AS Tallinna Sadam (TSM1T) Q1 2025 earnings summary

Executive summary

• Revenue increased by 1.5% year-over-year to EUR 28.4 million, with profit for the period up 31.2% to EUR 6.8 million, driven by higher vessel calls, new container lines, and a one-off insurance indemnity from the Botnica incident, despite slight declines in cargo and passenger volumes.

• Adjusted EBITDA rose 9.4% to EUR 13.9 million, and operating profit grew 18% to EUR 8.3 million.

• Free cash flow improved to EUR 19.8 million, reversing a negative FCF in Q1 2024.

• Investments decreased sharply to EUR 3.6 million, mainly for quay construction and ferry dry-docking.

• Sale of Muuga properties to Rail Baltica and the government was completed, impacting Q1 P&L.

Financial highlights

• Adjusted EBITDA margin improved to 49.1% (up from 45.5% year-over-year); operating profit margin reached 29.1%.

• Net cash flow for Q1 was EUR 17.7 million, a EUR 25.3 million improvement from last year.

• Net debt at period end was EUR 149.5 million, similar to last year.

• Net finance costs fell 26.2% due to lower base interest rates.

• Cash and cash equivalents at period-end: EUR 34.9 million (up from EUR 17.2 million at year-end 2024).

Outlook and guidance

• Passenger business is expected to recover, with a 10% increase in cruise ships anticipated.

• New ro-ro and container lines, and industrial park developments in Muuga and Paldiski, are planned.

• Multifunctional quay development in Paldiski is on track for Q1 next year, expected to generate immediate revenue.

• Dividend of EUR 0.073 per share (EUR 19.2 million total) approved, equal to 100% of prior year profit.

• No changes to long-term investment plans; 2024 investments projected at EUR 30–35 million, mainly for Paldiski quay.