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1. Company Snapshot

1.a. Company Description

NIBE Industrier AB (publ), together with its subsidiaries, develops, manufactures, markets, and sells various energy-efficient solutions for indoor climate comfort, and components and solutions for intelligent heating and control in Nordic countries, rest of Europe, North America, and internationally.The company operates through three business areas: NIBE Climate Solutions, NIBE Element, and NIBE Stoves.The NIBE Climate Solutions business area offers indoor climate comfort products, such as heat pumps, ventilation products and air conditioning, climate control systems, water heaters and accumulator tanks, district heating products, PV panels, domestic boilers, commercial washing machines, and tumble dryers for homes, apartment blocks, and commercial properties.


The NIBE Element business area provides various components and solutions for heating and control, which include tubular, aluminum, foil, thick film, PTC, high-power, and ceramic elements, as well as open spirals and tapes, heating cables and jackets, vacuum brazing, heat pump technology, resistors, heat exchangers, temperature sensors, flexible hoses, and control equipment to domestic and household appliances; commercial products and professional kitchens; energy; transport; advanced technology; medicine; and aviation sectors, as well as industrial projects sectors.The NIBE Stoves business area offers free-standing, wood-burning, gas, and electric stoves; heat-retaining products; and chimney systems, as well as accessories.NIBE Industrier AB (publ) was founded in 1949 and is headquartered in Markaryd, Sweden.

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1.b. Last Insights on NIBE

NIBE Industrier AB's recent performance was driven by improved operating margins and robust cash flow, as reported in its Q4 2025 earnings call. Despite challenges in the Stoves segment and currency impacts, the company demonstrated strong margin recovery. This positive momentum is likely attributed to the company's efforts to address segment-specific challenges and mitigate currency fluctuations. According to its recent earnings release, NIBE Industrier's financials reflect a resilient business model. A recent rating upgrade or affirmation from a reputable source such as Bloomberg or Reuters could further validate the company's growth prospects.

1.c. Company Highlights

2. NIBE's Modest Growth and Margin Expansion

NIBE reported modest revenue growth, with a slight decline in Q4, but a 5% growth for the full year when adjusting for currency effects. The operating margin expanded to 13.1%, indicating a solid performance. Earnings per share (EPS) came in at 0.39, beating estimates of 0.269. The company's revenue growth was hindered by factors such as political and tariff issues, as well as a strengthening Swedish currency.

Publication Date: Feb -17

📋 Highlights
  • Full-Year Revenue Growth:: Adjusted for currency, revenue grew 5.1% to SEK 10.2 billion in 2025, with Q4 declining slightly by -0.8% to SEK 2.4 billion.
  • Operating Margin Recovery:: Operating margin improved to 13.1% in Q4 (up from 10.2% in Q3) and 12.3% for the full year, driven by cost savings and efficiency gains.
  • Climate Solutions Performance:: Segment achieved 7.6% revenue growth in 2025 (up 13% in Q4) with an operating margin of 13%, supported by strong Nordic and German markets.
  • Balance Sheet Strength:: Net debt to EBITDA ratio reduced to 2.7x from 2.9x, with SEK 2.2 billion in reduced interest-bearing liabilities and SEK 5.9 billion in cash reserves.
  • Element Segment Profit Growth:: Operating profit surged 17% YoY in Q4, with a 2 percentage point gross margin improvement and 8% revenue growth in 2025.

Segmental Performance

Climate Solutions had a strong finish to the year, with a 7.6% growth and an operating margin of 13%. Element also performed well, with an 8% growth and an improved gross margin. However, Stoves continued to struggle due to a difficult market, but managed to maintain its profit and improve its gross margin. As noted by the management, "Climate Solutions had a good and strong finish to the year, performing well in the Nordics, especially Sweden and Denmark, and then in Germany and the Netherlands, and to some extent, the U.K. and North America, especially in the commercial sector."

Balance Sheet and Cash Flow

The company's total assets declined to SEK 65 billion, mainly due to currency effects. Net debt to EBITDA decreased from 2.9 to 2.7, indicating a reduction in leverage. Cash flow from underlying operations improved by SEK 400 million, and the company generated a good cash flow from operations after changes in working capital. The working capital ratio is heading in the right direction, with a target of 20%.

Valuation

With a P/E Ratio of 27.8 and an EV/EBITDA of 17.76, the stock appears to be priced at a premium. However, the company's improving margins and reducing leverage could justify this valuation. The Dividend Yield is 0.76%, which may not be attractive to income investors. The ROE is 9.42%, indicating a reasonable return on equity. Overall, the valuation metrics suggest that the market is expecting a continued improvement in the company's performance.

