Hello, everyone, and welcome to Harvia's Q4 2025 earnings webcast. My name is Matias Järnefelt, I'm the CEO of the company, and with me I have Ari Vesterinen, our Chief Financial Officer.

Hello.

We will run the session today as follows. I will start by going through the highlights of the business and financial performance during the Q4.

I will also give you an update on how we're progressing with implementing our strategy. After that, Ari will be providing more details on our financial performance for the quarter and for the full year, after which we will be happy to answer any of your questions, which, as usual, you can submit through the chat of this webcast.

Let's summarize Q4. In terms of top line, our revenue increased by 5.3% to €53.7 million, and we delivered positive growth in all regions, and all of the growth was organic.

The currency exchange rates, in particular the US dollar depreciation against euro, had quite significant impact on our reported numbers. At comparable exchange rates, we grew by 10.2%.

Growth in North America was impacted by the currencies. In addition to in addition to that, North America had particularly strong comparison period from last year.

In Q4 2024, we grew by over 60%, and around half of it, around 30%, was organic growth, so that was in the in the base. We had good sales performance in Europe, with Northern Europe delivering the second consecutive double-digit growth quarter, and was the Harvia's fastest-growing region during this quarter.

In Asia-Pacific and Middle East, we posted only a small growth. This was in particular impacted by project deliveries in our Middle East subregion.

In terms of the bottom line, we delivered adjusted operating profit of €10.5 million, and that represents 19.5% of our revenue. At comparable exchange rates, adjusted operating profit margin was 21%.

We continued to strengthen our production capacity, capacity to grow, innovation pipeline and differentiation, and also modernize our IT system landscape, and that was visible in the investment level and also in indirect cost levels of the reported quarter. I'm happy to say that our gross margin developed positively, which was mainly driven by well-executed campaigns during the fourth quarter, in particular in North America, Black Friday, Cyber Monday campaign was an excellent one for us, with good order intake, growing order intake, with clearly stronger gross margins than in the comparison period a year ago.

Then summarizing the full year 2025. Full-year revenue growth was 13.5%, and our adjusted operating profit margin was 19.6%.

Growth at comparable exchange rates was 16%. The operating environment was challenging during the year.

There was significant macroeconomic volatility, including currency fluctuations, turbulent tariff policy landscape, and also softer consumer confidence in certain markets such as the United States. The numbers that you can see here, I think, are strong testament to the resiliency of the sauna market demand, and also Harvia as a quality company and the leader of this business.

During this year, in addition to deliver delivering the results and managing the ongoing business and and changes in the business environment, we've been also taking significant steps forward in implementing our strategy and making Harvia stronger for the future. While market conditions most likely will remain volatile also this year, personally I feel that Harvia is very well-positioned to drive profitable organic growth and also pursue disciplined inorganic opportunities as they might emerge.

Then summarizing Q4 key figures: revenue, €53.7 million, and that's growth of of 5.3% in euros, and at comparable exchange rates, it's a growth of 10.2%; adjusted operating profit at €10.5 million, and that's growth of 20% compared to the comparison quarter a year ago; in terms of the margin, we delivered 19.5% adjusted operating profit margin. Operating cash flow was at good €13.3 million level, which is over 100% cash conversion.

The same figures for the full year: revenue at €198.9 million, very, very close to €200 million mark in euros, and that represents 13.5% growth; in terms of growth at comparable exchange rates, 16% growth; and and organic revenue growth at comparable exchange rates at 14.4%; adjusted operating profit, €39.1 million, and that's 19.6% of our revenue; operating free cash flow at €26.5 million, and that's cash conversion of 57%, which is solid outcome given that the year has been quite significant in terms of investing and and strengthening our capabilities, for example in in R&D, innovation, and digital channels, and also while we've been growing. Then looking at the waterfall of growth from our four reported regions, the leading region this time was Northern Europe at 11.6% growth; Continental Europe, second with 5.7% growth; North America, in euro terms, 2.8% growth.

As I said, there was significant baseline from last year, and US dollar depreciated by over 8% against euro when we look at the comparisons between Q4 2024 and 2025, the North America in local currencies grew double digit. APAC growing around 1%.

There was significant impact from project deliveries in the baseline from a year ago. We had significant deliveries in Middle East, and and Middle East subregion reported -60% development due to due to that baseline effect, while our strategically important markets like China and Japan continued to grow double digit.

Then let's look at each of the region a little bit more in detail. Northern Europe, strong sales performance after already a strong growth in Q3.

The revenue increased by 11.6% to €12.1 million. I'm happy to report that the growth in Northern Europe was broad-based geographically, where Scandinavia, Finland, and Baltics all performed well.

