A quarter of continued recovery and a brighter outlook
The second quarter confirmed that the signs of improvement that we have observed since the end of the previous year have continued. While the effects of duties and tariffs have had some negative impact, it is primarily the politically unstable climate that has adversely affected the Group in the form of lower consumption and cautious consumers. The stronger Swedish krona is also partly obscuring the positive trend.
The Group’s sales in the second quarter amounted to SEK 10,082 million, an increase of only 0.5% on the second quarter of the previous year but, given the significantly stronger Swedish krona, we are clearly set on a course of continued growth. Operating profit in the quarter rose by SEK 275 million to SEK 944 million, an improvement of 41.1% compared with
the second quarter of 2024. The operating margin improved by 2.7 per[1]centage points, from 6.7% in the second quarter of the previous year to 9.4% in the second quarter of this financial year. An increase in sales, together with better productivity and continued good cost control, were the main reasons for the positive earnings growth in the quarter.
In both the first and the second quarters, we have, to the best of our ability, navigated in a world around us that is beset by an unusually turbulent political environment. This has, of course, been more challenging than expected but, at the same time, we can once again say that our broad international presence, together with our decentralized organization and our broad product offering, have ensured a relatively stable performance.
Business area NIBE Climate Solutions
In line with previous assumptions, we have seen a continued relative improvement in demand for heat pumps in Europe. The fact that the improvement in demand is also visible at the manufacturing stage provides confirmation that the inventories that had been built up by retailers and installation companies have dropped to more acceptable levels, resulting in a more predictable order and production situation.
The majority of the European markets are showing some degree of growth, with Germany, Italy, the Netherlands and Sweden accounting for the majority of overall growth.
Even though the overall heat pump market in Europe is still some way off its peak in 2023, future development seems positive. It is pleasing to see that end consumers are showing a preference for heat pumps instead of heating options that use fossil fuels.
The US heat pump market remained stable in the quarter. As regards the recently decided tariffs on trade between the EU and the USA, we note that these will, in principle, not affect our products, as the majority of our products aimed at the US market are produced in the USA. The current tax subsidies for heat pump installations undertaken by private individuals will be discontinued after the turn of the year but, at the same time, new financing opportunities will be introduced that will create new prospects, not least for the commercial side of our sector.
The business area’s financial performance both in the second quarter and in the first half of the year signaled a continued gradual recovery. Because of this, as well as expectations of a more traditionally season-oriented pattern in demand, meaning a stronger second half of the year, it remains our ambition to return to an operating margin level within the business area’s historical range during the full year. However, we also recognize that factors such as the uncertain external environment and the stronger Swedish krona will likely complicate matters.
Business area NIBE Element
As in the first quarter of the year, demand was relatively stable in the majority of the business area’s market segments in the second quarter. However, there are still significant variations between the segments. The industrial electrification and semiconductor segments recorded a strong performance, while demand in the segments for new property production and consumer-related products continued to report a weaker performance.
An improvement in both profit and margin was achieved by means of great flexibility, improved productivity and strict cost control despite challenging external factors.
In view of the performance in the first half of the year, together with expectations of somewhat improved demand in the second half, it remains our ambition to return to an operating margin level within the business area’s historical range.
However, it is difficult to assess the consequences of the uncertain external business environment.
Business area NIBE Stoves
Of the Group’s business areas, NIBE Stoves reported the weakest performance compared with the second quarter of the previous year.
The main reasons for this were a clear downward trend in the European stove market due to greater caution from end consumers in a turbulent world and the return to a more pronounced traditional seasonal pattern, with the majority of sales taking place in the second half of the year.
The trend in the North American market was positive, but because all our production of stoves intended for North America is based in Canada, the tariffs introduced between the USA and Canada have impacted the operating margin. A clear improvement in demand is expected in the second half of the year thanks to successful marketing activities in the first half, as well as new product launches.
As in the case of the other two business areas, our ambition is to return to an operating margin level within the business area’s historical range in 2025 but, realistically speaking, the recovery in this sector might take a little longer.
Thanks to well-adjusted cost structures, strong product ranges, a good market presence and well-invested facilities, all three of our business areas are well equipped for the future.
Our strategy of moving towards continent-based manufacture and primarily continent-based sub-suppliers is also creating more secure supply chains and reducing vulnerability in respect of needs to be respect of trade obstacles.
We are also convinced that our products are a good fit for the times, with our whole society needing to gradually transition to a more sustainable way of living.
In summary, we are, therefore, looking to the future with a significant amount of confidence. We will not by any means hold back in our efforts to achieve our ambition to return to our three business areas’ respective historical operating margin ranges for the full year 2025.
