Harvia’s Half-year financial review 1 January – 30 June 2025
Harvia Plc, Half-year financial review 7 August 2025 at 9:00 a.m. EEST
Harvia Q2 2025: Continued sales growth in uncertain market conditions
This release is a summary of Harvia Plc’s Half-year financial review January–June 2025. The complete report is attached to this release as a pdf file. It is also available on Harvia’s website at https://harviagroup.com/.
Highlights of the review period
April–June 2025:
- Revenue increased by 9.4% to EUR 47.3 million (43.2). At comparable exchange rates, revenue increased by 12.2% to EUR 48.4 million. Organic revenue growth was 2.4%.
- Operating profit was EUR 7.6 million (8.9), making up 16.1% (20.7%) of the revenue. Operating profit was negatively impacted by the growth of employee expenses and other operating expenses, a one-off inventory adjustment and weakening of the U.S. dollar.
- Adjusted operating profit was EUR 8.2 million (9.4), making up 17.3% (21.8%) of the revenue. At comparable exchange rates, the adjusted operating profit was EUR 8.7 million (17.9% of the revenue).
- Operating free cash flow amounted to EUR 3.9 million (5.5) and cash conversion was 39.4% (50.0%)
January–June 2025:
- Revenue increased by 16.0% to EUR 99.2 million (85.5). At comparable exchange rates, revenue increased by 16.7% to EUR 99.8 million. Organic revenue growth was 8.2%.
- Operating profit was EUR 19.5 million (18.8), making up 19.7% (22.0%) of the revenue.
- Adjusted operating profit was EUR 20.1 million (19.5), making up 20.2% (22.8%) of the revenue. At comparable exchange rates, the adjusted operating profit was EUR 20.5 million (20.5% of the revenue).
- Operating free cash flow amounted to EUR 14.1 million (16.6) and cash conversion was 59.4% (73.2%).
- Net debt amounted to EUR 57.9 million (32.6), and leverage, calculated as net debt divided by last 12 months’ adjusted EBITDA, was 1.3 (0.8).
- Equity ratio was 43.6% (49.8%).
- Earnings per share were EUR 0.68 (0.71).
Key figures
| EUR million | 4-6/2025 | 4-6/2024 | Change % | 1-6/2025 | 1-6/2024 | Change % | 1-12/2024 |
| Revenue | 47.3 | 43.2 | 9.4% | 99.2 | 85.5 | 16.0% | 175.2 |
| EBITDA | 9.4 | 10.5 | -11.0% | 23.2 | 22.0 | 5.4% | 42.4 |
| % of revenue | 19.8% | 24.4% | 23.4% | 25.7% | 24.2% | ||
| Items affecting comparability * | 0.5 | 0.5 | 8.0% | 0.6 | 0.7 | -23.4% | 1.6 |
| Adjusted EBITDA ** | 9.9 | 11.0 | -10.2% | 23.7 | 22.7 | 4.4% | 44.1 |
| % of revenue | 21.0% | 25.6% | 23.9% | 26.6% | 25.1% | ||
| Operating profit | 7.6 | 8.9 | -14.6% | 19.5 | 18.8 | 4.0% | 35.5 |
| % of revenue | 16.1% | 20.7% | 19.7% | 22.0% | 20.3% | ||
| Adjusted operating profit ** | 8.2 | 9.4 | -13.4% | 20.1 | 19.5 | 2.9% | 37.1 |
| % of revenue | 17.3% | 21.8% | 20.2% | 22.8% | 21.2% | ||
| Basic EPS (EUR) | 0.23 | 0.31 | 0.68 | 0.71 | 1.30 | ||
| Operating free cash flow | 3.9 | 5.5 | -29.2% | 14.1 | 16.6 | -15.3% | 35.0 |
| Cash conversion | 39.4% | 50.0% | 59.4% | 73.2% | 79.4% | ||
| Investments in tangible and intangible assets | -3.8 | -0.5 | 583.4% | -5.8 | -2.8 | 107.5% | -6.1 |
| Net debt | 57.9 | 32.6 | 77.6% | 57.9 | 32.6 | 77.6% | 57.2 |
| Leverage | 1.3 | 0.8 | 1.3 | 0.8 | 1.3 | ||
| Net working capital | 46.8 | 39.3 | 21.6% | 46.8 | 39.3 | 21.6% | 45.0 |
| Adjusted return on capital employed (ROCE) | 48.6% | 51.7% | 48.6% | 51.7% | 45.5% | ||
| Equity ratio | 43.6% | 49.8% | 43.6% | 49.8% | 47.2% | ||
| Number of employees at end of period | 742 | 683*** | 8.6% | 742 | 683*** | 8.6% | 696 |
* Consists of items outside the ordinary course of business, relating to the Group’s strategic development projects, acquisitions, business divestments, restructuring and loss on sale of fixed assets, and affecting comparability.
** Adjusted by items affecting comparability.
*** The comparison period does not include the personnel of ThermaSol Steam Bath LLC that was acquired in July 2024.
Financial targets and outlook
The company has set long-term targets related to growth, profitability and leverage. Harvia targets an average annual revenue growth of 10%, an adjusted operating profit margin exceeding 20%, and a net debt/adjusted EBITDA below 2.5x. The future impacts of changes in IFRS accounting standards have been excluded from the net debt/adjusted EBITDA ratio target.
Harvia does not publish a short-term outlook.
Harvia’s dividend policy is to pay a regularly increasing dividend with a bi-annual payout.
