Interim report
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› SALES amounted to SEK 9,673 (9,494 million) › OPERATING PROFIT amounted to SEK 782 (-579) million › ADJUSTED OPERATING PROFIT amounted to SEK 782 (516) million › PROFIT AFTER NET FINANCIAL ITEMS amounted to SEK 514 (-911) million › ADJUSTED PROFIT AFTER NET FINANCIAL ITEMS amounted to SEK 514 (184) million › PROFIT AFTER TAX was SEK 391 (-861) million › ADJUSTED PROFIT AFTER TAX amounted to SEK 391 (34) million › EARNINGS per share before and after dilution, based on the average number of shares out- standing during the period, amounted to SEK 0.19 (-0.42) › EARNINGS per share adjusted for items affecting comparability before and after dilution, based on the average number of shares outstanding during the period, amounted to SEK 0.19 (0.02)
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2 NIBE · INTERIM REPORT 1, 2025 CEO GERTERIC LINDQUIS T’S REPORT Continued signs of recovery despite a slightly cautious market and political turbulence The first quarter of the year reinforced our assumptions about an ongoing recovery in our largest product categories. We saw a return to a more traditional seasonal pattern within the whole Group, at the same time as our improved margins strengthened our a mbition to return to an operating margin level within the historical range of each business area in 2025. However, the strengthening of the Swe- dish currency, together with political turbulence, are areas for con- cern. The Group’s sales in the first quarter amounted to SEK 9,673 million, up by 1.9% compared with the corresponding period in the previous year. This meant that the long downward trend in demand has come to an end and the cautious growth we could already see towards the end of the fourth quarter of 2024 has continued. Operating profit in the quarter rose by SEK 266 million to SEK 782 million, which corresponds to an improvement of 51.6% compared with the first quarter of the previous year. The operating margin improved from 5.4% in the first quarter of 2024 to 8.1% in t he first quarter of this year, corresponding to an improvement of 48.7%. A slight increase in sales together with the action plan implemented during 2024, as well as continued good cost control, were the main rea- sons for the positive earnings growth in the quarter. We are well aware that the slightly unexpected strengthening of the Swedish currency and the political turbulence, including all the ongoing and equally unexpected tariff announcements , will not help us realize our ambition, but, as always, we will do everything in our power to achieve our goals. Continued improvement in heat pumps for NIBE Climate Solutions In the first quarter of the year we saw, in line with previous assumptions, a continued relative improvement in demand for heat pumps in the manufacturing supply chain in Europe. The reduction in inventories that has been taking place in the Euro- pean distribution chains in the past six quarters has now brought inven- tories back to a level where we see a clearer correlation between order intake and billing in the manufacturing supply chain and actual deliver- ies to end customers. In Germany, too, where inventory reductions in the distribution chains have taken longer to implement compared with most other Eu- ropean markets, the mood about the future appears to be slightly more optimistic. This is particularly noticeable in the steadily growing number of applications for government subsidies for heat pump installations. The North American heat pump market remained stable during the quarter. Following the all too familiar turbulence in the heat pump market in the past five years, where the first four years, 2020 –2023, were domi- nated by very strong demand while in the last year, 2024, demand came to an almost complete halt, a more traditional seasonal pattern seems to have emerged. This means that demand is lower in the first half of the year and higher in the second half of the year. Stable but variations in NIBE Element’s various market segments The business area NIBE Element saw continued relatively stable de- mand in the majority of the business area’s market segments. However, there were still significant variations between the different segments. The continued weak performance of new property co nstruction and consumer-related products had a negative impact on the business area. The performance of the semiconductor industry and products asso- ciated with electrification in several industry sectors raised hopes of a continued gradual improvement in demand. Marketing activities and adaptation of production in NIBE Stoves The business area NIBE Stoves is seeing weaker growth in Europe while the North American market is showing an improvement in underlying demand. However, in line with the return to a more traditional seasonal pattern, marketing activities and the adjustment of production ahead of the expected increase in sales in the second half of the year dominated the business area’s operations. Cost reductions from the action plan en- sured that the operating margin was maintained despite lower sales. The lower interest rate level and expectations of further interest rate cuts in Europe provided a welcome shot in the arm for end consumers, which had a positive effect on all three business areas. Calendar May 15, 2025 8:00 AM (CEST) Interim Report 1, January – March 2025 11:00 AM (CEST) Teleconference (in English) 5:00 PM (CEST) Annual General Meeting Presentation of Interim Report 1, 2025 with opportunity to ask questions. Registration on our website www.nibe.com is required in order to access the presentation images and obtain a code for asking questions. August 22, 2025 8:00 AM (CEST) Interim Report 2, January – June 2025 11:00 AM (CEST) Teleconference (in English)
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NIBE · INTERIM REPORT 1, 2025 3 As part of the action plan, all of our three business areas have adjusted their costs to what we believe to be a lower but gradually improving rate of growth in demand in the future. Furthermore, alongside the cost re- ductions in production and administration, the business areas contin- ued their investments of development resources to strengthen and up- date their respective product programs. Similarly, the sales organiza- tions were allowed to remain intact in order to maintain a good market presence. The very ambitious investment program implemented in recent years is also creating good conditions for flexible and streamlined pro- duction, which will have a positive impact on margins as demand in- creases. Continent-based component supply and production Yet another factor worth mentioning is that we have been working for a long time to ensure that our business areas are, as far as possible, continent-based, that is, their production of products should take place on the same continent where they are sold. At the same time, we aim to