The sales of AS Tallinna Vesi in the third quarter of 2026 were €18.32 million, an increase of 0.8% compared to the same period last year. The company's third-quarter revenues were most affected by the growth in sales of water services, while revenue from construction services fell compared to the third quarter of 2025.
Aleksandr Timofejev, CEO of Tallinna Vesi, said that the third quarter was characterised by continued progress with planned investments and a commitment to the continuity of the vital service. "Summer is the busiest time of year for water and sewer pipe construction projects, and our team made the most of it. To improve the operational continuity of the water supply, we built and renovated additional boreholes in the Lasnamäe and Kristiine areas. In August, we opened a coastal stormwater sedimentation pond in North Tallinn. This is a prime example of how a modern stormwater strategy can help us to cope with climate change," he said. Timofejev noted that creating modern stormwater solutions is essential for the functioning of the city in changing climatic conditions.
"Several development projects are underway at the water and wastewater treatment plants to increase operational continuity and improve energy efficiency. The focus of investments is now shifting from wastewater treatment to modernising water treatment processes, including completely reconstructing ozonation and microfiltration processes," explained Aleksandr Timofejev. The total investment planned for this year amounts to €60 million.
In the third quarter, investments were made in the amount of €16.38 million, which is nearly €1.91 million more than in the same period of 2025.
Revenue from the sale of water services increased by 4.5% year-on-year, or €0.71 million, reaching €16.42 million. The change in the sales of water services was mainly driven by the new prices for water services introduced on 1 July 2026, which took into account the legal obligation to harmonise service prices for private and business customers. At the same time, the company introduced a new, pollution-load-based pricing, meaning that customers whose activities cause more pollution will now have to pay more for wastewater treatment services.
The company's net profit for the first nine months of 2026 was €8.12 million. The net profit for the third quarter amounted to €3.96 million.
On 09/10/2026, Tallinna Vesi and Tallinn University of Technology signed an out-of-court settlement agreement. On 23/10/2026, the Supreme Court accepted Tallinn University of Technology's application to withdraw the claim, annulled the previous decisions made by the lower courts in this case, and concluded the proceedings. On 27/10/2026, Tallinna Vesi reached out-of-court settlements with Aktsiaselts Olerex, EfTEN SPV2 OÜ, EfTEN Sky OÜ and Kadrioru Ärikeskus OÜ in the historical water price difference disputes.
A survey on the strength of customer relationships, conducted in early summer in cooperation with the research company Emor, showed that the percentage of those who drink tap water reached as high as 92%, proving that people trust tap water. This is also reflected in the popularity of public drinking water taps. Public drinking water taps are located in Tallinn, Maardu, and Saue.
During the third quarter, we rehabilitated and constructed 12 kilometres of pipes. Of these, 4.2 kilometres (35%) were built using environmentally friendly no-dig techniques. We work closely with the City of Tallinn and other partners, such as Utilitas Tallinna Soojus, Reterra Estate, Alfa Property, and Rail Baltic, in order to carry out as many works as possible at the same time, thus saving the environment and causing as little disruption to city life and traffic as possible.
Work on major construction projects continued in the third quarter on Kolde Avenue, Sõle Street and Keldrimäe Street, where the pavements were reinstated. Construction also continued at the Hipodroomi intersection on Paldiski Road, where work is being carried out in multiple shifts. Construction started in the Vilde Street area of Mustamäe and the Mustamäe sewer system was reconstructed using no-dig techniques.
The quality of wastewater treated at the Paljassaare Wastewater Treatment Plant outperforms the effluent standards. To keep the Baltic Sea clean, the company uses efficient treatment processes that helped to remove approximately 348 tonnes of solid waste, 236 tonnes of grit, 504 tonnes of nitrogen and 64 tonnes of phosphorus from wastewater during the third quarter of 2026.
The quality of drinking water remained excellent during the third quarter, meeting 99.4% of all quality requirements. During the quarter, the company took 704 water samples. Clean tap water has been 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.
The rate of water loss in the water distribution network was 10.3% in the third quarter, which is lower than last year. To keep water loss rates low, the company continuously monitors the water distribution network online and continues with its planned water network rehabilitation programme. The interaction between smart meters and sensors installed in the water distribution network improves the flow of information about the state of the network.
By the end of the third quarter of 2026, 97.1 per cent of Tallinna Vesi's customers were using smart meters. 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 transition to smart meters has received very positive feedback from customers. The meters provide the water company with a clear picture of how water moves within the service area.
During the third quarter, Tallinna Vesi's drinking water tanks provided refreshing drinking water at numerous events held in Tallinn and its surrounding areas, such as the gymnastics festival, the investment festival, Ironman, etc. Throughout the summer, 80 public drinking water taps are available for city residents and tourists to access high-quality tap water in public urban areas. 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.
