Thermory Ownership Changes Hands as UG Investeeringud Acquires Majority Stake

Thermory, the Estonian manufacturer that has become the dominant global supplier of thermally modified wood for sauna construction, reported annual revenue of 185 million euros for fiscal year 2025 — a 28% increase over the prior year and the company's strongest performance since its founding in 1997.

Growth Drivers

Sauna-grade thermowood products, including interior paneling, bench materials, and exterior cladding for outdoor sauna structures, accounted for approximately 40% of total revenue. The decking and exterior cladding division contributed another 35%, with architectural and specialty products making up the remainder.

The company's thermal modification process — which heats wood to extreme temperatures to improve durability, moisture resistance, and dimensional stability — has become the material of choice for premium sauna construction worldwide.

We can't build capacity fast enough. Every major sauna manufacturer we supply to is asking for more volume, and lead times are stretching.

Capacity Expansion

To address the supply-demand imbalance, Thermory has committed 45 million euros to expand its Pärnu manufacturing complex, with a new production line expected to be operational by mid-2027. The company is also exploring a potential North American manufacturing presence, though no formal plans have been announced.

Competitive Landscape

While Thermory remains the clear market leader in thermally modified wood for sauna applications, competitors including Lunawood (Finland), Bingaman (U.S.), and several emerging Asian producers are investing to capture share in the growing market.