Economic Overview - Estonia's economy grew modestly by 1% compared to optimistic forecasts at the beginning of the year, with the construction market stabilizing and a slight increase in activity in the second half of the year [1] Company Performance - Nordecon's revenue for 2025 was €208,281 thousand, a decrease of approximately 7% compared to €223,925 thousand in 2024, primarily due to a roughly 10% decline in revenue from the Buildings segment, while the Infrastructure segment grew by 10% [2][22] - The Buildings segment accounted for 81% of total revenue, with no significant change in the revenue breakdown between segments compared to the prior year [2] - The group's gross profit for 2025 was €13,535 thousand, with a gross margin of 6.5%, down from 7.5% in 2024 [8][17] - The operating profit for 2025 was €5,651 thousand, with an EBITDA of €8,250 thousand and an EBITDA margin of 4.0% [10][17] Financial Position - As of 31 December 2025, total assets amounted to €126,700 thousand, an increase from €113,751 thousand in 2024, while total liabilities rose to €97,700 thousand from €87,147 thousand [4][5] - The group's order book grew by 30% to €273,060 thousand, with 69% of the order book comprising work scheduled for 2026 [3][31] Cash Flow - The net cash from operating activities was €1,204 thousand in 2025, an increase from €1,075 thousand in 2024, while investing activities resulted in a net cash outflow of €2,767 thousand [7][13] - Financing activities generated a net cash outflow of €1,194 thousand, significantly lower than the outflow of €4,178 thousand in 2024 [15] Segment Performance - The revenue from the Buildings segment was €168,302 thousand, while the Infrastructure segment generated €39,902 thousand [22] - The largest projects in the Buildings segment included the design and construction of various educational and commercial buildings, while the Infrastructure segment's revenue was primarily from road construction and maintenance [25][30] Geographical Market Performance - Estonia accounted for 98% of the group's revenue, with Ukraine contributing around 2%, primarily from reconstruction projects [19][20]

Core Insights - Lexibook reported significant revenue growth of €30.4 million for the first half of 2025-26, an increase of 23.6% compared to €24.6 million in the same period last year, driven by strong performance in Europe outside France and a 10% increase in France [1][4][8] - Despite revenue growth, the company experienced a decline in net profit, which fell by 21% to €1.9 million from €2.5 million in the previous year, primarily due to increased operating costs and lower gross margins [1][4][15] - The company anticipates a stabilization or slight decline in sales for the upcoming financial year due to geopolitical uncertainties and pressure on margins, particularly in its commercial relationships with major clients like Amazon [4][18][19] Financial Performance - Revenue for the first half of 2025-26 reached €30.4 million, up €5.8 million from the previous year, with a gross margin of €18.3 million, although the gross margin rate decreased by 0.8 points to 60% [1][4][6] - Operating profit decreased by 5% to €2.3 million, impacted by a 27% increase in operating expenses, particularly in personnel and royalty costs [1][4][11] - Net debt significantly decreased by 64% to €2.5 million compared to €6.9 million a year earlier, attributed to improved cash flow and factoring [4][16] Market Dynamics - Revenue from licensed products surged by 40%, now accounting for 79% of total revenue, while non-licensed products saw a decline of 14% [4][8] - Sales growth varied geographically, with Europe outside France growing by 38%, while the rest of the world only grew by 3% [4][9] - The company faces challenges from increased competition in the U.S. market and rising tariffs, which have led to a downward revision of sales targets [19][23] Strategic Outlook - Lexibook is focusing on diversifying its licenses and strengthening its own brands to mitigate the expected decline in major licenses like Stitch, which currently represents about 25% of its business [4][18][23] - The company is also negotiating several expiring license agreements to secure better terms and is exploring new partnerships for innovative products [22][23] - Ongoing geopolitical tensions and trade relations, particularly with China and the U.S., pose significant risks to Lexibook's operations and competitiveness [19][24]