Nibe Industrier shares jumped after the Swedish heating company reported sales and operating profit growth in the second quarter, amid strong heat-pump demand in Europe and the U.S.

Shares led the Europe-wide Stoxx 600, rising 8.7% to 41.94 Swedish kroner and marking a three-month high in early afternoon European trade.

Net sales jumped 8.7% on year at fixed exchange rates to 10.85 billion kroner ($1.14 billion) for the second quarter, while operating profit climbed 11% to 1.23 billion kroner.

Growth was driven by an uptick in European demand for heat pumps, and stronger-than-expected appetite in the U.S. despite the termination of government subsidies at the end of 2025.

Data center demand also drove sales growth, with sales in the group's element division rising 12% to 2.12 billion kroner. Nibe heaters are used in the production of higher-performance semiconductors.

However, the group's stoves division was significantly impacted by "highly unpredictable tariffs imposed by the U.S.", Chief Executive Gerteric Lindquist said.

Nibe's three Canadian companies were significantly impacted by President Trump's imposition of sweeping tariffs on Canadian imports.

A fresh round of tariffs announced at the beginning of the second quarter "will be challenging to offset in the short term without losing market share," Lindquist said.

Consumers are also pulling back from buying houses and investing in heating products, Lindquist added.

"The external environment is more strained than it has been for several decades."