CEO’s review

CEO Matias Järnefelt:

In the third quarter of 2025, Harvia achieved strong sales growth, supported by solid performance in all regions despite a certain level of unpredictability in some of our markets.

Harvia’s revenue in the third quarter totaled EUR 46.0 million, representing a 18.8% increase year-on-year. Organic revenue growth was 16.1%, and at comparable exchange rates, total revenue grew by 22.3%.

In the third quarter of 2025, Harvia achieved strong sales growth.

In North America, we returned to strong double-digit growth of 24% after a softer second quarter, even though the weak U.S. dollar reduced our reported growth. Uncertainty in the region continued due to ongoing volatility in tariff policies and their implementation, combined with consumer confidence remaining lower than in recent years. As the majority of Harvia’s revenue in the United States comes from products manufactured within the country, the company is partly shielded from the impact of U.S. tariffs. While price increases are being implemented to offset higher costs of doing business in the region, pricing adjustments for certain customers have a lead time before taking effect.

Our sales performance in Europe improved during the third quarter, with Northern Europe growing by 14.8% and Continental Europe growing by 10.1%. Growth in Northern Europe was driven especially by Sweden and the Baltic countries, and we also grew in Finland. Restoring Northern Europe to a clear growth trajectory and strengthening our position in Continental Europe have been key priorities for us in 2025, and I am pleased with our third-quarter performance in both regions.

APAC & MEA was our fastest-growing region in the third quarter, with sales increasing by 36.4%. Growth was broad-based across the region, supporting our objective to achieve sustainable expansion while reducing dependency on any single country. As we continue to see significant potential in the region, we are continuing our systematic work to strengthen our capabilities for long-term growth.

Harvia’s adjusted operating profit in the third quarter was EUR 8.8 million, representing 19.1% of revenue. Our gross margin was negatively impacted by the tariffs in North America and currency developments. The weakening of the U.S. dollar had an adverse effect on both our revenue and profitability, and our adjusted operating profit was approximately EUR 0.3 million lower than at comparable exchange rates. We continued to strengthen our organization, product portfolio, and IT capabilities to build a solid platform for future growth, which was reflected in higher operating expenses also during the third quarter. Overall, our operational performance and service level remained strong, and I want to thank the entire Harvia team and our partners for their excellent efforts during the quarter.

Looking ahead, we remain focused on executing our strategy and achieving profitable growth in both the short and long term. To secure strong profitability in the near term, we are continuing to actively manage key profit levers such as pricing, sourcing efficiency, and indirect costs. While we are focused on successfully navigating in the volatile operating environment, we continue to advance development activities in areas that enable sustainable long-term growth. These include developing market-leading innovations, strengthening our multi-channel sales capabilities, as well as modernizing our IT landscape. As an example of our innovation work, we launched the upgraded MyHarvia app, representing a significant leap forward in sauna connectivity and seamless integration with our new Fenix touchscreen control panel. We also introduced an exciting collection of premium saunas for the North American market under the ThermaSol brand. In addition to the measures supporting organic growth, Harvia continues to actively evaluate inorganic growth opportunities and is ready to move forward swiftly when the timing and conditions are right. We see strong long-term growth drivers in the sauna and spa market and want to ensure that Harvia remains the clear market leader in the future.