Q1 2026 - Harvia
Our thesis on accelerating growth momentum being confirmed strongly
Another double-digit share price move for Harvia. It’s very surprising how binary investors’ reactions to quarterly numbers have become as one quarter does not make a year. That’s our main message from the AGM we attended three weeks ago.
In Q1 2026, Harvia clearly delivered on our thesis that growth momentum is accelerating against a still very complex consumer backdrop. As we speak, shares are up 13%.
Commenting on the results, CEO Järnefelt stated:
It, in my mind, confirms our assumption that our category is rather resilient to overall consumer confidence. And the value proposition that we have, which is well-being and health, both physical and mental, in an enjoyable and relaxing way, is something that resonates really well, and that this category is just in the very early phase of development. And since there’s so much market to win, we feel that we are well-placed, even in a world where the overall consumer confidence might be somewhat impacted by the Iranian situation.
When comparing Harvia’s 18.3% constant-FX organic growth (>20% if you exclude ThermaSol) to other consumer companies or non-AI themes, it’s an outstanding performance.
Coming into the Q1 print, we were already upbeat about Harvia’s growth prospects (not necessarily pointing to quarterly estimates as they’re irrelevant to us), while consensus estimates did (and still do) not reflect any long-term accretion from the recent growth spend. Of course, no one has a crystal ball but thus far, Harvia’s investments have always yielded a very satisfying return. Being the market leader with best-in-class ROIIC (45% organically) and organic growth, these executives haven’t thrown good money after bad.
As we’ve most likely witnessed the trough in EBIT(A) margin last year, growth in earnings is to be sustained by top-line momentum, providing a clearer path for investors to spot the high-teens percent TSR potential.