Inside Harvia’s Capital Markets Day 2024: The Strategy Behind a 10% Growth Target

Harvia Plc held its first full Capital Markets Day as a listed company on 29 May 2024, hosting investors and analysts at its Muurame, Finland headquarters for a three-hour walk through strategy, financials, regional plans, products, brands, and operations. The deck ran 80 slides, opened by CEO Matias Jarnefelt. The long-term revenue growth target doubled from 5% to 10%, Harvia put its net debt capacity for acquisitions at more than EUR 150 million, and the strategic frame shifted from a heater-centered business toward “the full sauna experience” and “shaping the global sauna market.” (Every Harvia earnings, acquisition, and investor event is indexed in our Harvia News hub.)

EUR 150.5 million in 2023 revenue

At CMD 2024, Harvia presented 2023 full-year revenue of EUR 150.5 million with a 22.4% adjusted operating profit margin, a 605-person headcount, and a revenue base that had grown at a 19% compound annual rate from 2018 through 2023, of which roughly 10 percentage points came from organic growth. Over that five-year stretch, the business roughly doubled from EUR 74 million (2019) while maintaining operating margins in the high teens to mid-twenties.

Harvia management tied the doubled growth target to two inputs: the global sauna market is now forecast to grow above 5% per year for the next five years (meaning matching market growth is not enough to hold share), and the company wants to be the active consolidator in a fragmented industry where M&A is accelerating.

The consolidator framing has since hardened. On the Q4 2025 earnings call 20 months after CMD 2024, Järnefelt restated the posture in stronger language, saying Harvia wants to be “an aggressive, offensive market leader.” Asked whether acquisitions were back on the table for 2026, he said:

“Harvia is in a very interesting position. We are in a growing market, which continues to be quite underdeveloped in terms of the structure of the competitive landscape. So several rather small regional local players. And Harvia, I think, has the right to play and right to win as a consolidator of this industry.” Matias Järnefelt, CEO, Harvia Q4 2025 earnings call, 12 February 2026

On the margin side, Järnefelt told the same call that the path to the 20% target runs through volume rather than austerity: “We see clear operational leverage. So when we have the volumes and volumes come through,” margin expansion should follow. That matches the CMD 2024 thesis that 10% annual growth is the lever that brings the 20%+ EBIT target within reach.

More than EUR 150 million for acquisitions

CFO Ari Vesterinen walked through the balance sheet math. As of 31 March 2024, Harvia had net debt of EUR 26 million. The company’s own calculation sized additional acquisition capacity at EUR 76 million while maintaining leverage below 2.5x, and more than EUR 50 million of capacity on top if leverage were allowed to go temporarily above that level. Added to the existing EUR 26 million, that puts the net debt Harvia says it could carry for acquisitions at more than EUR 150 million, with Harvia willing to temporarily breach its long-term leverage ceiling for a strategically important deal.

The M&A strategy was described in three buckets: strategic acquisitions to strengthen position outside Europe and grow in infrared and steam; capability acquisitions in areas like digital; and tactical acquisitions when opportunities arise (the example given was the September 2023 acquisition of Italian timer switch maker Phoenix El-Mec to secure a critical heater component).

Two months after CMD 2024, Harvia announced the USD 30.4 million ThermaSol acquisition in late July 2024, deploying a EUR 20 million bullet loan plus cash against exactly the steam-and-North-America growth logic Jarnefelt described on stage in Muurame.

Global sauna market: Harvia’s own estimate

Harvia’s management estimate of the global sauna market, presented at CMD 2024, sizes it at approximately EUR 3.5 billion in value with more than 18 million saunas in use. Excluding Russia, where Harvia exited in 2022, the market is approximately EUR 3 billion and more than 12 million saunas. The split by sauna type: traditional accounts for more than half the market value; infrared and steam make up the balance. Historical market growth has averaged roughly 5% per year, and Harvia management forecasts above-5% growth for the next five years driven by rising sauna awareness and documented health benefits.