have a corresponding continent -based network of sub -suppliers. This creates shorter, more secure supply chains, while also reducing vulner- abilities related to trade barriers. Our ambition remains unchanged Together, all of the above form the basis of our ambition to return to an operating margin within the historical range of each business area dur- ing 2025. We are, as already mentioned, well aware that the slightly un- expected strengthening of the Swedish currency and the political tur- bulence, including all the ongoing and equally unexpected tariff moves, will not help us realize our ambition, but, as always, we will do everything in our power to fulfill our commitment. Our long-term growth and prof- itability targets are also rooted in the certainty that our products are right for the times, with our whole society needing to transition to a more sustainable way of living. Gerteric Lindquist Managing Director and CEO Outlook for 202 5 • Our corporate philosophy and our strong range of products, with their focus on sustainability and energy efficiency, are in tune with the times in which we are living. • We are well prepared to continue being proactive on acquisitions. • Our internal efforts to enhance efficiency, combined with our rigorous cost-control measures, will ensure consistently healthy margins. • All three business areas have a good geographical spread, which makes us less vulnerable to local downturns in demand. • Our decentralized organization, based on independent units, is well proven and creates the conditions for greater motivation and flexibility. • The more acceptable inventory levels in the distribution chains will promote demand at the manufacturing level, while the already lower interest rates and hopes of one or more cuts will act as a stimulus for general consumption and thus the economy. • The effects of the current security situation around the world, a political development that is difficult to assess in both Europe and North America as well as in Asia, and the price volatility in relation to different types of energy, are difficult to predict. • However, as is our habit, and based on experience, we remain optimistic about our long-term performance, even though, in view of the above, it is difficult to assess the situation. Markaryd, Sweden, May 15, 2025 Gerteric Lindquist Managing Director and CEO
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4 NIBE · INTERIM REPORT 1, 2025 Sales The Group’s net sales amounted to 9,673 SEK million (9,494 SEK million), corresponding to growth of 1.9%. Purely organic sales increased by 1.8%, while acquired sales growth was 0.1%. Profit Profit for the period after net financial items was SEK 514 million, cor - responding to an increase of 156.4% compared with the same period in 2024, when it was SEK -911 million (adjusted SEK 184 million). Net finan- cial items amounted to SEK -268 million at the end of the period, an im- provement of SEK 64 million compared with the same period in the pre- vious year. Profit for the period was negatively affected by acquisition expenses of SEK 1 (3) million. Return on equity was 6.1% (12.7%). Investments During the year, the Group invested a total of SEK 619 (470) million. The investments mainly comprised investments in buildings and machinery and equipment in existing operations. Excluding leases, the deprecia - tion rate was SEK 370 million, compared with SEK 370 million in the cor- responding period in the previous year. The majority of the SEK 10 billion investment program adopted in 2020 has been implemented and the remaining investments in build - ings will be completed during the year. The remaining investments in capacity expansion will be gradually implemented as needed to meet any increase in demand. Cash flow and financial position Cash flow from operating activities before changes in working capital amounted to SEK 658 (-318) million. Cash flow after changes in working capital amounted to SEK 243 ( -259) million. Focused efforts to reduce high inventory levels are continuing . Interest-bearing liabilities at the end of the period amounted to SEK 23,601 million, compared with SEK 24,711 million at the start of the year. The Group’s available cash and cash equivalents amounted to SEK 5,082 million at the end of the pe- riod, compared with SEK 6,177 million at the start of the period. The eq- uity/assets ratio at the end of the period was 45.4%, compared with 45.6% at the start of the year. Parent Parent activities comprise Group executive management functions, certain shared Group functions and financing. Sales for the period to- taled SEK 22 (21) million and profit after financial items was SEK 48 ( - 349) million. NIBE Group Key ratios Q1 2025 Q1 2024 Past 12 months Full year 2024 Net sales SEK m 9,673 9,494 40,700 40,521 Growth % 1.9 -18.5 -8.5 -13.1 of which acquired % 0.1 5.5 2.0 3.3 Operating profit SEK m 782 516 * 3,492 * 3,226 * Operating margin % 8.1 5.4 * 8.6 * 8.0 * Profit after net financial items SEK m 514 184 * 2,421 * 2,091 * Profit margin % 5.3 1.9 * 5.9 * 5.2 * Equity/assets ratio % 45.4 44.4 45.4 45.6 Return on equity % 7.6 12.7 * 5.4 * 5.4 * * Profit and key ratios have been calculated excl. items affecting comparability Group sales by geographical region Net sales Past nine quarters (SEK million) Profit after financial items* Past nine quarters (SEK million) * excl. items affecting comparability
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NIBE · INTERIM REPORT 1, 2025 5 Business area trends Quarterly data Consolidated income statement 2025 2024 2023 (SEK million) Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net sales 9,673 9,494 10,035 9,967 11,025 11,646 11,833 11,514 11,656 Operating expenses -8,891 -10,073 -9,366 -9,055 -9,356 -9,891 -9,986 -9,735 -10,064 Operating profit 782 -579 669 912 1,669 1,755 1,847 1,779 1,592 Net financial items -268 -332 -273 -286 -244 -101 -146 -181 -214 Profit after net financial items 514 -911 396 626 1,425 1,654 1,701 1,598 1,378 Tax -123 50 -180 -193 -51 -380 -378 -378 -399 Net profit 391 -861 216 433 1,374 1,274 1,323 1,220 979 Net sales, business areas NIBE Climate Solutions 6,022 5,834 6,516 6,502 7,185 7,736 8,122 7,839 7,676 NIBE Element 2,888 2,711 2,819 2,711 2,851 3,013 2,957 2,945 2,983 NIBE Stoves 926 1,052 802 847 1,163 1,250 1,086 1,096 1,326 Elimination of Group transactions -163 -103 -102 -93 -174 -353 -332 -366 -329 Group total 9,673 9,494 10,035 9,967 11,025 11,646 11,833 11,514 11,656 Operating profit, business areas NIBE Climate Solutions 555 -462 506 726 830 1,353 1,538 1,484 1,221 NIBE Element 179 -126 142 160 186 280 243 235 184 NIBE Stoves 61 27 -3 24 95 165 101 99 168 Elimination of Group transactions -13 -18 24 2 558 -43 -35 -39 19 Group total 782 -579 669 912 1,669 1,755 1,847 1,779 1,592 Items affecting comparability, business areas* NIBE Climate Solutions 0 -794 0 0 -31 NIBE Element 0 -263 0 0 -4 NIBE Stoves 0 -38 0 0 -22 Acquisition-related revaluations 0 0 0 0 597 Group total 0 -1,095 0 0 540 Adjusted operating profit, business areas NIBE Climate Solutions 555 332 506 726 861 NIBE Element 179 137 142 160 190 NIBE Stoves 61 65 -3 24 117 Elimination of Group transactions -13 -18 24 2 -39 Group total 782 516 669 912 1,129 * Items affecting comparability - Action plan costs: SEK 1,095 million (Q1) + SEK 57 million (Q4) = SEK 1,152 million (full year) - Positive effect of acquisition-related revaluations: SEK 597 million
