25-'26, 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 plus 2% and adjusted EBITDA margin of 15.6%. We see great project wins in key verticals. We are strong on the partner with distribution, but we see strong wins in key verticals like Airports, Healthcare and Marine. And 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, somewhat 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 6 transactions since July 2025. Our U.S. growth plan is in execution with first achievements in the hardware and automatics business. I think I will also tell you more about our closing product gaps and also supported by first bolt-on acquisitions like Avant-Garde 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, but 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. Just 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 access lanes at Halifax and Fort Worth with some Argus eGates. We have project wins with American Airlines and iD4me. We have 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 gained market share in Switzerland. And I think here, it's very important. And also if we 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 solutions, key solutions and automatics, where we really can have a full portfolio of products delivering for the hospital. And with this offering, we could secure multiple hospitals. In the U.S., on AS and Healthcare, we closed the product gap with ICU doors, which are in the end, the emergency room. This has also been closed, and we got good project sales in New York and Texas. We made progress in Marine, a very interesting vertical. Cruise ships, we got some contracts. [indiscernible], Carnival, Disney. And I think that is a good progress on the vertical approach, which is in addition to, in our muscle, our partners business. And I think here it's very important, the more end customers we have, we are happy, and our partners we 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 gained momentum. Our exposure is still like smaller with 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 in Airports here in Data Centers. I think this vertical will be bigger than Airports, and we have here -- I think we have the right ingredients to grow this vertical. We have already seen some project wins in the region just in the U.S. with Equinix, EdgeConneX in Germany, we have the Schwarz Group, and we have also in Middle East with Elysium in Abu Dhabi, seen many projects, and I think we will see more projects. And what's important? When you look at data centers, everyone talks about data centers. In the German way, it was more like the relations center, which existed for the last 50 years. So we don't only talk about new data centers, but also refurbishment of relations center, which means like there's also a big potential for modernization and retrofit. Currently, we see an installed base of around 12,000 data centers, and many of them, with relations centers, have been there for a long time. And here, we see a rising need for security and technology upgrades. I think that is the driver for refurbishment. And here, we see a good potential, and we'll tell you why in a second. In addition to the relations center and the older data centers, clearly, we see a big wave, especially from the hyperscalers with double-digit growth. And 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? Because 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 central security with our full-height turnstiles and Argus gates to racks lock produced by TANlock, one of our latest acquisitions, I think we have rack access being a key multiplier and allowing for multiple cross-selling. So I think clearly, 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 part of the -- have a complete offering very much on the security side of the data center. We will help our customers 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 in compliance with local regulations and requirements. On M&A, just we talked about TANlock, but we have done 6 transactions since July '25, still smaller transactions, but I 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 skyra approach, which is organically new offering where you can really send the keys to the person doing -- on the service line. I think with skyra, TANlock, we have a good offering. We are also in the U.S. We have something in addition to the TANlock portfolio, which also our competitors do have. We acquired a minority stake in RealSense, spin-off of Intel, talk about how can we install biometric and eye technologies into our products. We don't want to own 100% of, whatever, a camera company or vision company, but it's important to have this part in our ecosystem that we together with RealSense can work on solutions for our customers. And MetaMatic, which is a service business to capture more market share in Germany. And then Avant-Garde, a bolt-on acquisition in automatics in the U.S. headquartered in Indiana. I think it's important that we have some low double-digit revenue number over Avant-Garde. It's important for our growth plan in America to have more coverage in the U.S. in our automatics through integration and service. It will strengthen our entrance systems control capabilities and 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. And then lately, yesterday, we were signing our SwiftConnect minority stake, which is one on the technology side once you have clearly one user interface for the customer and 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 shows that we are working on the M&A side. And for all these acquisitions, it's important they are bolt-on. They are supporting in the market. They are not increasing complexity too much. And 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. And we all know that we have leading market positions in Europe. We have good position in Asia. We are a distant #3 in the U.S., and 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 automatics, we are on a good track. We are a little softer on hospitality. We'll talk more about hospitality later, because here we had a refurbishment cycle last year and we see that the volumes are coming back in the second half of the year. But I think here we have kind of a special situation. But on hardware and automatics, 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. And I think that's very important to be competitive in the core channels to have a full product road map. 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., and 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 products. At the same time, 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 automatics side, we also had good project wins. I talked about the ICU door is one product already before, but also nice project wins with American Airlines. And Avant-Garde, the acquisition from December, January is helping to have more go-to-market and more reach over integration and service business. Both hardware and automatics 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 in the next cycle will start in the second half and therefore, also volume will come back in hospitality. Multi-housing, we had some good project wins. But if you talk about hardware, automatics, and then ACS, hospitality, we also came up with a new strategy. Besides the existing go-to-market, we are concentrating on our commercial component strategy, as commercial is a CHF 2 billion market, where we today only have CHF 15 million revenue, and we want to grow. And I think our goal is to have a market share of 5% to 10%, which is part of the program to come from CHF 722 million to CHF 1 billion. We're working on unified e-locks, e-key readers, and credentials platform, and having the technical building blocks we have with Farpointe, LEGIC, and TANlock in our hands. So we're working on it, talking to the customers. I think here, we will have a focused go-to-market to the specs. And I think with maximum leverage and minimal complexity, and also besides hardware and automatics, also the commercial, the component strategy is accelerating, and we will have the IST BEST 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. Somewhere ahead of plan, but I think it's important cost savings. We are really on plan, on budget with the cost program. And it's very important, I think, to remind you and all of us, compared to the July '23 baseline on gross margin, we improved 100 basis points. And on the G&A expense, we went down 280 basis points. What does it mean? I think we have our costs under control. And if you look at the half year, clearly, we are not happy with the volume, which is, on ACS, 0. We have an ACS 2.6 over pricing, and on the KWO, slightly negative. But we lowered our inventory at 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. And with the stronger order backlog for the second half, we expect to be on the corridor between 3% to 5%. And 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 stopped 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. So we will be becoming part of the normal business. So 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 '23. The commercial transformation was starting later. And clearly, we are continuing on the program and to have more cost savings in the coming year, until '27, '28, also from commercial, which we will then be part of our ongoing efficiency. With this one, I will hand over to Rene for more input on the financial performance.