On a full-year level, Northern Europe returned to growth of 6.4% after two years of decline, and second half was clearly double-digit growth half of a year. Continental Europe growth continued in actually across the the markets, in countries like Germany, France, and in particular strong performance in the in the United Kingdom.

As you can see on the chart, we've been delivering steady growth now already a number of years in the in the region. Revenue totaled €15.8 million, and that's 5.7% growth.

The growth for the quarter is also very close to the growth for the full year, which was 5.5%. Then here is the North America region I know that most of you are very interested in.

As I said, the reported growth slowed down to around 3%, but you can also see in the graph that we had significant jump in the comparison period when we grew by 63%, and around half of that was organic growth last year last year, 2024. Significant part of the of the growth was coming from very aggressively priced campaign products.

I'm happy to say that we grew in dollar terms double digit while we improved significant the gross margin in the region. That gross margin improvement in North America is also visible in the 3 percentage point improvement in the gross margin of the whole group, which I'm I'm very pleased pleased about.

In terms of full-year growth, North America region delivered 22% growth in euros, and that's around 26% growth in US dollars. A solid year.

APAC and Middle East and Africa, only modest growth this time, but you can also see that we practically grew or nearly doubled the business, over 90% business in the comparison period in 2024. As I said, significant impact from deliveries in the baseline in Middle East.

China, Japan, key countries for us, both continued to grow double digit also during Q4 of 2025. On the full-year level, APAC and Middle East and Africa was our fastest-growing region, as it was also the year before.

This year, our revenue growth in the region was 25.4%. Then looking at the product categories, we continued to derive most of our business by selling technical equipment for sauna.

Heating equipment share increased somewhat to 54%. Saunas and Scandinavian hot tubs is the second largest product category for us, slight decline to 24%.

This is mainly driven by the fact that significant part of this sauna cabin business is in United States, and that was impacted by the dollar, and also we had very high baseline in the in the quarter a year ago. Steam products, accessories and heater stones, and and spare parts and services remaining roughly on the on the on the same level in relative terms as year before.

Then looking at the waterfall for the product categories: heating equipment delivering majority of the growth by adding 13% or growing by 13% and adding €3.4 million to top line; saunas and Scandinavian hot tubs declining by around €600,000, as said, mainly due to dollar impact and high baseline; steam products, -€600,000, and this is very much driven by actually Middle East project that was significant in size in the comparison period, and also another area where we have a sizable steam business is United States, where we had the over 8% headwind in the in the currencies during the quarter; accessories, heater stones, and spare parts and services reported slight growth. That's about the numbers.

Then few words about the strategy. Harvia is operating in a very interesting market, business that is supported by strong, sustainable long-term growth drivers, and we are leader of this business globally, and we intend to remain so.

The strategic role that we see for ourselves is that we want to be an aggressive, offensive market leader that shapes the global sauna market so that more and more people, everyone, has a reason to experience sauna. We drive this strategy through our four focus areas that answer the questions: what, the product and portfolio we deliver; where, which answers the question that which geographies and countries are in our focus; to whom, which touches our channel landscapes and customers; and how, which is about our operations and capability development.

We have been executing systematically our strategy throughout the year, and that work continued also in the Q4 of this year, or 2025. As an example, what comes to enhancing and making our portfolio even stronger and even more exciting, we've introduced innovation such as the Harvia Phoenix control panel that that you saw in the introduction video before we started the presentation.

The sales started in third quarter, and it's showing really great performance during the during the Q4, and I'm very, very happy to see that. We also continued to strengthen our portfolio by launching a really exciting new product, even a totally new category: Harvia smart sauna sensor, which I'll be talking a bit about in the in the next slide.

In terms of winning in the strategically important markets, North America delivered double-digit growth in US dollars also during the Q4 despite the baseline, and for the full year, around 25 sorry, 26% growth in in dollars, so that's, I think, a testament that we continue to perform well there. APAC, it was a slower quarter in terms of reported figures, but there was that impact from Middle East, and for the full year, APAC and Middle East was the fastest-growing region where we continue to drive systematic and a steady growth in markets like China and Japan.

Continental Europe continued to develop positively. It's gradual development, but it's also very systematic and steady, which we are we are happy about.

Northern Europe, after two years of decline, turned back to strong growth during the second half of the year, where both Q3 and Q4 recorded double-digit growth. We also been upgrading our direct-to-consumer digital touchpoints, which already are significant part of our business in the United States, but we've also introduced a new direct-to-consumer webstore for the German-speaking Continental Europe, in particular focusing on Germany and Austria, and and that it's now open and operational.

We also have been developing our relationships with our global key accounts, such as in the United States, which is also visible in in strong performance during the Black Friday, Cyber Monday campaigns with a clearly healthier margin than we had a year ago, again something I'm very, very happy to see. We have conducted our annual customer survey with our B2B customers, and I'm happy to report that the Net Promoter Score is strong and, even even improving from from the good levels we had in the past year.

