Element division sales rise 12% on data-center semiconductor demand
Nibe Industrier shares rose 8.7% on Friday to lead the Stoxx 600 after the Swedish heating company reported stronger second-quarter sales and operating profit, with growth driven by European heat-pump demand, continued U.S. demand after subsidies ended, and a 12% rise in the element division that supplies heaters for data-center semiconductor production.
Nibe reported net sales of 10.85 billion kronor, or about $1.14 billion, for the three months through June, up 8.7% on a fixed-currency basis, according to the Wall Street Journal. Operating profit rose 11% from a year earlier to 1.23 billion kronor. Shares climbed to 41.94 Swedish kronor in early afternoon European trade, marking a three-month high.
European demand for heat pumps provided the largest lift to sales. The company also pointed to “stronger-than-expected appetite” in the United States for the technology, even though U.S. government subsidies for heat pumps ended at the close of 2025.
Data-center demand drove a separate increase. Sales at Nibe’s element division, which makes heaters used in producing higher-performance semiconductors, rose 12% to 2.12 billion kronor.
Nibe Chief Executive Gerteric Lindquist told the Wall Street Journal that the stoves division was “significantly impacted” by what he called “highly unpredictable tariffs imposed by the U.S.” He said the company’s three Canadian businesses were also hit by sweeping tariffs on Canadian imports imposed under President Trump.
A fresh round of tariffs announced at the beginning of the second quarter, Lindquist added, “will be challenging to offset in the short term without losing market share.”
Consumers were also pulling back from home purchases and from investing in new heating products, Lindquist said. He described the broader operating environment as “more strained than it has been for several decades.”