NIBE (OM:NIBE B): Assessing Valuation Following Strong Q3 2025 Growth in Climate Solutions

NIBE Industrier (OM:NIBE B) just released its third quarter results for 2025, highlighting a lift in sales and net income from a year ago. Growth in the Climate Solutions segment was a key factor, even as the company navigated a softer market for stoves.

See our latest analysis for NIBE Industrier.

Despite encouraging progress in its Climate Solutions segment and a solid balance sheet, investor sentiment has clearly shifted; the share price is now down 27.6% over the past three months and has returned -34% for shareholders in the past year. This suggests that while operational improvements are notable, the market remains cautious about near-term risks and longer-term growth potential.

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With NIBE Industrier’s robust recovery and growing profits set against a sharp decline in share price, investors are left wondering if there is real value to be found here or if the market is right to price in the risks.

Most Popular Narrative: 27% Undervalued

With a last close of SEK32.88 and the narrative fair value standing tall at SEK45.19, current expectations point to significant upside if the business delivers on profitable growth. This consensus is shaped by robust demand drivers, margin upgrades, and the strategic ambitions analysts see on NIBE Industrier's horizon.

The shift away from fossil fuels towards electric heating, especially in Europe, is structurally increasing demand for heat pumps, NIBE's largest profit driver. This trend is reinforced by both evolving consumer preferences and favorable government policy, likely supporting sustained volume and revenue growth.

Read the complete narrative.

Curious what powers that fair value? This narrative is built on deeply optimistic assumptions about future margins, earnings, and relentless demand in the pipeline. Want to see which financial levers could spark such a big upward revision? There are bold growth targets and underlying forecasts that might surprise you. Find out what's moving these projections.

Result: Fair Value of SEK45.19 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent margin pressure from rising input costs and uncertain adoption rates in key regions could quickly challenge the current bullish outlook.

Find out about the key risks to this NIBE Industrier narrative.

Build Your Own NIBE Industrier Narrative

Prefer to draw your own conclusions? Dive into the numbers and shape your personal view in just a few minutes. Do it your way

A great starting point for your NIBE Industrier research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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