Harvia Q3 2024: ThermaSol Consolidates for the First Time, Revenue Up 14%

Harvia Plc published its Q3 2024 interim report on 7 November 2024. Revenue of EUR 38.7 million was up 14.0% year-over-year, comprising 7.9% organic growth and 6.1% inorganic contribution from ThermaSol, consolidated from 31 July. Adjusted operating profit of EUR 8.9 million represented 22.9% of revenue, ahead of consensus. Nine-month revenue reached EUR 124.3 million, up 11.8% year-to-date. (Prior: H1 2024. Next: Q4/FY 2024. Full coverage: Harvia News hub.)

First Read on ThermaSol

Q3 was the first quarter investors could see ThermaSol inside Harvia's numbers. The deal closed on 31 July, so Q3 captured two months of operations (August and September). Initial contribution was modest relative to full-year run-rate expectations, reflecting the partial-quarter effect plus natural summer seasonality in North American steam products. What mattered more than the absolute contribution was the management commentary on integration progress.

The expanded Harvia team in North America is working well together. We are eager to capture all the growth opportunities and cost synergies. ThermaSol has integrated into our processes ahead of plan, and the cross-selling discussions with our existing US dealer network have started strongly.

Organic Growth Broadens

Even stripping out ThermaSol, Q3 organic growth of 7.9% was strong. North America continued to lead with broad-based demand across heaters, sauna components, and prefabricated room solutions. Continental Europe grew modestly, supported by EOS demand in professional and high-end segments. APAC & MEA delivered solid results on the back of systematic focus in Japan, China, and Australia. Northern Europe remained the weak spot, with hot tub demand (the region's anchor category) pressured through the quarter.

Q3 2024 key figures: Revenue EUR 38.7M (+14.0% YoY; organic +7.9%). Operating profit EUR 8.3M (21.4% margin). Adjusted operating profit EUR 8.9M (22.9% margin). Nine-month revenue EUR 124.3M (+11.8%). Nine-month adjusted operating profit EUR 28.4M (22.8% margin). Net debt EUR 61.8M. Leverage 1.4x (up from 0.8x pre-ThermaSol). Operating free cash flow Q3 EUR 2.6M (31.7% conversion). Nine-month OFCF EUR 20.0M (60% conversion).

Cash Flow Note

Q3 cash conversion of 31.7% was notably lower than Harvia's historical profile. Management attributed this to two deliberate working-capital decisions: (1) inventory build in North America ahead of the winter sauna season, which would flow through to Q4 sell-through; and (2) capital expenditures tied to facility investments. Neither was flagged as a concern, and full-year cash conversion expectations were unchanged.

Leverage After ThermaSol

Net debt jumped from EUR 32.6 million at H1 to EUR 61.8 million at Q3, reflecting the ThermaSol financing (EUR 20 million bullet loan plus cash consideration). Leverage moved from 0.8x pre-deal to 1.4x post-deal, still comfortably below the 2.5x long-term ceiling. The balance sheet retained optionality for additional M&A if opportunities emerged, though management was clear that the immediate focus was ThermaSol integration.

Margin Discussion

Q3 adjusted operating margin of 22.9% was a small step down from the 24.2% Q4 2023 peak but still comfortably above the 20% long-term target. Three drivers: (1) ThermaSol margin profile was broadly in line with Harvia's own and contributed positively; (2) sales and marketing investment continued to step up, particularly around the new combined North American sales organization; (3) raw material costs remained benign.

Analyst Q&A

The webcast focused on ThermaSol run-rate contribution, North American cross-selling mechanics, and the shape of Q4. Management walked through the integration roadmap: shared dealer training in Q4, combined product catalogs in early 2025, integrated sales forecasting by mid-2025. On cross-selling, Järnefelt noted early positive signals but asked investors to judge results over two to four quarters rather than eight weeks. On Q4, management pointed to strong channel orders and normal winter seasonality, without providing specific numeric guidance.

Q4 2024 was positioned to be the first quarter with a full three months of ThermaSol contribution and the benefit of North American winter sauna season sell-through. Financial statements bulletin scheduled for 13 February 2025. M&A interest in additional bolt-ons was noted as "always possible" but not prioritized ahead of ThermaSol integration completion.

Q3 2024 was the dress rehearsal for the post-ThermaSol Harvia. Organic growth of 7.9% proved the core engine was intact. Initial ThermaSol contribution was modest but clean. Integration commentary was specific and credible. The only real concern was the Q3 cash conversion dip, which management explained away cleanly. The setup for a strong Q4 print, and for the 2025 reacceleration story, was fully in place.