Harju Elekter (HAE1T) Q2 2025 earnings summary

Executive summary

• Revenue declined 19% year-over-year in both Q2 and the first half of 2025, but profitability improved due to cost control and efficiency gains.

• Estonian and Finnish units performed strongly, while other units showed modest results but growing order books.

• Net profit for H1 2025 rose 37.5% year-over-year to €5.3 million, with EPS at €0.28.

• Divestment of a 9.15% stake in IGL Technologies OY aligns with a focus on core operations and innovation.

Financial highlights

• Q2 2025 revenue: €46.1m (Q2 2024: €56.8m), gross margin improved to 16.1% (Q2 2024: 14.4%).

• H1 2025 revenue: €83.5m (H1 2024: €103.6m), gross profit stable at €13.1m, margin up to 15.7%.

• Operating profit (EBIT) for H1: €6.4m (H1 2024: €5.4m), operating margin 7.6% (H1 2024: 5.2%).

• Net profit for H1: €5.3m (H1 2024: €3.8m), EPS €0.28 (H1 2024: €0.21).

• Investments in non-current assets totaled €1.9m in H1 2025.

Outlook and guidance

• Expectation of strong full-year 2025 results, supported by declining interest rates and improved investment climate.

• Anticipated positive impact from growing order books in underperforming units for H2 2025 and 2026.