Harju Elekter finished the year with strong results. Revenue reached the same level as in 2024, which is in line with the Group's normal operating volume and orders. The last quarter was the period with the highest revenue of the year and compared to the fourth quarter of the previous year, we were able to turn losses into moderate profits, despite the fact that it is rather a low season for the Group.
Over the course of the year, we consistently focused on improving profitability, which has been one of our most important strategic goals. The growth in profitability was supported by informed management decisions - we focused more selectively on projects and solutions where our technical competence creates greater value for the customer and enables better margins to be achieved. The quality of the sales structure and the efficiency of operations in production and the supply chain were also improved. Although the operating environment in the industrial sector was affected by general caution and longer decision-making cycles during the year, demand continued for solutions related to the development of energy systems, the strengthening of electricity networks, and electrification, which supports Harju Elekter's core activities.
The year-end results were mainly driven by higher sales in Estonia and Lithuania, and the same distribution also characterized the results for the whole year. The Estonian plant continued to see growth in its order book throughout the year, both in the substation and e-house business areas, and additional labour had to be recruited to fulfil the orders. The results gave us the confidence to begin expanding the Estonian production unit's plant by 4,000 m2. The Lithuanian unit, on the other hand, operated in a more modest order environment, but still managed to keep the plant busy and maintain profitability by adjusting its labour and cost structure to the situation. The Group's Finnish subsidiary Telesilta Oy, which focuses on electrical solutions for the shipbuilding industry, also achieved commendable results.
The Group's Management Board is extremely pleased with the growth in profitability achieved. In 2025, we achieved a record operating profit of 12 million euros, EBITDA exceeded 16 million euros and net profit of over 10 million euros is a significant achievement.
The implementation of the strategic plan is progressing according to plan - we continue to move in the right direction, and the year that started according to plan, together with the increased order book, supports a strong dividend payment to shareholders. The Management Board proposes to pay shareholders dividends of 0.25 euros per share.
Revenue and financial results
In the fourth quarter, the Group continued to implement its clearly defined profitability-focused strategy and significantly improved all key financial indicators. Revenue increased by 58.6% compared to the same period last year, reaching 47.5 (Q4 2024: 30.0) million euros. The 2025 full-year results confirm the consistent effectiveness of the Group's strategy, which focuses on improving profitability and efficiency rather than rapid sales expansion. Annual revenue amounted to 174.0 (2024: 174.7) million euros, remaining at the same level as the previous year
| Q4 | Q4 | +/- | 12M | 12M | +/- | |
| (EUR'000) | 2025 | 2024 | 2025 | 2024 | ||
| Revenue | 47,516 | 29,963 | 58.6% | 174,047 | 174,712 | -0.4% |
| Gross profit | 5,340 | 1,778 | 200.3% | 25,903 | 20,899 | 23.9% |
| EBITDA | 3,057 | -724 | -522.2% | 16,421 | 10,358 | 58.5% |
| Operating profit (EBIT) | 1,840 | -1,726 | -206.6% | 11,979 | 6,408 | 86.9% |
| Profit for the period | 2,623 | -2,303 | -213.9% | 10,784 | 3,175 | 239.7% |
| Earnings per share (EPS) (euros) | 0.14 | -0.12 | -216.7% | 0.58 | 0.17 | 241.2% |
The Group's operating expenses amounted to 45.8 (Q4 2024: 31.4) million euros in the fourth quarter and 163.2 (2024: 167.7) million euros for the full year. Although expenses increased in the quarter due to higher production and delivery activity, total annual expenses declined by 2.7%. The structure of operating expenses remained largely unchanged, with the largest share attributable to the cost of goods and services sold.
Depreciation of non-current assets amounted to 1.2 (Q4 2024: 1.0) million euros in the fourth quarter and 4.4 (2024: 4.0) million euros for the full year. An increase in depreciation is expected, reflecting investments made in previous periods. Labour costs totaled 9.7 (Q4 2024: 8.5) million euros in the fourth quarter, increasing by 13.8%. For the full year, labour costs rose to 37.8 (2024: 37.3) million euros. The labour cost ratio decreased to 20.4% (2024: 28.5%) in the quarter and increased slightly to 21.7% (2024: 21.4%) for the full year.