In terms of building the capacity and capabilities to grow, we have been continuing our systematic investments in increasing capacity to produce more products to meet the demand in the market, make our product portfolio even more exciting and differentiated, and we have upgraded also our group IT system to support continued growth. I'm also happy to report that in the annual employee survey, which we also conducted during Q4 in addition to customer satisfaction survey, we saw great results in the employee responses, and that confirms that Harvia is a great place to work.

Then, just a one of the highlights of of the fourth quarter related to innovation and and our portfolio is a completely new category, never seen in the in the sauna market before, this is a smart sauna sensor. It includes three precision sensors: one, temperature; second, humidity; and also there's movement detection, basically it can sense human presence in sauna.

It's connected via via Wi-Fi to Harvia Cloud, and in the Harvia Cloud, there's application programmers interface, Harvia can innovate, but also external partners can innovate on this on this sensor's data that it can provide. It can, for example, notify when the sauna is ready, it can provide you heating curves, humidity curves.

It can, for example, tell you that now the heating curve of your sauna is deteriorating, most likely reason is that you need to replace your sauna stones. For example, for commercial customers, it could report that it seems that the door has been left open because the temperature curve is now dropping significantly, then the commercial operator can go and check that everything is okay with the sauna.

What is really cool about this is that it works in any sauna, it really turns any sauna into a smart sauna, whether it's a wood-burning sauna without electricity or also saunas where we don't have other Harvia equipment. Really, really cool new innovation showcasing our ability to innovate in the digital space.

With that, I hand over to Ari.

Yeah. Thank you.

First, a technical note. These full-year figures what we have now collected and reporting, they have been already audited.

Our financial statements for 2025 have been audited, and they will be published together with the annual report at the end of the week 11, that's the second week of March, with a couple of administrative reports, too. The full-year figures are final, and then the KPIs and different other measures, they have been collected by the financial management.

Okay. Here you see the development of the different quarters during 2024 and 2025.

I'm really glad to announce that the Q4 2025 was the strongest sales quarter really in the history of the company. The relative profitability improved compared to last year's Q4 substantially, and we have been doing there good things to improve the profitability.

Unfortunately, we didn't quite reach the financial target, 20% adjusted EBIT level, but there are different explanations of that, for instance the currency rates, and then additional investments also in development projects and so forth, which will bring growth and improvement of the business in future. Okay.

Here we see once more the comparison of the key figures for the full year and for the quarter. Here we see that actually the adjusted EBIT, for instance, was improving clearly during Q4.

It reached almost average level of 25%, and the investments, they have been now quite heavy for this year, and this is not necessarily the normal level compared to the net sales of Harvia for the years to come, but we will have also quite high investments in the next, let's say, 12 months or so since we want to really improve the scalability of the business and improve the capacity of production places, and we have also a few remarkable ESG-related investments which we have done. This was a good year, and also good improving quarter, even if somebody was probably expecting something better, but we are rather satisfied with this quarter.

Here we see also how typically the Harvia free cash flow evolves over the year. Typically, we have the lowest cash flow in Q3 when we build goods in the stock, especially in Finland in the heater manufacturing, but also in sauna manufacturing in US, and then we sell them out typically during the Q4 campaigns.

That was really the case also in 2025. This time, we had just a bit higher investments and certain projects which were expensed, so that's reduced the profitability and the cash flow a little during Q4 compared to last year.

The leverage remained still on a very low level, 1.2, and we have set a long-term target to 2.5, we have actually quite much space there, for instance to take more financing if we happen to make acquisition or so. This 2.5 is also just a level for long-term; temporarily, we could be also over that if we make interesting acquisitions.

Harvia has a very strong cash position. End of last year, we had cash or cash equivalents €45 million on our accounts.

The financing costs, okay, they were quite much based on different valuation of the swap agreements and also the currency rates, but here we see the blue dotted line, it really shows the outflow of the finance costs. It has been quite on a steady level.

We mentioned already the investments. We have been really improving our IT landscape, making the group more scalable, better for the future growth in that area.

Then, in product developments, we have very nice, interesting projects in pipeline, and we have been improving the production capacity, especially in Germany, but also expanding the factory in US. This US expansion still will continue beginning of this year for a while, but yeah, these investments secure the future growth.

The Harvia's long-term financial targets, they are still the same: growth, at least 10% on average on annual level; profitability, over 20% adjusted operating profit margin; and the leverage, as said, under 2.5 on a long term. The dividend policy has been to pay regularly increasing dividends in two installments during the year.