As well as providing tap water, the most environmentally friendly form of drinking water, our company is also actively involved in other environmental initiatives. For instance, we participated in three panel discussions on climate change and vital services at this year's Paide Opinion Festival.
In August, we hosted the 54th Tallinna Vesi's run around Lake Ülemiste, which brought together over 600 sports enthusiasts. This unique sporting event has a long tradition and takes place in the sanitary protection zone around Lake Ülemiste.
This quarter, much attention was focused on the Paljassaare Wastewater Treatment Plant, as the plant celebrated its 45th anniversary of starting operations. This anniversary provided an opportunity to recognise the plant's long-serving employees and review the most significant recent developments, as well as the innovations on the horizon.
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 3 | Variance 2026/ 2025 | 9 months | Variance 2026/ 2025 | ||||
| 2026 | 2025 | 2024 | 2026 | 2025 | 2024 | |||
| Sales | 18.32 | 18.17 | 16.39 | 0.81% | 54.92 | 53.57 | 47.22 | 2.52% |
| Gross profit | 7.75 | 7.86 | 6.92 | -1.45% | 21.97 | 21.60 | 19.33 | 1.74% |
| Gross profit margin % | 42.29 | 43.26 | 42.21 | -2.25% | 40.01 | 40.31 | 40.93 | -0.76% |
| Operating profit before depreciation and amortisation | 8.05 | 8.52 | 7.28 | -5.56% | 22.79 | 22.76 | 19.99 | 0.13% |
| Operating profit before depreciation and amortisation margin % | 43.93 | 46.90 | 44.39 | -6.34% | 41.50 | 42.49 | 42.34 | -2.33% |
| Operating profit | 5.47 | 5.95 | 5.13 | -8.12% | 15.11 | 15.57 | 13.71 | -2.95% |
| Operating profit margin % | 29.85 | 32.74 | 31.29 | -8.84% | 27.51 | 29.07 | 29.04 | -5.34% |
| Profit before taxes | 4.09 | 5.04 | 4.07 | -18.95% | 11.32 | 12.76 | 10.51 | -11.28% |
| Profit before taxes margin % | 22.30 | 27.76 | 24.80 | -19.66% | 20.62 | 23.82 | 22.26 | -13.46% |
| Net profit | 3.96 | 4.96 | 3.93 | -20.20% | 8.12 | 9.76 | 9.13 | -16.84% |
| Net profit margin % | 21.61 | 27.29 | 23.97 | -20.82% | 14.78 | 18.22 | 19.34 | -18.89% |
| ROA % | 1.06 | 1.47 | 1.33 | -27.99% | 2.17 | 2.97 | 3.12 | -26.98% |
| Debt to total capital employed % | 68.56 | 65.20 | 61.82 | 5.15% | 68.56 | 65.20 | 61.82 | 5.15% |
| ROE % | 3.24 | 4.24 | 3.45 | -23.58% | 6.65 | 8.15 | 7.84 | -18.48% |
| Current ratio | 0.68 | 0.83 | 0.83 | -17.91% | 0.68 | 0.83 | 0.83 | -17.91% |
| Quick ratio | 0.63 | 0.76 | 0.78 | -17.04% | 0.63 | 0.76 | 0.78 | -17.04% |
| Investments into fixed assets | 16.38 | 14.47 | 15.38 | 13.2% | 40.80 | 37.11 | 33.42 | 9.9% |
| Payout ratio % | 80.06 | 79.80 | 79.41 | 80.06 | 79.80 | 79.80 | ||
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 September | 31 December | |||||||
| ASSETS | Note | 2026 | 2025 | ||||||
| CURRENT ASSETS | |||||||||
| Cash and cash equivalents | 3 | 4,782 | 11,294 | ||||||
| Trade receivables, accrued income and prepaid expenses | 11,820 | 10,762 | |||||||
| Inventories | 1,340 | 1,163 | |||||||
| TOTAL CURRENT ASSETS | 17,942 | 23,219 | |||||||
| NON-CURRENT ASSETS | |||||||||
| Property, plant, and equipment | 4 | 361,182 | 338,654 | ||||||
| Intangible assets | 5 | 4,165 | 2,699 | ||||||
| TOTAL NON-CURRENT ASSETS | 365,347 | 341,353 | |||||||
| TOTAL ASSETS | 383,289 | 364,572 | |||||||
| LIABILITIES AND EQUITY | |||||||||
| CURRENT LIABILITIES | |||||||||
| Current portion of long-term lease liabilities | 649 | 765 | |||||||
| Current portion of long-term loans | 6,877 | 3,742 | |||||||
| Trade and other payables | 15,555 | 17,604 | |||||||
| Prepayments | 3,244 | 2,781 | |||||||
| TOTAL CURRENT LIABILITIES | 26,325 | 24,892 | |||||||
| NON-CURRENT LIABILITIES | |||||||||
| Deferred income from connection fees | 53,703 | 52,112 | |||||||