The strong increase in revenue was also reflected in profitability: gross profit rose to 5.3 (Q4 2024: 1.8) million euros, nearly tripling year-on-year. The gross margin improved substantially, supported not only by higher sales volumes but also by effective cost management and the optimal allocation of operational resources. Operating profit (EBIT) for the quarter amounted to 1.8 (Q4 2024: -1.7) million euros, bringing the operating margin firmly back into positive level. This is a particularly strong result, considering that the fourth quarter has traditionally been one of the more demanding periods for the Group.
Net profit for the period was 2.6 (Q4 2024: -2.3) million euros, and earnings per share increased to 0.14 euros (Q4 2024: -0.12).
Core business and markets
In the Group's core segment - production - revenue increased significantly in the fourth quarter compared to the previous year, reaching 44.5 (Q4 2024: 27.1) million euros. The strong growth is mainly attributable to the uneven quarterly distribution of revenue in 2024, when a substantial share of sales was generated already in the first half of the year. In 2025, revenue was distributed much more evenly across months and quarters, which is why the year-on-year comparison of the last quarters shows a stronger change.
The four largest target markets - Finland, Norway, Estonia, and Sweden - accounted for 85.3% of the Group's quarterly revenue, slightly less than a year earlier. In the quarterly comparison, revenue increased across all major markets, led primarily by Norway. Full-year growth was driven mainly by the Estonian and Norwegian markets, while revenue in Finland and Sweden declined compared to the same period last year.
The Estonian market continued to show strong growth in both quarterly and annual comparisons. Fourth-quarter revenue amounted to 9.2 (Q4 2024: 5.3) million euros, representing 73.0% growth and marking one of the strongest quarters of 2025 in the domestic market. Full-year revenue increased to 29.9 (2024: 23.0) million euros. Growth was primarily driven by electricity network customers and stable activity volumes in core segments.
Finland remained the Group's largest market. Quarterly revenue totaled 14.4 (2024: 12.4) million euros, exceeding the previous year's result; however, full-year revenue declined to 54.7 (2024: 66.9) million euros. The decrease was mainly attributable to lower sales volumes in project-based contracts and compact substations.
Norway stood out with the strongest growth in the fourth quarter. Quarterly revenue tripled, reaching 11.1 (Q4 2024: 3.3) million euros. Full-year revenue increased by 49.1%, totaling 39.3 (2024: 26.3) million euros, making Norway the Group's second-largest market after Finland. Growth was driven primarily by demand from the marine and shipping sectors.
In the Swedish market, revenue increased in the reporting quarter, reaching 5.9 (2024: 4.7) million euros. For the full year, revenue declined to 20.3 (2024: 26.0) million euros. The decrease reflects a strategic shift in the business model: the offering of turnkey (EPC) projects was discontinued, and the focus moved to standardized factory-made products with a lower risk profile.
Investments
During the reporting period, the Group invested a total of 5.1 (2024: 3.8) million euros in non-current assets, including 0.3 (2024: 1.8) million euros in investment properties, 2.7 (2024: 0.9) million euros in property, plant, and equipment, and 2.1 (2024: 1.1) million euros in intangible assets.
The investments included the acquisition of production technology equipment and the development of production and process management systems with the aim of improving efficiency and quality. Investments also covered product development activities, focusing on the creation of new and enhanced products. In addition, part of the investments was directed towards the construction and renovation of existing buildings, and expansion works were initiated for the Estonian subsidiary's production facility, scheduled for completion in October 2026. One of the major product development projects was the development of the new-generation electric vehicle charger, Elektra Sense, to enhance the competitiveness of the Elektra product family and to expand the sale of electric vehicle chargers beyond the Finnish market.
As of the reporting date, the value of the Group's long-term financial investments amounted to 27.2 (31.12.24: 27.7) million euros. Proceeds from the disposal of the 9.15% stake in IGL-Technologies Oy totaled 0.9 million euros during the quarter, with a realized gain of 0.4 million euros.
Share
The company's share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 4.85 euros.
