Merko Ehitus (MRK1T) Q4 2025 earnings summary

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.