The sales of AS Tallinna Vesi in the third quarter of 2025 were €18.2 million, increasing 10.8% compared to the same period last year. Revenue growth was most affected by a change in price due to the need for critical investments.
Aleksandr Timofejev, CEO of Tallinna Vesi, said that the third quarter was characterised by continued progress with planned investments and a commitment to the continuity of the vital service. "Summer is the busiest time of year for water and sewer pipeline construction projects, and our team made the most of it. Four important stormwater receiving systems have been completed or are nearing completion in various districts of Tallinn. This creates the conditions necessary for developing a stormwater network," he said. Timofejev noted that creating modern stormwater solutions is essential for the functioning of the city in changing climatic conditions. He also highlighted the installation of generators at pumping stations as a significant investment made during the quarter to ensure the continuity of the vital service. The total planned investment for 2025 is approximately €60 million.
"The summer heat in the third quarter also warmed up our main source of drinking water, Lake Ülemiste, which meant our company's specialists had to work harder to ensure good water quality. However, it should be noted that high-quality drinking water reaches taps through the cooperation of the water company and the customer. For example, after returning from a long summer holiday, one should open the tap and let the water run for a while to replace the stagnant water in the pipes with fresh water," said Timofejev. During the quarter, the company took more than 800 water samples and drinking water met over 98 percent of all quality requirements. According to Timofejev, clean tap water has been ensured through an efficient water treatment process and regular monitoring of the water distribution network, as well as ongoing preventive maintenance activities and timely investments.
The company also supplied fresh tap water to participants in the Song and Dance Celebration "Iseoma" that took place this summer. During the song and dance celebrations, approximately 3 million litres of tap water were consumed from taps and tanks at the festival grounds and accommodation sites, thus allowing to avoid tens of thousands of plastic bottles from being produced.
Throughout the quarter, the operation of the wastewater treatment was excellent, with the quality of the treated effluent discharged into the Baltic Sea outperforming statutory standards for all parameters.
The company's third-quarter sales were up 10.8%, or €1.77 million. Revenue growth was most affected by a change in prices due to the critical investments made.
Revenues from the sale of water services increased by €1.35 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 revenue from the sale 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 third quarter of 2025 was €4.96 million, which is €1.03 million more than in the same period of the previous year. The net profit for the nine-month period was €9.76 million, which is an increase of 6.9% compared to the same period last year. The growth in net profit has been driven by operational efficiency and the justified return on investments made to ensure a clean environment and service continuity.
"The successful operation of the cogeneration plant made a significant contribution to the company's financial results - in 9 months, we have produced as much energy from wastewater as we planned to produce in a whole year," explained Aleksandr Timofejev. The result was also positively impacted by the efficient running of the treatment processes and significant contribution from the subsidiary Watercom through the provision of construction services.
Tallinn Vesi aims to develop the resilience of its infrastructure and to ensure the continuity of the vital service it provides, all the while keeping some of the lowest prices for service in Estonia. At the water treatment plant, procurement activities for the reconstruction of the ozonation system and the design of the new building continue.
At the wastewater treatment plant, the installation of primary and secondary screens has been completed, while the installation of a new air blower, the reconstruction of the sludge dewatering unit and the renovation of the secondary clarifiers are underway. The investments in the wastewater treatment plant planned for 2025 amount to €8 million.
By the end of the third quarter, we had rehabilitated and constructed 32 kilometres of pipelines, of which almost half, or over 14 kilometres, were built using the environmentally friendly no-dig techniques. We work closely with the City of Tallinn and other partners in order to carry out as many work as possible at the same time.
In the third quarter, major pipeline works started in the following locations: construction of a strategic stormwater receiving system in North Tallinn on Kolde Avenue, construction of Peterburi and Bornhöhe roads in cooperation with the City of Tallinn, and construction work on Retke Road. Work is ongoing on Värvi and Mustjõe streets, Tuukri and Uus-Sadama streets, Paljassaare Road and on the construction of the Nõlvaku collector.
In the third quarter, the renovation of the water pipeline on Tammsaare Road and the construction of the emergency overflow and stormwater outlet on Kopli Street and Paljassaare Road were completed. Works were also completed on Jaama, Raudtee and Vilmsi streets. The plan is to construct and rehabilitate a total on 44 kilometres of pipeline by the end of this year.
A scheme for the construction of a separate stormwater network in the city centre has been finalised, and work is underway on a stormwater scheme for the Mustamäe area. Both schemes apply near-natural solutions, which aim to ensure a longer retention time for stormwater and create a greener urban environment. These stormwater solutions help to reduce the risk of flooding during periods of heavy rainfall.
In the third quarter of 2025, the quality of the effluent treated at the Paljassaare Wastewater Treatment Plant outperformed the effluent standards. To keep the Baltic Sea clean, the company uses efficient treatment processes that helped to remove approximately 200 tonnes of solid waste, 63 tonnes of grit, 476 tonnes of nitrogen and 62 tonnes of phosphorus from wastewater during the third quarter of 2025.
