Harvia’s Half-year financial review 1 January – 30 June 2025

Core Insights - Harvia Plc reported continued sales growth in Q2 2025 despite uncertain market conditions, with revenue increasing by 9.4% year-on-year to EUR 47.3 million [5][11]. Financial Performance - Revenue for the first half of 2025 reached EUR 99.2 million, a 16.0% increase compared to EUR 85.5 million in the same period of 2024 [4][5]. - EBITDA for Q2 2025 was EUR 9.4 million, down 11.0% from EUR 10.5 million in Q2 2024, with an adjusted EBITDA of EUR 9.9 million, reflecting a 10.2% decline [4][16]. - Operating profit for Q2 2025 was EUR 7.6 million, a decrease of 14.6% from EUR 8.9 million in Q2 2024, with an adjusted operating profit of EUR 8.2 million [4][16]. - Basic earnings per share (EPS) were EUR 0.23 in Q2 2025, down from EUR 0.31 in Q2 2024 [4][5]. - Operating free cash flow decreased by 29.2% to EUR 3.9 million in Q2 2025 [4][5]. Market Dynamics - The North American market experienced slower revenue growth due to increased economic uncertainty and a weakened U.S. dollar, impacting sales and profitability [10][12]. - In Europe, sales remained stable, with variations across countries; Germany showed growth while Finland and Sweden saw declines [13][14]. - The APAC & MEA regions achieved strong sales growth of 35.8% in the first half of 2025, supported by project deliveries [15]. Strategic Initiatives - The company is focused on long-term growth targets, aiming for an average annual revenue growth of 10% and an adjusted operating profit margin exceeding 20% [8]. - Harvia is investing in key areas such as IT infrastructure modernization and strengthening its direct-to-consumer channel [17]. - The introduction of innovative products, including the world's first hydrogen-powered sauna, highlights the company's commitment to sustainability and innovation [18]. Workforce and Financial Health - The number of employees increased by 8.6% to 742 compared to the previous year [6]. - Net debt rose to EUR 57.9 million, with a leverage ratio of 1.3, up from 0.8 [6][19]. - The equity ratio decreased to 43.6% from 49.8% year-on-year [6].