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6 NIBE · INTERIM REPORT 1, 2025 Slight increase in sales and improved margins In the quarter, we saw a certain increase in demand in the manufac- turing supply chain in most of the business area’s markets, resulting in a corresponding increase in sales compared with the same period in the previous year. We are seeing more balanced inventory levels at most wholesalers and installers, which shows that consumer de- mand is now more clearly reaching manufacturer, and installers and, consequently, consumer demand . A certain increase in volumes, to- gether with the action plan implemented in 20 24 and continued strict cost control, resulted in an improved operating margin in the quarter. It remains our a mbition to return to an operating margin level within the business area’s historical range during the year, even though the political turbulence in the external environment is a cause for concern. Market Demand for heat pumps in Europe showed continued signs of a small increase in the manufacturing supply chain during the quarter, confirm- ing underlying stable demand from end customers. This stable demand is returning distributors’ inventory levels to more acceptable levels, which in turn means that consumer demand is now also having a no- ticeable effect on manufacturers. We are seeing positive development in the Nordic countries and parts of Central Europe. In Germany, where it has taken longer for in- ventories to return to more acceptable levels and for demand to show a noticeable increase, the number of applications for s ubsidies for heat pump investments and installations continues to increase. The UK mar- ket is also showing positive development, with the establishment of a long-term financing program for heat pumps and simplified building permit regulations for heat pump installations. We also see positive signals in France and parts of Eastern Europe, but the recovery in these markets is slower. Recent interest rate reductions will benefit demand for our prod- ucts. At the same time, increasing political uncertainty, especially around the focus of energy policy in Europe and North America, pre- sents a challenge for investments in sustainable energy s olutions. The uncertainty may lead to a more cautious approach by both private indi- viduals and commercial operators on both continents. As before, it remains our view that heat pumps are primed for clear, long-term volume growth in the European market. However, as we have clearly communicated, this growth will take place at a slower rate than many parties, politicians as well as industry players, predicted just a couple of years ago. . The North American heat pump market remained stable in the quarter and we do not expect any significant changes in the short to medium term. This is despite the political uncertainty in the region. The commercial cooling and ventilation market was also stable in the quarter, both in Europe and North America. We have a strong product program and see continued good opportunities for growth in this seg- ment on both continents. The commercial cooling and ventilation sector is also a general focus area for the business area’s development of op- erations. After several years of either very high demand, such as in 2020 to 2023, or almost zero demand, as in 2024, the demand pattern in 2025 is expected to return to a more traditional seasonal pattern, with slightly lower demand in the first half of the year and significantly higher de- mand in the second half of the year. Operations Following the implementation of the action plan initiated in the previous year, we continued to exercise strict cost control in the quarter. At the same time, in line with previous communications, we decided to retain our resources in product development a nd sales. These initiatives, to- gether with efficiency improvements in the organization, have created good opportunities for operational flexibility and continued profitable growth. The actions that have been implemented will facilitate continued prod- uct and business development and, together with the significant invest- ments in our production units in recent years, have strengthened our oper- ational platform. The platform is characterized by efficiency as well as a high degree of scalability, ensuring that we are well placed to meet the coming increase in demand. Internal collaborations within the Group intensified in the quarter, with a particular focus on realizing synergies in areas such as purchasing, quality, production technology and product development. These synergies are ex- pected to contribute to additional efficiency measures and will remain pri- ority areas in the future. Offering our customers and other stakeholders training and education in our HVAC solutions is a strategic priority area. This work is primarily being conducted via our regional training centers. The official opening of our new marketing and training center, NIBE World of Energy, in Markaryd in Sweden will take place in the second quarter. The center is a hub for knowledge ex- change within the Group, innovation and our sustainability work. Training and education of customers and partners will be an integral part of our of- fering and a central component of our long-term expansion strategy. Business area NIBE Climate Solutions Key ratios Q1 2025 Q1 2024 Past 12 months Full year 2024 Net sales SEK m 6,022 5,834 26,225 26,037 Growth % 3.2 -24.6 -11.0 -17.0 of which acquired % 0.0 7.3 2.5 4.2 Operating profit SEK m 555 332 * 2,648 * 2,425 * Operating margin % 9.2 5.7 * 10.1 * 9.3 * Assets SEK m 45,201 47,165 45,201 48,102 Liabilities SEK m 5,213 5,903 5,213 5,782 Investments in non-current assets SEK m 249 442 1,573 1,767 Amortization/Depreciation SEK m 322 310 1,275 1,263 * Profit and key ratios have been calculated excl. items affecting comparability Sales and profit Sales for the period totaled SEK 6,022 million, compared with SEK 5,834 million in the corre - sponding period in the previous year. The increase in organic sales was 3.2%, corre- sponding to SEK 188 million. No acquired sales were recognized in the quarter. Operating profit for the period amounted to SEK 555 million, compared with SEK -462 million in the corresponding period in the previous year, with an operating margin of 9.2%, compared with - 7.9% in the previous year. Adjusted operating profit in the previous year was SEK 332 million, with a margin of 5.7%.