3. NewsRoom

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NIBE Industrier AB (NDRBF) Q4 2025 Earnings Call Highlights: Strong Margin Recovery and ...

Feb -12

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NIBE Industrier AB (NDRBF) Q3 2025 Earnings Call Highlights: Strong Growth in Climate Solutions ...

Nov -14

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.54%)

6. Segments

Climate Solutions

Expected Growth: 5.5%

NIBE Industrier AB's 5.5% growth in Climate Solutions is driven by increasing demand for sustainable heating solutions, government incentives for renewable energy, and expanding product offerings in heat pumps and energy storage. Additionally, strategic acquisitions and partnerships have enhanced the company's market presence and technological capabilities, further fueling growth.

Element

Expected Growth: 6.2%

NIBE Industrier AB's 6.2% growth is driven by increasing demand for energy-efficient heating solutions, expansion into new markets, and strategic acquisitions. The company's focus on sustainable products and cost savings initiatives also contribute to its growth. Additionally, investments in research and development have enabled NIBE to stay ahead of the competition and capitalize on emerging trends in the industry.

Stoves

Expected Growth: 5.8%

NIBE Industrier AB's 5.8% growth in stoves is driven by increasing demand for eco-friendly heating solutions, government incentives for sustainable energy, and rising consumer awareness of climate change. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth.

Eliminations

Expected Growth: 0.0%

With 0.0% growth, NIBE Industrier AB (publ) faces stagnation. Key fundamental drivers contributing to this flat growth include stagnant demand in the heating technology segment, intense competition, and lack of innovation. Additionally, high raw material costs, inefficient production processes, and limited geographic diversification are hindering the company's ability to expand.

7. Detailed Products

Heat Pumps

NIBE's heat pumps are designed to provide efficient and environmentally friendly heating solutions for residential and commercial buildings.

Boilers

NIBE's boilers offer a range of efficient and reliable heating solutions for residential and commercial applications.

Stoves and Fireplaces

NIBE's stoves and fireplaces provide a cozy and efficient way to heat homes, with a focus on design, functionality, and environmental sustainability.

Ventilation and Air Handling

NIBE's ventilation and air handling solutions provide efficient and healthy indoor air quality for residential and commercial buildings.

Heat Recovery and Energy Storage

NIBE's heat recovery and energy storage solutions optimize energy efficiency and reduce energy costs for residential and commercial buildings.

8. NIBE Industrier AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

NIBE Industrier AB (publ) operates in the heating technology industry, where substitutes are limited. However, there is a growing trend towards renewable energy sources, which could pose a threat to the company's traditional heating products.

Bargaining Power Of Customers

NIBE Industrier AB (publ) has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

NIBE Industrier AB (publ) relies on a few key suppliers for critical components. While the company has some bargaining power due to its size, suppliers may still have some leverage in negotiations.

Threat Of New Entrants

The heating technology industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to challenge established players like NIBE Industrier AB (publ).

Intensity Of Rivalry

The heating technology industry is highly competitive, with several established players competing for market share. NIBE Industrier AB (publ) faces intense rivalry from companies like Vaillant, Viessmann, and Bosch.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.06%
Debt Cost 5.19%
Equity Weight 58.94%
Equity Cost 10.09%
WACC 8.08%
Leverage 69.66%

11. Quality Control: NIBE Industrier AB (publ) passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
BELIMO

A-Score: 5.3/10

Value: 0.0

Growth: 5.4

Quality: 8.2

Yield: 5.6

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Tarkett

A-Score: 5.2/10

Value: 7.9

Growth: 2.9

Quality: 2.4

Yield: 0.0

Momentum: 10.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Rockwool

A-Score: 5.0/10

Value: 5.3

Growth: 7.0

Quality: 6.7

Yield: 5.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Travis Perkins

A-Score: 3.9/10

Value: 8.0

Growth: 1.3

Quality: 2.6

Yield: 5.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Marel

A-Score: 3.4/10

Value: 3.0

Growth: 4.0

Quality: 2.4

Yield: 0.6

Momentum: 5.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
NIBE Industrier

A-Score: 2.9/10

Value: 3.0

Growth: 5.0

Quality: 4.3

Yield: 1.2

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.35$

Current Price

39.35$

Potential

-0.00%

Expected Cash-Flows