Nibe Industrier (NIBE) investor relations material

Executive summary

• Achieved sixth consecutive quarter of strong organic growth and improved profitability, with Q2 2026 net sales reaching SEK 10,849 million, up 7.6% year-over-year (8.7% at fixed exchange rates), and operating profit increasing 30.5% to SEK 1,232 million.

• Growth was driven by robust demand for renewable energy and heating solutions, especially in Europe and North America, supported by geopolitical tensions and fossil fuel concerns.

• Cost control, productivity improvements, and recent investments contributed to margin expansion and higher operating results.

• All business areas contributed to growth except Stoves, which faced tariff headwinds but showed signs of recovery.

• Currency volatility was less pronounced this quarter, but remains a potential risk.

Financial highlights

• Q2 2026 net sales rose 7.6% year-over-year to SEK 10,849 million, with organic growth at 8.7%.

• Operating profit increased 30.5% to SEK 1,232 million, with an operating margin of 11.4% (up from 9.4%).

• Net profit margin improved to 9.4% from 6.9% year-over-year.

• Cash flow from operating activities for Q2 was SEK 1,428 million, up from SEK 957 million in Q2 2025.

• Net debt/EBITDA improved to 2.7x from 3.2x year-over-year.

Outlook and guidance

• Management expects a stronger second half of 2026, with traditional seasonal patterns re-established, especially in heating equipment and Stoves.

• Climate Solutions is expected to achieve an operating margin within the 13-15% range for the full year.

• Element targets an 8-11% operating margin, while Stoves is expected to remain below its historical margin due to tariffs.

• No major price increases anticipated due to stabilizing inflation and interest rates; focus remains on volume growth and product innovation.

• Management is optimistic about continued improvement in Stoves if tariffs are eased.