Construction market: The war in the Middle East and the resulting sharp rise in energy prices in the first quarter of the year have caused the previously optimistic economic growth forecast to be revised downwards. Growth for this year is projected at 2.1-2.5%, with the construction sector expected to grow by 2% in constant prices. The construction sector is not expected to grow significantly; rather, stabilisation will continue. Although rapidly rising input prices are putting strong pressure on profitability, the risk is mitigated to some extent by the construction price index included in public contracts.
Revenue: Nordecon's revenue for the first quarter increased by 32% compared to the same period last year. The Buildings and Infrastructure segments accounted for 86% and 14% of the group's total revenue, respectively. Revenue from the Buildings segment grew by 22%, while revenue from the Infrastructure segment increased by more than 2.5 times. Given the size of the group's order book and its breakdown between the segments, revenue growth was in line with expectations.
Profitability: Compared to the first quarter of 2025, the group's profitability improved. The overall gross margin was 5.6%, with profit coming from the Buildings segment. The loss from the Infrastructure segment, which was due to seasonal factors, decreased year on year.
Order book: Compared to 31 March 2025, the group's order book increased by 31%. The order book of the Buildings segment grew significantly, driven by contracts secured by the public buildings subsegment, which account for 74% of the total. Growth in the Infrastructure segment's order book was more modest. Based on the size of the order book and the general outlook for the economy and construction market, the group's management team forecasts growth in business volumes for 2026.
Condensed consolidated interim statement of financial position
| €'000 | 31 March 2026 | 31 December 2025 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 2,859 | 5,266 |
| Other financial assets | 1,111 | 1,088 |
| Trade and other receivables | 36,730 | 46,348 |
| Prepayments | 3,650 | 3,274 |
| Inventories | 43,039 | 26,022 |
| Total current assets | 87,389 | 81,998 |
| Non-current assets | ||
| Other investments | 77 | 77 |
| Other financial assets | 2,110 | 1,810 |
| Trade and other receivables | 10,248 | 10,142 |
| Investment property | 3,814 | 5,517 |
| Property, plant and equipment | 13,374 | 12,234 |
| Intangible assets | 14,931 | 14,922 |
| Total non-current assets | 44,554 | 44,702 |
| TOTAL ASSETS | 131,943 | 126,700 |
| LIABILITIES | ||
| Current liabilities | ||
| Borrowings | 12,075 | 12,049 |
| Trade payables | 51,522 | 49,569 |
| Other payables | 10,802 | 9,971 |
| Deferred income | 12,226 | 15,249 |
| Provisions | 865 | 3,863 |
| Total current liabilities | 87,490 | 90,701 |
| Non-current liabilities | ||
| Borrowings | 13,808 | 5,708 |
| Trade payables | 1,477 | 1,605 |
| Other payables | 3,305 | 0 |
| Provisions | 2,565 | 5,730 |
| Total non-current liabilities | 21,155 | 13,043 |
| TOTAL LIABILITIES | 108,645 | 103,744 |
| 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 | 4,603 | 4,522 |
| Retained earnings | 243 | 141 |
| Total equity attributable to owners of the parent | 21,754 | 21,571 |
| Non-controlling interests | 1,544 | 1,385 |
| TOTAL EQUITY | 23,298 | 22,956 |
| TOTAL LIABILITIES AND EQUITY | 131,943 | 126,700 |
Condensed consolidated interim statement of comprehensive income
| €'000 | Q1 2026 | Q1 2025 | 2025 | |
| Revenue | 52,003 | 39,355 | 208,281 | |
| Cost of sales | (49,065) | (37,553) | (194,746) | |
| Gross profit | 2,938 | 1,802 | 13,535 | |
| Marketing and distribution expenses | (76) | (83) | (433) | |
| Administrative expenses | (1,747) | (1,546) | (6,814) | |
| Other operating income | 17 | 52 | 154 | |
| Other operating expenses | (13) | (34) | (6,835) | |
| Operating profit (loss) | 1,119 | 191 | (393) | |
| Finance income | 111 | 145 | 499 | |
| Finance costs | (969) | (739) | (3,464) | |
| Net finance costs | (858) | (594) | (2,965) | |
| Profit (loss) before tax | 261 | (403) | (3,358) | |
| Income tax expense | 0 | 0 | (141) | |
| Profit (loss) for the period | 261 | (403) | (3,499) | |
| Other comprehensive income (expense) Items that may be reclassified subsequently to profit or loss | ||||
| Exchange differences on translating foreign operations | 81 | (96) | 488 | |
| Total other comprehensive income (expense) | 81 | (96) | 488 | |
| TOTAL COMPREHENSIVE INCOME (EXPENSE) | 342 | (499) | (3,011) | |
| Profit (loss) attributable to: | ||||
| - Owners of the parent | 102 | (616) | (4,605) | |
| - Non-controlling interests | 159 | 213 | 1,106 | |
| Profit (loss) for the period | 261 | (403) | (3,499) | |
| Comprehensive income (expense) attributable to: | ||||
| - Owners of the parent | 183 | (712) | (4,117) | |
| - Non-controlling interests | 159 | 213 | 1,106 | |
| Comprehensive income (expense) for the period | 342 | (499) | (3,011) | |
| Earnings per share attributable to owners of the parent: | ||||
| Basic earnings per share | 9.9 | 8.7 | 11.1 | 9.8 |
| Change against the comparative period, % | 14.6% | (21.8)% | 0.5% | 5.4% |
Compared to the same period in 2025, the group's nominal labour productivity remained stable. However, its nominal labour cost efficiency improved due to an increase in revenue and a decrease in staff costs over the past four quarters.
Andri Hõbemägi
Nordecon AS
Head of Investor Relations
Tel: +372 6272 022
Email: andri.hobemagi@nordecon.com
www.nordecon.com