This will be the Harvia's Board of Directors proposal for the Annual General Meeting on the 15th of April to pay €0.77 dividends for the result of 2025. Last year, we paid €0.75.

Now it's time for questions and answers. I have here quite many interesting questions already, and let's start.

First kind of financial question: Harvia has never bought protection against currency changes. Should you do so in the future, given the drastic effect of USD weakening?

We have been following our treasury policy, and we have been protecting us actively against the interest rate fluctuations, but in the field of currency, we haven't been so much protecting. We have to really consider that in future.

Currently, for instance, US dollar is already quite on a low level, and we have to think that level also over, and the protection typically gives protection only about 6 to 12 months on decent terms, it's also a cost factor. We adapt, as you see, our pricing also in terms of euros.

In terms of dollars, we have been now able to improve the dollar-based profitability in US through price increases. This topic is on the desk all the time, and we will review it once more.

Can you clarify why you say that no growth in the segment Other was related to the timing effects? Will these deliveries take place in Q1 2026?

I think it's related to APAC, EMEA.

I assume it's segment or geographical segment of APAC and Middle East. It's basically due to timing for the reason that we had a year ago, fourth quarter 2024, significant project-related deliveries in Middle East which were not repeated in the fourth quarter this year.

I mentioned during my presentation, in fact, in the subregion Middle East, we reported actually internally 60% decline year-on-year. That is the reason why refer to timing of deliveries as a key reason for the slow growth that you see for the APAC region as a whole.

At the same time, I did also mention that the strategic countries, the big countries that we are developing for sustainable long-term growth, China and Japan, both grew by healthy double-digit rate also during the fourth quarter of 2025.

Okay. How do you see marketing spend in 2026 versus 2025?

I see marketing is really playing a significant role in our business. It's branded consumer goods business mainly, it's consumer wellness business and in another perspective, and in that business, power of brands and power of marketing are important.

In terms of the cost of marketing or spend for marketing, I don't expect that in terms of marketing spend per revenue we would see significant changes as we go into next year. What we are really thinking of, how can we do marketing effectively in an interesting, inspiring way that captures the attention of the audience and could even go viral?

This is more like the preferred way we would like to see for Harvia this year and going forward.

What do you consider are the main variables with the biggest swing risks, positive or negative, for 2026? Here are then examples mentioned, like volume, mix, price, input costs, Forex.

All of those are of course relevant. If we think about kind of what we have been seeing in the in the reported figures, I think the most important thing is that is the demand towards our category, sauna and sauna wellness, going to stay robust also going forward and also increasing?

We have all the reasons to believe that yes, it will. If we look at the full-year full-year performance of Harvia at 13.5% growth in euro terms and 16% in in in comparable currencies, I think it's a good good good result given that the macro environment, as I mentioned in the beginning of presentation, was challenging.

A lot of confusion, in particular in the beginning of the year, with with tariffs, currency depreciation, lower consumer confidence, and despite all of that, we delivered the numbers that we delivered. I think that's a that's a should be a comforting signal that there is strong longevity and the megatrends that support the growth of this business also kind of come through even during more difficult macroeconomic year, as we saw in 2025.

Demand, of course, is one one key thing. In addition to that, it's we have to recognize that the world has become a more volatile place what comes to the tariff regimes, the currencies, etc., and that means that also as a company, we need to adjust and make sure that we are agile and can react as quickly as as it's needed for those changes.

During the the the year 2025, I think, it was quite difficult to fully compensate the cost of increase in the cost of doing business, for example due to the tariffs or currencies, because they were so quick changes in such a short period of time, and and that did have a bit of an impact on our on our reported full-year figures. I hope that the the environment is a bit more stable, but I also am confident that our ability to react and manage in even in a more real-time manner is improved for the year 2026.

We more or less almost answered already this one question, but I ask it once more if you have something to add. Timing of deliveries in APAC and MEA, is it right to assume that this facing was between Q4 and Q1?

Do you have anything to add to that?

It's mainly related literally project timings in the Middle East subregion. That is clearly the driving reason.

Overall, as I said, APAC was the fastest-growing region for us in 2024. It grew by 50% in euro terms, and in 2025, it grew by 25% in euro terms.

I think you should put things in context that it is one quarter with extremely strong baseline, as you can see, baseline we had growth of 94% in the fourth quarter 2024, and then you should be putting the numbers that you see now reported in that sort of a bit more long-term perspective. One important factor which I already shared a couple of times is that the big markets, China, Japan, continue to perform really well.

Is M&A back on the table for 2026? How are the valuation levels looking like at the moment?

It's a great question. Harvia is in very interesting position.

We are in a growing market which continues to be quite underdeveloped in terms of the structure of the competitive landscape, several rather small, regional, local players. Harvia, I think, has the right to play and right to win as a consolidator of this industry.