The quality of tap water in the third quarter was high, similar to last year, meeting 98% of all quality requirements.
The water loss rate in the water distribution network fell to 12.24% in the third quarter from 12.47% a year earlier. In order to keep water loss rates low, the company carries out continuous online monitoring of the water distribution network and continues with its planned water network rehabilitation programme.
By the end of the third quarter of 2025, Tallinna Vesi had installed smart meters for 79% 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 saves the environment and minimizes potential damage to property due to water emergencies. Customer feedback on the switch to smart meters has been very positive, and the meters give the water company a good overview of water consumption in the service area.
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. As a summer period, the third quarter is an active time for the company in terms of participation in events and promotion of water issues. As an example, we took part in Baltic Sea Day, an information day for kindergartens, the IRONMAN race, the Kõrvemaa Run, and the 53rd Run around Lake Ülemiste, hosted by Tallinna Vesi, by providing drinking water and introducing water services at these events.
At the beginning of the summer, Tallinna Vesi opened 60 public drinking water taps across Tallinn, which remain open for the use of residents until the end of October.
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 3 | 2025/2024 | 9 months | Variance 2025/2024 | ||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||
| Sales | 18.17 | 16.39 | 15.77 | 10.8% | 53.57 | 47.22 | 46.06 | 13.4% |
| Gross profit | 7.86 | 6.92 | 6.65 | 13.6% | 21.60 | 19.33 | 18.19 | 11.7% |
| Gross profit margin % | 43.26 | 42.21 | 42.19 | 2.5% | 40.32 | 40.93 | 39.48 | -1.5% |
| Operating profit before depreciation and amortisation | 8.70 | 7.44 | 7.26 | 16.9% | 23.28 | 20.48 | 19.65 | 13.7% |
| Operating profit before depreciation and amortisation margin % | 47.87 | 45.40 | 46.04 | 5.4% | 43.46 | 43.36 | 42.65 | 0.2% |
| Operating profit | 5.95 | 5.13 | 5.10 | 15.9% | 15.57 | 13.71 | 13.30 | 13.5% |
| Operating profit - main business | 5.61 | 4.78 | 4.72 | 17.4% | 14.62 | 13.11 | 12.44 | 11.5% |
| Operating profit margin % | 32.74 | 31.29 | 32.32 | 4.6% | 29.07 | 29.04 | 28.86 | 0.1% |
| Profit before taxes | 5.04 | 4.07 | 4.20 | 24.1% | 12.76 | 10.51 | 11.13 | 21.4% |
| Profit before taxes margin % | 27.76 | 24.80 | 26.64 | 11.9% | 23.82 | 22.26 | 24.17 | 7.0% |
| Net profit | 4.96 | 3.93 | 4.05 | 26.2% | 9.76 | 9.13 | 9.87 | 6.9% |
| Net profit margin % | 27.29 | 23.97 | 25.71 | 13.9% | 18.22 | 19.34 | 21.42 | -5.8% |
| ROA % | 1.47 | 1.33 | 1.54 | 10.6% | 2.97 | 3.12 | 3.76 | -4.7% |
| Debt to total capital employed % | 65.20 | 61.82 | 57.42 | 5.5% | 65.20 | 61.82 | 57.42 | 5.5% |
| ROE % | 4.24 | 3.45 | 3.62 | 23.2% | 8.15 | 7.84 | 8.77 | 4.0% |
| Current ratio | 0.83 | 0.83 | 1.09 | 0.0% | 0.83 | 0.83 | 1.09 | 0.0% |
| Quick ratio | 0.76 | 0.78 | 1.03 | -2.6% | 0.76 | 0.78 | 1.03 | -2.6% |
| Investments into fixed assets | 14.47 | 15.38 | 12.40 | -5.9% | 37.11 | 33.42 | 22.84 | 11.0% |
| 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 September 2025 | as of 31 December 2024 | ||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | 3 | 5,369 | 3,589 | ||||
| Trade receivables, accrued income and prepaid expenses | 10,786 | 10,746 | |||||
| Inventories | 1,399 | 1,180 | |||||
| TOTAL CURRENT ASSETS | 17,554 | 15,515 | |||||
| NON-CURRENT ASSETS | |||||||
| Property, plant, and equipment | 4 | 322,757 | 296,264 | ||||
| Intangible assets | 5 | 2,531 | 2,062 | ||||
| TOTAL NON-CURRENT ASSETS | 325,288 | 298,326 | |||||
| TOTAL ASSETS | 342,842 | 313,841 | |||||
| LIABILITIES AND EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Current portion of long-term lease liabilities | 783 | 875 | |||||
| Current portion of long-term loans | 3,407 | 3,441 | |||||
| Trade and other payables | 14,109 | 13,581 | |||||