Thank you, Till, and also from my side, a warm welcome to our half year results 2025-'26 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 for the first half of 2025-'26. 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. Adjusted operating cash flow margin stood at 4.5%. Our net debt declined versus prior year to CHF 458.1 million. Let's look at some details starting first with the top line development. Net sales reached CHF 1.3627 billion, 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 minus 5.0%. The total impact from M&A amounted to a minus CHF 13.8 million. Now 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 solutions area. Switzerland was up 5.3%, leveraging its robust installed base in access control. The U.K. and Ireland saw 4.3% growth, thanks to strong hospitality business. Automatics performed strongly in all 3 markets. North America saw good organic growth in the hardware and automatics business in the mid- to high single-digit range. However, this was partially offset by lower volume in hospitality. Australia and New Zealand recorded organic net sales decline of minus 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 LatAm where we also saw some decline in organic net sales growth. Access Solutions achieved an adjusted EBITDA margin of 16%, representing a further increase of 70 basis points. As for KWO, the business segment reported an organic net sales decline of minus 1.4%. Good pricing of plus 2.2% could not offset a volume decrease of minus 3.6%, which resulted from challenging market conditions in the OEM business and project delays in Movable Walls in 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 gains exceeded inflation, investments and lower absorption due to volume and 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%. Now let's have a look at our profit and loss statements, and allow me to focus on a few items. Let's start first with the gross margin. Even with softer volume and inventory reduction, we managed to maintain our gross margin level, reflecting strong contribution from our Shape4Growth transformation program. Functional expenses continued to decrease. We saw a solid reduction in general and administration expenses in percent 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 remained 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. Finally, our balance sheet remains strong. We continue to strengthen our financial profile and further reduced 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 EBITDA, particularly driven by improved inventory management. Standard & Poor's 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, Rene. And now let's conclude with our outlook for '25-'26. What we see is a more challenging economic environment. And I think also like the geopolitical tensions are -- we are surprised nearly every day. And what we see that clearly the overall environment is getting more challenging. What's good on our side? We are very much local for local. It means like that 60%, as an example, in the U.S. comes from U.S. for U.S. and 85% out of Canada, Mexico. So it means that we have a kind of a good hedge against any tensions, because we 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, and based on the order book, but also based on this important project wins, which we talked about in the Airports, Healthcare, Marine and other ones, which we have to execute in the second half of the year. Therefore, we reiterate our guidance for the full year '25-'26 to have organic net sales growth of 3% to 5%, rather on the lower end of the guidance, and adjusted EBITDA margin above 16%, and adjusted operating cash flow margin of 11.5% to 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 topline perspective, region-wise and also from operations side. Happy to invite you to Capital Markets Day '26. I will give you also an update on next for dormakaba. The Capital Markets Day will take place on November 18 in London. More details to follow by Swetlana and us. And this one, thank you for listening, and we are happy to get your questions.

[Operator Instructions] Our first question comes from George Featherstone from Barclays.

I just wonder, firstly, you're taking 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. So 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 would be the first one.

Thanks a lot, George, for your question. If I understood you correctly, you were raising the question about volume growth in relation to also the operating leverage, which we have in our financials -- in our P&L. As you know, dormakaba is strongly vertically integrated. So 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 results. 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 over-proportional improvement on EBITDA. However, when we look now at the second half year, we see very strong order intake. As mentioned by Till, very strong order book, good project pipeline. And therefore, we are confident that we will see a price over cost which will be exceeding what we have seen in the first half year.