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NIBE · INTERIM REPORT 1, 2025 7 The business area’s product development remains a focus area, par- ticularly in light of the ongoing technical transition towards products featuring natural refrigerants and a high energy efficiency rating in line with future EU regulations. A corresponding transition to refrigerants with low global warming potential (GWP) is also taking place in North America. The business area’s results improved in the quarter as a direct result of consumer demand now reaching manufacturers, continued good cost control following the implementation of the action plan, and pro- active investments in marketing and sales. Against the background of the measures and adjustments implemented throughout the organiza- tion, our continued ambition is to return to an operating margin level within the business area’s historical range during 2025. NIBE WORLD OF ENERGY A place for meetings, training and inspiration Yesterday, Wednesday, May 14, County Governor Maria Arnholm offi- cially opened NIBE World of Energy. Right at the heart of NIBE’s operations in Markaryd in the Swedish province of Småland, we are now officially opening the doors to NIBE World of En- ergy – our new visitor and training center. The building brings together Nordic architecture and intelligent, sus- tainable energy solutions. Featuring natural materials and with a large fo- cus on sustainability, the building conforms to the highest environmental standard in the environmental classification system, “Miljöbyggnad Gold”. The 5,540 m2 facility, which has been designed to align with NIBE’s be- lief that reduced environmental impact is best achieved by means of inno- vative and energy efficient solutions, contains spaces for meetings, prac- tical and theoretical training in the company’s products and future energy solutions, social interaction and physical exercise. “I am convinced that NIBE World of Energy will become a natural Euro- pean center for discussion, training and development in efficient and re- newable energy use," says County Governor Maria Arnholm. "I am very proud of this great initiative in our region,” she adds. NIBE World of Energy is the crowning glory of a comprehensive invest- ment program in Markaryd, which also includes a new innovation center with the most advanced product development and laboratories in the in- dustry, including 42,000 m2 of new production space.
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8 NIBE · INTERIM REPORT 1, 2025 Stable demand in an unpredictable world Demand was relatively stable in the majority of the business area’s market segments in the early part of the year. However, there were still significant variations between the different segments, with the continued weaker performance of new property construction and consumer-related products having an impact on the business area. In the semiconductor industry and products associated with elec- trification in several industry sectors, the gradual improvement in demand continued. It remains our ambition to return to an operating margin level within the business area’s historical range during the year even though the political turbulence in the external environ- ment is a cause for concern. Market Demand was stable in the majority of the business area’s market seg- ments during the quarter. However, there were still large variations be- tween the different segments, which continued to require significant flexibility and preparedness. The weak development in new property construction in Europe con- tinued to adversely affect the business area’s sales to customers in manufacturing of e.g. convectors and domestic appliances. We have re- ceived signals from heat pump manufacturing customers that their fin- ished goods inventories have fallen to more acceptable levels while component inventories are still considered to be too high, which is why we are still waiting to see a recovery at our stage of the supply chain. In several of the business area’s market segments, we found that customers’ inventories had been reduced to acceptable levels and that demand was steadily improving. However, it is still difficult to assess when a recovery may take place in the remaining segments. In particu- lar, this applies to segments where a significant proportion of sales comprises sales to the HVAC industry and domestic appliance manu- facturers. The ambition to reduce harmful CO2 emissions means that the num- ber of industrial projects based on electric heating is growing steadily. Demand for various kinds of energy storage solutions is also growing. Most of these solutions involve some form of elec tric heating and con- trol, which benefits the business area because of its well -established position internationally in these product areas. The electrification of vehicles is presenting new business opportu- nities for the business area, with regard to both passenger cars and commercial vehicles. However, this market too is currently character- ized by increased uncertainty due to political decisions and because of technical issues impacting the launch of customers’ products. Demand in the railway sector is showing a growing trend, both in re- spect of infrastructure and heating of railway vehicles. The semiconductor segment has shown steady positive growth since the beginning of 2024. Large investments in expanding the sem- iconductor industry in both North America and Europe are currently be- ing made, with the aim of reducing dependence on Asian suppli ers in what is a key technology area for many industries. This will increase de- mand for our components and systems. Among other things, develop- ment is being driven by new applications and technical requirements in artificial intelligence (AI), but also by the fact that we are launching a large number of new products in this area. General market uncertainty increased in the quarter because of the rise in trade conflicts around the world following the changes in US trade policy. We are closely monitoring developments and will take any measures we consider appropriate on an ongoing basis. Our large, inter- national organization, with around 100 production units spread across the world, ensures we are in a good position to respond to and adapt to new situations. Overall, there is a risk that the current development will lead to a de- cline in demand in a number of the business area’s product segments. Operations In order to be able to meet the expected increase in demand in seg- ments with potentially strong organic growth in a cost -effective and flexible way, the business area has, in recent years, increased the pro- duction capacity of the relevant entities, both in terms of automation and capacity investments. At the same time, the sharp and rapid decline in demand in the construction industry has resulted in increased costs due to excess capacity in the short term. The semiconductor industry too saw a build -up of e xcess capacity in the wake of the above- men- tioned trade war, but this is now being reduced. As part of the action plan implemented in 2024, we reduced the number of employees in the organization and implemented a number of changes in production flows and capacity utilization in order to adapt to the prevailing market conditions in the short term. At the same time, as a subcontractor we need to be able to quickly increase capacity again when, as we know from experience, demand relatively suddenly picks up again. Continuing exchange rate volatility is having a considerable effect on pricing and competitiveness in our market segments. However, in this situation, our international presence with production units in dif- ferent currency zones gives us an advantage. In general, there are continuing shortages of skilled labor in several of the countries in which we have production units. We have a clear ambition area’s historical range in 2025 by means of our completed action plan and increased sales. Business area NIBE Element Key ratios Q1 2025 Q1 2024 Past 12 months Full year 2024 Net sales SEK m 2,888 2,711 11,269 11,092 Growth % 6.5 -10.0 -2.8 -6.8 of which acquired % 0.5 1.9 1.2 1.6 Operating profit SEK m 179 137 * 671 * 629 * Operating margin % 6.2 5.1 * 6.0 * 5.7 * Assets SEK m 15,385 15,676 15,385 16,421 Liabilities SEK m 2,513 2,986 2,513 2,587 Investments in non-current assets SEK m 72 134 510 571 Amortization/Depreciation SEK m 150 137 577 564 * Profit and key ratios have been calculated excl. items affecting comparability Sales and profit Sales amounted to SEK 2,888 million, compared with SEK 2,711 million in the corresponding period in the previous year. The increase in organic sales was 6.0%, corre- sponding to SEK 163 million. As a result of acquired sales, corresponding to SEK 14 million, the total in- crease in sales was SEK 177 million. Operating profit for the period totaled SEK 179 million, compared with SEK -126 million in the previ- ous year, with an operating margin of 6.2%, com- pared with -4.7% in the previous year. Adjusted op- erating profit in the previous year was SEK 137 mil- lion, with a margin of 5.1%.
