Compared to the optimistic estimates at the beginning of the year, the economic growth forecast for 2025 has become increasingly modest. Estonia's economic growth continues at a slow pace, with the latest forecasts estimating annual growth at 0.6%. The construction market shows signs of stabilisation, but the sector's recovery remains very slow and uneven.
The Buildings segment accounts for 80% of the Group's total revenue, and there has been no significant change in the revenue distribution between segments compared to the same period last year. The decrease in revenue compared to the same period in 2024 was primarily affected by an approximately 21% decline in the volume of the Buildings segment. Revenue in the Infrastructure segment remained essentially at the same level. During the reporting period, the Group signed a substantial volume of new contracts, the impact of which on revenue will materialise over a longer timeframe.
The Group's gross profit margin was 6.7% and operating profitability 3.2%. Net profit for the reporting period was mainly affected by an exchange loss resulting from the weakening of the Ukrainian hryvnia against the euro.
On an annual basis, i.e., compared to 30 September 2024, the Group's order book increased by 41%. The volume of outstanding work increased in both the Buildings and Infrastructure segments. A significant share of the order book consists of work to be performed in 2026 and 2027.
Condensed consolidated interim statement of financial position
| €'000 | 30 September 2025 | 31 December 2024 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 8,083 | 8,195 |
| Trade and other receivables | 44,289 | 29,449 |
| Prepayments | 3,261 | 3,543 |
| Inventories | 25,500 | 28,091 |
| Total current assets | 81,133 | 69,278 |
| Non-current assets | ||
| Other investments | 77 | 77 |
| Trade and other receivables | 11,202 | 10,681 |
| Investment property | 5,517 | 5,517 |
| Property, plant and equipment | 12,553 | 13,247 |
| Intangible assets | 14,922 | 14,951 |
| Total non-current assets | 44,271 | 44,473 |
| TOTAL ASSETS | 125,404 | 113,751 |
| LIABILITIES | ||
| Current liabilities | ||
| Borrowings | 11,758 | 12,626 |
| Trade payables | 51,308 | 36,819 |
| Other payables | 9,814 | 10,260 |
| Deferred income | 12,519 | 12,472 |
| Provisions | 809 | 1,333 |
| Total current liabilities | 86,208 | 73,510 |
| Non-current liabilities | ||
| Borrowings | 3,395 | 5,720 |
| Trade payables | 2,955 | 5,091 |
| Provisions | 3,259 | 2,826 |
| Total non-current liabilities | 9,609 | 13,637 |
| TOTAL LIABILITIES | 95,817 | 87,147 |
| EQUITY | ||
| Share capital | 14,379 | 14,379 |
| Own (treasury) shares | (660) | (660) |
| Share premium | 635 | 635 |
| Statutory capital reserve | 2,554 | 2,554 |
| Translation reserve | 4,429 | 4,034 |
| Retained earnings | 6,484 | 4,746 |
| Total equity attributable to owners of the parent | 27,821 | 25,688 |
| Non-controlling interests | 1,766 | 916 |
| TOTAL EQUITY | 29,587 | 26,604 |
| TOTAL LIABILITIES AND EQUITY | 125,404 | 113,751 |
Condensed consolidated interim statement of comprehensive income
| €'000 | 9M 2025 | Q3 2025 | 9M 2024 | Q3 2024 | 2024 |
| Revenue | 147,666 | 55,028 | 178,722 | 63,777 | 223,925 |
| Cost of sales | (137,747) | (50,559) | (165,955) | (58,204) | (207,155) |
| Gross profit | 9,919 | 4,469 | 12,767 | 5,573 | 16,770 |
| Marketing and distribution expenses | (279) | (110) | (301) | (129) | (422) |
| Administrative expenses | (4,758) | (1,686) | (5,011) | (1,638) | (7,878) |
| Other operating income | 70 | 2 | 145 | 68 | 286 |
| Other operating expenses | (196) | (36) | (628) | (170) | (695) |
| Operating profit | 4,756 | 2,639 | 6,972 | 3,704 | 8,061 |
| Finance income | 349 | 91 | 437 | 120 | 678 |
| Finance costs | (2,517) | (613) | (2,625) | (1,079) | (3,011) |
| Net finance costs | (2,168) | (522) | (2,188) | (959) | (2,333) |
| Profit before tax | 2,588 | 2,117 | 4,784 | 2,745 | 5,728 |
| Income tax expense | 0 | 0 | (237) | 0 | (563) |
| Profit for the period | 2,588 | 2,117 | 4,547 | 2,745 | 5,165 |
| Other comprehensive income Items that may be reclassified subsequently to profit or loss | |||||
| Exchange differences on translating foreign operations | 395 | (78) | 502 | 337 | 248 |
| Total other comprehensive income (expense) | 395 | (78) | 502 | 337 | 248 |
| TOTAL COMPREHENSIVE INCOME | 2,983 | 2,039 | 5,049 | 3,082 | 5,413 |
| Profit attributable to: | |||||
| - Owners of the parent | 1,738 | 1,872 | 3,373 | 2,353 | 3,827 |
| - Non-controlling interests | 850 | 245 | 1,174 | 392 | 1,338 |
| Profit for the period | 2,588 | 2,117 | 4,547 | 2,745 | 5,165 |
| Comprehensive income attributable to: | |||||
| - Owners of the parent | 2,133 | 1,794 | 3,875 | 2,690 | 4,075 |
| - Non-controlling interests | 850 | 245 | 1,174 | 392 | 1,338 |
| Comprehensive income for the period | 2,983 | 2,039 | 5,049 | 3,082 | 5,413 |
| Earnings per share attributable to owners of the parent: | |||||
| Basic earnings per share | 8.5 | 11.0 | 10.4 | 9.3 | |
| Change against the comparative period, % | (22.4)% | 5.0% | (12.8)% | (9.7)% |
The group's nominal labour productivity and nominal labour cost efficiency decreased year on year because the decline in revenue exceeded the decrease in staff numbers and costs.
Andri Hõbemägi
Nordecon AS
Head of Investor Relations
Tel: +372 6272 022
Email: andri.hobemagi@nordecon.com
www.nordecon.com
