NIBE Industrier AB (NIBE.B) AI Stock Analysis

• Market Cap: kr68.02B
• Dividend Yield: 0.86%
• Average Volume (3M): 6.31M
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.56
• Revenue Growth: -0.69%
• EPS Growth: 269.86%
• Country: SE
• Employees: 19,597
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.39
• Shares Outstanding: 1,782,936,200
• 10 Day Avg. Volume: 5,483,716
• 30 Day Avg. Volume: 6,309,914
• PEG Ratio: 0.33
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr50.00
• Price Target Upside: 47.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.62
• Revenue Forecast (FY): kr42.24B

• Rating: 45 Neutral
• Price Target: kr34.00 ▲(0.06% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back primarily by weak and volatile cash generation (including zero free cash flow in 2025) and two years of revenue decline. Technicals add pressure with the stock trading below all major moving averages, while valuation remains high (P/E 35.74) with a modest dividend yield, limiting downside protection.

Positive Factors

Diversified business model

NIBE's three distinct business areas provide multiple durable revenue streams across products, channels and end-markets. Climate Solutions benefits from structural electrification of heating, Element supplies OEMs, and Stoves serves retail—reducing single-market dependence and smoothing cycles.

Recovering profitability

Improved gross and operating margins in 2025 indicate better cost control or mix and stronger operational execution versus a weak 2024 base. Sustained margin recovery supports reinvestment capacity and resilience through cycles if top-line stability returns and cost discipline persists.

Manageable leverage level

Equity remaining above total debt and mid-0.7x debt-to-equity suggests leverage is within manageable industry ranges, preserving access to financing for capex or acquisitions. This structural cushion supports strategic flexibility despite recent trends.

Negative Factors

Weak cash generation

Volatile and weak free cash flow—including zero FCF in 2025—is a durable concern: it limits self-funding of capex, acquisitions and dividends, increases reliance on external financing, and exacerbates vulnerability to cyclical downturns or rising interest costs.

Sustained revenue decline

Two straight years of top-line decline signal weakening demand or competitive pressure that can erode scale advantages and pricing power. Without a durable reversal, sustained revenue contraction constrains margin expansion and long-term earnings growth potential.

Leverage trending higher

A rising leverage trend and declining equity reduce balance-sheet flexibility over time. Coupled with weak cash generation, higher leverage increases refinancing and interest-rate risk, and limits capacity for opportunistic M&A or weathering prolonged demand softness.

NIBE Industrier AB Business Overview & Revenue Model

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.

How the Company Makes Money

NIBE Industrier AB generates revenue through the sale of its heating and climate control products across its three business segments. The primary revenue streams include the sale of heat pumps, which are increasingly in demand due to the global shift towards renewable energy sources and energy-efficient systems. NIBE also earns income from the sale of stoves and industrial heating systems, supplemented by services such as installation, maintenance, and aftermarket support. Key partnerships with suppliers and distributors enhance their market reach and customer base. Additionally, the company's focus on research and development allows it to innovate and introduce new products, further driving sales and profitability.

NIBE Industrier AB Financial Statement Overview

Summary

Mixed fundamentals: profitability improved in 2025 vs. a weak 2024 and the balance sheet remains broadly stable, but revenue has declined for two consecutive years and cash generation is a key concern with free cash flow falling to zero in 2025 and showing volatility over time.

Income Statement

Profitability has recovered in 2025 (annual) versus 2024, with higher gross and operating margins and net income improving materially. However, the growth profile has weakened: revenue has declined for two consecutive years (2024 and 2025), and profitability remains well below the 2022–2023 peak (when operating and net margins were meaningfully higher). Overall, the income statement shows improving execution off a weak 2024 base, but the top-line contraction and lower-through-cycle margins cap the score.

Balance Sheet

The balance sheet looks reasonably stable with equity consistently exceeding total debt and debt-to-equity staying around the mid-0.7x range in 2023–2025. That said, leverage is notably higher than 2021–2022 (when debt-to-equity was closer to ~0.4–0.5x), and equity has drifted down from 2024 to 2025 alongside a reduction in total assets—signaling less balance-sheet flexibility than in prior years. Net, leverage appears manageable but is trending in the wrong direction versus the earlier period.

