Lu-Ve: the Italian mid cap betting on the data centre boom

On closer inspection, data centre solutions are, like other Lu-Ve products, part of a cross-company strategy that - started in the past - continues. Which is? The streamlining and standardisation of production chains. The group has platforms which, with regard to data centre cooling systems, for example, allow the production of machines that for about 70% are standardised while for 30% require ad hoc specifications. It is an ecosystem that allows for considerable synergies, especially in terms of purpose. The company, depending on production needs, has the flexibility to reallocate production. More. Product engineering is also subject to the same form of duttibility. In short: the focus is relevant and the goal, in the medium term, is to bring the standard part - where possible - to 75-80%. But it is not only a question of production in the strict sense. A relevant focus, in 2025, is logistics. The company - which, it should be remembered, has organised itself on the matrix model with 11 regional 'clusters' - is handling an increasing number of specific and, on average, larger orders. In view of this, the group has established the figure of the 'curator' of the same order so that overlaps and delays are avoided in the logistics area as well. the company expects savings from this system, although it does not give any indication for 2025.

All roses and flowers, then? The reality is more difficult. The saver expresses much concern about the tariffs chaos unleashed by Donald Trump. A context that may impact Lu-Ve. The company, although aware of the potential risks of the situation, makes a profession of trust. On the one hand, the bulk of its business - is the indication - is directed towards the Old Continent; on the other hand, there are few European customers exporting to the US. More. The company emphasises - as the commitments on plants in China and America show - that its business is local on local. Which very much contains the danger of tariffs. Of course! With respect to the same factory in Texas, says Lu-Ve, part of the supply was assumed to come from Mexico. The question now is what is the best solution. This last aspect, however, the mid-cap concludes, concerns the same competitors operating in the US. It is not, therefore, specific to the Italian company alone. Having said that, however, a further objection may be raised: the tariffs war risks holding back, or sending Europe into recession and thus - by inducing lower investment in, for example, the residential sector - reducing demand for the group's products. True, says Lu-Ve who, however, replies: to date there is no sign of this in the sector; furthermore, tax plans - such as those of Germany - will produce positive effects and it is not certain that the most negative scenarios will materialise. In general, however, the company concludes, it is too early to give an indication of future prospects.

So far, some suggestions regarding data centres, efficiencies and tariff-related risks. What, however, are the prospects for the various product sectors? On the heat exchanger front, we can note the good dynamics in commercial refrigeration - in the wake, for example, of investments in supermarkets -, tumble dryers, and signs of recovery in heat pumps (revenues in 2025 estimated at around 22.8 million). Weak, on the contrary, is the world of industrial cooling (net of data centres). It is a mix of dynamics which, Lu-Ve indicates, lead to an estimated growth in 2025 of heat exchangers in the high single-digit percentage range. The situation for ventilated appliances is different. Here the tailwind is being driven by data centres and refrigeration for, among other things, logistics and power generation. Weak, on the other hand, is air conditioning for - in Europe - large buildings. This is summed up by the group's forecast of a slight growth in the current financial year for ventilated equipment. Against this, at the consolidated level, the company estimates turnover to continue to expand slightly and Ebitda to improve over 2024. The saver, however, reports that in the first three months of 2025, the backlog is up 24.6%, but revenues are down 5.5%. This is not a worrying context, Lu-Ve indicates. Having such a strong and healthy order book shows that the business is solid and doing well. Orders, the company concludes, will turn into revenues.

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