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1. Company Snapshot

1.a. Company Description

Harvia Oyj, through its subsidiaries, manufactures and distributes traditional, steam, and infrared saunas.The company provides sauna heaters, sauna rooms, hot tubs, control units, and steam generators; sauna heater spare parts, sauna stones, steam room elements, infrared components, sound and lighting solutions, and water hygiene products; and sauna accessories, such as sauna scents, buckets, and ladles, as well as thermometers and sauna textiles.It also offers electric and wood-burning heaters; ready-made saunas; infrared and hybrid cabins; and steam rooms and spa modules.


In addition, the company provides sauna installation, maintenance, and repair services; and engages in the real estate business.It offers its products to retailers and wholesalers through a network of dealers.The company operates in Finland, other EU countries, North America, Germany, Russia, other Scandinavia countries, and internationally.


Harvia Oyj was founded in 1950 and is headquartered in Muurame, Finland.

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1.b. Last Insights on HARVIA

Negative drivers behind Harvia Plc's recent performance include the Annual General Meeting's approval of the remuneration report for governing bodies and the revised remuneration policy for the company's governing bodies, which may lead to increased costs. Additionally, several senior managers, including Timo Harvia, Ari Vesterinen, Päivi Juolahti, Anssi Pelkonen, Markus Wörmanseder, and Mika Suoja, have made initial notifications of their share transactions, which may indicate changes in their ownership or trading activities.

1.c. Company Highlights

2. Harvia's Q3 2025 Earnings: Solid Growth and Margin Expansion

Harvia reported a strong third quarter with 19% top-line growth, reaching EUR 46 million, and an adjusted EBIT margin of 19%. Earnings per share (EPS) increased by about 12% to EUR 0.325, although it was below estimates of EUR 0.435. The company's revenue growth was broad-based, with double-digit growth across all four geographical sales regions. Organic growth was a solid 16%, driven by strong performance in North America, APAC, and MEA. The adjusted operating profit was EUR 8.8 million, representing 19% of revenue.

Publication Date: Nov -19

📋 Highlights
  • Revenue & Margin Growth:: Q3 revenue rose 19% to EUR 46M, with adjusted EBIT margin stable at 19% (EUR 8.8M profit), driven by solid organic growth (16%) and broad regional expansion.
  • Regional Performance:: North America grew 24% (double-digit recovery), while APAC/MEA and Europe (15% in Northern Europe, 10% in Continental Europe) achieved double-digit growth, reflecting strong market share gains.
  • Product & Digital Innovation:: Launched Fenix control unit, MyHarvia app, and ThermaSol premium saunas, boosting U.S. market share by 30% year-to-date and unlocking recurring revenue via OTA updates and digital services.
  • Financial Discipline & Leverage:: Net debt stable YoY at 1.4x leverage (vs. target of 2.5x), with YTD sales up 16% to EUR 145M and 12% EPS growth, despite Q3 negative free cash flow (EUR -600k) due to growth investments.
  • Strategic Investments & Guidance:: Elevated CapEx (2024–2025) for factory expansions (West Virginia, Driedorf) and partnerships (EOS heaters), with Q4 focusing on margin improvement via pricing and reduced campaigns, targeting long-term 10% annual growth and 20%+ EBIT margin.

Regional Performance

North America returned to a solid double-digit growth trajectory, with revenue up 24%. APAC and MEA continued to show strong double-digit growth, driven by significant growth in countries like Japan, China, and Australia. Europe also returned to double-digit growth, with Northern Europe growing by 15% and Continental Europe by 10%. As Ari Vesterinen noted, "almost all financial metrics improved in Q3, except for the use of materials and external services, which was close to the company's average."

Operational Highlights

The company continues to execute its strategy, focusing on delivering the full sauna experience, winning in key markets, leading channels, and operational excellence. Recent product launches include Harvia Fenix, a new full-touch control unit, and the MyHarvia smartphone app. The company also introduced new premium sauna models under the ThermaSol brand in the US market. These initiatives are expected to drive long-term growth and improve margin performance.

Cash Flow and Investments

Operating free cash flow was minus EUR 600,000, due to investments in the platform to drive long-term growth and the seasonal nature of the business. The company's CapEx has been elevated in '24 and '25, but it is expected to decline, not continue at the same level. Net debt stayed at the same level as a year ago, with leverage remaining low at 1.4, well below the target of 2.5.

Valuation

Harvia's current P/E Ratio is 31.62, indicating that the stock may be slightly overvalued. The P/S Ratio is 3.96, which is relatively high compared to industry peers. The EV/EBITDA ratio is 18.35, suggesting that the company's enterprise value is reasonable compared to its EBITDA. The ROIC is 12.53%, and ROE is 19.69%, indicating that the company is generating strong returns on its investments.