Cash Flow

Cash generation is the main weak spot. Operating cash flow improved in 2025, but free cash flow fell to zero in 2025 (annual) after being positive in 2024, and free cash flow has been volatile over the full period (including very low levels in 2022–2023). Cash conversion also looks weaker than earnings power in several years, with operating cash flow relatively low versus net income at times, pointing to working-capital or investment demands that pressure cash returns.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.84B	40.52B	46.65B	40.07B	30.83B
Gross Profit	12.87B	10.97B	15.62B	12.61B	10.20B
EBITDA	5.80B	5.04B	9.01B	7.45B	5.83B
Net Income	2.28B	1.17B	4.79B	4.35B	3.32B
Balance Sheet
Total Assets	65.06B	70.41B	68.10B	53.99B	43.39B
Cash, Cash Equivalents and Short-Term Investments	5.46B	5.61B	4.28B	4.82B	4.75B
Total Debt	22.56B	24.34B	22.47B	11.14B	9.78B
Total Liabilities	34.77B	38.27B	37.90B	26.02B	21.74B
Stockholders Equity	30.25B	32.09B	30.16B	27.93B	21.44B
Cash Flow
Free Cash Flow	0.00	1.83B	110.00M	373.00M	1.94B
Operating Cash Flow	4.89B	4.01B	3.83B	2.61B	3.26B
Investing Cash Flow	-2.94B	-2.85B	-12.60B	-2.78B	-2.01B
Financing Cash Flow	-1.49B	-64.00M	8.35B	-151.00M	-1.50B

NIBE Industrier AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NIBE.B, the sentiment is Negative. The current price of 33.98 is below the 20-day moving average (MA) of 36.67, below the 50-day MA of 36.47, and below the 200-day MA of 38.18, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 16.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:NIBE.B.

NIBE Industrier AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWEC.B	65 Neutral	kr49.15B	24.43	18.52%	2.20%	2.79%	14.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SYSR	58 Neutral	kr14.52B	34.37	11.96%	1.55%	2.11%	13.90%
LIAB	57 Neutral	kr11.60B	21.04	7.36%	2.61%	-1.96%	-19.69%
BEIJ.B	57 Neutral	kr67.08B	32.51	11.04%	0.95%	9.08%	-3.36%
MTRS	55 Neutral	kr29.72B	296.38	2.49%	0.93%	4.97%	-65.71%
NIBE.B	45 Neutral	kr68.02B	31.54	9.65%	0.86%	-0.69%	269.86%

NIBE Industrier AB Corporate Events

NIBE Delivers Earnings Recovery in 2025 Despite Flat Sales and Turbulent Markets

NIBE Industrier reported virtually flat fourth-quarter and full-year 2025 net sales, but delivered a strong earnings recovery thanks to organic growth, tighter cost control and improved productivity. Adjusted operating profit rose to SEK 1,438 million in the quarter and SEK 4,303 million for the year, lifting margins, while the board proposed a higher dividend, signalling confidence despite currency headwinds and volatile tariffs.

The Climate Solutions business saw renewed demand for heat pumps in key European markets and stable geothermal activity in North America, supporting a return to its target margin range. The Element division achieved margin improvements despite mixed demand across industrial and construction segments, underscoring that NIBE’s diversified portfolio and international footprint are helping it navigate political tension, duties and a turbulent macro environment while maintaining a gradual recovery trajectory.

The most recent analyst rating on ($SE:NIBE.B) stock is a Buy with a SEK50.00 price target. To see the full list of analyst forecasts on NIBE Industrier AB stock, see the SE:NIBE.B Stock Forecast page.

NIBE Industrier Signals Continued Recovery as Margins Improve Across Key Divisions

NIBE Industrier reported that its fourth-quarter performance confirmed a gradual market recovery through 2025 despite tariffs and rising geopolitical tensions weighing on demand. Group net sales were SEK 11,000 million, slightly below last year in reported terms but equivalent to 6.8% growth at fixed exchange rates, while adjusted operating profit and margins improved on the back of organic growth, cost control and productivity gains.

Management highlighted that the group maintained relatively stable sales and operating profit through a sharp 2024 downturn and a turbulent 2025, reinforcing confidence in its decentralized model and wide product range. The Climate Solutions division saw improving heat pump demand in key European markets and stable North American geothermal activity, achieving a full-year operating margin back within its 13–15% target range, while NIBE Element delivered higher margins despite uneven sector demand, with rail, HVAC and semiconductors offsetting weakness in construction and consumer-related products.

The most recent analyst rating on ($SE:NIBE.B) stock is a Buy with a SEK50.00 price target. To see the full list of analyst forecasts on NIBE Industrier AB stock, see the SE:NIBE.B Stock Forecast page.