Swedish heat pump maker NIBE Industrier reported a 41.1% rise in second-quarter operating profit, signaling a continued recovery from a market downturn that prompted a major cost-cutting plan last year.
Operating profit for the quarter rose to 944 million Swedish kronor, up from the previous year, while sales increased by 0.5% to 10.08 billion Swedish kronor.
The company attributed the earnings growth to higher sales, improved productivity, and good cost control, which helped offset a politically unstable climate that has led to lower consumption and more cautious consumers.
NIBE said it is increasingly focusing on localizing its production and suppliers to navigate global trade challenges.
"Our strategy of moving towards continent-based manufacture and primarily continent-based sub-suppliers is also creating more secure supply chains and reducing vulnerability in respect of... trade obstacles," the company said in a statement.
Demand for its Climate Solutions products, primarily heat pumps, continued to improve in Europe as retailer inventories returned to more normal levels, according to the company.
However, its Stoves business area reported the weakest performance, citing a downward trend in the European market and the impact of U.S.-Canada tariffs on its North American operations.
The company reiterated its ambition to return to its historical operating margin levels in 2025.
More from this issuer
Related coverage
Swedish heating technology firm NIBE Industrier reported a nearly 25% rise in third-quarter operating profit, signaling a continued market recovery driven by higher sales and cost controls.
Swedish heat pump maker NIBE Industrier reported a significant rebound in profit for the first nine months of the year, driven by improved productivity and cost controls as it navigates global trade challenges.