Q2 2026 Harvia Oyj Earnings Call Transcript
Key Points
- Harvia PLC (HRVFF) delivered strong double-digit organic revenue growth of nearly 12% in Q2, driven by exceptional performance in North America, which saw a nearly 40% revenue increase.
- The company successfully completed a significant IT and process upgrade at its main heater factory in Murame, Finland, positioning it for scalable growth and improved operational efficiency in the future.
- North American sauna cabin business showed robust growth across all channels, including key accounts and its own direct-to-consumer web store, indicating strong product-market fit.
- Harvia PLC (HRVFF) continues to invest in future growth, including expanding its Lewisburg factory in West Virginia and advancing R&D, with new products like the Harvia Phoenix winning prestigious design awards.
- The company maintains a strong balance sheet with low leverage, providing ample financial firepower for potential acquisitions and strategic investments.
- Management expects to recoup the majority of the EUR4 million in delayed deliveries during Q3, with production capacity returning to normal and a positive outlook for gross margin development.
- Harvia PLC (HRVFF)'s Q2 profitability was negatively impacted by the temporary halt in production due to the IT upgrade, with adjusted operating profit margin falling to 16.2%.
- The IT transition caused approximately EUR4 million in deliveries to be postponed from Q2 to Q3, impacting both top-line and bottom-line results for the quarter.
- Sales in the APAC and Middle East regions declined by nearly 5%, partly due to the continued war and uncertainty in the Persian Gulf, which is expected to have a roughly 1% impact on full-year growth.
- The steam products category underperformed, with sales down 14% year-over-year, due to slow market growth, project disruptions in the Middle East, and internal improvement opportunities that are still being addressed.
- The company's sales mix was less favorable in Q2, with a higher proportion of lower-margin sauna cabins versus higher-margin technical equipment, which negatively affected gross margins.
- Operating free cash flow was impacted by significant investments in capacity expansion and inventory buildup, leading to a lower cash conversion rate for the quarter.
There is a very special place for the body, mind, and spirit, and it's easy to reach.
It can be hot. It can be cold.
It can be pleasantly warm and smoothly cool.
Outside and in it elevates you and all around you.
It feels and does good like no other place can.
We know this place. We come from this place.
We have our own very old word for it. It's the same in every language.
So we invite the whole world to explore. Embrace and enjoy it.
Always in your own very special way. Let's sauna for the body, mind and spirit.
Hello everyone and welcome to Harvia's second quarter 26 earnings webcast.
My name is Mattias Jahrenfeldt. I am the CEO of the company and with me I have Ari Vesteren, our Chief Financial Officer.
Today we'll start by our presentation as usual and I will be covering the highlights of the second quarter business events and key financial numbers. I will also briefly touch
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