Tallinna Vesi's second-quarter sales reached €19.4 million

AS Tallinna Vesi's sales in the second quarter were €19.4 million, the increase was mainly driven by the sales of construction services.

Compared to the second quarter of 2024, revenue was up 23.4%, or €3.67 million. The increase in revenue was mainly driven by the subsidiary's sales of construction services, which increased by €2.65 million compared to the same period the year before. Sales of water services increased by €0.95 million, with a decrease in water services provided to business customers and an increase in water services provided to private customers. The change in the sales of water services came mainly from the new price for water services effective from 1 May, which took into account both the legal obligation to harmonise the price of the service for private and business customers by 1 July 2026, and the need for investment to ensure the sustainability of water services.

The company's net profit in the second quarter of 2025 was €1.37 million, which is €0.83 million less than in the same period of the previous year. Net profit was significantly affected by higher tax cost.

"The second quarter marks the start of summer, which is a busy time for our industry. We have made good progress with the investment plan and more than 20 kilometres of pipelines have already been built or rehabilitated," said Aleksandr Timofejev, CEO of Tallinna Vesi.

In 2025, the company plans to build and rehabilitate approximately 45 kilometres of pipelines. The company's aim is to carry out construction work with as little disruption to traffic and city life as possible and in cooperation with other utility owners. Approximately half, or 9.2 kilometres, of the 20 kilometres completed this year have been built using no-dig techniques instead of excavating trenches.

In the second quarter, major construction work started on Kopli Street, the next phase of Paljassaare Road, A. H. Tammsaare Road, and Tuukri and Uus-Sadama streets. The pipeline to be replaced on Tammsaare Road is an important supply line for the Mustamäe and Õismäe area. Work on Tuukri and Uus-Sadama streets also involves the construction of large stormwater pipelines to mitigate flooding in that area.

At the beginning of the year, the subsidiary Watercom started to rehabilitate pipelines with new equipment that allows the rehabilitation to be carried out using a no-dig technique instead of excavating trenches.

In the second quarter, the company continued to invest in future-proofing its infrastructure and ensuring the continuity of the vital service it provides.

"In the first half of the year, there have been significant developments in our core business, for example, we completed the reconstruction of the filters at the water treatment plant and launched the procurement for the upgrading of the ozonation process applied in the production of clean drinking water," said Aleksander Timofejev.

He also highlighted the extensive work completed at the wastewater treatment plant to upgrade the mechanical treatment stage, which will make the first stage of the long treatment cycle more efficient and help keep the environmental footprint of our customers as small as possible.

The total investment planned for this year amounts to €61 million. With recent investments, such as the successful operation of a combined heat and power plant that produces energy from biogas, Tallinna Vesi continues to move towards a more sustainable operating model.

In the second quarter, the quality of treated wastewater from the Paljassaare Wastewater Treatment Plant exceeded the effluent standards. To keep the Baltic Sea clean, the company uses efficient treatment processes that helped to remove more than 270 tonnes of solid waste, 50 tonnes of sand, 514 tonnes of nitrogen and 65 tonnes of phosphorus from wastewater during the second quarter of 2025.

Tap water quality was excellent in the second quarter, as in the previous year, meeting 100% of all quality requirements. "A customer survey carried out in spring showed that trust in the drinking water we offer is high, with 89% of respondents saying they drink tap water. In addition, there is a growing desire to protect the environment and contribute to reducing plastic production by drinking tap water from a reusable bottle," Aleksander Timofejev said.

The water loss rate in the water distribution network fell to 12.4% in the second quarter of the year, compared with 13% a year earlier. In order to keep water loss rates low, the company carries out continuous online monitoring of the water network and continues with its planned water network rehabilitation programme.

As a vital service provider, Tallinna Vesi believes it is important to raise consumer awareness of the benefits of fresh tap water and environmental protection. In the second quarter, the company organised an open day at the wastewater treatment plant and attended many public events, providing fresh drinking water from tanks and organising activities to promote the water sector. On 30 June, we started providing fresh drinking water in the rehearsal fields of the Dance Celebration, followed by the supply of drinking water to Song and Dance Celebration participants throughout the celebration week.

At the beginning of May, Tallinna Vesi opened 59 public drinking water taps across Tallinn, which will be available for everyone to use until the end of summer.