Now, we didn't do acquisitions during the year 2025. The main reason for that was twofold.

On one hand, we closed an acquisition of steam company ThermaSol in the United States in the second half of 2024, and we wanted to make sure that we integrate that properly, we get the synergies in terms of top line and cost efficiencies as we planned. At the same time, the company management was very busy managing the volatility, as said, tariffs, the currencies impacting our biggest region, North America.

I think, in combination, the fact that we had completed a reasonable-sized acquisition in the second half of 2024 plus year 2025 was a very busy year for management, that had an impact. At the same time, of course, we are disciplined in the M&A, we want to make sure that it's value-accretive.

We are continuously in discussions, and I hope that in not-so-distant future, we would have something to report also on this front.

The dividend raise was quite lower than expected. Inderes, for instance, expected €0.85.

Are you being cautious with the dividend growth at the moment because of the possible ramification of tariffs, or will this lower dividend growth become the norm?

Maybe I can take that.

Yes.

Basically, we have, first of all, a dividend policy that we want to pay increasing dividends. We have now a very, very good track record of growing dividends since we have been public since 2018.

There has been a rather steady pace for us to increase our dividends, with the exception of 2025. In 2025, we increased the dividends more than we have done in the past for the reason that we wanted to deliver that €0.75 to celebrate our 75th anniversary year.

Now this increase from €0.75 to €0.77, we kind of return to the, I would say, a systematic path that we have been on for a longer period of time. We hope to continue increase dividends also for many years to come.

Now, this is one of the reason. There was this extraordinary added dividend, in a sense, in 2025.

The second is that we want to reserve firepower as the market is growing and we have plenty of opportunities. We are increasing organically our capacity to grow, we are enhancing the competitiveness and differentiation and excitement in our portfolio, but also we are reserving firepower for the consolidation game.

It's a combination of many factors why then the Board of Directors decided to propose this €0.77 for the Annual General Meeting.

Okay. Then there is a question about the breakdown of the CapEx.

It was directed more to me. We don't publish so exactly the breakdown of the CapEx, but there is a question about tangible versus intangible CapEx.

We can say that it's almost half and half, and we have been substantially really, really investing in intangible things like this digital, what you see on the screen, that's just a beginning of an area. At the same time, we really invest also in tangible like buildings and machinery and so forth.

As said, we don't disclose it so exactly.

The goal is we allow capacity to grow and improve the scalability of the business. This is basically what we are driving with the investments.

For example, one of the key areas for investment has been modernizing and simplifying our IT landscape. We have grown through acquisitions in the past years where different units had different IT systems, legacy systems, some of them very old ones.

Now we have taken significant steps to modernize and have the kind of the IT capability to grow as we have been also making other investments such as investments in physical facilities plus machinery, to keep growing.

Then the question asker is indicating a signal about our dividend policy. He or she has looked back to our dividend history, and there is a note that small dividend increases indicate that there is something cooking on the M&A front, a bit similar to 2019 when you raised the dividend by a penny and then announced the EOS acquisition.

It's not necessarily directly a signal, or...

I would say that it's a bit like in the old times, there were the Kremlin analysts trying to find meanings between the lines. This pretty much, I guess, what it is when looking at the dividends.

We cannot, of course, comment specifically on potential M&As in the pipeline, but it is clear that we are interested in it. As said, hopefully, not in too distant future, we could also report some practical outcomes also in this sense.

Okay. Then lengthy comment with the question: Several large foreign investors told me that they would consider adding Harvia to their portfolio if there would be a flexible mix of growing dividends and buybacks.

There have been some buybacks in Harvia stock to service the long-term incentive program, but I'm talking about net reduction of the total share count. In the US, strong consumer companies with steady growth and high cash flow returns have created a lot of tax-free value for shareholders by repurchasing stock.

What's your view on this considering the strong balance sheet and flexible investment policy? It's probably a matter of our Board of Directors, and we don't want to predict these discussions.

We have noted that there is also the possibility of purchasing back the shares. We now don't announce currently any program for that.

Or would you like to...

No, I think that's it. Of course, it's clear that in any company's owner base, there are different interest, and some of them are more focused on the share price growth and some are more dividend-focused.

I think in Harvia's case, probably the kind of the best way for us to create long-term value is that we deliver significant profitable growth in the coming years that then will turn into shareholder value. That's the perspective I believe that the board has when looking at this.

A reflection on the gross margin and OPEX: You are still priced well below your competitors in many categories. Would you increase the pricing to then also invest more aggressively in marketing and other OPEX?

In other words, there is a possibility to strengthen your strategic P&L investments by adjusting the prices.

That is correct. I think there different means that we want to use in a balanced way.

