CEO’s review

CEO Matias Järnefelt:

In the last quarter of 2025, Harvia continued to grow in all sales regions despite facing a very strong comparison period and unfavorable exchange rates. The quarter was a good ending for 2025 that showed how Harvia can deliver solid financial results and make excellent progress in its strategy execution, even if the world around us has become increasingly uncertain.

Harvia’s revenue in the fourth quarter totaled EUR 53.7 million, representing a 5.3% increase year-on-year. All revenue growth was organic, and at comparable exchange rates, total revenue grew by 10.2%.

2025 was a good year for both the sauna market and Harvia. Despite the exceptional uncertainty in the market conditions and trade policies, the demand in the sauna market remained firm, which is a strong signal of resilience and interest in wellbeing through sauna.

In North America, the sauna market demand continued to be strong, and Harvia’s revenue increased especially in heating equipment. Our sales performance was particularly good during large campaigns such as Black Friday sales. Our revenue growth was 2.8% during the fourth quarter compared to 62.7% growth in North America a year ago. The revenue was also impacted by significant headwind from the weak U.S. dollar.

In Europe, the sauna market continued to improve gradually, even if the macroeconomic conditions remained largely unchanged and somewhat challenging, especially in Northern Europe. Overall, our sales performance in Europe was good. Northern Europe was our fastest-growing sales region in the fourth quarter with 11.6% increase in revenue, and the region returned to growth also on a full-year level after two years of sales decline. In Continental Europe, we continued to achieve solid sales progress in most of our key markets and product groups, including Germany, France, and the United Kingdom.

In APAC & MEA, we posted only small growth during the fourth quarter, driven largely by timing of large deliveries rather than any significant changes in the underlying market or Harvia’s performance. Looking at the full year 2025, Harvia’s revenue in APAC & MEA increased by 25.4%, driven by substantial progress in several markets. Moving into 2026, the region continues to be one of our strategically most important areas and long-term growth engines.

Harvia’s adjusted operating profit in the fourth quarter was EUR 10.5 million, representing 19.5% of revenue. At comparable exchange rates, Harvia’s fourth quarter adjusted operating profit was EUR 1.3 million higher and our adjusted operating profit margin exceeded 20% both in the fourth quarter and for the full year. During the quarter, the prices of key materials and components as well as most significant tariff levels remained relatively stable when compared to the previous quarter. Harvia was also able to mitigate most of the impact from tariff increases that took place in the third quarter. We carried out significant well-planned campaigns, for example, during Black Friday weekend that resulted in excellent sales volumes with healthy gross margins.

Throughout 2025, Harvia continued to invest significantly in its production facilities, innovation pipeline, and IT landscape, which are all essential enablers of our long-term growth and success. In the fourth quarter, we introduced MyHarvia Smart Sauna Sensor, a unique product that can turn any sauna into a smart sauna, which is a great example of our market-leading innovation and an exciting step in our digital journey. Harvia’s growth-fueling actions have increased our investment and indirect cost levels in the short term and somewhat decreased our profitability margin in the fourth quarter.

2025 was a good year for both the sauna market and Harvia. Despite the exceptional uncertainty in the market conditions and trade policies, the demand in the sauna market remained firm, which is a strong signal of resilience and interest in wellbeing through sauna. Throughout the year, Harvia proved its ability to deliver solid financial results, including 13.5% revenue growth, while taking leaps forward in strategic initiatives that ensure the company’s success in the future. I am pleased to see how the annual customer and employee surveys carried out during the fourth quarter confirm that Harvia is a great company to partner with and to work for. I want to thank the entire Team Harvia and our partners for their efforts and dedication in 2025 – a work well done!

Harvia enters 2026 in an excellent position. It seems that the broader economic and geopolitical uncertainty is here to stay, at least for some time, but as in 2025, we expect that the sauna market and Harvia will both succeed well in these conditions. We remain fully focused on capturing the market demand in all sales regions while ensuring healthy profitability also in the short term. At the same time, we continue to invest and drive the company’s long-term success. Our updated sustainability program for 2026–2030 outlines how we are committed to our objective of contributing to a good and long life with minimal environmental impact, safely and fairly. If the right opportunity emerges, we are prepared to act swiftly also on the M&A front. Year 2026 is full of possibilities for Harvia.