Harvia (HARVIA) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of EUR 58.6 million, up 12.7% year-over-year, with all growth organic and 18.3% at comparable exchange rates.

• Adjusted operating profit reached EUR 12.9 million (22% margin), up 8% year-over-year, supported by strong sales and cost control.

• Double-digit organic growth delivered across all regions, with APAC & MEA leading at 29.7%.

• Heating equipment accounted for 57% of revenue, leading growth; strategic investments continued in capacity, IT, digitalization, and product development.

• Major IT and process upgrades at headquarters expected to temporarily shift EUR 3–5 million of deliveries from Q2 to Q3, impacting Q2 profitability.

Financial highlights

• Revenue: EUR 58.6 million (+12.7% year-over-year, +18.3% at comparable rates).

• Adjusted operating profit: EUR 12.9 million (22% margin, +8% year-over-year).

• Adjusted EBITDA: EUR 14.9 million (25.4% margin); basic EPS: EUR 0.50 (+11.9%).

• Operating free cash flow: EUR 12.0 million (80.5% cash conversion).

• Net debt: EUR 49.4 million; leverage at 1.0x, well below long-term target of <2.5x.

Outlook and guidance

• Long-term targets: average annual revenue growth of 10%, adjusted operating profit margin >20%, leverage <2.5x.

• No short-term outlook published; dividend policy targets regular, bi-annual payouts.

• EUR 3–5 million in deliveries and gross margin will shift from Q2 to Q3 due to IT upgrades, temporarily impacting Q2 profitability.

• Temporary OpEx from IT upgrades will affect Q2, with recovery expected in Q3.

• Confident in managing inflationary pressures and maintaining margins through proactive commercial actions.