Economic Overview - The Estonian economy is projected to grow at an annual rate of 1.2%, with signs of stabilization in the construction market [1] - The Buildings segment is experiencing a slight increase in private sector orders, while public sector volumes are supported by local government and defense investment orders [1] Financial Performance - The group's revenue for H1 2025 was €92,638 thousand, a decrease of approximately 19% compared to H1 2024 [22] - The Buildings segment generated 89% of total revenue, while the Infrastructure segment contributed 11% [22][23] - Gross profit for H1 2025 was €5,450 thousand, with a gross margin of 5.9%, down from 6.3% in H1 2024 [7][17] - The group's net profit for H1 2025 was €471 thousand, a decline from €1,802 thousand in H1 2024 [12][17] Segment Performance - The Buildings segment's revenue decreased by 18% year-on-year, while the Infrastructure segment's revenue fell by 28% [22] - The largest revenue contributor in the Buildings segment was from public and commercial buildings, with commercial buildings seeing a 35% increase year-on-year [24] - The Infrastructure segment's revenue was primarily from road construction and maintenance, which decreased by around 30% compared to the previous year [30] Order Book - The group's order book stood at €303,914 thousand as of June 30, 2025, reflecting a 70% increase from the previous year [31][32] - The Buildings segment accounted for 70% of the order book, while the Infrastructure segment made up 30% [32] Cash Flow and Financial Position - Net cash from operating activities for H1 2025 was €2,950 thousand, down from €6,114 thousand in H1 2024 [13] - Cash and cash equivalents at the end of H1 2025 were €9,326 thousand, compared to €12,513 thousand at the end of H1 2024 [16] Employee and Cost Management - The average number of employees decreased by around 3% to 418 in H1 2025 [35] - Staff costs for H1 2025 were €9,221 thousand, a decline of approximately 9% from the previous year [36] Geographical Performance - Approximately 2% of the group's total revenue in H1 2025 was generated outside Estonia, solely from Ukraine [19][20]

Core Viewpoint - The decline in the Estonian construction market appears to have halted, with signs of stabilization, particularly in the Infrastructure segment supported by Rail Baltica projects, while private sector orders in the Buildings segment show some revival [1][2]. Financial Performance - The group's revenue for Q1 2025 was €39,355 thousand, a decrease of approximately 15% compared to €46,245 thousand in Q1 2024 [23][17]. - The gross profit for Q1 2025 was €1,802 thousand, maintaining a gross margin of 4.6%, consistent with the same period last year [9][3]. - The operating profit for Q1 2025 was €191 thousand, down from €386 thousand in Q1 2024, reflecting a decline in revenue [10][3]. Segment Performance - The Buildings segment generated 93% of the group's revenue, amounting to €36,584 thousand, while the Infrastructure segment contributed €2,766 thousand [24][23]. - Revenue from the Buildings segment decreased by 16%, while the Infrastructure segment saw a smaller decline of 1.5% [23][24]. - The gross margin for the Buildings segment was 7.5%, while the Infrastructure segment recorded a negative gross margin of (24.6)% [9][3]. Order Book and Contracts - The order book increased by 43% year-on-year, reaching €283,548 thousand as of March 31, 2025, with significant contributions from Rail Baltica contracts [4][31]. - New contracts signed in Q1 2025 totaled €111,276 thousand, a substantial increase from €17,617 thousand in Q1 2024 [31][32]. Cash Flow and Financial Position - The group experienced a net cash outflow of €249 thousand from operating activities in Q1 2025, compared to an inflow of €5,422 thousand in Q1 2024 [13][8]. - Cash and cash equivalents at the end of Q1 2025 were €7,399 thousand, down from €16,083 thousand at the end of Q1 2024 [16][8]. Employee and Cost Management - The average number of employees in Q1 2025 was 411, a decrease of around 3% from the previous year [35][36]. - Staff costs increased by 22% to €4,795 thousand in Q1 2025, attributed to salary increases [36][35]. Market Performance - Approximately 98% of the group's revenue in Q1 2025 was generated in Estonia, with Ukraine contributing about 2% [20][21]. - The group continues to provide services in Ukraine under contracts signed in 2023, although progress has been slower than planned [20].