Matias Järnefelt, CEO:
In the second quarter of 2025, Harvia continued to grow and made significant progress in advancing our key strategic initiatives. However, revenue growth in our largest sales region North America was slower than in previous quarters, reflecting increased market uncertainty and delivery timing effects. Our overall profitability was also impacted negatively by weaker U.S. dollar and a one-off inventory adjustment during IT system upgrades in North America.
Harvia’s revenue in the second quarter totaled EUR 47.3 million, representing a 9.4% increase year-on-year. Organic revenue growth was 2.4%, and at comparable exchange rates, total revenue grew by 12.2%.
In North America, the broader economic uncertainty and volatility in trade policies increased rapidly in the second quarter although the situation showed signs of stabilization towards the end of the quarter. The weakened consumer confidence and overall reduced market predictability was reflected in cautious market demand and in Harvia’s slower growth in North America compared to many previous quarters. The significant weakening of the U.S. dollar also lowered our sales and profitability in the region. At comparable exchange rates, our sales in North America would have been approximately 6 percentage points higher. Additionally, revenue in the comparison period was supported by the timing of deliveries, as last year, some winter season orders were delayed and shipped during the second quarter. All in all, Harvia’s growth in North America in the second quarter was driven by the inorganic growth from ThermaSol, which has now been fully integrated as a core part of our North American business and team. During the first half of 2025, Harvia grew in the region by 35.1%, supported by the very strong first quarter. After the reporting period, the European Union and the United States entered into an agreement on tariffs. Together with the fact that around 70% of our products sold in the United States are manufactured domestically, I feel rather optimistic about our business in North America being able to manage the tariff impacts.
In Europe, our sales were close to last year’s level, and the sauna market remained rather stagnant throughout the entire first half of the year. However, there is rather high variation in performance in Europe across countries: For example, Germany showed good progress, whereas sales in some of the other markets such as Finland and Sweden declined. While the overall market in Europe only provides us with a small tailwind for the time being, turning the European sales regions into stronger growth is a key priority for us.
We achieved very strong sales growth in APAC & MEA. While the revenue was supported by timing of project deliveries, I am pleased to see strong progress and results in multiple markets in this vast and diverse sales region. Given the region’s relatively small size in terms of sales volumes and the high share of project-based business, quarterly sales can fluctuate significantly. The excellent second-quarter performance follows a somewhat slower first quarter, but APAC & MEA succeeded in delivering 35.8% sales growth for the first half of the year.
Harvia’s adjusted operating profit in the second quarter was EUR 8.2 million, representing 17.3% of revenue and a 13.3% decline year-on-year. Relative to the revenue, our materials and services costs stayed on a good level. However, during the quarter, sales growth did not fully keep pace with cost increases, which weakened our profitability. In North America, we made major upgrades to our IT infrastructure and business processes, which had previously lagged behind our rapid growth in the region. These improvements are already enhancing transparency and operational efficiency, and they provide a solid basis for sustained profitable growth in the region. During this successful upgrade process, we made a one-off inventory adjustment, which had a negative impact of approximately EUR 0.8 million on our adjusted operating profit. In addition, changes in exchange rates weakened the operating profit by approximately EUR 0.5 million, caused mainly by the weakening of the U.S. dollar.
As mentioned, our profitability in the second quarter was impacted especially by the fact that our indirect costs grew faster than our revenue. Going forward, we will continue to invest in many areas that are critical enablers for Harvia’s long-term success. These include progressing our key recruitment plans, modernizing our IT infrastructure, and strengthening our direct-to-consumer channel and brand. However, achieving strong profitability also in the short-term is a key priority for us, and sustained revenue growth as well as operational efficiency are essential for making this happen.
Our innovation pipeline remains focused on introducing exciting and sustainable innovations to the market. A recent highlight is the introduction of the world’s first hydrogen-powered sauna in June through a pioneering collaboration with Toyota. This is a testament to Harvia’s strong innovation culture and strategic partnerships.
When reviewing our results for the first half of 2025, I am pleased to note that Harvia achieved 16.0% revenue growth and maintained a strong adjusted operating profit margin of 20.2%, despite the increased uncertainty and volatility in the market conditions. I want to thank Team Harvia and our partners for their committed work to our success. Importantly, I remain confident in our ability to deliver strong results and in the long-term attractiveness and growth potential of the global sauna market. While we stay focused on consistently delivering solid quarterly performance, we also continue to look actively for both organic and inorganic growth opportunities that further strengthen our position as the global sauna market leader.
Press conference on financial results
Harvia will hold a webcast for analysts, investors and media on 7 August 2025 at 11:00 a.m. EEST. The conference will be held in English. Harvia’s CEO Matias Järnefelt and CFO Ari Vesterinen will host the event. The webcast can be followed at https://harvia.events.inderes.com/q2-2025.
A recording of the webcast will be available after the event on the company’s website https://harviagroup.com/reports-and-presentations/.
For more information, please contact:
Matias Järnefelt, CEO, tel. +358 40 5056 080
Ari Vesterinen, CFO, tel. +358 40 5050 440
Harvia is one of the leading companies operating in the sauna market globally, as measured by revenue. Harvia’s brands and product portfolio are well known in the market, and the company’s comprehensive product portfolio strives to meet the needs of the international sauna market of both private and professional customers.
Harvia’s revenue totaled EUR 175.2 million in 2024. Harvia Group employs approximately 700 professionals in Finland, United States, Germany, Romania, China and Hong Kong, Austria, Italy, Estonia, and Sweden. The company is headquartered in Muurame, Finland, adjacent to its largest sauna and sauna component manufacturing facility.
Read more: https://harviagroup.com
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