Merko Ehitus (MRK1T) Q3 2026 earnings summary

Executive summary

• 9M 2026 revenue rose 10.9% YoY to €268.1m, while net profit attributable to shareholders fell to €25.4m from €36.7m.

• Q3 revenue reached €118.2m and net profit was €12.6m; the secured order book was €769.1m at 30 September.

Financial highlights

• 9M gross profit was €33.2m versus €47.1m YoY; operating profit was €20.2m versus €31.6m, and pre-tax profit was €25.0m versus €40.2m.

• 9M gross margin was 12.4% versus 19.5% YoY; operating margin was 7.5% versus 13.1%, and net margin was 9.5% versus 15.2%.

• Q3 revenue increased to €118.2m from €73.9m YoY; gross profit was €15.8m versus €18.0m and operating profit was €11.8m versus €13.0m.

• 9M EPS was €1.44 versus €2.07 YoY; Q3 EPS was €0.71 versus €0.85.

Outlook and guidance

• Construction cost indices are expected not to decline over the next 12 months; a cold winter could trigger further price increases.

• Moderate growth is expected in Baltic construction markets; construction activity is likely to remain reliant on public-sector projects, especially defence and renewable energy.

• 2026 new-development market volume is expected to be comparable to 2025; demand is growing for more affordable housing.

• Priorities are completing active projects and controlling risks amid a strong secured order book.