In the first half of the year, the gradual recovery of the Estonian economy continued, but the economic environment remained affected by geopolitical uncertainty and fluctuations in energy prices. According to the latest published forecasts, Estonia's 2026 economic growth is expected to reach approximately 2.3-2.4%. Growth is primarily supported by the recovery of domestic demand, public sector investments, and improved financing conditions. In the construction sector, signs of stabilization and moderate recovery are evident. The market is mainly supported by investments related to national defense, infrastructure, and energy facilities, while the building construction segment continues to be characterized by modest investment activity.
The group's sales revenue increased in both segments compared to the first 6 months of 2025, split between the Buildings and Infrastructure segments at 78% and 22%, respectively. The volume of the Buildings segment grew by 21% compared to H1 2025, while the Infrastructure segment grew by 165%. The group's gross profitability was 4.7% and operating profitability was 1.9% in H1. Compared to the same period in 2025, profitability has decreased somewhat, but profit has increased on the back of sales revenue growth. The decline in profitability was driven by continuously rising input costs and the structure of the project portfolio, as a result of which the average profit margin of projects in progress during the reporting period was lower than in the comparable period a year earlier. On an annual basis, i.e. compared to 30 June 2025, the group's order book increased by 7%. Order book volumes have grown in both the buildings and infrastructure segments. Based on the volume of the order book, group management forecasts growth in operating volumes in 2026.
Condensed consolidated interim statement of financial position
| €'000 | 30 June 2026 | 31 December 2025 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 6,093 | 5,266 |
| Other financial assets | 1,078 | 1,088 |
| Trade and other receivables | 46,164 | 46,348 |
| Prepayments | 3,865 | 3,274 |
| Inventories | 40,318 | 26,022 |
| Total current assets | 97,518 | 81,998 |
| Non-current assets | ||
| Other investments | 77 | 77 |
| Other financial assets | 2,410 | 1,810 |
| Trade and other receivables | 10,365 | 10,142 |
| Investment property | 3,814 | 5,517 |
| Property, plant and equipment | 13,650 | 12,234 |
| Intangible assets | 14,959 | 14,922 |
| Total non-current assets | 45,275 | 44,702 |
| TOTAL ASSETS | 142,793 | 126,700 |
| LIABILITIES | ||
| Current liabilities | ||
| Borrowings | 10,713 | 12,049 |
| Trade payables | 65,184 | 49,569 |
| Other payables | 11,057 | 9,971 |
| Deferred income | 8,953 | 15,249 |
| Provisions | 766 | 3,863 |
| Total current liabilities | 96,673 | 90,701 |
| Non-current liabilities | ||
| Borrowings | 13,591 | 5,708 |
| Trade payables | 6,061 | 1,605 |
| Provisions | 2,616 | 5,730 |
| Total non-current liabilities | 22,268 | 13,043 |
| TOTAL LIABILITIES | 118,941 | 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 | 4,718 | 4,522 |
| Retained earnings | 577 | 141 |
| Total equity attributable to owners of the parent | 22,203 | 21,571 |
| Non-controlling interests | 1,649 | 1,385 |
| TOTAL EQUITY | 23,852 | 22,956 |
| TOTAL LIABILITIES AND EQUITY | 142,793 | 126,700 |
Condensed consolidated interim statement of comprehensive income
| €'000 | H1 2026 | Q2 2026 | H1 2025 | Q2 2025 | 2025 | ||
| Revenue | 126,913 | 74,910 | 92,638 | 53,283 | 208,281 | ||
| Cost of sales | (120,993) | (71,928) | (87,188) | (49,635) | (194,746) | ||
| Gross profit | 5,920 | 2,982 | 5,450 | 3,648 | 13,535 | ||
| Marketing and distribution expenses | (212 | (136) | (169) | (86) | (433) | ||
| Administrative expenses | (3,359) | (1,612) | (3,072) | (1,526) | (6,814) | ||
| Other operating income | 182 | 165 | 68 | 16 | 154 | ||
| Other operating expenses | (59) | (46) | (160) | (126) | (6,835) | ||
| Operating profit (loss) | 2,472 | 1,353 | 2,117 | 1,926 | (393) | ||
| Finance income | 216 | 105 | 258 | 113 | 499 | ||
| Finance costs | (1,988) | (1,019) | (1,904) | (1,165) | (3,464) | ||
| Net finance costs | (1,772) | (914) | (1,646) | (1,052) | (2,965) | ||
| Profit (loss) before tax | 700 | 439 | 471 | 874 | (3,358) | ||
| Income tax expense | (1) | (1) | 0 | 0 | (141) | ||
| Profit (loss) for the period | 699 | 438 | 471 | 874 | (3,499) | ||
| Other comprehensive income (loss): | |||||||
| Exchange differences on translating foreign operations | 196 | 115 | 473 | 569 | 488 | ||
| Total other comprehensive income | 196 | 115 | 473 | 569 | 488 | ||
| TOTAL COMPREHENSIVE INCOME (LOSS) | 895 | 553 | 944 | 1,443 | (3,011) | ||
| Profit (loss) attributable to: | |||||||
| - Owners of the parent | 436 | 334 | (134 | 482 | (4,605) | ||
| - Non-controlling interests | 264 | 104 | 605 | 392 | 1,106 | ||
| Profit (loss) for the period | 700 | 438 | 471 | 874 | (3,499) | ||
| Comprehensive income (loss) attributable to: | |||||||
| - Owners of the parent | 632 | 449 | 339 | 1,051 | (4,117) | ||
| - Non-controlling interests | 264 | 104 | 605 | 392 | 1,106 | ||
| Comprehensive income (loss) for the period | 896 | 553 | 944 | 1,443 | (3,011) | ||
| Earnings per share attributable to owners of the parent: | |||||||
| Basic earnings per share | 10.5 | 8.7 | 11.0 | 9.8 | |||
| Change against the comparative period, % | 20.7% | (21.3)% | 0.4% | 5.4% | |||
The group's labour productivity and labour cost efficiency increased year on year, as revenue growth exceeded the increase in the number of employees and staff costs.
Andri Hõbemägi
Nordecon AS
Head of Investor Relations
Tel: +372 6272 022
Email: andri.hobemagi@nordecon.com
www.nordecon.com