One, of course, is that we have operational leverage, scalability in our business, which we continue to improve, for example through the investments that we made during the year, and then the volume growth will turn into a stronger bottom line and in terms of absolute profit, but also in relative profit. The other thing, of course, is that we can push our gross margin through price increases, which we have been actually doing during 2025, in particular as reaction to the currencies and the tariffs.

The good news is, which you also pointed out in the question, practically in any category, Harvia is the best choice. You get the best product, best solution for the money you spend.

That also has been one of the key formulas for success of Harvia, the reasons why we have become the market leader. We want to keep that going, that Harvia is a premium brand, the world-leading brand, but also provides great value for our customers.

We, of course, look at this in balanced way because we know that we need the margin to be able to keep investing in making the company stronger and introducing even more exciting innovations to the market.

Early Q3, you are launching the high-end sauna rooms via ThermaSol. How should we think about the future sales impact, scaling, implied margins (sauna rooms typically have lower margins is written here), total addressable market, required CapEx?

Is it an option to expand with the high-end sauna rooms into Europe as well, making you a direct competitor of Klafs?

The main reason for us to introduce that higher-end, I would say premium range of sauna rooms in the United States is really to tap into new price categories and help expand the size of the market. In a sense, the way we kind of look at the United States, we see a market with significant growth potential.

We believe that there's a great opportunity and plausible opportunity for more than 10 million saunas to be built or purchased in the United States in the coming years. Now, in terms of the market value, it, of course, then matters that what's the price point of those new saunas.

Our stronghold in the United States has been in what I would call rather entry price points sauna. Almost Heaven is the brand, which you could consider it's kind of like the IKEA of the saunas: so good-looking, affordable, assembly products with a strong American flavor.

They are made in America, in the heartlands of America, in West Virginia. Basically, 10 million new saunas multiplied by $5,000 or so for Almost Heaven saunas would imply that there would be a possibility for $50 billion USD market potential with that sort of back-of-the-envelope calculation.

If we can actually inspire the market to spend some more with the great designs, more premium categories, maybe the market is not going to be full of $5,000 saunas, but maybe closer to, let's say, $10,000 saunas. That really has been kind of main reason we have been introducing these products, and are very interested in playing in those price points as well, because we know we are market leader.

We don't have to only follow the market, but we can also shape the market. In terms of profitability, these products are highly profitable for us, we hope to scale that part of the business up rather quickly in the coming quarters.

Yes...

Excluding the very tough comparison last year on a two-years stack basis, the underlying normal sales performance in the US has actually accelerated throughout the year. Still, many analysts and investors are focused on the smallest detail in every quarterly report.

Wouldn't it be more useful if Harvia ceased reporting quarterly performance, but instead focus on half-year and full-year results? Probably yes, but at least this European stock market requires that we report quite regularly.

We feel really that so we draw also our investors' attention to us. We have almost half of our investors outside Finland, stock funds and so forth.

We would really like to inform them on a regular basis, and to create that basis, we need also the quarterly reporting. Or how do you see this?

I think you answered very well the kind of reporting. I would also like to compliment and thank the person asking this question because I think you're absolutely right that Harvia is not so much about the single quarters and some of the details in them.

It's about the bigger story: how big the global sauna market can grow, and will Harvia be the leader of this business also in the future. Personally, I believe we have everything it takes to play and win, and we are executing our strategy systematic, and also putting the chips on the table so that that's possible.

Then if you look at just simply the kind of the longer-term perspective of Harvia being a publicly listed company since 2018, basically we went to the stock exchange, first-year revenue €62 million. Now we are very close to €200 million.

We talk about compound annual growth rates of around 18% for the full period. If we look at just year 2025, it was in comparable currencies 16% growth, clear majority organic.

I think there is a clear red thread and megatrend looking at Harvia's performance. Also we have maintained strong profitability also during year 2025, maybe not quite to the level which we in the end hoped to develop for the full year, but it's not too bad.

We have been managing a highly volatile environment impacting kind of the heart of Harvia's business, North America, in terms of tariffs, the currencies, and at the same time, brought great innovation to the market, developed our channels, developed our capacity and scalability of the business. All in all, I would definitely support your view that it's important to put things in perspective and in the bigger picture when assessing Harvia and Harvia's future value creation potential.

Back to M&A. On the M&A front, what's on the wishlist: a local or worldwide player in infrared, for example, or do you believe you have got the organic capabilities for that?

We have been quite open in the previous communications that one of the prime candidates, of course, for us is infrared sauna business in the United States. United States is the most important single country for the sauna wellness business, and infrared saunas play a significant part there.

We would be quite interested in finding a suitable kind of inorganic opportunity to accelerate when the deal is right and clearly value-accretive, and we can really see this is the way it would work. That's one opportunity.

