Merko Ehitus
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Merko Ehitus (MRK1T) investor relations material

Merko Ehitus Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary5 Feb, 2026

Executive summary

  • Revenue for 2025 was €310.9 million, down 42.3% year-over-year; net profit was €39.9 million, down from €64.7 million in 2024.

  • Pre-tax profit for 2025 was €44.8 million, with a margin of 14.4%.

  • Dividend proposal of €1.25 per share, a 55% payout ratio for 2025.

  • Secured order book at year-end was €466.9 million, up 37.1% from the prior year.

  • Major projects completed included Arter Quarter (Tallinn) and Pabradė defence campus (Lithuania).

Financial highlights

  • Revenue: €310.9 million (2025), €539.0 million (2024); net profit: €39.9 million (2025), €64.7 million (2024).

  • Gross profit margin: 18.0% (2025), 17.8% (2024).

  • Operating profit: €34.3 million (2025), €72.5 million (2024); margin: 11.0% (2025), 13.4% (2024).

  • EBITDA: €37.5 million (2025), €75.7 million (2024); EBITDA margin: 12.0% (2025), 14.0% (2024).

  • Cash and cash equivalents at year-end: €41.4 million; equity: €260.6 million (62.8% of assets).

Outlook and guidance

  • Construction prices are expected to remain stable or rise slightly; no decline in Baltic construction volumes anticipated.

  • Housing market in Estonia recovered in 2025; moderate price growth expected in 2026.

  • Public sector projects, especially defence, are driving order book growth; private sector remains cautious.

Explain the significant rise in labor cost ratio?
What are the implications of the Latvian court ruling?
How will real estate development profitability evolve?
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Frequently asked questions

AS Merko Ehitus is an Estonia-based construction and real estate development company. It operates through several subsidiaries and focuses on the construction of buildings, infrastructure, and roads. Additionally, the company is active in real estate development, which involves the construction, sale, and leasing of properties, with projects primarily in Estonia, Latvia, and Lithuania. Merko Ehitus is involved in various large-scale projects, including residential developments, commercial buildings, and infrastructure projects such as energy facilities and transportation terminals. The company is headquartered in Tallinn, Estonia, and its shares are listed on the Nasdaq Tallinn.

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