Nibe Industrier (NIBE) Q1 2026 earnings summary

Executive summary

• Achieved fifth consecutive quarter of improved organic growth, operating result, and margin year-over-year, with organic growth at fixed exchange rates exceeding 7%.

• Positive development driven by strong product assortment, broad international presence, cost control, and productivity.

• Climate Solutions and Element segments showed solid improvements in both sales and margins, while Stoves faced significant headwinds from tariffs, weak consumer demand, and political turbulence.

• The business continues to benefit from electrification and digitalization trends, especially in process heating, heat pumps, and semiconductors.

Financial highlights

• Revenue reached SEK 9,650 million, with operating margin at 9.0%, up from 8.1% the previous year.

• Profit after financial items increased 31.3% to SEK 675 million, supported by lower borrowing and interest rates.

• Operating cash flow improved to SEK 324 million from SEK -376 million a year ago; investments were reduced by nearly two-thirds.

• Return on capital employed rose to 8.7% (from 7.3% a year ago), and return on equity increased to 9%.

• Net profit per share increased to SEK 0.25, and the equity/assets ratio approached 50%.

Outlook and guidance

• Climate Solutions is expected to achieve a full-year operating margin in the 13%-15% range, assuming continued volume growth and operational improvements.

• Element is projected to return to its historical margin range of 8%-11% for the full year.

• Stoves is forecasted to reach a 6%-8% margin due to new tariffs and challenging market conditions, down from the original 10%-13% target.

• Management anticipates a stronger second half of the year, following a traditional seasonal pattern.

• The company remains optimistic for 2026 and beyond, despite external uncertainties.