Tallinna Vesi (TVE1T) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached €16.0 million, up 5.9% year-over-year, with net profit at €3.44 million, driven by tariff increases, regulated asset investments, and lower interest costs.

• Investments totaled €10.2 million, with €6.76 million invested in fixed assets and over 7 km of pipeline constructed or reconstructed.

• Drinking water and wastewater quality compliance remained at 100%, with no environmental or work accidents and a significant decrease in customer complaints.

• Customer satisfaction improved, and 67% of customers now have smart meters installed.

• No environmental accidents reported, and stormwater volume increased by 40% without affecting compliance.

Financial highlights

• Revenue reached €16.0 million (+5.9% year-over-year), with net profit at €3.44 million (+14.1% year-over-year); water services accounted for 92.8% of sales.

• Cost of goods sold rose by 4.2% to €9.4 million, mainly due to higher staff, depreciation, and construction costs.

• Gross profit margin improved to 41.2%, and net profit margin to 21.5%.

• Cash position increased by €5.3 million from the previous quarter, mainly due to additional loan withdrawal.

• Administrative and marketing expenses increased by 18.0% compared to Q1 2024.

Outlook and guidance

• Planned total investment for 2025 is up to €61 million, with 85% related to the regulated asset base.

• Price harmonization for private and business customers to be completed by July 2026, with new tariffs effective from May 2025.

• No significant increase in water service sales expected for 2025; consumption projected to remain stable.

• Investments and regulatory changes are expected to drive future profitability.