By region, Harvia’s market share calculations look like this. Northern Europe (Finland, Sweden, Denmark, Norway, Iceland, Estonia, Latvia, Lithuania) is about 15% of the global market with roughly 4 million saunas in use. Continental Europe is 30 to 35% of the market with 5 to 6 million saunas. Russia, before Harvia exited, was about 15% with 6 million saunas. North America is 20 to 25% of the market with 1 to 1.5 million saunas and the lowest sauna penetration of any major region. Asia-Pacific plus the Middle East and Africa combined is about 15% with 1 to 2 million saunas.

North America: EUR 3M to EUR 43M in five years

Jennifer Thayer, newly appointed Head of Region North America as of 1 February 2024, devoted a session to the US strategy. Harvia’s North American revenue grew from EUR 3 million in 2018 (just 4.9% of group) to EUR 43.4 million in 2023 (28.9% of group). Harvia puts its North American compound annual growth rate for 2019 through 2023 at 38%, in a market that grew roughly 15% per year. The step change came with the December 2018 acquisition of Almost Heaven Saunas, the West Virginia barrel sauna specialist that, per the CMD deck, has been in the North American market since 1977 (Harvia’s 2018 acquisition release gives 1978).

The North American market is sized at roughly USD 800 million in 2023, growing at around 15% per year from 2019 through 2023. The installed base of 1 to 1.5 million saunas means only about 1% of US households have a sauna. By application, roughly 65% of the market is residential and 35% is commercial. By type, traditional saunas are 40 to 45%, infrared is 35 to 40%, and steam is approximately 20%. Harvia’s stronghold today is traditional residential, but the company flagged both infrared and steam as growth priorities, both organic and through M&A.

Thayer’s stated objectives for North America: grow in infrared and steam (the ThermaSol deal executed against this within 60 days); strengthen position in mid- and higher-price points with product imports from the rest of Harvia Group; sharpen direct-to-consumer and B2B channel strategy; invest in logistics capacity at the Lewisburg, West Virginia facility; and continue hiring critical North American talent.

The five-factory global network

Head of Operations Mika Suoja presented Harvia’s five-factory production footprint. Muurame, Finland is the world’s largest heater and sauna component factory, producing over 150,000 heaters per year. Lewisburg, West Virginia is Harvia’s largest sauna room factory, producing over 10,000 saunas per year and serving North America. Gheorgheni, Romania handles European sauna room production. Guangzhou, China produces volume heaters and components, including for Group purchasing. Driedorf, Germany is where EOS manufactures its premium heaters, control units, and gas-fired products.

Two-thirds of Harvia Group’s personnel are blue-collar workers. Operations have delivered average annual productivity improvements exceeding 5% over the past three years, and recent capacity additions have expanded output by more than 25% through automation, including a new automated production cell in Muurame and an automated painting line in Lewisburg.

A related investment disclosure at CMD: in Q1 2024, Harvia purchased about 21.5 acres of land surrounding the Lewisburg facility to enable future expansion. Historic annual capital expenditure has ranged EUR 1.5 million to EUR 3.5 million, with the notable exception of 2021 (EUR 11.8 million, when the Lewisburg factory opened alongside upgrades in several other plants). CMD 2024 signaled increased growth investment in North America over the following two years.

The heater is 10 to 15% of a sauna project

CMD shifted Harvia’s frame from the heater to the whole sauna. Markus Wörmanseder, Head of Products and Solutions (and Head of Region Continental Europe), showed a representative EUR 20,000 custom sauna project: the heater accounts for only 10 to 15% of the total consumer spend; other equipment and technology (control unit, WiFi, infrared therapy seat, LED and speakers, ventilation kit, accessories, stones) add another 10 to 15%; the sauna room itself, including benches, doors, walls, and insulation, is 70 to 75% of the spend.