Okay. And then just a second one on that pricing point. Your peers are guiding to a little bit lower price than what you're currently achieving. So 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 there is for price as we go through the rest of 2026 here on a fiscal basis?

As we have in the past guided that our price impact will be in the range of 1.5% to 2%. What you see, 2.6% is actually including surcharges. I mean, if you were to exclude surcharges, we would be in that range of 1.5% to 2%. That's what we're also expecting for the second half year.

And I think, George, in addition to pricing, it's not -- we have a global number, but pricing is very much depending on the region. And 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. And I think we see support on the volume side and could on the pricing side be relatively stable.

The next question comes from Martin Flueckiger from Kepler Cheuvreux.

I've got 2. 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 we have seen that you've actually outperformed by, what, CHF 15 million or so compared to your CHF 170 million savings target. So I was just wondering whether you could provide some granularity where that CHF 15 million came from. Sorry if I've missed it in your earlier speech, but just wondering here what's exactly going on? And does that mean we're going to see less incremental savings from the other transformation programs? Or is everything else unchanged? That's my first question.

Let me talk on the cost. So yes, the initial program in 2023 was CHF 170 million, which was operations, finance, HR and IT. And then we had an additional CHF 40 million for the commercial side, another CHF 10 million for door closer complexity, adding up to CHF 210 million (sic) [ CHF 220 million ]. And we are fully on plan. I think if you look about where we also said we are doing CHF 170 million for '25-'26 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 '26-'27. We have CHF 170 million plus CHF 10 million. And we are...

Okay. So basically, you've pre-drawn some of the savings achieved earlier than expected. But the total of CHF 220 million is unchanged?

Actually, Martin, the higher saving realization mainly comes from procurement, where we have actually overperformed over the last 2 years. But there is no impact on the remaining Shape4Growth savings streams.

Okay. That's helpful. And then the second question is on -- I was wondering whether you could provide a trading update for the start of H2. What you have seen in the first 2 months or almost first 2 months with regards to customer sentiment and I guess also with regards to order intake in the first 6, 7, 8 weeks?

I think it is -- we have a call today, so it's in line with our expectations. And I think based on the first half year and also the start of the year, we are confident to reach our guidance.

The next question comes from Martin Hüsler from ZKB.

Yes. 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 bigger acquisitions to follow in order to achieve your ambitious growth path? And 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. Thank you, Martin, for the question. And I talked about the U.S., and we have the plan from CHF 722 million to CHF 1 billion. And this 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 products to, in the end, fill our gaps and to work on the gaps. We will introduce more products in the coming months and quarter in the U.S. I think that is one part of it. Avant-Garde is a good example of a smaller double-digit revenue, which is helping us on the service integration piece. So we are #3 in the U.S. And we have to work on the nationwide coverage and Avant-Garde is clearly someone who is helping us over service, over a new customer and our partners to cover a bigger area of the U.S. And I think there could be 2 or 3 more Avant-Garde style, like a smaller double-digit number of revenue to grow in automatics, which I would like. But I think it's more like it will be not 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 and automatics, 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% to 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 Lenel, Honeywell, like JCI, and other ones. And 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. And consistent hardware, automatics product portfolio work, smaller bolt-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.

The next question comes from Patrick Rafaisz from UBS.

Two follow-ups for me. The first on the cost savings. I think it was very clear how we explained the impact so far and what's coming with the commercial and the door closer business. But 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 3 layers. One is the pure cost elevate performance. We have the CHF 170 million plus the CHF 40 million plus CHF 10 million. And then the second pillar is the complexity reduction, I'll talk in a minute, and we have growth. Whilst on the cost side, taking people out, working on shared service centers, low cost, which we're going to continue, just to be clear on this one. Our assembly site in Sofia will be finished in September. So it will 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. But on the topics we have on our list are door closer, if you start with the hardware. The door closer we talked about the CHF 10 million are only one part of the efficiencies. We have CHF 1.2 billion, CHF 1.4 billion of hardware. We look at the door closer first because it's one of the most complex portfolios which were developed out of this, whatever, 3 region 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. So 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 expand the cost saving potential on the other door closer ranges. We already start other products on the hardware side. And there's more potential if you see the CHF 1.2 billion, CHF 1.4 billion on hardware. And I think the door closer is only the starting point. Here, we will educate you more in the full year and also on 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 of having more than 50 software platforms, which you have to maintain and you have to service. And same what we did on the hardware side, limiting or reducing the number of SKUs, reducing the number of platforms we are working on, and we will free up resources to work even on more top line. So more applications, more requirements. And this both is ongoing. The third part is still our procurement. With a project like door closer complexity, we are further working on our suppliers, having less suppliers, which means like we have more stake, we have better negotiation power. This is ongoing where our ambition on the procurement will be higher in the future. And then also like on operations footprint, we did one step in '23-'24 on the footprint, and that we will do the next footprint because, I think Rene mentioned, still we worked on the footprint, but still also the complexity, we have some parts we are deeper vertically integrated and see some potential in reducing complexity on the operations side. And I think here, we have still lots of potential. We plan to be at 16%. You know that the competition has a higher number, and we see still lots of potential, not on only taking cost out, but on changing the way we work. And here, I think there's lots of examples where we have more details maybe on the Capital Markets Day.

