2025 first quarter consolidated interim report (unaudited)

Macroeconomic indicators give reason to believe that the decline in the Estonian construction market has halted and that the market is stabilizing. The Infrastructure segment is also supported this year by the volume of work related to Rail Baltica, while investments by the Transport Administration continue to decrease. In the Buildings segment, some revival can be seen in private sector orders. This stability is also reflected in the group’s results for the first quarter of 2025.
As in previous years, over 90% of the group’s revenue in the first quarter of the year comes from the Buildings segment. Revenue in this segment has decreased by approximately 15% compared to the same period last year, which is also the main reason for the overall decline in the group’s revenue. During the reporting period, the group has signed a significant number of new contracts, but their impact on revenue will be seen over a longer period.
The group’s gross margin was 4.6%, remaining at the same level as in the first quarter of last year. Profit was generated in the Buildings segment, while the Infrastructure segment recorded a loss due to its seasonal nature. The decline in the operating profit margin is affected by the drop in revenue.
As of 31 March 2024, the order book increased by 43%. The volume of the Infrastructure segment has grown significantly, primarily due to contracts signed for the construction of Rail Baltica. The volume of order book in the Buildings segment has remained at the same level.