NIBE Industrier AB
(LTS:0RH0)
kr
42.28
+3.17 (+8.1%)
Market Cap: 84.65 Bil
Enterprise Value: 102.63 Bil
PE Ratio: 32.05
PB Ratio: 2.62
GF Score: 83/100 
Q2 2026 Nibe Industrier AB (publ) Earnings Call Transcript
Aug 21, 2026 / 09:00AM GMT
Release Date Price:
kr42.29
(+8.10%)
Key Points
Positve
- NIBE Industrier AB (NDRBF) reported its sixth consecutive quarter of revenue and profit growth, with organic growth of 7.6% (8.7% excluding currency effects), indicating a strong and sustained upward trend.
- The company's operating margin improved significantly to 13.8% in Q2, within its target range of 13-15%, driven by improved gross margins and cost discipline.
- Climate Solutions saw robust growth of 9% organically, with strong performance in European heat pump markets and commercial HVAC, while the US residential decline was less severe than anticipated.
- NIBE Element delivered exceptional growth of 11.6%, driven by strong demand in the semiconductor segment, particularly in North America, and a recovering HVAC market.
- The company's major investment program is complete, leading to reduced capital expenditures and a strong cash flow increase of 50% in Q2, positioning it well for future growth and potential acquisitions.
- NIBE Industrier AB (NDRBF) successfully mitigated tariff impacts in Climate Solutions and Element due to local manufacturing footprints, and is actively managing the Stoves tariff situation through ongoing negotiations.
- The company is seeing early signs of demand improvement in the Stoves segment, with organic growth of 1.8% in Q2, and expects a seasonal comeback in the second half.
- NIBE Industrier AB (NDRBF) maintains a strong balance sheet with net debt at 2.65x, expected to decline to around 2.0-2.1x by year-end, and has successfully issued a bond that was oversubscribed.
- The company is expanding its product portfolio with new air-to-air heat pumps under the NIBE brand, which are being launched in the market and are expected to supplement existing offerings without burdening margins.
- Management remains disciplined on costs and is focused on long-term supplier partnerships to drive down costs, ensuring sustainable margin improvements.
Negative
- The Stoves business area continues to face significant headwinds from US tariffs, which were worsened in April 2026, leading to a negative operating margin and uncertainty about future mitigation.
- New construction activity remains slow in Europe and elsewhere, dampening demand for home comfort products and affecting the overall market.
- The US residential heat pump market declined due to the removal of tax subsidies, although the drop was less than expected, it still negatively impacted sales.
- The company's operating margin on a rolling 12-month basis is still below its target range at 12.2%, indicating there is still work to be done to reach the 13-15% goal.
- Geopolitical uncertainty and tariff negotiations between Canada and the US create an unpredictable environment for the Stoves segment, with potential for further negative impacts.
- The company's return on capital employed and return on equity are not yet at targeted levels, though they are improving.
- Inflation and interest rate changes limit the company's ability to implement price increases, requiring a focus on volume growth and cost control instead.
- The company's working capital increased due to inventory buildup for the second half, which could tie up cash if demand does not materialize as expected.
- The Element business area's growth is heavily reliant on the semiconductor segment, which is subject to cyclicality and concentration risk with major customers.
- The company's acquisition strategy has been cautious since the peak-cycle acquisition in 2023, potentially limiting growth opportunities in the near term.
Operator
Welcome to the Nibe Q2 presentation for 2026. (Operator Instructions) Now I will hand the conference over to the CEO Gerteric Lindquist and CFO Hans Backman. Please go ahead.
Gerteric Lindquist Nibe Industrier AB;publ;Managing Director;Chief Executive Officer
()-&
Thank you very much. Good morning, good afternoon. Whatever it means to you are sitting out there, we are back and we're going to give you like 20, 25 minutes presentation of the report. And then we're going to of course invite you for questions. Just a couple of things. We have to finish around 11 because we have other tasks to fulfill today. And also we would ask you to only put two questions at a time. To allow as many as possible to get their questions of course.
Hans Backman;publ;Chief Financial Officer;Gerteric Lindquist Nibe Industrier AB
Nibe Industrier AB
()-
Yes, hello also from my side, Hans here and I'll be happy to fill in where Eric hands over.
(
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