Tallinna Vesi (TVE1T) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales reached €19.4 million, with net profit at €1.4 million, exceeding budget expectations and driven by construction services and water tariff adjustments.

• Operational performance remained strong, with water and wastewater quality at 100% compliance and customer satisfaction rising to 4.0 out of 5.

• Over 72% of customers now use smart water meters, with a target of 80% by end of 2025; one workplace accident reported.

• Major infrastructure investments continued, with €61 million planned for 2025 and €22.64 million invested in H1.

• Celebrated 20 years since stock exchange listing and recognized with gold level in the 2025 Corporate Social Responsibility Index.

Financial highlights

• Q2 2025 sales: €19.4 million (+23.4% YoY); net profit: €1.37 million (-37.7% YoY), mainly due to higher corporate income and dividend tax.

• Cost of goods and services sold rose by 30.5% to €12.3 million; construction services costs increased by €2.5 million.

• Cash position decreased by €6.4 million from the previous quarter, mainly due to investment activities.

• Dividend payout of €0.53 per share (80% of 2024 earnings) approved and paid in June 2025.

• Staff costs increased by 6.4%, and depreciation costs rose by 11.7% year-over-year.

Outlook and guidance

• No significant changes in service volumes expected in the near term; consumption projected to remain stable.

• Price equalization between private and business customers ongoing, with final adjustment for clean water in 2026.

• Investment target for 2025 is €61 million, with €23 million invested in the first half.

• Economic growth in Estonia forecast at 1.5% for 2025, with inflation at 5.4%.