Harvia Oyj

Q2 revenue was EUR 52.8 million, up 11.7% year over year, or close to 13% at comparable exchange rates, and all growth was organic. Adjusted operating profit was EUR 8.6 million, equal to 16.2% of revenue. Operating free cash flow was EUR 3.1 million. For the first half, revenue was around EUR 111 million, up roughly 12%, adjusted operating profit was EUR 21 million, or 19.3% of revenue, and operating free cash flow was EUR 15.1 million. Management said about EUR 4 million of deliveries were postponed from Q2 to later periods, with most expected to be realized in Q3, and reiterated long-term targets of 10%+ average annual revenue growth, over 20% adjusted operating profit margin, and leverage below 2.5.

Matias Jarnefelt framed the quarter as a mix of strong demand and a major operational transition that temporarily hurt results. He said the company is investing in IT, automation, capacity, and R&D to prepare Harvia for scalable growth, and emphasized that the Muurame upgrade went as planned and is already close to normal operation. His tone was upbeat and strategic, with repeated confidence that the company is better positioned for long-term growth, especially in North America and in broadening sauna as a wellness category.

Ari Vesterinen said the quarter’s softness was mainly mechanical: a roughly 3-week production downtime in Muurame, postponed heater shipments, and higher inventory build ahead of the winter season. He highlighted that headcount increased by 64 employees, 59 of them in the U.S., and that net working capital stayed elevated because inventory was intentionally built up in Finland. He also said leverage remains low with room versus the 2.5 target, cash finance expenses were stable, CapEx has been running at roughly 4% to 5% of annual revenue, and the company paid a dividend of EUR 0.77 per share for last year’s results, with EUR 0.39 already paid and the rest planned for October 2026.

Analysts focused on whether the EUR 4 million of delayed Q2 deliveries is fully secured for Q3; management would not guarantee it but said it is highly confident the majority will ship in Q3, with some risk of slip into Q4. Questions also centered on North America, where management said most growth came from existing channels plus strong D2C and big-box retail performance, while margin was mixed because sauna cabins carry lower margins than technical products. On steam, management acknowledged the business has not scaled as fast as hoped, cited Gulf-region disruption and competitive pressure, and said multiple actions are underway, with a hoped-for trend improvement in H2. The team also said the Gulf-region impact could be about EUR 2 million annually, or roughly a 1% hit to full-year group growth.