Arco Vara (ARC1T) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked a period of stability and preparation, with Estonia's real estate market showing credible signs of recovery and increased transaction activity, especially in residential segments.

• Arco Vara advanced several development projects in Tallinn and Bulgaria, including new acquisitions and progress in pre-sales and construction permits.

• The company focused on completed apartment and house sales to ensure stable cash flow and support the launch of upcoming large-scale projects.

Financial highlights

• Q1 2025 revenue was €1.71 million, up €0.72 million year-over-year from Q1 2024.

• Operating profit (EBIT) reached €259 thousand, compared to a loss of €208 thousand in Q1 2024; net profit was €103 thousand versus a net loss of €349 thousand year-over-year.

• Cash and cash equivalents at period end were €1.11 million, down from €1.72 million at the start of the quarter.

• Total assets increased to €42.7 million from €39.6 million at year-end 2024.

• Net loans rose to €15.46 million, up €1.96 million from year-end 2024.

Outlook and guidance

• 2025 revenue is forecast at €16.4 million with a projected net loss of €0.6 million; 2026 revenue is expected to rise to €24.4 million with a profit of €3.0 million.

• Construction for key projects (Soodi 6, Spordi Street, Arcojärve) is scheduled to begin in late Q2 or later in 2025, with major completions and sales expected in 2026.