Tallinna Vesi (TVE1T) Q4 2025 earnings summary

Executive summary

• Q4 2025 sales reached €18.92 million, up 5.9% year-over-year, with net profit at €4.51 million, outperforming expectations and reflecting operational efficiency and investment returns.

• Investments in Q4 totaled €18.6 million, a 15.6% increase year-over-year, with nearly €58 million for the full year, focusing on network and treatment plant upgrades.

• Water quality compliance at customer taps was 99.9% in Q4, and wastewater effluent quality was 100% compliant.

• Customer satisfaction improved to 4.4 out of 5, a record high, and 83% of customers had smart meters by year-end.

• Average water interruption duration per property reduced to 2h 10m from 4h 5m year-over-year.

Financial highlights

• Q4 2025 revenue was €18.92 million (+5.9% YoY), with net profit at €4.51 million (+8.7% YoY).

• Q4 gross profit was €7.93 million (+7.3% YoY), and operating profit was €5.65 million (+7.2% YoY).

• Cost of goods sold in Q4 was €10.98 million, about €0.5 million higher year-over-year.

• Operating cash flow in Q4 was €9 million, up from €8.4 million in Q4 2024.

• Year-end cash balance increased by €5.9 million quarter-over-quarter, standing at €11.3 million.

Outlook and guidance

• 2026 investment plans target close to €60 million, focusing on environmental sustainability, regulated asset base, and water treatment projects.

• Water price equalization for all customer segments is set for July 1, 2026.

• Estonian economy is forecasted to grow by 3.6% in 2026, supporting sector recovery.