CEO’s review

CEO Matias Järnefelt:

Harvia delivered a strong performance in the first quarter of 2026. We achieved double-digit revenue growth and strong profitability, while making significant progress in our key strategic initiatives.

Harvia’s revenue in the first quarter was EUR 58.6 million, representing a 12.7% increase from the previous year. All revenue growth was organic, and at comparable exchange rates, total revenue grew by 18.3%.

Overall, Harvia has had a strong start to 2026, and I would like to thank the entire team Harvia and our partners for their excellent work. While uncertainty in our operating environment is likely to continue, Harvia has demonstrated its ability to deliver strong results in varying and rapidly changing conditions.

North America, our largest sales region, delivered strong growth. Revenue growth was 12.0% and in local currencies 21.1%, supported by continued healthy demand in the region’s sauna market. This comes on top of a strong comparison period, as we grew 58.8% in the region in the same quarter last year.

In Northern Europe, we delivered double-digit revenue growth of 16.7% for the third consecutive quarter, with sales increasing in all countries. While the macroeconomic environment remains subdued, we are benefiting from pent-up market demand following slower years, as well as from systematic actions to strengthen our distribution, particularly in Scandinavia. In Continental Europe, gradual market recovery continued across most key markets and product categories, supporting Harvia’s overall growth in the region.

APAC & MEA was our fastest growing region with a strong revenue increase of 29.7%, supported especially by China and Japan, the two largest sauna markets in the region. Geopolitical tensions increased during the quarter, especially in the Middle East. However, the direct impact on Harvia remained limited, as the Gulf region accounts for only around 2% of our global sales. Indirect effects, such as inflationary pressures on energy and key materials, also remained modest during the first quarter.

Our largest product group, Heating equipment, delivered strong growth of 21.0%. In addition to healthy market demand, we have seen strong market reception of our newer products, such as the Harvia Fenix full-touch control panel launched in 2025. The weaker U.S. dollar had a visible impact on reported sales in Steam products as well as Saunas and Scandinavian hot tubs, as a significant share of revenue in these categories is generated in North America. In Steam products, sales were below last year’s level, mainly due to softer sales to some of our North American key accounts.

Harvia’s adjusted operating profit in the first quarter was EUR 12.9 million, corresponding to a margin of 22.0%. This represents a strong result. At comparable exchange rates, the adjusted operating profit was approximately EUR 0.9 million higher. Profitability was supported by solid sales growth, which clearly outpaced the increase in our indirect costs. Gross margin remained strong due to our commercial actions implemented in response to changes in the tariff and currency environment.

During the first quarter, we continued to invest in our facilities, organization and product development, supporting Harvia’s long-term growth as a global sauna market leader. A good example of these investments is our new direct-to-consumer webstore in Germany and Austria, which became fully operational during the quarter. We also continued the renewal of our IT infrastructure and business processes, with a focus on increasing automation and transparency to support profitable scaling of the business.

These efforts will continue during the second quarter, as we are completing major IT and process upgrades at our Muurame headquarters and factory. As mentioned, the upgrades will bring clear benefits for Harvia, but the completion work is expected to temporarily extend delivery lead times and is estimated to shift approximately EUR 3–5 million of deliveries from the second to the third quarter. This is expected to have a negative impact on our profitability in the second quarter both through postponed gross margin and additional temporary costs resulting from the upgrade process. The Muurame upgrades and related activities are well planned, fully on schedule and have been communicated to our customers.

Overall, Harvia has had a strong start to 2026, and I would like to thank the entire team Harvia and our partners for their excellent work. While uncertainty in our operating environment is likely to continue, Harvia has demonstrated its ability to deliver strong results in varying and rapidly changing conditions. Our organic growth initiatives are progressing well, and we remain ready to act on the M&A front when the right opportunities arise.