Markaryd, Sweden, August 22, 2025
Gerteric Lindquist
Managing Director and CEO
,A quarter of continued recovery and a brighter outlook
The second quarter confirmed that the signs of improvement that we have
observed since the end of the previous year have continued. While the effects
of duties and tariffs have had some negative impact, it is primarily the
politically unstable climate that has adversely affected the Group in the form
of lower consumption and cautious consumers. The stronger Swedish krona is
also partly obscuring the positive trend.
The Group’s sales in the second quarter amounted to SEK 10,082 million, an
increase of only 0.5% on the second quarter of the previous year but, given
the significantly stronger Swedish krona, we are clearly set on a course of
continued growth. Operating profit in the quarter rose by SEK 275 million to
SEK 944 million, an improvement of 41.1% compared with
the second quarter of 2024. The operating margin improved by 2.7 per[1]centage
points, from 6.7% in the second quarter of the previous year to 9.4% in the
second quarter of this financial year. An increase in sales, together with
better productivity and continued good cost control, were the main reasons for
the positive earnings growth in the quarter.
In both the first and the second quarters, we have, to the best of our
ability, navigated in a world around us that is beset by an unusually
turbulent political environment. This has, of course, been more challenging
than expected but, at the same time, we can once again say that our broad
international presence, together with our decentralized organization and our
broad product offering, have ensured a relatively stable performance.
Business area NIBE Climate Solutions
In line with previous assumptions, we have seen a continued relative
improvement in demand for heat pumps in Europe. The fact that the improvement
in demand is also visible at the manufacturing stage provides confirmation
that the inventories that had been built up by retailers and installation
companies have dropped to more acceptable levels, resulting in a more
predictable order and production situation.
The majority of the European markets are showing some degree of growth, with
Germany, Italy, the Netherlands and Sweden accounting for the majority of
overall growth.
Even though the overall heat pump market in Europe is still some way off its
peak in 2023, future development seems positive. It is pleasing to see that
end consumers are showing a preference for heat pumps instead of heating
options that use fossil fuels.
The US heat pump market remained stable in the quarter. As regards the
recently decided tariffs on trade between the EU and the USA, we note that
these will, in principle, not affect our products, as the majority of our
products aimed at the US market are produced in the USA. The current tax
subsidies for heat pump installations undertaken by private individuals will
be discontinued after the turn of the year but, at the same time, new
financing opportunities will be introduced that will create new prospects, not
least for the commercial side of our sector.
The business area’s financial performance both in the second quarter and in
the first half of the year signaled a continued gradual recovery. Because of
this, as well as expectations of a more traditionally season-oriented pattern
in demand, meaning a stronger second half of the year, it remains our ambition
to return to an operating margin level within the business area’s historical
range during the full year. However, we also recognize that factors such as
the uncertain external environment and the stronger Swedish krona will likely
complicate matters.
Business area NIBE Element
As in the first quarter of the year, demand was relatively stable in the
majority of the business area’s market segments in the second quarter.
However, there are still significant variations between the segments. The
industrial electrification and semiconductor segments recorded a strong
performance, while demand in the segments for new property production and
consumer-related products continued to report a weaker performance.
An improvement in both profit and margin was achieved by means of great
flexibility, improved productivity and strict cost control despite challenging
external factors.
In view of the performance in the first half of the year, together with
expectations of somewhat improved demand in the second half, it remains our
ambition to return to an operating margin level within the business area’s
historical range.
However, it is difficult to assess the consequences of the uncertain external
business environment.
Business area NIBE Stoves
Of the Group’s business areas, NIBE Stoves reported the weakest performance
compared with the second quarter of the previous year.
The main reasons for this were a clear downward trend in the European stove
market due to greater caution from end consumers in a turbulent world and the
return to a more pronounced traditional seasonal pattern, with the majority of
sales taking place in the second half of the year.
The trend in the North American market was positive, but because all our
production of stoves intended for North America is based in Canada, the
tariffs introduced between the USA and Canada have impacted the operating
margin. A clear improvement in demand is expected in the second half of the
year thanks to successful marketing activities in the first half, as well as
new product launches.
As in the case of the other two business areas, our ambition is to return to
an operating margin level within the business area’s historical range in 2025
but, realistically speaking, the recovery in this sector might take a little
longer.
Thanks to well-adjusted cost structures, strong product ranges, a good market
presence and well-invested facilities, all three of our business areas are
well equipped for the future.
Our strategy of moving towards continent-based manufacture and primarily
continent-based sub-suppliers is also creating more secure supply chains and
reducing vulnerability in respect of needs to be respect of trade obstacles.
