Merko Ehitus (MRK1T) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 was €241.8 million, down 36.1% year-over-year; Q3 revenue was €73.9 million, down 57.8% from Q3 2024.

• Net profit for 9M 2025 was €36.7 million, a decrease from €44.8 million in 9M 2024; Q3 net profit was €15.0 million, down from €27.3 million in Q3 2024.

• 315 apartments and 3 commercial units were handed over in 9M 2025, a 55% increase in units compared to the same period last year.

• The secured order book reached €486.2 million at the end of Q3 2025, up 12.8% year-over-year.

Financial highlights

• Pre-tax profit for 9M 2025 was €40.2 million (16.6% margin), down from €49.6 million (13.1% margin) in 9M 2024.

• Gross profit margin improved to 19.5% in 9M 2025 from 16.7% in 9M 2024.

• EBITDA for 9M 2025 was €33.9 million (14.0% margin), down from €49.4 million (13.0% margin) in 9M 2024.

• Cash and cash equivalents at period end were €34.3 million, with a negative net debt of €8.0 million.

• Equity ratio increased to 64.4% from 51.3% a year earlier.

Outlook and guidance

• Construction prices are expected to remain stable for the next 18 months, with no significant decline anticipated.

• The Baltic construction market is forecasted to see moderate growth, with public sector investments offsetting weak private sector demand.

• New housing prices are expected to continue rising in 2025, especially in Vilnius and Riga.