If Harvia sells only the heater, it captures 10 to 15% of the total sauna wallet. If it sells a full solution, it captures the entire spend. Across most markets outside Finland, consumers increasingly prefer ready-made turnkey solutions rather than DIY heater-and-build-your-own-room projects. The share of saunas and Scandinavian hot tubs in Harvia’s revenue mix has grown from 12% in 2018 to 29% in 2023, driven organically and by the Almost Heaven and Kirami acquisitions. Heating equipment has declined from 68% (2018) to 55% (2023) as a share of mix, even while growing in absolute euros.

Brand architecture: two masters, three regional

Päivi Juolahti, Head of Marketing and Brands, presented the Group brand strategy. Two global master brands anchor the portfolio: Harvia (the main brand, from entry-level to premium residential to mid-tier commercial) and EOS (premium commercial and spa, centered in Germany and adjacent premium markets). Three regional or tactical brands operate beneath them: Almost Heaven Saunas (which Harvia calls the top sauna brand in the US, selling direct and through partners), Kirami (Scandinavian hot tubs, Finland-led), and Sentiotec (a tactical Central European infrared brand acquired in 2016).

The stated future direction runs from “product-driven brands” to “experience- and solution-driven lifestyle brands.” In practice, the Harvia and EOS master brands will increasingly serve as umbrellas that enhance and support the regional brands rather than operate as fully independent silos. The intent is “stronger and more engaging master brands driving demand and brand preference,” with greater marketing focus and efficiency.

Sustainability: carbon neutral by 2030

Harvia restated its commitment to carbon neutrality in its own operations by 2030. The framework has four aspirational long-term targets: “Everyone with access to sauna” (promoting the science-backed three-sauna-a-week regimen of at least 15 minutes per session); “100% sustainably sourced” materials; “0 emissions,” with carbon neutrality in its own operations targeted for 2030; and “0 accidents” in workplace safety. Operational levers include online electricity consumption monitoring to optimize factory compressors and air conditioning, increasing share of carbon-free energy sources, and logistics and transportation optimization.

Four sales regions since January 2024

As of 1 January 2024, Harvia reorganized into four sales regions (North America, Northern Europe, Continental Europe, Asia-Pacific-MEA) plus five Group functions (Marketing and Brands, Products and Solutions, Innovation and Technology, Operations, and Support Functions). EOS retained its own Management Team position under Rainer Kunz. The stated targets of the new structure: increase customer and market orientation; strengthen innovation and differentiation; make better use of synergies across the Group; and develop a solid platform for future M&A by clarifying roles and responsibilities.

Dividend policy: biannual, growing

Dividend policy remains unchanged. Since February 2022, Harvia pays regularly increasing dividends in two installments per year. The 2023 financial year dividend was EUR 0.68 per share (54.4% payout ratio against EUR 1.25 earnings per share). Dividends have risen every year since 2019: EUR 0.38 (2018 and 2019) to EUR 0.51 (2020) to EUR 0.60 (2021) to EUR 0.64 (2022) to EUR 0.68 (2023).

Details earnings releases do not carry

North American market penetration: Approximately 1% of US households have a sauna. The comparable figure for Finland is over one sauna per two people.

Replacement cycle: Sauna heaters in hard professional use (spas, commercial operators) are replaced every 3 to 4 years. Residential replacement cycles are significantly longer. Sauna stones need at least partial replacement approximately once per year in normal household use. With 18 million saunas installed globally, that is a replacement business before new installations are counted.

Japan market structure: Harvia flagged Japan as one of the fastest-growing markets with a distinctive young and female-skewed consumer base. Harvia Japan Ltd (the joint venture with Bergman Ltd) has 24 showrooms across Japan as of 2023 year-end. (See also the Thermory-Bergman Japan partnership, which uses the same Bergman distribution structure in the cladding category.)

EOS global market share: EOS is estimated to have approximately 60% of the premium sauna heater market in Germany alone, and is the global leader in premium sauna heaters overall and in gas-fired premium heaters specifically.