Harju Elekter (HAE1T) Q3 2025 earnings summary

Executive summary

• Achieved record operating profit in Q3, exceeding €10 million for the first time, with strong results from the Estonian unit and improved group-wide profitability despite challenging economic conditions.

• Operating margin reached 8.7% for Q3 and 8.0% for the nine months, reflecting successful strategic changes and cost management.

• Revenue for Q3 increased 4.5% year-over-year to €43.0 million, while nine-month revenue declined 12.6% to €126.5 million, prioritizing profitability over sales growth.

Financial highlights

• Q3 net profit rose to €2.9 million (Q3 2024: €1.7 million); nine-month net profit was €8.2 million (9M 2024: €5.5 million).

• Earnings per share increased to €0.16 in Q3 and €0.44 for the nine months.

• Gross margin improved to 17.3% in Q3 and 16.3% for the nine months.

• EBITDA margin for nine months was 10.6%, up from 7.7% year-over-year.

• Operating cash flow for nine months was €1.7 million, down from €14.2 million a year earlier, mainly due to changes in inventories and receivables.

Outlook and guidance

• Continued focus on profitability, with investments planned in factory expansion and production capacity, including a 4,000 m2 expansion of the Keila plant to be completed by October 2026.

• Accumulated reserves and record profits provide confidence to face the traditionally weaker Q4 and early-year periods.