Swedish industrial group NIBE Industrier AB reported a sixth consecutive quarter of margin expansion in Q2 2026, with operating profit rising 30.5% to 1.23 billion Swedish kronor (MSEK) on sales of 10.85 billion MSEK, up 7.6% year-over-year.
The group’s operating margin expanded by 200 basis points to 11.4%, supported by a 180-basis-point increase in gross margin to 32.1% and a 250-basis-point rise in net profit margin to 9.4%. Profit after net financial items grew 46.4% to 1.03 billion MSEK. Organic sales growth accelerated to 8.7%, offsetting a 1.6% currency headwind and adding 0.5% from acquisitions.
Cash flow improved significantly, with operating cash flow rising to 796 MSEK from a negative 116 MSEK in the same period last year. Gross operating cash flow before adjustments reached 1.43 billion MSEK, while working capital changes reduced the net figure. Investments in current operations totaled 329 MSEK, down from 482 MSEK a year earlier.
NIBE’s balance sheet strengthened, with total assets increasing to 69.1 billion MSEK as of June 30, 2026, up from 67.9 billion MSEK a year ago. Equity rose to 32.3 billion MSEK, lifting the equity-to-assets ratio to 46.8% from 44.0%. Net debt-to-EBITDA improved to 2.7 times from 3.2 times, while interest-bearing liabilities relative to equity declined to 72.2% from 86.4%.
Geographically, North America accounted for 29% of group sales, Europe (excluding Nordics) 45%, Nordic countries 19%, and other markets 7%. The group’s largest division, Climate Solutions, reported net sales of 7.33 billion MSEK, up 7.3%, with an operating margin of 13.8%. Element, the second-largest division, posted net sales of 3.12 billion MSEK, up 11.8%, and an operating margin of 8.9%, returning to its historical target range of 8–11%. Stoves, the smallest division, saw a modest 1.2% sales increase to 686 MSEK but narrowed its operating loss to 24 MSEK from 51 MSEK a year earlier.
For the first half of 2026, NIBE reported invoiced sales of 20.5 billion MSEK, up 3.8%, and an operating margin of 10.2%. Return on capital employed rose to 8.9% from 8.5%, while return on equity increased to 9.2% from 8.4%. The group maintained its operating margin guidance for Climate Solutions at 13–15%, though Stoves revised its short-term margin target to 6–8% from 10–13% due to newly imposed U.S.-Canada tariffs, which are expected to reduce annual operating profit by approximately 150 million Swedish kronor.
