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Arco Vara (ARC1T) investor relations material
Arco Vara Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Focused on completing lili (Soodi) and Spordi projects, preparing Lutheri Quarter and Arcojärve, and implementing a new growth strategy centered on portfolio diversification.
Sold 19 new homes in Q2 2026, marking one of the strongest quarterly sales in recent years.
Supervisory Board approved a strategy to deliver at least 150 new homes annually, expanding into townhouses, detached houses, and build-to-rent properties.
Market for new residential developments in Tallinn remains highly competitive, with supply up 12% year-over-year and average prices rising 5.6%.
Q2 loss attributed to the cyclical nature of real estate development, with revenue and profit expected to improve significantly in Q4 2026.
Financial highlights
Q2 2026 revenue: €3.93 million (Q2 2025: €1.26 million); H1 2026 revenue: €4.32 million (H1 2025: €3.09 million).
Q2 2026 net loss: €0.58 million; H1 2026 net loss: €1.15 million (H1 2025 net loss: €0.04 million).
Operating loss (EBIT) for H1 2026: €1.19 million (H1 2025: €0.27 million profit).
Cash and cash equivalents at period end: €2.07 million (end 2025: €2.78 million).
Net debt at period end: €45.22 million, up €11.96 million year-over-year, mainly due to development loan utilization.
Outlook and guidance
Completion of Spordi and Kodulahe lili developments expected in Q4 2026, with significant revenue and profitability improvement anticipated.
Construction at Lutheri Quarter to begin in Q4 2026; Arcojärve construction to start in H1 2027.
Full-year 2026 and Q4 expected to be profitable, with tangible benefits from new strategy expected over the next 2–3 years.
- Strong 2026 growth expected, driven by major developments and improved financial outlook.ARC1T
AGM 2026 presentation30 Jun 2026 - Revenue dropped sharply and net loss widened in Q1 2026 amid heavy project investments.ARC1T
Q1 202630 Apr 2026 - 2025 revenue grew modestly, but net loss persisted as major projects and financing reshaped the balance sheet.ARC1T
Q4 202526 Feb 2026 - Profitability rebounded on higher sales and major project investments, with a strong bond issue.ARC1T
Q3 202523 Oct 2025 - Luther Quarter acquisition doubled assets as revenue rose and project pipeline advanced.ARC1T
Q2 202524 Jul 2025 - 2024 saw a sharp revenue drop and net loss, but recovery is forecast for 2025.ARC1T
Q4 202416 Jun 2025 - Revenue surged in Q3 2024 as market activity rebounded, but net loss continued.ARC1T
Q3 202413 Jun 2025 - Revenue surged but losses persisted as Arco Vara advanced projects and prepared for a CEO change.ARC1T
Q2 202413 Jun 2025 - Revenue up, profit returns, and project pipeline advances amid cautious market recovery.ARC1T
Q1 20255 Jun 2025
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