That's a compelling teaser for the CMD. And then 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 2 -- or the growth dilution from these 2 headwinds? And would it be correct to assume that at least for the OEM business, after Q2 calendar '26, 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, our core business, we are at 16% EBITDA, really improved our EBITDA margin in this business. I think on Movable Walls, we see project delays, which means like good performance. KWO 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 should level out, should be lower. And I think as mentioned, we have to somewhat get used to it to manage volatility. At least after Q2, it should be leveled out. But still, I think we have a very good MD in China, who is looking for additional business. So I think, yes, we also see opportunities there, not only the risk.

We take now the follow-up question from Martin Hüsler from ZKB.

Yes. 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? And also, I remember that you alluded to shadowing costs, which are not reflected in adjusted EBITDA. Can you give us a ballpark what you think shadowing costs have been in the first half this year in terms of probably basis points on margins?

Thanks a lot, Martin, for this question. So let's start first with items affecting comparability. We reported CHF 28.6 million in the first half year. We're expecting for the full year in the range of CHF 40 million to CHF 50 million, and thereafter, as we already communicated, we will not anymore report on adjusted figures out of the year '25-'26, but for sure, you can expect it will be lower in the coming years. Regarding work shadowing, the overall impact was about 40 basis points, 10 basis points still from finance and HR, from SG&A side, and 30 basis points from the commercial shared service center setup. On the commercial shared service center setup, you will see still a continuous impact on that, but we will see, now especially in the second half year, the savings coming through based on the first transition to Sofia.

The next question comes from Lars Vom-Cleff from Deutsche Bank.

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 we'll be adding to the group? And are these acquisitions margin enhancing from the beginning onward?

We are not disclosing financial information by transaction. When we look at that acquisition which we did in the U.S., this was more a smaller transaction, except Avant-Garde, where we already mentioned about the low double-digit sales figure. When we look at the 2 acquisitions 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 major wins with the Schwarz Group in Europe. Here, you have seen the first 6 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. And then 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 a growth in line with the overall market?

No, I think it's market share. We have the -- 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 over generations. We want to keep the partner business for sure, but we are strengthening with our vertical approach that we have, partner verticals like Airports, Hospitals, but also Data Centers, where we have an offering suited for the data centers. And I think as a good example, we have TANlock. So 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, how you call it, 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. And yes, this would be somewhere supporting the organic growth in the regions with our vertical. And in the end, if you talk about verticals, it's important to talk to the end customer. Sometimes you serve them over a partner, but it's important, too, that people know our offering. And I think what we've seen in many examples. And you saw the hospital in Switzerland where we can sell automatic access solutions and keys. So I think it's always good that you have one way to enter the customer. And once you're in, you can sell the full portfolio. It seems like Data Centers, you might win over TANlock, which I think it's a solution where you can have a lock for the rack. It's not so many. So you're getting in with someone with a special and then you are selling more. And I think that's same for U.S., so 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.

The next question comes from Delphine Brault from ODDO BHF.

I have 2 and I'll 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 CHF 550 million to CHF 600 million.

And second question relates to your EBITDA guidance. Reaching an adjusted EBITDA margin of slightly above 16% would imply an improvement of roughly 80 bps in H2 margin, which is twice what you achieved in H1. So can you split out the main components of this improvement? Will it be only operating leverage?

I think what we have seen in the first half that our volume in Access Solutions is 0. We were growing our price. In KWO, we are slightly negative. And I think if we deliver on our volume in the second half, we are confident, because we worked very much on the operational leverage, we got our costs down, and that means like if we're growing by 1% for the full year to 3% to 5%, the volume will be driving our margin. I think that is the main impact. And that's also why you asked on the order book. So having the higher order book and executing on the order book should deliver our 16% plus for the full year.

The next question comes from Ingo Stössel from UBS.

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?

Ingo, thanks a lot for the question. Yes, this is one of the considerations which we have. We want to be ready in case there will be maybe some inorganic growth coming. But we also felt that it is worth to really now get a public rating, which we cannot formally communicate, which is also provided by external source such as Standard & Poor's.

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, latest on the Capital Markets Day, but for sure earlier. Thank you very much, and see you soon.

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Good bye.