Outlook

The company expects price increases to support margins in Q4 and plans to participate in campaigns, having reflected on the outcome of Q4 last year. Harvia aims for positive figures in Q4, with high ambitions, but doesn't provide short-term guidance. Analysts estimate next year's revenue growth at 9.8%, which is slightly lower than the company's long-term target of 10% average annual growth rate.

3. NewsRoom

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European Undervalued Small Caps With Insider Buying For Your Portfolio

Nov -20

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Harvia’s Chair of the Board of Directors changes: Catharina Stackelberg-Hammarén elected as the new Chair

Nov -17

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Harvia and Dr. Emilia Vuorisalmi launch brand ambassador and content partnership in North America

Nov -11

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Harvia’s Interim report 1 January – 30 September 2025

Nov -06

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Exploring Europe's Undiscovered Gems For November 2025

Nov -04

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3 European Stocks Estimated To Be Undervalued By Up To 48.8%

Nov -04

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Harvia will publish its Interim report for January–September 2025 on Thursday, 6 November 2025 at around 9:00 a.m. EET

Oct -30

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Change in Harvia’s Management Team: Nathan Hagemeier appointed as Head of Region, North America and President of Harvia US Inc.

Oct -27

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.92%)

6. Segments

Heating Equipment

Expected Growth: 9%

Harvia Oyj's 9% growth in Heating Equipment is driven by increasing demand for energy-efficient and eco-friendly solutions, rising adoption in wellness and spa industries, and expanding distribution channels in Europe and Asia. Additionally, growing consumer preference for sauna and bathing experiences, and investments in product innovation and digitalization are contributing to the segment's growth.

Sauna and Scandinavian Hot Tubs

Expected Growth: 7%

Harvia Oyj's Sauna and Scandinavian Hot Tubs segment growth is driven by increasing wellness trends, rising disposable incomes, and a growing demand for home spa experiences. Additionally, the company's strong brand reputation, innovative products, and expanding distribution channels contribute to its 7% growth rate.

Spare Parts and Services

Expected Growth: 6%

Harvia Oyj's Spare Parts and Services segment growth is driven by increasing demand for sauna and spa solutions, expanding global presence, and strategic partnerships. Additionally, the company's focus on digitalization and e-commerce platforms enhances customer experience, leading to higher sales and revenue growth.

Accessories and Heater Stones

Expected Growth: 5%

Harvia Oyj's Accessories and Heater Stones segment growth is driven by increasing demand for sauna and wellness experiences, rising health awareness, and growing popularity of home spas. Additionally, expanding distribution channels, product innovation, and strategic partnerships contribute to the 5% growth rate.

Steam Generators

Expected Growth: 8%

Harvia Oyj's Steam Generators segment growth is driven by increasing demand for wellness and relaxation, rising adoption of sauna and spa culture, and growing popularity of home wellness solutions. Additionally, the company's focus on innovation, quality, and customer satisfaction contributes to its market share expansion.

7. Detailed Products

Saunas

Harvia Oyj offers a wide range of sauna products, including electric and wood-heated saunas, sauna heaters, and sauna accessories.

Steam Rooms

Harvia's steam rooms offer a luxurious and relaxing experience, providing a calming atmosphere for relaxation and detoxification.

Heat Pumps

Harvia's heat pumps are designed for efficient and eco-friendly heating solutions, suitable for residential and commercial applications.

Swimming Pool Heating

Harvia's swimming pool heating solutions provide efficient and reliable heating for indoor and outdoor pools.

Components and Accessories

Harvia offers a range of components and accessories, including heaters, controls, and accessories for saunas, steam rooms, and heat pumps.

8. Harvia Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Harvia Oyj is moderate due to the availability of alternative heating solutions such as electric and gas heaters.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Harvia Oyj's products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers for raw materials and components.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the sauna and spa industry, including significant capital investments and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the sauna and spa industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.08%
Debt Cost 6.38%
Equity Weight 57.92%
Equity Cost 11.34%
WACC 9.25%
Leverage 72.65%

11. Quality Control: Harvia Oyj passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Technogym

A-Score: 6.6/10

Value: 2.3

Growth: 6.6

Quality: 7.5

Yield: 6.9

Momentum: 8.5

Volatility: 7.7

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Compagnie des Alpes

A-Score: 6.2/10

Value: 6.2

Growth: 5.8

Quality: 3.2

Yield: 6.9

Momentum: 8.5

Volatility: 6.7

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Stock-Card
Sats

A-Score: 5.2/10

Value: 5.5

Growth: 5.9

Quality: 5.6

Yield: 1.2

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

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Hollywood Bowl

A-Score: 5.1/10

Value: 4.7

Growth: 8.0

Quality: 5.7

Yield: 5.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Profoto

A-Score: 4.5/10

Value: 9.0

Growth: 2.1

Quality: 6.9

Yield: 8.8

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Harvia

A-Score: 3.8/10

Value: 1.8

Growth: 5.1

Quality: 6.6

Yield: 3.8

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.65$

Current Price

41.65$

Potential

-0.00%

Expected Cash-Flows