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||||
| Unaudited | ||||||||
| (EUR'000) | 31.12.2025 | 31.12.2024 | ||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | 1,545 | 3,773 | ||||||
| Trade and other receivables | 46,654 | 29,606 | ||||||
| Prepayments | 1,209 | 2,096 | ||||||
| Inventories | 19,896 | 19,845 | ||||||
| Total current assets | 69,304 | 55,320 | ||||||
| Non-current assets | ||||||||
| Deferred income tax assets | 142 | 687 | ||||||
| Non-current financial investments | 27,225 | 27,717 | ||||||
| Investment properties | 9 | 0 | ||||||
| Property, plant, and equipment | 28,228 | 29,432 | ||||||
| Intangible assets | 33,273 | 32,420 | ||||||
| Total non-current assets | 9,880 | 8,121 | ||||||
| 98,757 | 98,377 | |||||||
| TOTAL ASSETS | 168,061 | 153,697 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Liabilities | ||||||||
| Borrowings | 15,452 | 9,885 | ||||||
| Prepayments from customers | 15,326 | 11,600 | ||||||
| Trade and other payables | 19,670 | 17,426 | ||||||
| Tax liabilities | 3,324 | 3,260 | ||||||
| Current provisions | 336 | 270 | ||||||
| Total current liabilities | 54,108 | 42,441 | ||||||
| Borrowings | 15,072 | 20,184 | ||||||
| Other non-current liabilities | 20 | 39 | ||||||
| Total non-current liabilities | 15,092 | 20,223 | ||||||
| Total liabilities | 69,200 | 62,664 | ||||||
| Equity | ||||||||
| Share capital | 11,672 | 11,655 | ||||||
| Share premium | 3,410 | 3,306 | ||||||
| Reserves | 22,629 | 23,135 | ||||||
| Retained earnings | 61,150 | 52,937 | ||||||
| Total equity attributable to the owners of the parent company | 98,861 | 91,033 | ||||||
| TOTAL LIABILITIES AND EQUITY | 168,061 | 153,697 | ||||||
| CONSOLIDATED STATEMENT OF PROFIT AND LOSS | ||||||
| Unaudited |
| (EUR'000) | Q4 2025 | Q4 2024 | 12M 2025 | 12M 2024 | |
| Revenue | 47,516 | 29,963 | 174,047 | 174,712 | |
| Cost of sales | -42,176 | -28,185 | -148,144 | -153,813 | |
| Gross profit | 5,340 | 1,778 | 25,903 | 20,899 | |
| Distribution costs | -1,173 | -1,069 | -5,602 | -4,710 | |
| Administrative expenses | -2,420 | -2,116 | -9,426 | -9,213 | |
| Other income | 236 | 93 | 1,412 | 281 | |
| Other expenses | -143 | -412 | -308 | -849 | |
| Operating profit | 1,840 | -1,726 | 11,979 | 6,408 | |
| Finance income | 534 | 5 | 1,659 | 116 | |
| Finance costs | -448 | -613 | -2,191 | -2,436 | |
| Profit before tax | 1,926 | -2,334 | 11,447 | 4,088 | |
| Income tax | 697 | 31 | -663 | -913 | |
| Profit for the period | 2,623 | -2,303 | 10,784 | 3,175 | |
| Earnings per share | |||||
| Basic earnings per share (euros) | 0.14 | -0.12 | 0.58 | 0.17 | |
| Diluted earnings per share (euros) | 0.14 | -0.12 | 0.58 | 0.17 |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||||
| Unaudited |
| (EUR'000) | Q4 2025 | Q4 2024 | 12M 2025 | 12M 2024 | |
| Profit for the period | 2,623 | -2,303 | 10,784 | 3,175 | |
| Other comprehensive income | |||||
| Items that may be reclassified to profit or loss | |||||
| Impact of exchange rate changes of a foreign subsidiaries | -331 | 98 | -707 | 108 | |
| Items that will not be reclassified to profit or loss | |||||
| Gain on sales of financial assets | 0 | 0 | 385 | 185 | |
| Revaluation of financial assets | -9 | -6 | 0 | -71 | |
| Total comprehensive income (-loss) for the period | -340 | 92 | -322 | 222 | |
| Other comprehensive income | 2,283 | -2,211 | 10,462 | 3,397 |
Priit Treial
CFO and Member of the Management Board
+372 674 7400
priit.treial@harjuelekter.com