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NIBE · INTERIM REPORT 1, 2025 9 Marketing activities and launches dominate In line with the return to a more traditional seasonal pattern, mar- keting activities and adjustment of production ahead of the ex- pected increase in sales in the second half of the year dominated operations. We are seeing weaker growth in Europe while the N orth American market is showing an improvement in underlying demand. Cost reductions from the action plan have allowed the operating margin to be maintained despite lower sales. It remains our ambition to return to an operating margin level within the business area’s his- torical range during the year even though the political turbulence in the external environment is a cause for concern. Market The trend from the latter part of the previous year has continued into the first few months of 2025. A slight improvement in demand for stove products in North America was offset by a continued decline in demand in Europe. It is also clear that the stove heating sector is returning to a traditional seasonal pat tern of lower sales in the first half of the year and a larger proportion of sales in the second half. Excess inventories at retailers in Europe have gradually returned to acceptable levels, and orders received from retailers were reflected in sales to end consumers in the way we used to see in the years before 2020, that is, before the pandemic and Russia’s invasion of Ukraine. Increasingly uncertain external conditions and hesitation around the implementation of additional interest rate cuts had a dampening ef- fect on both demand for consumer durables and interest in renovation. A mild winter with low energy prices, combined with a low level of new construction of all types of residential property and holiday homes were other factors that contributed to reducing demand for stove products. Overall, the dampening and constraining effects, combined with high comparative figures, meant that demand remained weak in Swe- den and Norway, which are the two main Scandinavian markets. Denmark is a relatively small market for stove products but reported a stable performance after several years of falling demand. The German market largely followed the development in Scandina- via, with sales of wood -fired stove products falling. The main reasons for this were low energy prices and uncertain conditions in the world around us. In the UK, the trend towards a return to a historic pattern of demand for the various types of stove products continued. Gas- fired products are once again becoming the dominant category, while demand for wood-fired products fell slightly. Demand for electr ic stoves remains good and relatively stable. Overall demand declined. The French market followed the development in the other European markets but the rate of decline was lower. Demand for pellet stoves in- creased, but from a low level. In North America we saw a slight increase in demand for stove prod- ucts towards the end of the previous year. This trend, which is mostly confined to the USA, continued at the start of 2025. Demand for gas- fired products, which is the clearly dominant produ ct group in North America, showed some improvement, while the trend of increased in- terest in electric stoves continued.. Operations As a result of the return to a traditional seasonal pattern, the first quar- ter was characterized by a large number of marketing activities for all brands in the business area in all main markets. The aim is both to con- duct sales-driving activities ahead of the important peak season in the second half of the year and work long term to further strengthen our market position. Because demand remains relatively weak, we are adapting produc- tion capacity in our manufacturing units in Europe to the current, sea- son-oriented market situation. In North America, our production capac- ity is already well matched to demand. Production plans have followed the normal seasonal pattern for a while now, in order to ensure compet- itive delivery times and a high degree of delivery reliability for the com- ing peak season. Despite lower sales in the first quarter of the year, the operating margin improved slightly compared with the previous year, primarily as a result of the cost -saving effects of the action plan implemented in 2024. Additionally, we are continuing our long -term efforts in sales, marketing and product development with the ambition to return to an operating margin level within the business area’s historical range in 2025. Business area NIBE Stoves Key ratios Q1 2025 Q1 2024 Past 12 months Full year 2024 Net sales SEK m 926 1,052 3,738 3,864 Growth % -12.0 -15.8 -18.0 -18.8 of which acquired % 0.0 1.9 0.5 1.0 Operating profit SEK m 61 65 * 199 * 203 * Operating margin % 6.6 6.2 * 5.3 * 5.3 * Assets SEK m 6,605 7,030 6,605 7,005 Liabilities SEK m 1,135 768 1,135 1,182 Investments in non-current assets SEK m 29 78 109 159 Amortization/Depreciation SEK m 54 56 220 222 * Profit and key ratios have been calculated excl. items affecting comparability Sales and profit Sales for the period amounted to SEK 926 million, compared with SEK 1,052 million in the correspond- ing period in the previous year. The decline in organic sales was 12%, corre- sponding to SEK 126 million. No acquired sales were recognized in the quarter. Operating profit for the period totaled SEK 61 mil- lion, compared with SEK 27 million in the previous year, with an operating margin of 6.6%, compared with 2.6% in the previous year. Adjusted operating profit in the previous year was SEK 65 million, with a margin of 6.2%
