Indel B H1 2026 Revenue Rises 9.4% as Profits Decline on OEM Sales Mix

Indel B reported a 9.4% increase in revenue to EUR 118.2 million for the first half of 2026. Adjusted net profit fell 7.6% to EUR 6.1 million as rising logistics costs and a shift in sales mix pressured margins.

The divergence between top-line growth and bottom-line contraction highlights the challenges of the company's current reliance on high-volume, lower-margin automotive original equipment manufacturer (OEM) business.

"The ongoing market environment led to a further shift in our sales mix towards automotive, and in particular towards the OEM channel. This mix effect had a negative impact on margins and was one of the main factors affecting profitability in the first half," said Luca Bora, Chief Executive of Indel B, in a statement regarding the results.

Sales Mix and Segment Performance

The automotive segment remains the primary driver of Indel B's revenue, growing 9.2% to EUR 71.7 million during the period. This segment now accounts for 62% of the company's total consolidated sales. While this volume growth indicates market demand for the company's cooling systems, the shift toward OEM channels carries lower margins compared to aftermarket sales, which have provided higher profitability for the firm.

Market Outlook and Regulatory Drivers

Management anticipates that the automotive sector will remain a contributor to revenue throughout the remainder of the year. Specifically, the company points to strength in the North American heavy-duty truck market, which is seeing increased activity ahead of the implementation of the EPA 2027 emission standards.

These regulations require manufacturers to reduce nitrogen oxide emissions in heavy-duty engines. Historically, such regulatory cycles lead to pre-buy activity as fleet operators seek to acquire vehicles before the cost and complexity of new emission-compliant engines take effect.

Operational Pressures

Beyond the product mix, Indel B faced headwinds from increased logistics and supply chain expenses during the first half. These costs, coupled with the lower-margin profile of the OEM-heavy sales mix, resulted in the 7.6% decline in adjusted net profit. The company is navigating a period where maintaining market share in the automotive sector requires absorbing these elevated operational costs, which impacts the bottom line despite the growth in total revenue.