At the same time, we are looking at other significant-sized markets with clear potential, both in Asia and also some of the fastest-growing big countries in Europe. Looking at categories such as cold wellness, kind of digital wellness capabilities that could provide even more benefits for those who seek, for example, health benefits when using sauna, for example digital sauna wellness protocols that are customized for person's health and personal needs.

There are many different opportunities and directions we are looking at. There are things cooking behind the curtain, but whether and when they would realize into announcements that we can make, I cannot really comment further.

Did you open new distributor doors in the US in 2025, and what is the plan for 2026?

In US, we have I would say three main channels. One is what we would call the big-box retail, so that's kind of mass merchants.

The second is specialty dealers specializing in wellness products such as sauna, pool, and spa, and then our own D2C. That landscape has been pretty steady, with the exception that we actually opened Amazon as a I would say shop-in-shop during 2025.

At the same time, we are working diligently with our commercial teams that we want to grow each of these key channel pillars, and we want even bigger key accounts in the big-box retail and we want more of them. We want to expand further our reach in the regional specialty dealership for wellness products, and we see significant growth opportunity for our own D2C in the US, and we continue to develop all of those during this year.

Follow-up question more or less to US: How do you see the underlying demand in the US? Has the trends seen in Q4 continued in January and early February?

We don't comment the current quarter. All in all, as said, the year, despite all the noise in the macro environment, consumer confidence, etc., we delivered 26% growth for the full year in the United States, and clear majority of that organic growth.

I think it really tells the story that sauna is a strong trend that even defies the kind of environment outside the sauna market. I think that I have all reasons to believe that that is going to continue also this year.

Can you discuss the outlook for operating margin for the next 2 to 3 years? Can you generate operating leverage, or likely to stay close to 20% given reinvestment and Forex headwinds?

This is also decision by management: how do we steer the business? If we look at the, for example, fourth quarter and or in the full year 2025, it is clear that we have increased the OPEX levels, and that relates to, for example, marketing, channel development, R&D, etc.

Why we are doing it, because we are seeing such a big growth opportunity for years to come in this market, and we want to have the absolute best portfolio to play and the best channels to play. We made the choice.

Of course, we could have made the choice that we not invest as much in marketing, not as much in product development, but I think it would not be maximizing the value potential of Harvia in the longer term. The way I think is that still in couple of years, we are in this phase where there are significant needs and opportunities for us to make Harvia stronger while those actions do require also us to spend some money, put chips on the table for payback over time.

At the same time, we try to manage also that the results, even on a quarterly basis, would provide evidence to the market that we are on the right track. It is clear that management wants to avoid dips in the EBIT, but at the same time, if EBIT margin would be significantly higher, way beyond 20-plus, then we might not be investing enough to make the future happen and make sure that Harvia is by far the most competitive player in the market.

Ultimate, it's very much about the management decisions we make. This is the way I see Harvia in the big picture.

We see clear operational leverage. When we have the volumes and volumes come through, it is really in our high gross margin business, having a very positive impact on the bottom line.

Now assuming that my vision of Harvia, which is that Harvia will be much bigger in the future than where today, I think it should have a positive impact through operational leverage, scalability of the business, also in the bottom line in the years to come.

Could you please explain the spike of CapEx in 2025? What should be expected in 2026 and beyond, please?

I can take this. I calculated that the CapEx now for 2026 was about 7.5% of the total net revenues.

In 2024, it was 3.5%. We haven't really put this as an official financial long-term target, but could estimate could be somewhere lower than what we had in 2025, but higher than what we had in 2024, somewhere in between.

We will have some substantial investments still in 2026, and time after that, we want to invest for the growth. What was the organic growth in the US in Q4?

We don't disclose really the single countries, even if North America is really really the biggest part is US. As you see, we had in euro terms 2.8% in the spreadsheets there in the report.

Since the dollar depreciated about 8%, it should be somewhere about 12, 13% during Q4, including Canada.

Just to comment that we didn't have any in-organic moves that would have impacted. All of that growth in North America was organic, because ThermaSol has been consolidated in our P&L since August 2024.

All you see for North America is organic.

That's right. Yep.

How much did the mismatch in deliveries in North America affect the quarter, mismatch of deliveries? What would growth have been in those orders if they would be included in Q4?

How will this effect Q1 in 2026 in North America?

We didn't have a number that we would have published for that sort of kind of overflow from Q4 to Q1 in North America. What I can say that the campaigns went really well, and there will be deliveries happening Q1 based on significant and great order intake during Q4.

From that angle, it does look positively.

What kind of sales growth did ThermaSol deliver in financial year 2025?

