Core Insights - Merko Ehitus reported a revenue of EUR 74 million in Q3 2025 and EUR 242 million for the first nine months, with a net profit of EUR 15 million for Q3 and EUR 36.7 million for the nine-month period, indicating a significant increase in the number of apartments and commercial premises handed over compared to the previous year [1][2][3] Financial Performance - The pre-tax profit for the first nine months of 2025 was EUR 40.2 million, with a pre-tax profit margin of 16.6%, an increase from 13.1% in the same period of 2024 [10] - Net profit attributable to shareholders for the first nine months of 2025 was EUR 36.7 million, down from EUR 44.8 million in 2024, with a net profit margin of 15.2% compared to 11.8% in the previous year [10][11] Revenue Analysis - Revenue for Q3 2025 was EUR 73.9 million, a decrease from EUR 175.1 million in Q3 2024, while the nine-month revenue decreased by 36.1% year-on-year [11] - The share of revenue earned outside Estonia was 47.4% for the first nine months of 2025, down from 60.1% in the same period of 2024 [11] Order Book and Contracts - As of September 30, 2025, the secured order book stood at EUR 486 million, an increase from EUR 430.9 million in 2024, with new contracts signed amounting to EUR 323 million in the first nine months [12] - Major contracts included the Rail Baltica Ülemiste terminal and the Rail Baltica mainline section, indicating a focus on large-scale infrastructure projects [6][12] Real Estate Development - In the first nine months of 2025, Merko sold 315 apartments, up from 194 in the same period of 2024, generating EUR 59.7 million in revenue from these sales [13] - The company started construction on 771 new apartments and 21 commercial units, with a significant portion located in Vilnius, which remains the most active market [7][13] Market Conditions - The real estate market is most active in Lithuania, with improved conditions in Estonia and a slight upward trend in Latvia [3] - The construction market is characterized by intense competition and low service margins, with a historical high in unfinished construction work [4] Cash Position - As of September 30, 2025, the company had EUR 34.3 million in cash and cash equivalents, with equity amounting to EUR 257.3 million, representing 64.4% of total assets [14]

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].