Harvia Oyj

Q2 revenue increased 11.7% year on year to EUR 52.8 million, with comparable-currency growth close to 13% and all growth organic. Adjusted operating profit was EUR 8.6 million, equal to 16.2% of revenue. Operating free cash flow was EUR 3.1 million in Q2, and first-half revenue was around EUR 111 million, up roughly 12%, with adjusted operating profit of EUR 21 million (19.3% margin) and operating free cash flow of EUR 15.1 million. Management said about EUR 4 million of deliveries were delayed from Q2 into later periods, and expects the majority to show up in Q3. Full-year guidance was not given as a formal range, but management reiterated long-term targets of 10%+ average annual revenue growth, over 20% adjusted operating profit margin, and leverage below 2.5; it also said the Gulf region could have about a 1% impact on full-year group growth, with about EUR 2 million at risk for the year.

Matias Jarnefelt framed the quarter as a mix of strong underlying demand and a deliberate operational reset. He emphasized that the Muurame IT/process upgrade should make Harvia more scalable and productive over time, even though it temporarily hit top line and profit, and he said the company was close to normal operations by the end of Q2 and expects full capacity in Q3. He was upbeat about North American momentum, product innovation, and Harvia’s role in expanding the sauna/wellness category through research, design awards, and digital capabilities.

Ari Vesterinen highlighted the seasonality of the business and said Q2 was pressured by the roughly EUR 4 million shipment delay tied to the heater production pause and transition in Muurame. He noted headcount increased by 64 employees, 59 of them in the U.S., and said net working capital stayed high because inventory was built up in Finland ahead of the catching-up period and winter season. He also said leverage remains well below the 2.5 long-term target, giving the company room for possible acquisitions, while CapEx typically runs at least 4% to 5% of annual revenue and the board approved EUR 0.77 per share in dividends for last year, with EUR 0.39 paid in April and the remainder planned for October 2026.

Analysts focused on whether the EUR 4 million of delayed Q2 deliveries is secured for Q3; management said it is not guaranteed but expects the majority to be delivered in Q3, with some slippage still possible. Questions also centered on North America, where management said growth came mainly from existing channels and strong D2C performance, while mix shifted toward lower-margin sauna cabins versus technical products. Analysts pressed on steam sales weakness and ThermaSol; management said the category is slower-growing, was hurt by Gulf-region disruption and competitive pressure, but still has long-term potential and multiple corrective actions underway. Management also said tariffs and the Middle East situation are manageable relative to prior disruptions, and that any tariff refunds would be only small amounts.