AS Tallinna Vesi's sales in the second quarter of 2026 were €18.6 million, which is a decrease of 4.1% compared to the same period last year. The company's second-quarter sales were most significantly impacted by a decline in revenue from construction services compared to the second quarter of 2025.
In the second quarter, investments were made in the amount of €16.6 million, which is nearly 4.3% more than in the same period of 2025. Aleksandr Timofejev, CEO of Tallinna Vesi, said that the second quarter is a busy time for investments in water, sewer and stormwater systems, when much of the planned construction and renovation of 40 km of pipes is completed.
"Continuous investments are necessary to ensure the sustainability of water infrastructure and to provide high-quality water and sewerage services. A recent customer survey confirmed that we are moving in the right direction: 92% of our customers now drink tap water, which is an increase on previous years," he said. As a provider of a vital service, Timofejev emphasised that Tallinna Vesi wants to openly share information with its consumers, introduce activities in the water sector and offer specialist advice. During the open day held in the second quarter, over 130 water consumers visited the Paljassaare Wastewater Treatment Plant to learn about the wastewater treatment process and its vital role in the daily lives of people in Tallinn.
"In the second half of April, we launched upgrades to improve our customers' experience, including a new website, an improved self-service portal and a new visual identity. Online channels now offer tap water consumers more advice than ever before and enable better direct communication with the company. These upgrades are supported by a visual identity that symbolises the water cycle and the constant renewal that takes place in nature - we borrow water from nature and return it to nature as clean," Timofejev explained.
The upgrades reflect the company's commitment to increasing operational efficiency and sustainability, and ensuring that consumers have access to fresh drinking water and that treated effluent returned to the Baltic Sea is safe for the environment. At the same time, water services in Tallinna Vesi's service area remain among the most affordable in Estonia.
"Important projects are underway at the water and wastewater treatment plants to increase operational continuity and improve energy efficiency. At the wastewater treatment plant, work is continuing on the renovation of the secondary clarifiers and on the implementation of AI to optimise treatment processes," explained Aleksandr Timofejev. In order to improve the reliability of the water network, the company is building additional borehole pumping stations in the Kristiine and Lasnamäe areas. The total investment planned for this year amounts to €60 million.
The quality of drinking water remained high throughout the second quarter, meeting all quality standards 100%. During the quarter, the company took 851 water samples. Clean tap water is ensured through an efficient water treatment process and regular monitoring of the water distribution network, along with the ongoing preventive maintenance activities and timely investments. Revenue from the sale of water services increased by 2.7% year-on-year, or €0.4 million, to - 15.8 million. The change in the sales of water services was mainly driven by the new prices for water services introduced on 1 May 2025. These prices took into account the legal obligation to harmonise prices for private and business customers by 1 July 2026 and the requirement for investment to ensure the long-term sustainability of water services.
In the second quarter, the Competition Authority approved a new, harmonised water price which came into effect on 1 July 2026. This marked the successful completion of the long transition to price harmonisation. At the same time, the company was preparing to introduce a new, pollution-load-based pricing, meaning that customers whose activities cause more pollution will have to pay more for wastewater treatment services.
The company's net profit for the first six months of 2026 was €4.2 million. The second quarter resulted in a loss of €0.12 million. "The half-year result meets the company's expectations and is in line with the targets set for the financial year. Although the result for the second quarter appears negative in the report, this was due to high tax and capital expenses for the quarter and deferred revenue from construction services, not the company's day-to-day business operations," explained Aleksandr Timofejev. "During the quarter, the company effectively provided daily water services to its customers that met high quality standards. The company also continued to make developments and investments aimed at ensuring operational reliability."
The combined heat and power plant performed exceptionally well in the second quarter, setting a new record by generating 100 per cent of the required heat and 76 per cent of the required electricity for wastewater treatment.
Tallinna Vesi aims to provide an excellent customer experience, future-proof its infrastructure and ensure the continuity of the vital service it provides, all the while keeping the price for the service affordable for consumers.
Construction work on the new building continues on the territory of the water treatment plant, and the Paljassaare building is being designed. Another major project is the ongoing construction of the energy complex in Paljassaare by Utilitas. The energy complex will start producing heat for Tallinn's district heating network using wastewater and seawater in early winter 2026.