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10 NIBE · INTERIM REPORT 1, 2025 Condensed income statement Group Parent (SEK million) Jan-Mar 2025 Jan-Mar 2024 Past 12 months Full year 2024 Jan-Mar 2025 Jan-Mar 2024 Net sales 9,673 9,494 40,700 40,521 22 21 Cost of goods sold -6,804 -7,789 -28,562 -29,547 0 0 Gross profit 2,869 1,705 12,138 10,974 22 21 Selling expenses -1,360 -1,484 -5,774 -5,898 0 0 Administrative expenses -852 -923 -3,483 -3,554 -46 -41 Other operating income 125 123 1,151 1,149 0 0 Operating profit 782 -579 4,032 2,671 -25 -20 Net financial items -268 -332 -1,071 -1,135 73 -329 Profit after net financial items 514 -911 2,961 1,536 48 -349 Tax -123 50 -547 -374 0 4 Net profit 391 -861 2,414 1,162 48 -345 Net profit attributable to Parent shareholders 392 -857 2,422 1,173 48 -345 Net profit attributable to non- controlling interests -1 -4 -8 -11 0 0 Net profit 391 -861 2,414 1,162 48 -345 Includes amortization/depreciation according to plan as follows 527 503 2,073 2,049 0 0 Earnings per share before and after dilution, SEK 0.19 -0.42 1.20 0.58 0 0 Statement of comprehensive income Net profit 391 -861 2,414 1,162 48 -345 Other comprehensive income Items that will not be reclassified to profit or loss Actuarial gains and losses in retirement benefit plans 0 0 -47 -47 0 0 Tax 0 0 6 6 0 0 0 0 -41 -41 0 0 Items that may be reclassified to profit or loss Cash flow hedges 38 -8 -21 -67 0 0 Hedging of net investments 267 -198 321 -144 0 0 Exchange differences on translation of foreign operations -2,965 1,737 -2,269 2,436 0 0 Tax 76 -45 20 -101 0 0 -2,584 1,486 -1,949 2,124 0 0 Total other comprehensive income -2,584 1,486 -1,990 2,083 0 0 Total comprehensive income -2,193 625 424 3,245 48 -345 Comprehensive income attributable to Parent shareholders -2,182 629 432 3,248 48 -345 Comprehensive income attributable to non-controlling interests -11 -4 -8 -3 0 0 Total comprehensive income -2,193 625 424 3,245 48 -345
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NIBE · INTERIM REPORT 1, 2025 11 Condensed balance sheet Group Parent (SEK million) 31 Mar 2025 31 Mar 2024 31 Dec 2024 31 Mar 2025 31 Mar 2024 31 Dec 2024 Intangible assets 30,055 31,997 32,241 0 0 0 Property, plant and equipment 12,612 12,145 13,214 0 0 0 Financial assets 1,566 1,500 1,524 25,970 25,529 26,170 Total non-current assets 44,233 45,642 46,979 25,970 25,529 26,170 Inventories 9,866 12,847 10,644 0 0 0 Current receivables 7,245 7,049 7,176 494 118 505 Investments in securities, etc 383 398 579 0 0 0 Cash and bank balances 4,256 3,443 5,028 1 0 1 Total current assets 21,750 23,737 23,427 495 118 506 Total assets 65,983 69,379 70,406 26,465 25,647 26,676 Equity 29,946 30,831 32,140 8,299 9,004 8,252 Non-current liabilities, non-interest bearing 4,578 5,778 4,990 1,059 1,002 1,119 Non-current liabilities, interest bearing 16,990 17,185 17,625 12,142 11,667 12,295 Current liabilities, non-interest bearing 7,859 9,448 8,565 1,165 2,524 1,211 Current liabilities, interest bearing 6,610 6,137 7,086 3,800 1,450 3,800 Total equity and liabilities 65,983 69,379 70,406 26,465 25,647 26,676 Key ratios Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Growth % 1.9 -18.5 -13.1 Operating profit SEK m 782 -579 2,671 Operating profit excl. items affecting comparability SEK m 782 516 3,226 Operating margin % 8.1 -6.1 6.6 Operating margin excl. items affecting comparability % 8.1 5.4 8.0 Profit margin % 5.3 -9.6 3.8 Profit margin excl. items affecting comparability % 5.3 1.9 5.2 Investments in non-current assets incl. acquisitions SEK m 619 470 2,328 Available cash and cash equivalents SEK m 5,082 4,492 6,177 Working capital incl. cash and bank balances SEK m 13,891 14,289 14,862 as share of net sales % 34.1 32.1 36.7 Working capital excl. cash and bank balances SEK m 9,252 10,448 9,255 as share of net sales % 22.7 23.5 22.8 Interest-bearing liabilities/Equity % 78.8 75.6 76.9 Equity/assets ratio % 45.4 44.4 45.6 Return on capital employed % 8.3 9.7 5.8 Return on capital employed excl. items affecting comparability % 7.3 11.7 6.8 Return on equity % 7.6 9.8 4.0 Return on equity excl. items affecting comparability % 6.2 12.7 5.4 Net debt/EBITDA times 3.1 2.9 3.9 Net debt/EBITDA excl. action plan times 3.1 2.5 3.2 Net debt/EBITDA excl. items affecting comparability times 3.4 2.5 3.5 Interest coverage ratio times 2.2 -0.9 1.9 Interest coverage ratio excl. items affecting comparability times 2.2 1.4 2.3 Data per share Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Earnings per share (total 2,016,066,488 shares) SEK 0.19 -0.42 0.58 Earnings per share excl. items affecting comparability SEK 0.19 0.02 0.80 Equity per share SEK 14.84 15.27 15.92 Closing day share price SEK 37.93 52.56 43.24
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12 NIBE · INTERIM REPORT 1, 2025 Sales by geographical region (SEK million) NIBE Climate Solutions NIBE Element NIBE Stoves Eliminations Total Nordic region 1,339 371 156 -114 1,752 Europe (excl. Nordic region) 2,970 882 400 -39 4,213 North America 1,520 1,197 349 -6 3,060 Other countries 193 438 21 -4 648 Total 6,022 2,888 926 -163 9,673 Timing of revenue recognition (SEK million) NIBE Climate Solutions NIBE Element NIBE Stoves Eliminations Total Deliverables recognized as revenue at a point in time 5,887 2,732 926 -164 9,381 Service 39 0 0 0 39 Warranty 24 1 0 0 25 Other 72 155 0 1 228 Deliverables recognized as revenue over time 135 156 0 1 292 Total 6,022 2,888 926 -163 9,673 SERVICE CONTRACTS For certain products in Climate Solutions, NIBE offers customers the opportunity to sign one- year service contracts, under which NIBE undertakes to perform maintenance service and remedy certain defects that are not covered by the warranty provided. The sc ope of defects cannot be reliably predicted, so pricing is based on experience. Payment is received from customers annually i n advance, so deferred income will be recognized as revenue gradually over the coming 12-month period. EXTENDED WARRANTY PERIOD CONTRACTS For certain products in Climate Solutions, NIBE offers customers the opportunity to sign contracts for warranty periods that exceed those provided as standard. Standard warranty periods depend both on the type of product and the market in question. The lon gest contracts expire within six years. The scope of defects cannot be reliably predicted, so pricing is based on experience. Payment is received from customers on delivery of goods. Deferred income will be recognized as revenue gradually over the coming s ix-year period. Financial instruments measured at fair value (SEK million) 31 Mar 2025 31 Mar 2024 31 Dec 2024 Current receivables Currency futures 16 38 -22 