| Prepayments | 2,885 | 2,646 | |||||
| TOTAL CURRENT LIABILITIES | 21,184 | 20,543 | |||||
| NON-CURRENT LIABILITIES | |||||||
| Deferred income from connection fees | 51,610 | 50,106 | |||||
| Leases | 1,638 | 2,178 | |||||
| Loans | 142,496 | 114,241 | |||||
| Provision for possible third-party claims | 6 | 6,018 | 6,018 | ||||
| Deferred tax liability | 505 | 494 | |||||
| Other payables | 76 | 108 | |||||
| TOTAL NON-CURRENT LIABILITIES | 202,343 | 173,145 | |||||
| TOTAL LIABILITIES | 223,527 | 193,688 | |||||
| EQUITY | |||||||
| Share capital | 12,000 | 12,000 | |||||
| Share premium | 24,734 | 24,734 | |||||
| Statutory legal reserve | 1,278 | 1,278 | |||||
| Retained earnings | 81,303 | 82,141 | |||||
| TOTAL EQUITY | 119,315 | 120,153 | |||||
| TOTAL LIABILITIES AND EQUITY | 342,842 | 313,841 | |||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| € thousand | Quarter 3 | for the 9 months ended 30 September | |||||||
| Note | 2025 | 2024 | 2025 | 2024 | |||||
| Revenue | 1, 7 | 18,167 | 16,393 | 53,566 | 47,222 | ||||
| Cost of goods and services sold | 1, 9 | -10,307 | -9,473 | -31,970 | -27,985 | ||||
| GROSS PROFIT | 1 | 7,860 | 6,920 | 21,596 | 19,327 | ||||
| Marketing expenses | 9 | -222 | -205 | -716 | -680 | ||||
| General administration expenses | 9 | -1,596 | -1,514 | -4,982 | -4,539 | ||||
| Other income and expenses | 1, 10 | -95 | -71 | -327 | -394 | ||||
| OPERATING PROFIT | 5,947 | 5,130 | 15,571 | 13,714 | |||||
| Financial income | 11 | 25 | 19 | 89 | 168 | ||||
| Financial expenses | 11 | -928 | -1,083 | -2,898 | -3,368 | ||||
| PROFIT BEFORE TAXES | 5,044 | 4,066 | 12,762 | 10,514 | |||||
| Income tax | -86 | -136 | -3,000 | -1,380 | |||||
| NET PROFIT FOR THE PERIOD | 4,958 | 3,930 | 9,762 | 9,134 | |||||
| COMPREHENSIVE INCOME FOR THE PERIOD | 4,958 | 3,930 | 9,762 | 9,134 | |||||
| Attributable profit to: | |||||||||
| Equity holders of A-shares | 4,958 | 3,930 | 9,762 | 9,134 | |||||
| Earnings per A share (in euros) | 13 | 0.25 | 0.20 | 0.49 | 0.46 | ||||
CONSOLIDATED STATEMENT OF CASH FLOWS
| € thousand | for the 9 months ended 30 September | ||||
| Note | 2025 | 2024 | |||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||
| Operating profit | 15,571 | 13,714 | |||
| Adjustment for depreciation/amortisation | 9 | 7,191 | 6,279 | ||
| Adjustment for revenues from connection fees | 7 | -580 | -516 | ||
| Other non-cash adjustments | 26 | -88 | |||
| Profit (-)/loss (+) from sale of property, plant and equipment, and intangible assets | -57 | -63 | |||
| Change in current assets involved in operating activities | -258 | -1,627 | |||
| Change in liabilities involved in operating activities | -66 | 147 | |||
| TOTAL CASH FLOWS FROM OPERATING ACTIVITIES | 21,827 | 17,846 | |||
| CASH FLOWS USED IN INVESTING ACTIVITIES | |||||
| Acquisition of property, plant, and equipment, and intangible assets | -38,702 | -25,955 | |||
| Proceeds from targeted funding of property, plant, and equipment. | 4 | 5,528 | 0 | ||
| Compensations received for construction of pipelines, incl connection fees | 1,523 | 1,517 | |||
| Proceeds from sale of property, plant and equipment, and intangible assets | 58 | 111 | |||
| Interest received | 11 | 89 | 168 | ||
| TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES | -31,504 | -24,159 | |||
| CASH FLOWS USED IN FINANCING ACTIVITIES | |||||
| Interest and loan financing costs paid | -2,505 | -2,617 | |||
| Lease payments | -662 | -916 | |||
| Loans received | 30,000 | 15,000 | |||
| Repayment of loans | -1,786 | -1,818 | |||
| Dividends paid | 12 | -10,600 | -10,069 | ||
| Withheld income tax paid on dividends | 12 | 0 | -131 | ||
| Income tax paid on dividends | 12 | -2,990 | -1,508 | ||
| TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES | 11,457 | -2,059 | |||
| CHANGE IN CASH AND CASH EQUIVALENTS | 1,780 | -8,372 | |||
| 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 | 5,369 | 6,364 | ||
Additional information:
Taavi Gröön
Chief Financial Officer
AS Tallinna Vesi
(372) 62 62 200