Harvia Q1'26 preview: We expect earnings to fall from the strong comparison period

Translation: Original published in Finnish on 05/05/2026 at 00:42 am EEST

Source: Inderes & Modular Finance, 7 analysts (consensus)

Harvia publishes its Q1 report on Thursday, May 7, at 9 am EEST. You can follow the company’s webcast from 11 EEST  here. We expect revenue growth to be moderate and earnings to decrease slightly due to an exceptionally strong comparison period. Overall, however, we expect the company's development to remain stable and in line with its long-term targets.

Strong North American comparison period and currencies slow down growth

We expect Harvia's Q1 revenue to grow by 5% to 54.6 MEUR (Q1'25: 52.0 MEUR). The growth rate is clearly more moderate than in the previous year, which is particularly explained by the relatively strong comparison period in the North American segment and the weakening of the dollar against the euro. In our estimates, North American growth will remain at 3% measured in EUR. The war in Iran may also have a small impact on deliveries to the Middle East, although we estimate the overall impact to be limited. We estimate strong 20% growth for the APAC & MEA segment. We also expect growth to continue in Europe.

Profitability decreases as the material margin normalizes

We expect adjusted EBIT to decrease to 11.4 MEUR (Q1’ 25: 11.9 MEUR) which corresponds to an EBIT margin of 20.9%. The decrease is mainly explained by the normalization of the material margin; in the comparison period, the material margin was exceptionally strong (over 66%), whereas we now expect it to settle closer to the company's average level of around 64% in recent years. We also believe profitability is weighed down by the company's systematic investments in increasing fixed costs to support future growth, as well as a slight increase in logistics costs due to the war in Iran. However, we believe Harvia's strong pricing power will help transfer increased costs to sales prices.

Long-term outlook remains positive without official guidance

In line with its tradition, Harvia does not provide short-term guidance. In the report, we will particularly look for comments on the US market situation and the development of demand for steam and infrared products.

In our view, the company's balance sheet is very strong and, in our assessment, provides Harvia with excellent capabilities to continue its strategy-aligned growth through complementary acquisitions. We believe the company will continue to gain market share, particularly in markets outside Europe, where the health and wellness trend of sauna bathing supports demand despite overall subdued consumer demand.