Hepsor (HPR1T) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached €22.1M, up from €7.4M year-over-year; Q2 revenue was €13.9M, up from €5.2M.

• Net profit for H1 2025 was €0.3M (H1 2024: net loss €1.5M); Q2 net profit was €0.4M (Q2 2024: net loss €0.6M).

• 102 homes delivered in H1 2025, with 255 new homes under construction and 81% of completed homes sold.

• Active in Estonia, Latvia, and Canada, with 25 development projects totaling 178,200 m² as of June 2025.

Financial highlights

• Gross profit for H1 2025 was €2.9M (H1 2024: €0.4M), gross margin 13.0% (H1 2024: 5.1%).

• Operating profit for H1 2025 was €1.4M (H1 2024: loss €0.9M); Q2 operating profit €1.1M.

• Net profit margin for H1 2025 was 1.3% (H1 2024: -20.6%).

• Total assets as of June 2025 were €76.7M, down 21.4% year-over-year; inventories made up 68.2% of assets.

• Loan obligations decreased to €43.6M (June 2024: €62.9M); equity at €20.6M.

Outlook and guidance

• Plans to start three new residential developments in 2025, adding 173 homes.

• Largest Latvian investment underway: Starta iela 17 project with 250 apartments, €40M investment, construction to start end of 2026.

• In Canada, five projects progressing, with first site plan approval expected in Q3 2025.

• Joint venture in Lasnamäe to develop 300 apartments, with phased construction from 2026.