Tulikivi Cuts 2026 Guidance, Now Expects Sales to Fall to EUR 26.5 to 28.5 Million

Tulikivi now expects its 2026 net sales to fall to EUR 26.5 million to EUR 28.5 million (about USD 29.5 million to USD 31.7 million), from EUR 29.5 million in 2025. It expects comparable operating profit somewhere between a loss of EUR 1.0 million and break-even, after a loss of EUR 0.1 million last year. Since March, the Finnish soapstone fireplace and sauna heater maker had said both would improve on 2025. Its board issued the new ranges as inside information at 10:30 p.m. Finnish time on October 28, after the Helsinki close.

The board blamed the economy: “the rise in consumer confidence in Finland and Central Europe came to a halt in September–October,” it said, and “demand for the company’s products has not increased as anticipated.” Public data agree. Statistics Finland’s consumer confidence indicator climbed to -3.0 in August, its long-term average, then fell to -4.9 in September and -9.7 in October. The European Commission’s measure for Germany, where Tulikivi said fireplace demand was weak in the first half, also turned down in September.

The release doesn’t mention the US. Eight days earlier, Tulikivi announced that its Kaarna, Pyry and Usva electric heaters had cleared US safety testing. Sauna heaters are about 10% of Tulikivi’s sales, according to Inderes analysts quoted by Finnish broadcaster Yle. Most of the business is heat-retaining soapstone fireplaces, which sell with new homes and renovations.

USD conversions use the European Central Bank’s October 28 reference rate of USD 1.1133 per euro and are rounded.

The fourth cut in two years

This is Tulikivi’s fourth guidance cut since October 2024. That month it lowered its 2024 sales range from EUR 37 million to EUR 44 million to EUR 33 million to EUR 37 million, blaming a weaker-than-expected recovery in demand, “especially in Germany.” It finished at EUR 33.3 million. For 2025 it first guided for improvement, cut to EUR 29 million to EUR 33 million in September 2025, cut again in February 2026 to about EUR 29.5 million, and landed there.

Sales were EUR 45.3 million in 2023. The midpoint of the new range, EUR 27.5 million, is 39% lower.

The second half has to break even

Tulikivi’s half-year report shows first-half sales of EUR 13.5 million, down 7.5%, and a comparable operating loss of EUR 1.0 million. The full-year range implies second-half sales of EUR 13 million to EUR 15 million, against EUR 14.9 million a year earlier, and second-half comparable operating profit between zero and EUR 1.0 million.

Orders were already slowing by June. The order book stood at EUR 3.2 million at the end of the first half, down from EUR 4.0 million, and second-quarter order intake fell to EUR 7.0 million from EUR 8.7 million. Tulikivi used temporary layoffs in the first half, and its average headcount fell to 154 from 173. Its equity ratio was 43.8%, above its 40% floor, and in August management said it expected to stay within its financial covenants “provided that business performance develops as planned.”

Thomas Westerholm, an analyst at the Finnish research firm Inderes, wrote on October 29 that after a slow start to the year and weak second-quarter orders “the warning did not come as a surprise to us” (our translation). Much of Tulikivi’s cost base is fixed, he noted, so its profit swings with its sales.

Heaters are the growth bet

In its August half-year report, Tulikivi said North American sales of its electric heaters “will commence in the third quarter of 2026.” Its October 20 release said it had begun marketing and distributing them in the US “in cooperation with local dealers and partners.” CEO Heikki Vauhkonen called the US “the world’s largest sauna and wellness market.”

The heaters are a small but growing part of the company. Tulikivi’s Heinävesi plant now makes more electric heaters than fireplaces, Yle reported on October 20. The company’s target is net sales above EUR 50 million by the end of 2030, with its new Jero fireplaces and sauna heater collections making up about 30% of that.

Customers in the US and Canada bought EUR 955,000 of Tulikivi products in 2025 (about USD 1.06 million), down from EUR 1.21 million in 2024, its annual report shows. The report doesn’t break that figure down by product.

Harvia grew in the same markets

The next morning, Harvia reported third-quarter revenue up 17.0%, with Northern Europe up 23.5% and Continental Europe up 12.1%, helped by about EUR 4 million of deliveries held over from the second quarter (our report). The two aren’t directly comparable. Harvia’s quarter ran July to September, while Tulikivi points to September and October. And Harvia sells mainly sauna heaters, saunas and steam, while most of Tulikivi’s sales are fireplaces.

Both stocks fell on October 29. Harvia’s dropped 13.4% after its costs grew faster than its sales. Tulikivi’s A share closed down 1.6% at EUR 0.481, after trading as much as 6.1% lower, and only about EUR 35,000 of stock changed hands. Tulikivi was worth about EUR 29 million (USD 32.5 million) on October 30.

Tulikivi reports again on November 6

Tulikivi publishes its January to September interim report on Friday, November 6, its first report since the heaters cleared US testing and since it cut its outlook. Our May story covered its US launch plans and UL testing.