*

Dormakaba to offset US tariffs with higher pricing,

similar to

rival Assa Abloy

*

Aims for over 1 billion Swiss francs in North American

access

solutions revenue by FY 2027/28

*

Forecasts 3-5% organic sales growth, EBITDA margin to

exceed 16%

in FY 2025/26

By Maria Rugamer and Bernadette Hogg

Sept 2 (Reuters) - Dormakaba expects its North

American revenue to keep growing over the next three years, as

the Swiss security and access systems provider passes on charges

from U.S. import duties to customers while cost cuts help it

cushion the impact of softer demand.

The company aims to increase revenue from its key access

solutions business in North America to more than 1 billion Swiss

francs ($1.25 billion) by the 2027/28 financial year, CEO Till

Reuter said during a press call. That would mark an at least 39%

rise from the 722 million francs in the year that ended on June

30.

Dormakaba, whose entrance systems can be found in venues

such as offices, airports and sports stadiums, intends to pass

on the costs from U.S. President Donald Trump's tariffs through

higher pricing, which it said was in line with industry

practices.

Swedish rival Assa Abloy has also said it would

offset tariff-related costs chiefly through price increases.

Many of Dormakaba's products sold in the United States, its

largest market, are manufactured locally. Reuter said that 80%

to 90% of the company's U.S. sourcing was done in the country,

which meant the impact from tariffs was limited.

Tariff-related shifts in the U.S. market could also lead to

increased construction activity, indirectly boosting demand for

Dormakaba's products, especially in the commercial manufacturing

segment, finance chief Rene Peter added.

The company forecast annual organic sales growth of 3% to 5%

for the current fiscal year, compared with 4.1% growth in

2024/25. It expects its adjusted core profit (EBITDA) margin to

exceed 16%, up from the 15.5% it reported for the past year.

Sales growth last year was slightly below analysts'

consensus, while the profit margin and outlook were broadly in

line.

Adjusted net profit of 188 million francs meanwhile beat

analysts' average estimate of 176 million francs provided by the

company.

($1 = 0.8019 Swiss francs)