We are also convinced that our products are a good fit for the times, with our
whole society needing to gradually transition to a more sustainable way of
living.
In summary, we are, therefore, looking to the future with a significant amount
of confidence. We will not by any means hold back in our efforts to achieve
our ambition to return to our three business areas’ respective historical
operating margin ranges for the full year 2025.
Markaryd, Sweden, August 22, 2025
Gerteric Lindquist
Managing Director and CEO
Contacts
For questions, please contact:
Fredrik Erlandsson, Head of Investor Relations
fredrik.erlandsson@nibe.se
+46 70-486 63 90
About Us
NIBE Group
– an international Group with companies and a presence worldwide
The NIBE Group is an international company that contributes to a reduced
carbon footprint and better utilization of energy. In our three business areas
– Climate Solutions, Element and Stoves – we develop, manufacture and market a
wide range of environmentally friendly, energy-efficient solutions for indoor
climate comfort in all types of properties, plus components and solutions for
intelligent heating and control in industry and infrastructure.
Since its beginnings in the town of Markaryd in the Swedish province of
Småland more than 70 years ago, NIBE has grown into an international company
with an average of 20,600 (22,500) employees and an international presence.
From the very start, the company has been driven by a strong culture of
entrepreneurship and a passion for corporate responsibility. Its success
factors are long-term investments in sustainable product development and
strategic acquisitions. Combined, these factors have brought about strong,
targeted growth, which generated sales of just under SEK 40 (47) billion in
2024.
NIBE has been listed under the name NIBE Industrier AB on the Nasdaq Nordic
Large Cap list since 1997, with a secondary listing on the SIX Swiss Exchange
since 2011.
Image Attachments
Gerteric Lindquist NIBE Group 2
(https://storage.mfn.se/7604cb4c-4997-4e8b-ab16-d8652d8e4545/gerteric-lindquist-nibe-group-2.jpeg)
Attachments
NIBE Industrier’s (publ) CEO and MD, Gerteric Lindquist, comments on the
second quarter, 2025
(https://storage.mfn.se/d1cc7fca-2271-4f46-9334-a1d610129abb/nibe-industriers-publ-ceo-and-md-gerteric-lindquist-comments-on-the-second-quarter-2025.pdf)
A quarter of continued recovery and a brighter outlook
The second quarter confirmed that the signs of improvement that we have observed since the end of the previous year have continued. While the effects of duties and tariffs have had some negative impact, it is primarily the politically unstable climate that has adversely affected the Group in the form of lower consumption and cautious consumers. The stronger Swedish krona is also partly obscuring the positive trend.
The Group’s sales in the second quarter amounted to SEK 10,082 million, an increase of only 0.5% on the second quarter of the previous year but, given the significantly stronger Swedish krona, we are clearly set on a course of continued growth. Operating profit in the quarter rose by SEK 275 million to SEK 944 million, an improvement of 41.1% compared with
the second quarter of 2024. The operating margin improved by 2.7 per[1]centage points, from 6.7% in the second quarter of the previous year to 9.4% in the second quarter of this financial year. An increase in sales, together with better productivity and continued good cost control, were the main reasons for the positive earnings growth in the quarter.
In both the first and the second quarters, we have, to the best of our ability, navigated in a world around us that is beset by an unusually turbulent political environment. This has, of course, been more challenging than expected but, at the same time, we can once again say that our broad international presence, together with our decentralized organization and our broad product offering, have ensured a relatively stable performance.
Business area NIBE Climate Solutions
In line with previous assumptions, we have seen a continued relative improvement in demand for heat pumps in Europe. The fact that the improvement in demand is also visible at the manufacturing stage provides confirmation that the inventories that had been built up by retailers and installation companies have dropped to more acceptable levels, resulting in a more predictable order and production situation.
The majority of the European markets are showing some degree of growth, with Germany, Italy, the Netherlands and Sweden accounting for the majority of overall growth.
Even though the overall heat pump market in Europe is still some way off its peak in 2023, future development seems positive. It is pleasing to see that end consumers are showing a preference for heat pumps instead of heating options that use fossil fuels.
The US heat pump market remained stable in the quarter. As regards the recently decided tariffs on trade between the EU and the USA, we note that these will, in principle, not affect our products, as the majority of our products aimed at the US market are produced in the USA. The current tax subsidies for heat pump installations undertaken by private individuals will be discontinued after the turn of the year but, at the same time, new financing opportunities will be introduced that will create new prospects, not least for the commercial side of our sector.