During the second quarter, we rehabilitated and constructed 13 kilometres of pipes. Of these, 4.3 kilometres (27%) were built using environmentally friendly no-dig techniques. We are working closely with the City of Tallinn and other partners so that we can complete as much work as possible at the same time. The cooperation makes it possible to carry out work with minimal disruption to traffic and city residents, and in a more cost-effective way.
Major construction work continued in the second quarter on Rävala Avenue, Laikmaa and Maakri streets, and Keldrimäe Street and Tammsaare Road, where work on reinstating the roads began. Construction is also ongoing at the Hipodroomi intersection on Paldiski Road, where work is being carried out in multiple shifts. Work is also ongoing on Järvevana Road to rehabilitate the water main supplying water to the Mustamäe area, which is located near the water treatment plant. Construction work has begun on Kolde Avenue and Sõle Street, where a strategic stormwater collector is being built to serve the North Tallinn area.
In the second quarter, the quality of the treated effluent from the Paljassaare Wastewater Treatment Plant once again outperformed the effluent standards. To keep the Baltic Sea clean, the company uses and develops efficient treatment processes that helped to remove about 306 tonnes of solid waste, 85 tonnes of grit, 549 tonnes of nitrogen and 70 tonnes of phosphorus from wastewater during the second quarter of 2026.
The rate of water loss in the water distribution network remained at roughly the same level in the second quarter as a year ago, standing at 13.5 per cent. To keep water loss rates low, the company continuously monitors the water distribution network online and continues with its planned water network rehabilitation programme.
By the end of the second quarter of 2026, over 91 per cent of Tallinna Vesi's customers were using smart meters, and the smart meter installation project will be completed during 2026. The new meters provide information on water consumption, allowing leaks in customers' pipes to be detected as early as possible. This will help to protect the environment and minimise the risk of property damage caused by water accidents. The switch to smart meters has received very positive feedback from customers, and the meters provide the water company with a clear picture of water consumption in the service area.
In the second quarter, Tallinna Vesi's drinking water tanks offered refreshing drinking water at various events in Tallinn and the surrounding area, including Old Town Days, the Baltica International Folklore Festival, the Maardu Spring Run, the Kõrvemaa Run, Kalamaja Days, etc. During the summer, 78 public drinking water taps are available in urban areas for both city residents and tourists to access high-quality tap water. In addition to Tallinn, the taps were opened for the first time this year in Saue and Maardu. Public taps can be found on the Tallinn's official web map. Public taps have been installed in public areas that tend to attract large numbers of people, both locals and visitors, so that fresh drinking water would be available at all times.
In addition to providing tap water, which is the most environmentally friendly form of drinking water, our company actively contributes to various environmental protection projects. For example, in May, company employees planted 1,000 birch trees to celebrate receiving the "Green Company of the Year 2025" title.
For the fourth time, the Ministry of Defence recognised Tallinna Vesi's long-term contribution to strengthening the country's defence capabilities, presenting the company with the silver label of the "Supporter of National Defenders" award. To be eligible for this recognition, employees must participate in reserve service; during training exercises, the company maintains their income and offers flexibility in scheduling their work hours.
To ensure succession planning within the company, Tallinna Vesi runs partnership projects with educational institutions. As part of these projects, the company awarded scholarships in May to TalTech students studying subjects related to the water sector.
AS Tallinna Vesi is the largest water utility in Estonia, providing services to around 25,000 private and business customers and about 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.
