Dormakaba expects North American revenue growth over the next three years, passing on U.S. import duties to customers while cutting costs to soften demand impact. CEO aims to increase revenue to over 1 billion Swiss francs by 2027/28, a 39% rise from last year.

The Swiss security and access systems provider plans to offset tariff costs through higher pricing, in line with industry practices. Assa Abloy, a Swedish competitor, also intends to increase prices to counter tariff-related expenses.

Dormakaba’s products in the U.S. are mostly locally manufactured, limiting the impact of tariffs. Potential shifts in the market could boost construction activity, indirectly increasing demand for the company’s products, particularly in the commercial manufacturing sector.

The company forecasts 3% to 5% annual organic sales growth for the current fiscal year, with an adjusted core profit margin expected to exceed 16%. Sales growth slightly missed analysts’ consensus, but adjusted net profit of 188 million francs surpassed estimates.

Read more at Yahoo Finance: Dormakaba to pass on tariff costs to customers as it targets North American growth