By the end of the second quarter of 2025, Tallinna Vesi had installed smart meters for 72% of its customers. The new meters provide information on water consumption, enabling the detection of leaks in the customer's pipes as early as possible. This will save the environment and minimise potential damage to property caused by water damage. "The feedback from customers on the switch to smart meters has been very positive, and we hope to have a new meter installed for everyone by the end of next year," said Aleksandr Timofejev.

Tallinna Vesi's long-standing commitment to environmental sustainability was recognised with the gold level in 2025 Corporate Social Responsibility Index. Tallinn Vesi was also awarded the silver level "Supporter of National Defence" recognition by the Ministry of Defence.

As the largest employer in the water sector, Tallinna Vesi offers traineeships to more than 20 students during the summer, who can later join the company if suitable.

AS Tallinna Vesi is the largest water utility in Estonia, providing services to approximately 25,000 private and business customers and approximately 500,000 end consumers in Tallinn and its surrounding municipalities. Tallinna Vesi is listed on the main list of the Nasdaq Tallinn Stock Exchange. The largest shareholdings in the company are held by the City of Tallinn (55.06%) and the energy group Utilitas (20.36%). 24.58% of the company's shares are freely floating on the Nasdaq Tallinn Stock Exchange.

FINANCIAL INDICATORS

€ million except key ratios	Quarter 2			2025/2024	6 months			Variance 2025/2024
	2025	2024	2023		2025	2024	2023
Sales	19.40	15.72	15.55	23.4%	35.40	30.83	30.30	14.8%
Gross profit	7.15	6.34	5.81	12.8%	13.74	12.41	11.53	10.7%
Gross profit margin %	36.84	40.30	37.37	-8.6%	38.80	40.25	38.07	-3.6%
Operating profit before depreciation and amortisation	7.65	6.66	6.24	14.9%	14.60	13.05	12.40	11.9%
Operating profit before depreciation and amortisation margin %	39.46	42.35	40.11	-6.8%	41.24	42.32	40.92	-2.6%
Operating profit	5.14	4.46	4.13	15.2%	9.62	8.58	8.20	12.1%
Operating profit - main business	4.69	4.17	3.81	12.6%	9.00	8.33	7.73	8.0%
Operating profit margin %	26.48	28.35	26.54	-6.6%	27.19	27.84	27.07	-2.4%
Profit before taxes	4.23	3.42	3.41	23.7%	7.72	6.45	6.93	19.7%
Profit before taxes margin %	21.80	21.75	21.91	0.2%	21.80	20.92	22.89	4.2%
Net profit	1.37	2.19	2.31	-37.7%	4.80	5.20	5.81	-7.7%
Net profit margin %	7.05	13.95	14.88	-49.5%	13.57	16.88	19.19	-19.6%
ROA %	0.42	0.77	0.90	-45.1%	1.49	1.83	1.52	-18.6%
Debt to total capital employed %	65.32	60.76	57.66	7.5%	65.32	60.76	57.66	7.5%
ROE %	1.15	1.89	2.06	-39.2%	4.10	4.54	3.46	-9.8%
Current ratio	0.66	0.69	1.31	-4.3%	0.66	0.69	1.31	-4.3%
Quick ratio	0.60	0.63	1.24	-4.8%	0.60	0.63	1.24	-4.8%
Investments into fixed assets	15.88	11.39	5.77	39.4%	22.64	18.04	10.44	25.5%
Payout ratio %	-	79.80	79.41		-	79.80	79.41

Gross profit margin - Gross profit / Net sales
Operating profit margin - Operating profit / Net sales
Operating profit before depreciation and amortisation - Operating profit + depreciation and amortisation
Operating profit before depreciation and amortisation margin - Operating profit before depreciation and amortisation / Net sales
Net profit margin - Net profit / Net sales
ROA - Net profit / Average Total assets for the period
Debt to Total capital employed - Total liabilities / Total capital employed
ROE - Net profit / Average Total equity for the period
Current ratio - Current assets / Current liabilities
Quick ratio - (Current assets - Stocks) / Current liabilities
Payout ratio - Total Dividends per annum/ Total Net Income per annum
Main business - Water services related activities, excl. connections profit and government grants, construction services, doubtful receivables

