Harvia (HARVIA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached EUR 52.0 million, up 22.7% year-over-year, with organic growth at 14.1%.

• North America was the main growth driver, accounting for over 80% of growth and nearly 60% regional growth, supported by the ThermaSol acquisition.

• Adjusted operating profit rose 18.1% to EUR 11.9 million (22.9% of revenue).

• Broad-based product growth, especially steam products, which grew over 300% due to ThermaSol.

• Strong profitability, cash flow, and increased market share maintained global leadership.

Financial highlights

• Adjusted EBITDA was EUR 13.8 million (26.6% of revenue), up 18.2% year-over-year.

• Basic EPS increased to EUR 0.45, up 11.9% year-over-year.

• Net debt rose to EUR 51.1 million, mainly due to the ThermaSol acquisition; leverage at 1.1x.

• Operating free cash flow was EUR 10.2 million, with a cash conversion rate of 73.7%.

• Equity ratio stood at 47.7%.

Outlook and guidance

• Long-term sauna market outlook remains strong, with average annual revenue growth target of 10% and adjusted operating profit margin above 20%.

• No short-term guidance provided; management confident in capturing long-term growth, especially in the U.S.

• Dividend policy targets regularly increasing, bi-annual payouts.

• U.S. market seen as underpenetrated with significant 10x growth potential.