Commodity futures 0 0 0 Total 16 38 -22 Current liabilities and provisions, non-interest bearing Currency futures 0 0 0 Commodity futures 0 -1 -1 Total 0 -1 -1 Non-current liabilities and provi- sions, interest bearing Interest rate derivatives -2 -20 53 Total -2 -20 53 No instruments have been offset in the statement of financial position, so all instruments are recognized at their gross value. For a detailed account of the measurement process, see Note 29 in the Annual Report for 2024. For other consolidated financial assets and liabilities, the carrying amounts represent a reasonable approximation of their fair value. A specification of the financial assets and liabilities involved is given in Note 29 in the Annual Report for 2024. Condensed cash flow statement (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Cash flow from operating activities 658 -318 3,826 Change in working capital -415 59 180 Investing activities -619 -470 -2,845 Financing activities -245 126 -64 Exchange difference in cash and cash equivalents -346 161 227 Change in cash and cash equiva- lents -967 -442 1,324 Condensed statement of changes in equity (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Opening equity 32,140 30,207 30,207 Shareholders’ dividend 0 0 -1,310 Dividend to non-controlling interests -1 -1 -2 Change in non-controlling interests 0 0 3 Comprehensive income for the period -2,193 625 3,242 Closing equity 29,946 30,831 32,140
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NIBE · INTERIM REPORT 1, 2025 13 Alternative performance measures Operating margin excl items affecting comparability (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Operating profit 782 -579 2,671 Items affecting compara- bility 0 1,095 555 Operating profit excl items affecting comparability 782 516 3,226 Net sales 9,673 9,494 40,521 Operating margin excl. items affecting compara- bility, % 8.1 5.4 8.0 Profit margin excl. items affecting comparability (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Proft after financial items 514 -911 1,536 Items affecting compara- bility 0 1,095 555 Profit excl. items affecting comparability 514 184 2,091 Net sales 9,673 9,494 40,521 Profit margin excl. items affecting comparability, % 5.3 1.9 5.2 Net investments in non-current assets (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Acquisition of non-current assets 638 476 2,352 Disposal of non-current assets -19 -6 -24 Net investments in non- current assets, incl. acqui- sitions 619 470 2,328 Available cash and cash equivalents (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Cash and bank balances 4,256 3,443 5,028 Investments in securities, etc. 383 398 579 Unutilized overdraft facilities 443 651 570 Available cash and cash equivalents 5,082 4,492 6,177 Working capital incl. cash and bank balances (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Total current assets 21,750 23,737 23,427 Current liablities and provi- sions, non-interest bearing -7,859 -9,448 -8,565 Working capital, incl. cash and bank balances 13,891 14,289 14,862 Net sales, past 12 months 40,700 44,497 40,521 Working capital, including cash and bank balances, in relation to net sales, % 34.1 32.1 36.7 Alternative performance measures are financial measures that are used by the company’s management and by inves- tors to evaluate the Group’s profit and financial position using calculations that cannot be directly derived from the financial statements. The alternative performance measures provided in this report may be calculated using methods that differ from those used to produce similar measures that are used by other companies. Working capital excl. cash and bank balances (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Inventories 9,866 12,847 10,644 Current receivables 7,245 7,049 7,176 Current liablities and provisions, non-interest bearing -7,859 -9,448 -8,565 Working capital excl. cash and bank balan- ces 9,252 10,448 9,255 Net sales, past 12 months 40,700 44,497 40,521 Working capital excluding cash and bank ba- lances, in relation to net sales, % 22.7 23.5 22.8 Return on capital employed (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Profit after net financial items, past 12 months 2,961 3,766 1,536 Financial expenses, past 12 months 1,609 1,418 1,647 Profit before financial expenses 4,570 5,184 3,183 Items affecting comparability -540 1,095 555 Profit excl. items affecting comparability 4,030 6,279 3,738 Capital employed at start of period 56,851 52,979 52,979 Capital employed at end of period 53,547 54,153 56,851 Average capital employed 55,199 53,566 54,915 Return on capital employed, % 8.3 9.7 5.8 Operating profit excl. items affecting comparability, % 7.3 11.7 6.8 Return on equity (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Profit after net financial items, past 12 months 2,961 3,766 1,536 Standard tax rate, % 20.6 20.6 20.6 Profit after net financial items, after tax 2,351 2,990 1,220 Of which attributable to Parent shareholders 2,359 2,987 1,231 Equity at start of period 32,098 30,160 30,160 Equity at end of period 29,910 30,788 32,098 Average equity 31,004 30,474 31,129 Return on equity, % 7.6 9.8 4.0 Return on equity excl. items affecting comparability (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Profit after net financial items, past 12 months 2,961 3,766 1,536 Items affecting comparability -540 1,095 555 Profit excl. Items affecting comparability 2,421 4,861 2,091 Standard tax rate, % 20.6 20.6 20.6 Profit after net financial items, after tax 1,922 3,860 1,660 Of which attributable to Parent shareholders 1,930 3,857 1,671 Equity at start of period 32,098 30,160 30,160 Equity at end of period 29,910 30,788 32,098 Average equity 31,004 30,474 31,129 Return on equity, excl. items affecting comparability, % 6.2 12.7 5.4
