AS Tallink Grupp (TAL1T) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 14.4% year-over-year to EUR 137.3 million, with a 12% drop in passengers and a 31.9% fall in cargo units, mainly due to economic slowdown, reduced leisure spending, and vessel lay-ups.

• EBITDA was negative at EUR -3.8 million, a drop of EUR 38.3 million from last year; net loss reached EUR 33.2 million.

• Four vessels were in lay-up and two major cruise ferries underwent 51 days of dry docking, negatively impacting results.

• International passenger growth continued, but absolute numbers remain lower than domestic markets.

• Investments totaled EUR 13.3 million, mainly for cruise ferry upgrades and maintenance.

Financial highlights

• Q1 2025 revenue was EUR 137.3 million, down from EUR 160.4 million in Q1 2024.

• EBITDA was minus EUR 3.8 million; net profit was minus EUR 33.2 million.

• Gross profit for Q1 2025 was EUR -4.7 million, down from EUR 13.8 million in Q1 2024.

• Free cash flow was negative EUR 22 million, impacted by high capital expenditure and absence of asset sales.

• Capital expenditure reached EUR 13.3 million, mainly for vessel upgrades and maintenance.

Outlook and guidance

• Management expects earnings to be seasonally higher in summer months (June–August).

• Positive trends expected as economies recover and geopolitical tensions ease.

• Finnish government tax cuts anticipated to have a favorable future impact.

• Ongoing investments in vessel upgrades and sustainability initiatives are expected to support long-term competitiveness.

• Management remains confident in premium product positioning despite market share fluctuations.