Harvia (HARVIA) Q2 2025 earnings summary

Executive summary

• Revenue grew 9.4% year-over-year to €47.3M in Q2 2025, with organic growth at 2.4%, and H1 revenue up 16% to €99.2M; growth was led by APAC & MEA and North America, supported by the ThermaSol acquisition.

• Profitability was impacted by higher operating expenses, a one-off €800K inventory adjustment from a new ERP system in the US, and currency headwinds.

• Adjusted operating profit in Q2 was €8.2M (17.3% margin), below the 20% target; H1 adjusted operating margin was 20.2%.

• Strategic initiatives advanced, including IT modernization, marketing investments, and product innovation; partnership with Toyota on hydrogen-powered sauna technology was announced.

• The company remains focused on long-term growth and operational efficiency despite market volatility.

Financial highlights

• Q2 2025 revenue: €47.3M (+9.4% YoY); organic growth 2.4%; adjusted operating profit: €8.2M (17.3% margin, -13.3% YoY).

• H1 2025 revenue: €99M (+16% YoY); adjusted operating profit: €20M (20% margin, +2.9% YoY); net income: €12.7M.

• Operating free cash flow: Q2 €4M (40% cash conversion); H1 €14.1M (59.4% cash conversion).

• Net debt at end of Q2: €57.9M; leverage at 1.3x adjusted EBITDA.

• Basic EPS in Q2: €0.23 (-25.3% YoY); H1 EPS: €0.68.

Outlook and guidance

• No short-term outlook published; focus remains on long-term growth, with annual revenue growth target over 10%, adjusted operating profit margin over 20%, and leverage under 2.5.

• Dividend policy: regularly increasing, bi-annual payouts; €0.75 per share for 2025.

• Confident in handling US tariff situation due to local production and pricing power.