Nibe Industrier (NIBE) Investor Update summary

Market outlook and demand trends

• Signs of cautious market recovery are visible, with underlying demand gradually increasing across all business segments, though seasonality has become more pronounced after years of market distortion from COVID and geopolitical events.

• Inventory levels have normalized, and end-user demand is now more directly reflected at the manufacturer level.

• Lower interest rates are expected to further stimulate demand, especially in Europe, as consumers remain sensitive to borrowing costs.

• Volume and revenue are expected to rise moderately, with a target to return to historical operating margin levels for the full year.

Strategic positioning and growth targets

• The long-term target of 10% organic growth per business cycle remains unchanged, driven by the ongoing transition from fossil fuels to alternative heating solutions in Europe and the U.S.

• The company is confident in the continued shift to electricity-based heating, viewing it as a durable trend.

• In the U.S., the business is well-positioned to meet local manufacturing requirements, and while federal subsidies are uncertain, state and utility support is expected to continue.

Pricing, competition, and product mix

• No significant price reductions have been made on high-spec products; instead, a broader range of entry-level products is offered to address consumer caution.

• Competitive pressure is present, but maintaining margins is prioritized over volume, and the product mix is adjusted to market conditions.

• Seasonality is returning, with the second half of the year typically stronger due to construction cycles and consumer behavior.