Core Viewpoint - Merko Ehitus reported a solid performance in Q2 2025, with increased revenue and net profit driven by a robust real estate market, particularly in Vilnius, while facing challenges in the overall construction market due to tight competition and low volumes [1][2][3]. Financial Performance - Revenue for Q2 2025 was EUR 82.6 million, down from EUR 122.4 million in Q2 2024, while the first half of 2025 saw revenue of EUR 167.9 million compared to EUR 203.6 million in the same period last year, marking a 17.5% decrease [9]. - Net profit for Q2 2025 was EUR 11.2 million, compared to EUR 13.1 million in Q2 2024, and for the first half of 2025, net profit was EUR 21.7 million, up from EUR 17.5 million in the same period last year [8][9]. - The pre-tax profit margin improved to 14.0% in the first half of 2025, compared to 9.0% in the same period of 2024 [7]. Real Estate Development - The share of revenue from real estate development increased, contributing nearly 30% to half-year sales revenue, with the number of apartments handed over to buyers rising by almost 85% [2][11]. - In the first half of 2025, Merko launched the construction and sale of 723 new apartments, with significant activity in Vilnius [1][5]. Construction Market Dynamics - The construction market remains competitive with low volumes, but Merko's construction contracts portfolio increased by EUR 223 million in the first half of 2025 [3]. - Major contracts signed in Q2 included the Ülemiste terminal in Tallinn worth EUR 84.8 million and the Rail Baltica mainline section valued at approximately EUR 75 million [4]. Order Book and Future Outlook - As of June 30, 2025, the secured order book stood at EUR 443.8 million, slightly up from EUR 437.5 million a year earlier, with new contracts signed amounting to EUR 172.6 million in Q2 2025 [10]. - The public sector and large energy companies are expected to remain the primary buyers of construction services in the Baltic region over the next few years [3]. Cash Position and Equity - At the end of Q2 2025, Merko had EUR 25.9 million in cash and cash equivalents, with total equity of EUR 242.3 million, representing 60.1% of total assets [12][15]. - The group's net debt was negative EUR 1.1 million, indicating a strong financial position [12].