Merko Ehitus (MRK1T) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was EUR 167.9 million, down 17.5% year-over-year; Q2 revenue was EUR 82.6 million, down 32.5% from Q2 2024.

• Net profit for H1 2025 reached EUR 21.7 million, up 24.6% year-over-year; Q2 net profit was EUR 11.2 million, down from EUR 13.1 million in Q2 2024.

• Real estate development's share in revenue and profit increased, with 222 apartments handed over in H1 2025, up 85% year-over-year.

• Secured order book at end of Q2 2025 was EUR 443.8 million, up 1.4% year-over-year.

• Construction market volumes remain low, with public sector and energy projects as key drivers.

Financial highlights

• H1 2025 pre-tax profit was EUR 23.5 million (14.0% margin), up from EUR 18.3 million (9.0%) in H1 2024.

• H1 2025 net profit margin was 12.9%, up from 8.6% in H1 2024.

• EBITDA for H1 2025 was EUR 20.1 million (12.0% margin), up from EUR 16.3 million (8.0%) in H1 2024.

• Cash and cash equivalents at period end were EUR 25.9 million, down from EUR 44.2 million a year earlier.

• Equity at period end was EUR 242.3 million (60.1% of total assets), up from EUR 206.5 million (49.4%) a year earlier.

Outlook and guidance

• Construction price indices are expected to remain stable over the next 18 months, with no significant decline anticipated.

• Modest growth is expected in the Baltic construction sector in 2025, with public sector investments offsetting weak private demand.

• New housing price index is expected to continue growing in 2025, especially in Vilnius and Riga.