Nibe Industrier (NIBE) Q2 2025 earnings summary

Executive summary

• Q2 2025 and the first half of the year showed continued recovery, with improved sales, earnings momentum, and a brighter outlook across all business areas.

• Sales for H1 2025 reached SEK 19,755 million, up 1.2% year-over-year, with organic growth of 1.0%.

• Operating profit surged to SEK 1,726 million, with an operating margin of 8.7%; Q2 operating margin rose to 9.4% with operating profit around SEK 944 million.

• Management remains committed to restoring historical operating margins, despite ongoing uncertainties from tariffs, currency, and geopolitical factors.

• Positive consumer trends toward heat pumps and increased productivity contributed to earnings growth.

Financial highlights

• Invoiced sales for Q1-2 2025 were SEK 19,755 million, up 1.2% year-over-year; Q2 sales were SEK 10,082 million (+0.5%).

• Operating profit rose 45.7% to SEK 1,726 million, with an operating margin of 8.7%; Q2 operating profit up 41.1% to SEK 944 million.

• Gross margin improved to 30.0% from 28.2% year-over-year; net profit margin increased to 6.1% from 3.0%.

• Net profit per share improved to SEK 0.44 from SEK -0.32.

• Cash flow from operating activities before working capital changes was SEK 1,615 million, up from SEK 721 million; available cash at period end was SEK 6,033 million.

Outlook and guidance

• Management expects a stronger second half of 2025, aiming to return to historical operating margin ranges across all business areas.

• Growth in Climate Solutions is expected to continue, with positive trends in Sweden, Germany, and the Netherlands.

• CapEx is expected to gradually decrease, returning to maintenance levels by 2026.

• Acquisition activity is likely to increase as market expectations normalize.

• Lower interest rates and normalized inventory levels are expected to stimulate demand.