Additional information:
Taavi Gröön
Chief Financial Officer
AS Tallinna Vesi
(372) 626 2200
MAIN FINANCIAL INDICATORS
| € million except key ratios | Quarter 2 | Variance 2026/ 2025 | 6 months | Variance 2026/ 2025 | ||||
| 2026 | 2025 | 2024 | 2026 | 2025 | 2024 | |||
| Sales | 18.61 | 19.40 | 15.72 | -4.1% | 36.60 | 35.40 | 30.83 | 3.4% |
| Gross profit | 6.60 | 7.14 | 6.33 | -7.5% | 14.23 | 13.75 | 12.41 | 3.5% |
| Gross profit margin % | 35.46 | 36.80 | 40.27 | -3.6% | 38.88 | 38.84 | 40.25 | 0.1% |
| Operating profit before depreciation and amortisation | 6.99 | 7.64 | 6.65 | -8.6% | 15.11 | 14.60 | 13.03 | 3.5% |
| Operating profit before depreciation and amortisation margin % | 37.56 | 39.38 | 42.27 | -4.6% | 41.29 | 41.24 | 42.28 | 0.1% |
| Operating profit | 4.20 | 5.13 | 4.45 | -18.1% | 9.65 | 9.64 | 8.58 | 0.1% |
| Operating profit margin % | 22.57 | 26.44 | 28.30 | -14.6% | 26.36 | 27.22 | 27.84 | -3.2% |
| Profit before taxes | 2.92 | 4.23 | 3.41 | -30.9% | 7.24 | 7.73 | 6.45 | -6.3% |
| Profit before taxes margin % | 15.70 | 21.79 | 21.71 | -27.9% | 19.79 | 21.84 | 20.92 | -9.4% |
| Net profit | -0.12 | 1.36 | 2.19 | -108.3% | 4.16 | 4.82 | 5.20 | -13.6% |
| Net profit margin % | -0.61 | 7.03 | 13.91 | -108.6% | 11.37 | 13.61 | 16.88 | -16.4% |
| ROA % | -0.03 | 0.42 | 0.76 | -107.3% | 1.13 | 1.50 | 1.52 | -24.4% |
| Debt to total capital employed % | 68.70 | 66.04 | 60.76 | 4.0% | 68.70 | 66.04 | 60.76 | 4.0% |
| ROE % | -0.09 | 1.15 | 1.88 | -108.1% | 3.48 | 4.11 | 3.46 | -15.3% |
| Current ratio | 0.83 | 0.66 | 0.69 | 25.8% | 0.83 | 0.66 | 0.69 | 25.8% |
| Quick ratio | 0.78 | 0.60 | 0.63 | 30.0% | 0.78 | 0.60 | 0.63 | 30.0% |
| Investments into fixed assets | 16.56 | 15.88 | 11.39 | 4.3% | 24.42 | 22.64 | 18.04 | 7.9% |
| Payout ratio % | 79.98 | 79.87 | 79.41 | 79.98 | 79.87 | 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
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| as of | as of | ||||||||
| € thousand | 30 June | 31 December | |||||||
| ASSETS | Note | 2026 | 2025 | ||||||
| CURRENT ASSETS | |||||||||
| Cash and cash equivalents | 3 | 7,366 | 11,294 | ||||||
| Trade receivables, accrued income and prepaid expenses | 12,023 | 10,762 | |||||||
| Inventories | 1,264 | 1,163 | |||||||
| TOTAL CURRENT ASSETS | 20,653 | 23,219 | |||||||
| NON-CURRENT ASSETS | |||||||||
| Property, plant, and equipment | 4 | 348,438 | 338,654 | ||||||
| Intangible assets | 5 | 3,385 | 2,699 | ||||||
| TOTAL NON-CURRENT ASSETS | 351,823 | 341,353 | |||||||
| TOTAL ASSETS | 372,476 | 364,572 | |||||||
| LIABILITIES AND EQUITY | |||||||||
| CURRENT LIABILITIES | |||||||||
| Current portion of long-term lease liabilities | 716 | 765 | |||||||
| Current portion of long-term loans | 6,880 | 3,742 | |||||||
| Trade and other payables | 14,644 | 17,604 | |||||||
| Prepayments | 2,683 | 2,781 | |||||||
| TOTAL CURRENT LIABILITIES | 24,923 | 24,892 | |||||||
| NON-CURRENT LIABILITIES | |||||||||
| Deferred income from connection fees | 53,387 | 52,112 | |||||||
| Leases | 1,340 | 1,502 | |||||||
| Loans | 169,593 | 155,391 | |||||||
| Provision for possible third-party claims | 6 | 6,018 | 6,018 | ||||||
| Deferred tax liability | 560 | 697 | |||||||
| Other payables | 101 | 165 | |||||||
| TOTAL NON-CURRENT LIABILITIES | 230,999 | 215,885 | |||||||
| TOTAL LIABILITIES | 255,922 | 240,777 | |||||||
| EQUITY | |||||||||