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

€ thousand
ASSETS						Note	as of 30 June 2025	as of 31 December 2024
CURRENT ASSETS
	Cash and cash equivalents					3	2,533	3,589
	Trade receivables, accrued income and prepaid expenses						11,695	10,746
	Inventories						1,255	1,180
TOTAL CURRENT ASSETS							15,483	15,515
NON-CURRENT ASSETS
	Property, plant, and equipment					4	312,083	296,264
	Intangible assets					5	2,220	2,062
TOTAL NON-CURRENT ASSETS							314,303	298,326
TOTAL ASSETS							329,786	313,841
LIABILITIES AND EQUITY
CURRENT LIABILITIES
	Current portion of long-term lease liabilities						803	875
	Current portion of long-term loans						3,407	3,441
	Trade and other payables						16,975	13,581
	Prepayments						2,363	2,646
TOTAL CURRENT LIABILITIES							23,548	20,543
NON-CURRENT LIABILITIES
	Deferred income from connection fees						51,011	50,106
	Leases						1,801	2,178
	Loans						132,455	114,241
	Provision for possible third-party claims					6	6,018	6,018
	Deferred tax liability						419	494
	Other payables						177	108
TOTAL NON-CURRENT LIABILITIES							191,881	173,145
TOTAL LIABILITIES							215,429	193,688
EQUITY
	Share capital						12,000	12,000
	Share premium						24,734	24,734
	Statutory legal reserve						1,278	1,278
	Retained earnings						76,345	82,141
TOTAL EQUITY							114,357	120,153
TOTAL LIABILITIES AND EQUITY							329,786	313,841

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€ thousand								Quarter 2				for the 6 months ended 30 June
				Note		2025			2024					2025	2024
Revenue				1, 7		19,395			15,724		35,399				30,829
Cost of goods and services sold				1, 9		-12,250			-9,387		-21,663				-18,422
GROSS PROFIT				1		7,145			6,337		13,736				12,407
Marketing expenses				9		-239			-241	-495					-475
General administration expenses				9		-1,599			-1,531	-3,386					-3,025
Other income and expenses				1, 10		-171			-108	-232					-323
OPERATING PROFIT						5,136			4,457	9,623					8,584
Financial income				11		30			67	64					149
Financial expenses				11		-937			-1,104	-1,969					-2,285
PROFIT BEFORE TAXES							4,229		3,420	7,718					6,448
Income tax						-2,861			-1,226	-2,914					-1,244
NET PROFIT FOR THE PERIOD						1,368			2,194	4,804					5,204
COMPREHENSIVE INCOME FOR THE PERIOD						1,368			2,194	4,804					5,204
Attributable profit to:
Equity holders of A-shares						1,368			2,194	4,804					5,204
Earnings per A share (in euros)				13		0.07			0.11				0.24			0.26

CONSOLIDATED STATEMENT OF CASH FLOWS

€ thousand			for the 6 months ended 30 June
			Note			2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES
	Operating profit					9,623		8,584
		Adjustment for depreciation/amortisation	9			4,618		4,131
		Adjustment for revenues from connection fees	7			-394		-340
		Other non-cash adjustments				28		-91
		Profit (-)/loss (+) from sale of property, plant and equipment, and intangible assets				-46		-55
	Change in current assets involved in operating activities						-1,023	-446
	Change in liabilities involved in operating activities					-892		351
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES						13,698		12,134
CASH FLOWS USED IN INVESTING ACTIVITIES
	Acquisition of property, plant, and equipment, and intangible assets					-25,367		-13,800
	Proceeds from targeted funding of property, plant, and equipment.		4			5,454		0
	Compensations received for construction of pipelines, incl. connection fees					623		952
	Proceeds from sale of property, plant and equipment, and intangible assets					46		98
	Interest received					64		149
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES						-19,180		-12,601
CASH FLOWS USED IN FINANCING ACTIVITIES
	Interest and loan financing costs paid					-2,482		-2,572
	Lease payments					-452		-584
	Loans received					20,000		5,000
	Repayment of loans					-1,786		-1,818
	Dividends paid		12			-10,600		-10,069
	Income tax paid on dividends					-254		-303
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES						4,426		-10,346
CHANGE IN CASH AND CASH EQUIVALENTS						-1,056		-10,813
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD			3			3,589		14,736
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD			3			2,533		3,923

Additional information:

Taavi Gröön
Chief Financial Officer
AS Tallinna Vesi
(372) 62 62 200