The business area’s financial performance both in the second quarter and in the first half of the year signaled a continued gradual recovery. Because of this, as well as expectations of a more traditionally season-oriented pattern in demand, meaning a stronger second half of the year, it remains our ambition to return to an operating margin level within the business area’s historical range during the full year. However, we also recognize that factors such as the uncertain external environment and the stronger Swedish krona will likely complicate matters.
Business area NIBE Element
As in the first quarter of the year, demand was relatively stable in the majority of the business area’s market segments in the second quarter. However, there are still significant variations between the segments. The industrial electrification and semiconductor segments recorded a strong performance, while demand in the segments for new property production and consumer-related products continued to report a weaker performance.
An improvement in both profit and margin was achieved by means of great flexibility, improved productivity and strict cost control despite challenging external factors.
In view of the performance in the first half of the year, together with expectations of somewhat improved demand in the second half, it remains our ambition to return to an operating margin level within the business area’s historical range.
However, it is difficult to assess the consequences of the uncertain external business environment.
Business area NIBE Stoves
Of the Group’s business areas, NIBE Stoves reported the weakest performance compared with the second quarter of the previous year.
The main reasons for this were a clear downward trend in the European stove market due to greater caution from end consumers in a turbulent world and the return to a more pronounced traditional seasonal pattern, with the majority of sales taking place in the second half of the year.
The trend in the North American market was positive, but because all our production of stoves intended for North America is based in Canada, the tariffs introduced between the USA and Canada have impacted the operating margin. A clear improvement in demand is expected in the second half of the year thanks to successful marketing activities in the first half, as well as new product launches.
As in the case of the other two business areas, our ambition is to return to an operating margin level within the business area’s historical range in 2025 but, realistically speaking, the recovery in this sector might take a little longer.
Thanks to well-adjusted cost structures, strong product ranges, a good market presence and well-invested facilities, all three of our business areas are well equipped for the future.
Our strategy of moving towards continent-based manufacture and primarily continent-based sub-suppliers is also creating more secure supply chains and reducing vulnerability in respect of needs to be respect of trade obstacles.
We are also convinced that our products are a good fit for the times, with our whole society needing to gradually transition to a more sustainable way of living.
In summary, we are, therefore, looking to the future with a significant amount of confidence. We will not by any means hold back in our efforts to achieve our ambition to return to our three business areas’ respective historical operating margin ranges for the full year 2025.
Markaryd, Sweden, August 22, 2025
Gerteric Lindquist
Managing Director and CEO
,A quarter of continued recovery and a brighter outlook
The second quarter confirmed that the signs of improvement that we have
observed since the end of the previous year have continued. While the effects
of duties and tariffs have had some negative impact, it is primarily the
politically unstable climate that has adversely affected the Group in the form
of lower consumption and cautious consumers. The stronger Swedish krona is
also partly obscuring the positive trend.
The Group’s sales in the second quarter amounted to SEK 10,082 million, an
increase of only 0.5% on the second quarter of the previous year but, given
the significantly stronger Swedish krona, we are clearly set on a course of
continued growth. Operating profit in the quarter rose by SEK 275 million to
SEK 944 million, an improvement of 41.1% compared with
the second quarter of 2024. The operating margin improved by 2.7 per[1]centage
points, from 6.7% in the second quarter of the previous year to 9.4% in the
second quarter of this financial year. An increase in sales, together with
better productivity and continued good cost control, were the main reasons for
the positive earnings growth in the quarter.
In both the first and the second quarters, we have, to the best of our
ability, navigated in a world around us that is beset by an unusually
turbulent political environment. This has, of course, been more challenging
than expected but, at the same time, we can once again say that our broad
international presence, together with our decentralized organization and our
broad product offering, have ensured a relatively stable performance.
Business area NIBE Climate Solutions
In line with previous assumptions, we have seen a continued relative
improvement in demand for heat pumps in Europe. The fact that the improvement
in demand is also visible at the manufacturing stage provides confirmation
that the inventories that had been built up by retailers and installation
companies have dropped to more acceptable levels, resulting in a more
predictable order and production situation.
The majority of the European markets are showing some degree of growth, with
Germany, Italy, the Netherlands and Sweden accounting for the majority of
overall growth.
Even though the overall heat pump market in Europe is still some way off its
peak in 2023, future development seems positive. It is pleasing to see that
end consumers are showing a preference for heat pumps instead of heating
options that use fossil fuels.
The US heat pump market remained stable in the quarter. As regards the
recently decided tariffs on trade between the EU and the USA, we note that
these will, in principle, not affect our products, as the majority of our
products aimed at the US market are produced in the USA. The current tax
subsidies for heat pump installations undertaken by private individuals will
be discontinued after the turn of the year but, at the same time, new
financing opportunities will be introduced that will create new prospects, not
least for the commercial side of our sector.