| Share capital | 12,000 | 12,000 | |||||||
| Share premium | 24,734 | 24,734 | |||||||
| Statutory legal reserve | 1,278 | 1,278 | |||||||
| Retained earnings | 78,542 | 85,783 | |||||||
| TOTAL EQUITY | 116,554 | 123,795 | |||||||
| TOTAL LIABILITIES AND EQUITY | 372,476 | 364,572 | |||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| for the 6 months | |||||||||
| Quarter 2 | ended on 30 June | ||||||||
| € thousand | Note | 2026 | 2025 | 2026 | 2025 | ||||
| Revenue | 7 | 18,606 | 19,395 | 36,599 | 35,399 | ||||
| Cost of goods and services sold | 9 | -12,007 | -12,250 | -22,374 | -21,663 | ||||
| GROSS PROFIT | 6,599 | 7,145 | 14,225 | 13,736 | |||||
| Marketing expenses | 9 | -279 | -239 | -546 | -495 | ||||
| General administration expenses | 9 | -1,933 | -1,599 | -3,798 | -3,386 | ||||
| Other income and expenses | 10 | -189 | -171 | -238 | -232 | ||||
| OPERATING PROFIT | 4,198 | 5,136 | 9,643 | 9,623 | |||||
| Financial income | 11 | 31 | 30 | 55 | 64 | ||||
| Financial expenses | 11 | -1,312 | -937 | -2,460 | -1,969 | ||||
| PROFIT BEFORE TAXES | 2,917 | 4,229 | 7,238 | 7,718 | |||||
| Income tax | -3,034 | -2,861 | -3,079 | -2,914 | |||||
| NET PROFIT / LOSS (-) FOR THE PERIOD | -117 | 1,368 | 4,159 | 4,804 | |||||
| COMPREHENSIVE INCOME FOR THE PERIOD | -117 | 1,368 | 4,159 | 4,804 | |||||
| Attributable profit to shareholders | -117 | 1,368 | 4,159 | 4,804 | |||||
| Earnings per share (in euros) | 12 | -0.01 | 0.07 | 0.21 | 0.24 | ||||
CONSOLIDATED STATEMENT OF CASH FLOWS
| for the 6 months | |||||
| ended 30 June | |||||
| € thousand | Note | 2026 | 2025 | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||
| Operating profit | 9,643 | 9,623 | |||
| Adjustment for depreciation/amortisation | 9 | 5,100 | 4,618 | ||
| Adjustment for revenues from connection fees | 7 | -387 | -394 | ||
| Other non-cash adjustments | -35 | 28 | |||
| Profit (-) / loss (+) from sale of property, plant and equipment, and intangible assets | 0 | -46 | |||
| Change in current assets involved in operating activities | -1,363 | -1,023 | |||
| Change in liabilities involved in operating activities | -148 | 892 | |||
| TOTAL CASH FLOWS FROM OPERATING ACTIVITIES | 12,810 | 13,698 | |||
| CASH FLOWS USED IN INVESTING ACTIVITIES | |||||
| Acquisition of property, plant, and equipment, and intangible assets | -26,214 | -25,367 | |||
| Proceeds from targeted funding of property, plant, and equipment. | 8,889 | 5,454 | |||
| Compensations received for construction of pipelines, incl connection fees | 1,065 | 623 | |||
| Proceeds from sale of property, plant and equipment, and intangible assets | 0 | 46 | |||
| Interest received | 55 | 64 | |||
| TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES | -16,205 | -19,180 | |||
| CASH FLOWS USED IN FINANCING ACTIVITIES | |||||
| Interest and loan financing costs paid | -2,890 | -2,482 | |||
| Lease payments | -409 | -452 | |||
| Loans received | 20,000 | 20,000 | |||
| Repayment of loans | -2,619 | -1,786 | |||
| Dividends paid | 12 | -11,400 | -10,600 | ||
| Income tax paid on dividends | -3,215 | -254 | |||
| TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES | -533 | 4,426 | |||
| CHANGE IN CASH AND CASH EQUIVALENTS | -3,928 | -1,056 | |||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 3 | 11,294 | 3,589 | ||
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 3 | 7,366 | 2,533 | ||