| Leases | 1,207 | 1,502 | |||||||
| Loans | 174,591 | 155,391 | |||||||
| Provision for possible third-party claims | 6 | 6,018 | 6,018 | ||||||
| Deferred tax liability | 687 | 697 | |||||||
| Other payables | 246 | 165 | |||||||
| TOTAL NON-CURRENT LIABILITIES | 236,452 | 215,885 | |||||||
| TOTAL LIABILITIES | 262,777 | 240,777 | |||||||
| EQUITY | |||||||||
| Share capital | 12,000 | 12,000 | |||||||
| Share premium | 24,734 | 24,734 | |||||||
| Statutory legal reserve | 1,278 | 1,278 | |||||||
| Retained earnings | 82,500 | 85,783 | |||||||
| TOTAL EQUITY | 120,512 | 123,795 | |||||||
| TOTAL LIABILITIES AND EQUITY | 383,289 | 364,572 | |||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| for the 9 months | |||||||||
| Quarter 3 | ended on 30 September | ||||||||
| € thousand | Note | 2026 | 2025 | 2026 | 2025 | ||||
| Revenue | 7 | 18,317 | 18,167 | 54,916 | 53,566 | ||||
| Cost of goods and services sold | 9 | -10,571 | -10,307 | -32,945 | -31,970 | ||||
| GROSS PROFIT | 7,746 | 7,860 | 21,971 | 21,596 | |||||
| Marketing expenses | 9 | -227 | -222 | -773 | -716 | ||||
| General administration expenses | 9 | -1,916 | -1,596 | -5,713 | -4,982 | ||||
| Other income and expenses | 10 | -136 | -95 | -375 | -327 | ||||
| OPERATING PROFIT | 5,467 | 5,947 | 15,110 | 15,571 | |||||
| Financial income | 11 | 42 | 25 | 97 | 89 | ||||
| Financial expenses | 11 | -1,424 | -928 | -3,884 | -2,898 | ||||
| PROFIT BEFORE TAXES | 4,085 | 5,044 | 11,323 | 12,762 | |||||
| Income tax | -127 | -86 | -3,206 | -3,000 | |||||
| NET PROFIT FOR THE PERIOD | 3,958 | 4,958 | 8,117 | 9,762 | |||||
| COMPREHENSIVE INCOME FOR THE PERIOD | 3,958 | 4,958 | 8,117 | 9,762 | |||||
| Attributable profit to shareholders | 3,958 | 4,958 | 8,117 | 9,762 | |||||
| Earnings per share (in euros) | 12 | 0.20 | 0.25 | 0.41 | 0.49 | ||||
CONSOLIDATED STATEMENT OF CASH FLOWS
| for the 9 months | |||||
| ended 30 September | |||||
| € thousand | Note | 2026 | 2025 | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||
| Operating profit | 15,110 | 15,571 | |||
| Adjustment for depreciation/amortisation | 9 | 7,679 | 7,191 | ||
| Adjustment for revenues from connection fees | 7 | -583 | -580 | ||
| Other non-cash adjustments | -38 | 26 | |||
| Profit (-) / loss (+) from sale of property, plant and equipment, and intangible assets | -28 | -57 | |||
| Change in current assets involved in operating activities | -1,236 | -258 | |||
| Change in liabilities involved in operating activities | 950 | -66 | |||
| TOTAL CASH FLOWS FROM OPERATING ACTIVITIES | 21,854 | 21,827 | |||
| CASH FLOWS USED IN INVESTING ACTIVITIES | |||||
| Acquisition of property, plant, and equipment, and intangible assets | -43,832 | -38,702 | |||
| Proceeds from targeted funding of property, plant, and equipment. | 9,155 | 5,528 | |||
| Compensations received for construction of pipelines, incl connection fees | 1,963 | 1,523 | |||
| Proceeds from sale of property, plant and equipment, and intangible assets | 34 | 58 | |||
| Interest received | 97 | 89 | |||
| TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES | -32,583 | -31,504 | |||
| CASH FLOWS USED IN FINANCING ACTIVITIES | |||||
| Interest and loan financing costs paid | -2,941 | -2,505 | |||
| Lease payments | -608 | -662 | |||
| Loans received | 25,000 | 30,000 | |||
| Repayment of loans | -2,619 | -1,786 | |||
| Dividends paid | 12 | -11,400 | -10,600 | ||
| Income tax paid on dividends | 12 | -3,215 | -2,990 | ||
| TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES | 4,217 | 11,457 | |||
| CHANGE IN CASH AND CASH EQUIVALENTS | -6,512 | 1,780 | |||
| 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 | 4,782 | 5,369 | ||