The business area’s financial performance both in the second quarter and in
the first half of the year signaled a continued gradual recovery. Because of
this, as well as expectations of a more traditionally season-oriented pattern
in demand, meaning a stronger second half of the year, it remains our ambition
to return to an operating margin level within the business area’s historical
range during the full year. However, we also recognize that factors such as
the uncertain external environment and the stronger Swedish krona will likely
complicate matters.
Business area NIBE Element
As in the first quarter of the year, demand was relatively stable in the
majority of the business area’s market segments in the second quarter.
However, there are still significant variations between the segments. The
industrial electrification and semiconductor segments recorded a strong
performance, while demand in the segments for new property production and
consumer-related products continued to report a weaker performance.
An improvement in both profit and margin was achieved by means of great
flexibility, improved productivity and strict cost control despite challenging
external factors.
In view of the performance in the first half of the year, together with
expectations of somewhat improved demand in the second half, it remains our
ambition to return to an operating margin level within the business area’s
historical range.
However, it is difficult to assess the consequences of the uncertain external
business environment.
Business area NIBE Stoves
Of the Group’s business areas, NIBE Stoves reported the weakest performance
compared with the second quarter of the previous year.
The main reasons for this were a clear downward trend in the European stove
market due to greater caution from end consumers in a turbulent world and the
return to a more pronounced traditional seasonal pattern, with the majority of
sales taking place in the second half of the year.
The trend in the North American market was positive, but because all our
production of stoves intended for North America is based in Canada, the
tariffs introduced between the USA and Canada have impacted the operating
margin. A clear improvement in demand is expected in the second half of the
year thanks to successful marketing activities in the first half, as well as
new product launches.
As in the case of the other two business areas, our ambition is to return to
an operating margin level within the business area’s historical range in 2025
but, realistically speaking, the recovery in this sector might take a little
longer.
Thanks to well-adjusted cost structures, strong product ranges, a good market
presence and well-invested facilities, all three of our business areas are
well equipped for the future.
Our strategy of moving towards continent-based manufacture and primarily
continent-based sub-suppliers is also creating more secure supply chains and
reducing vulnerability in respect of needs to be respect of trade obstacles.
We are also convinced that our products are a good fit for the times, with our
whole society needing to gradually transition to a more sustainable way of
living.
In summary, we are, therefore, looking to the future with a significant amount
of confidence. We will not by any means hold back in our efforts to achieve
our ambition to return to our three business areas’ respective historical
operating margin ranges for the full year 2025.
Markaryd, Sweden, August 22, 2025
Gerteric Lindquist
Managing Director and CEO
Contacts
For questions, please contact:
Fredrik Erlandsson, Head of Investor Relations
fredrik.erlandsson@nibe.se
+46 70-486 63 90
About Us
NIBE Group
– an international Group with companies and a presence worldwide
The NIBE Group is an international company that contributes to a reduced
carbon footprint and better utilization of energy. In our three business areas
– Climate Solutions, Element and Stoves – we develop, manufacture and market a
wide range of environmentally friendly, energy-efficient solutions for indoor
climate comfort in all types of properties, plus components and solutions for
intelligent heating and control in industry and infrastructure.
Since its beginnings in the town of Markaryd in the Swedish province of
Småland more than 70 years ago, NIBE has grown into an international company
with an average of 20,600 (22,500) employees and an international presence.
From the very start, the company has been driven by a strong culture of
entrepreneurship and a passion for corporate responsibility. Its success
factors are long-term investments in sustainable product development and
strategic acquisitions. Combined, these factors have brought about strong,
targeted growth, which generated sales of just under SEK 40 (47) billion in
2024.
NIBE has been listed under the name NIBE Industrier AB on the Nasdaq Nordic
Large Cap list since 1997, with a secondary listing on the SIX Swiss Exchange
since 2011.
Image Attachments
Gerteric Lindquist NIBE Group 2
(https://storage.mfn.se/7604cb4c-4997-4e8b-ab16-d8652d8e4545/gerteric-lindquist-nibe-group-2.jpeg)
Attachments
NIBE Industrier’s (publ) CEO and MD, Gerteric Lindquist, comments on the
second quarter, 2025
(https://storage.mfn.se/d1cc7fca-2271-4f46-9334-a1d610129abb/nibe-industriers-publ-ceo-and-md-gerteric-lindquist-comments-on-the-second-quarter-2025.pdf)