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14 NIBE · INTERIM REPORT 1, 2025 Net debt/EBITDA (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Non-current liabilities and provisions, interest bearing 16,990 17,185 17,625 Current liabilities and provisions, interest bearing 6,611 6,137 7,086 Cash and bank balances -4,256 -3,443 -5,028 Investments in securities, etc. -383 -398 -579 Net debt 18,962 19,481 19,104 Operating profit, past 12 months 4,032 4,639 2,671 Depreciation/amortization and impairment, past 12 months 2,007 2,168 2,245 EBITDA 6,039 6,807 4,916 Items affecting comparability, action plan 57 1,095 1,152 Items affecting comparability -540 1,095 555 EBITDA excl. action plan 6,096 7,902 6,068 EBITDA excl. items affecting comparability 5,499 7,902 5,471 Net debt/EBITDA, times 3.1 2.9 3.9 Net debt/EBITDA excl. action plan, times 3.1 2.5 3.2 Net debt/EBITDA excl. items affecting comparability, times 3.4 2.5 3.5 Interest coverage ratio (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Profit after net financial items 514 -911 1,536 Financial expenses 445 483 1,647 Profit before financial expenses 959 -428 3,183 Items affecting compara- bility 0 1,095 555 Profit excl. items affecting comparability 959 667 3,738 Interest coverage ratio, times 2.2 -0.9 1.9 Interest coverage ratio excl. items affecting com- parability, times 2.2 1.4 2.3 Earnings per share excl. items affecting comparability (SEK million) Jan-Mar 2025 Jan-Mar 2024 Full year 2024 Net profit attributable to Parent shareholders 392 -857 1,173 Items affecting compara- bility 0 895 441 Net profit excl. items affecting comparability 392 38 1,614 Earnings per share excl. items affecting compara- bility 0.19 0.02 0.80 The information in this report has not been reviewed by the company’s auditors. For further information on definitions, please refer to the company’s Annual Report for 2024. The interim report provides a fair review of the business, financial position and results of the Parent and the Group and describes the principal risks and uncertainties facing the Parent and companies in the Group. Markaryd, Sweden, May 15, 2025 Hans Linnarson Chairman of the Board James Ahrgren Board member Camilla Ekdahl Board member Eva Karlsson Board member Gerteric Lindquist Managing Director and CEO Anders Pålsson Board member Eva Thunholm Board member Accounting policies Risks and uncertainties NIBE Industrier’s consolidated accounts are prepared in accordance with Interna- tional Financial Reporting Standards (IFRS). NIBE Industrier’s interim report for the first quarter of 2024 has been prepared in accordance with IAS 34 Interim Financial Reporting. Disclosures i n accordance with IAS 34 16A are presented in the financial statements and related notes as well as in other parts of the interim report. For the Group, the accounting policies applied in this report are the same as those described on pages 140–175 of the Annual Report for 2024. Reporting for the Parent follows the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. Related party transactions have taken place to the same extent as in the previous year and the same accounting policies apply as described on page 141 of the Annual Report for 2024. NIBE Industrier is an international industrial group that is represented in around 40 coun- tries. As such, it is exposed to several business and financial risks. Risk management is, there- fore, an important process relative to the goals set by the company. Throughout the G roup, ef- ficient risk management routines are an ongoing process within the framework of the Group’s op- erational management and a natural part of the continual follow-up of activities. It is our opinion that no significant risks or uncertainties have arisen in addition to those described in NIBE In- dustrier’s Annual Report for 2024. .
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NIBE · INTERIM REPORT 1, 2025 15 Number of shares traded per trading day in thousands The information in this Interim Report is information that NIBE Industrier AB is obliged to publish under the Swedish Securities Market Act and/or the Financial Instruments Trading Act. This information was submitted for publication at 8:00 AM (CEST) on May 15, 2025. Please email any questions to: Gerteric Lindquist, MD and Group CEO, gerteric.lindquist@nibe.se Hans Backman, CFO, hans.backman@nibe.se The NIBE share NIBE’s Class B shares are listed on the NASDAQ Nordic Large Cap list in Stockholm, with a secondary listing on the SIX Swiss Exchange in Zurich. The NIBE share’s closing price on March 31, 2025 was SEK 37,93. In the first three months of 2025, NIBE’s share price fell by 12.3%, from SEK 43,24 to SEK 37,93. In the same period, the OMX Stockholm PI (OMXSPI) fell by 0.98% and the OMX Stockholm 30 (OMXS30) increased by 1.01%. At the end of March 2025, NIBE’s market capitalization, based on the latest price paid, was SEK 76,469 mil- lion. A total of 531,851,543 NIBE shares were traded, which corresponds to a share turnover of 105.5 % in the first quarter of 2025. All figures were restated following the 4:1 splits implemented in 2003, 2006, 2016 and May 2021, and the dilutive effect of the preferential rights issue in October 2016.
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NIBE Group – an international Group with companies and a presence worldwide The NIBE Group is an international Group that contributes to a reduced carbon footprint and better utilization of energy. In our three business areas – Climate Solutions, Element and Stoves – we develop, manufacture and market a wide range of environmentally friendly, energy-efficient solutions for indoor climate comfort in all types of properties, plus components and solutions for intelligent heating and control in industry and infra- structure. Since its beginnings in the town of Markaryd in the Swedish province of Småland more than 70 years ago, NIBE has grown into an international company with an average of 20,600 (22,500) employees and an international presence. From the very start, the com- pany has been driven by a strong culture of entrepreneurship and a passion for corpo- rate responsibility. In 2024, the Group's sales amounted to just over SEK 40 (47) billion. NIBE has been listed under the name NIBE Industrier AB on the Nasdaq Nordic Large Cap list since 1997, with a secondary listing on the SIX Swiss Exchange since 2011. NIBE Industrier AB (publ) Box 14, 285 21 MARKARYD Tel +46 433-27 30 00 www.nibe.com Corporate ID no.: 55 63 74 – 8309