AS Tallink Grupp (TAL1T) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached €233.1 million, up 0.5% year-over-year, with net profit rising 10.8% to €40.8 million, driven by strong summer passenger growth and higher ticket, accommodation, and charter revenues despite a 9.8% decline in cargo volumes.

• Passenger numbers increased 3.0% year-over-year to 1,766,335, while passenger vehicles rose 0.4% to 251,751.

• Fleet optimization continued with the sale of two vessels and a third sale agreement, reducing layup costs and increasing charter income.

• Club One loyalty program membership reached nearly 3.5 million, with a major renewal planned to drive further engagement.

• The Group operated 12 vessels, with 3 on charter and 1 in lay-up, and managed 3 hotels in Tallinn and 1 in Riga.

Financial highlights

• Gross profit for Q3 2025 was €67.2 million, nearly flat year-over-year, with EBITDA at €68.9 million (up 0.8%) and EBIT at €45.9 million (up 4.3%).

• Net profit margin improved to 17.5% from 15.9% in Q3 2024, and EPS rose to €0.055.

• Free cash flow in Q3 was €51 million, €6 million higher than last year.

• CAPEX for Q3 2025 was €5.5 million, mainly for vessel maintenance and repair.

• Dividends of €22.3 million were paid in Q3, with a second €22.3 million installment scheduled for November.

Outlook and guidance

• Management expects continued pressure from low consumer and business confidence, inflation, and geopolitical tensions, with no major new investments planned.

• Dividend policy targets at least €0.05 per share if conditions allow; €0.06 per share paid in 2025.

• No current plans for share buybacks or new route launches; monitoring market opportunities.

• Growth expected from incremental increases in passenger and cargo volumes as economies recover.

• Focus remains on cost efficiencies, profitable core routes, and seeking new charter or sale opportunities for idle vessels.