Harvia is a leading company in its field with clear competitive advantages. This enables good ROIC and value creation, in addition to which the company's capital allocation to acquisitions has been successful. However, the valuation level (e.g. 2025 P/E 25x) is high, so the expected return remains weak.

Harvia grew by more than 20% in Q2 and, supported by the recent acquisition, the growth outlook continues to look good, especially in North America. The margin remained at a strong level, while the company also invested in future growth. We have raised our forecasts for both the next few years and the medium term, especially the growth prospects.

We see Harvia's recent acquisition as a positive step for the company's value. We have included ThermaSol in our forecasts, which in terms of EPS increased by 3-4% for 2025-26.

Harvia announced on Tuesday that it will acquire the premium steam room and shower manufacturer ThermaSol Bath. ThermaSol with a revenue of 14 MUSD is a small complementary acquisition in Harvia’s scale but we see prerequisites for the Group to scale the acquisition item.