I think we haven't disclosed that fully, but we are pleased with ThermaSol. It's providing us a solid base to grow our position in the steam.

It's also an avenue for us to drive our higher-end offering beyond steam, since ThermaSol's channel mainly relate to high-end home spas and commercial spas. Integration is working as planned.

Kind of the profitability impact is coming through. Of course, in ThermaSol's case, the dollar depreciation has been a bit of a topic, but what comes to, for example, the steam numbers that we reported for Q4, there is a significant portion that is coming from that Middle East project business.

ThermaSol, it's good.

Follow-up question from another person: Can you provide some color on development of ThermaSol? We did it.

Has it developed as expected?

I

think yes. What type of synergies have you seen so far, and are there more synergies yet to come?

There are both top-line and cost synergies. Top line relates to especially this sort of cross-selling between the channels that ThermaSol has and channels that we had before ThermaSol, which are complementary.

We want to sell more of premium products from Harvia Group side through ThermaSol high-end channels, and we want to bring ThermaSol steam expertise through our kind of I would say legacy or previously the channels we already previously had in Harvia in the United States. Mostly, we've been focusing on this sort of cross-selling in the United States so far, but we will be also using ThermaSol to enhance our steam game beyond United States, in places like Europe, Middle East, and Asia.

That's top line. Then the cost synergies relate to things like Harvia is significantly bigger player than ThermaSol, when we look at, for example, procurement, simply component prices that Harvia is getting and what ThermaSol used to get, there's a significant difference.

We have been able to lower the cost of component sourced for ThermaSol even quite significantly. First, we had to kind of burn through the existing component inventory that ThermaSol had at the time of the acquisition, plus it took some time for us to kind of find those alternative suppliers, do the appropriate testing, make sure that everything is fine for us to take those new, cheaper components in use through Harvia's own sourcing.

It's really happening as we speak, and the impact has already started to come through, not to the full effect yet, though.

When does Harvia start the cooperation with Ronaldo?

We're very thankful for Ronaldo and actually many other I would say megacelebrities in the world. Actually, sauna category is pretty interesting that people really love to talk about it.

There's just something that they really kind of sparks people's interest and emotion. It's, on one hand, it's great for our health, on the other hand, it's great, relaxing, pleasant experience, but it's also something that I think it's very much into the core of humanity, connecting our body, mind, and spirit.

It's very physical experience, but also the physical reaction and our body's reaction to the heat really helps to calm our minds, etc. People really love sauna.

That's why I believe we see so much, for example, social media postings, not just from the mega-influencers like Ronaldos and other elite athletes, but also in entertainment, entertainment superstars, but also ordinary people. We haven't paid anything really to this sort of megastars.

They would also come probably with pretty high price tag. We have been estimating for fun at times that how much of free market making they are making for us, and it probably would be counted in tens of millions, if not even a 100-plus million over multiple years, the kind of value of posts that people like Cristiano Ronaldo and the likes have done for sauna.

Then we think that as the global leader of the sauna movement and sauna business, we probably are the company that benefits most of this activity in social media. We are very thankful for that.

What's the opportunity to team up with other wellness players, such as Garmin, Technogym, or others?

Great question. Something that is on our minds.

If you think about sauna providing significant wellness benefits, we would like to see a future where those who are interested wouldn't just have that feel-good feeling, relaxing feeling, more calm minds, etc., but also, for those interested, we could also provide the data, what's happening in their kind of bodies through the sauna wellness programs and routines that they go through. That would obviously, key part of that would be kind of sensing what happens in our bodies, and there are many players like the ones you mentioned that are on our radar screen in terms of potential partners in the future.

Now, we have been in this session already over one hour, now the last question. Thank you very much, by the way, for all the great questions.

Could you elaborate, what is the value of the brand considering the actual product from technology? It's not complicated to manufacture.

Are there small barriers to entry to this business?

I think the brand is significant part of Harvia and Harvia's success, and I think it's going to get even more important in the future. Why I'm saying that, if we think about what's happening in the market, Harvia has become and emerged as the leader of what used to be a niche business that was mainly known by just the industry insiders.

In most countries, if you would just go and ask a consumer on the road, "Hey, name me one sauna brand," they would answer that "I don't know any." This is changing because sauna is becoming much more of a volume category or maybe even a mainstream category.

In such an environment, the power of brands becomes stronger and more important. I have a dream that Harvia could be brand like to Google is practically a synonym for internet search, or Tesla became the icon for electric cars, that Harvia would be the icon of sauna, and basically the thought that it would invoke is: Harvia, global leader of sauna, and sauna feels better with Harvia.

Maybe that's a good ending to this session.

Thank you very much for everybody and thank you for following. Let's sauna.

Thank you very much. Take care.

Let's sauna.