Earnings Release • Aug 1, 2025
Earnings Release
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Tallinna Vesi's second-quarter sales reached €19.4 million
AS Tallinna Vesi's sales in the second quarter were EUR19.4 million, the increase
was mainly driven by the sales of construction services.
Compared to the second quarter of 2024, revenue was up 23.4%, or EUR3.67 million.
The increase in revenue was mainly driven by the subsidiary's sales of
construction services, which increased by EUR2.65 million compared to the same
period the year before. Sales of water services increased by EUR0.95 million, with
a decrease in water services provided to business customers and an increase in
water services provided to private customers. The change in the sales of water
services came mainly from the new price for water services effective from 1 May,
which took into account both the legal obligation to harmonise the price of the
service for private and business customers by 1 July 2026, and the need for
investment to ensure the sustainability of water services.
The company's net profit in the second quarter of 2025 was EUR1.37 million, which
is EUR0.83 million less than in the same period of the previous year. Net profit
was significantly affected by higher tax cost.
"The second quarter marks the start of summer, which is a busy time for our
industry. We have made good progress with the investment plan and more than 20
kilometres of pipelines have already been built or rehabilitated," said
Aleksandr Timofejev, CEO of Tallinna Vesi.
In 2025, the company plans to build and rehabilitate approximately 45 kilometres
of pipelines. The company's aim is to carry out construction work with as little
disruption to traffic and city life as possible and in cooperation with other
utility owners. Approximately half, or 9.2 kilometres, of the 20 kilometres
completed this year have been built using no-dig techniques instead of
excavating trenches.
In the second quarter, major construction work started on Kopli Street, the next
phase of Paljassaare Road, A. H. Tammsaare Road, and Tuukri and Uus-Sadama
streets. The pipeline to be replaced on Tammsaare Road is an important supply
line for the Mustamäe and Õismäe area. Work on Tuukri and Uus-Sadama streets
also involves the construction of large stormwater pipelines to mitigate
flooding in that area.
At the beginning of the year, the subsidiary Watercom started to rehabilitate
pipelines with new equipment that allows the rehabilitation to be carried out
using a no-dig technique instead of excavating trenches.
In the second quarter, the company continued to invest in future-proofing its
infrastructure and ensuring the continuity of the vital service it provides.
"In the first half of the year, there have been significant developments in our
core business, for example, we completed the reconstruction of the filters at
the water treatment plant and launched the procurement for the upgrading of the
ozonation process applied in the production of clean drinking water," said
Aleksander Timofejev.
He also highlighted the extensive work completed at the wastewater treatment
plant to upgrade the mechanical treatment stage, which will make the first stage
of the long treatment cycle more efficient and help keep the environmental
footprint of our customers as small as possible.
The total investment planned for this year amounts to EUR61 million. With recent
investments, such as the successful operation of a combined heat and power plant
that produces energy from biogas, Tallinna Vesi continues to move towards a more
sustainable operating model.
In the second quarter, the quality of treated wastewater from the Paljassaare
Wastewater Treatment Plant exceeded the effluent standards. To keep the Baltic
Sea clean, the company uses efficient treatment processes that helped to remove
more than 270 tonnes of solid waste, 50 tonnes of sand, 514 tonnes of nitrogen
and 65 tonnes of phosphorus from wastewater during the second quarter of 2025.
Tap water quality was excellent in the second quarter, as in the previous year,
meeting 100% of all quality requirements. "A customer survey carried out in
spring showed that trust in the drinking water we offer is high, with 89% of
respondents saying they drink tap water. In addition, there is a growing desire
to protect the environment and contribute to reducing plastic production by
drinking tap water from a reusable bottle," Aleksander Timofejev said.
The water loss rate in the water distribution network fell to 12.4% in the
second quarter of the year, compared with 13% a year earlier. In order to keep
water loss rates low, the company carries out continuous online monitoring of
the water network and continues with its planned water network rehabilitation
programme.
As a vital service provider, Tallinna Vesi believes it is important to raise
consumer awareness of the benefits of fresh tap water and environmental
protection. In the second quarter, the company organised an open day at the
wastewater treatment plant and attended many public events, providing fresh
drinking water from tanks and organising activities to promote the water sector.
On 30 June, we started providing fresh drinking water in the rehearsal fields of
the Dance Celebration, followed by the supply of drinking water to Song and
Dance Celebration participants throughout the celebration week.
At the beginning of May, Tallinna Vesi opened 59 public drinking water taps
across Tallinn, which will be available for everyone to use until the end of
summer.
By the end of the second quarter of 2025, Tallinna Vesi had installed smart
meters for 72% of its customers. The new meters provide information on water
consumption, enabling the detection of leaks in the customer's pipes as early as
possible. This will save the environment and minimise potential damage to
property caused by water damage. "The feedback from customers on the switch to
smart meters has been very positive, and we hope to have a new meter installed
for everyone by the end of next year," said Aleksandr Timofejev.
Tallinna Vesi's long-standing commitment to environmental sustainability was
recognised with the gold level in 2025 Corporate Social Responsibility Index.
Tallinn Vesi was also awarded the silver level "Supporter of National Defence"
recognition by the Ministry of Defence.
As the largest employer in the water sector, Tallinna Vesi offers traineeships
to more than 20 students during the summer, who can later join the company if
suitable.
AS Tallinna Vesi is the largest water utility in Estonia, providing services to
approximately 25,000 private and business customers and approximately 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.
FINANCIAL INDICATORS
Quarter 2 6 months
EUR million Variance
except key ratios 2025 2024 2023 2025/2024 2025 2024 2023 2025/2024
Sales 19.40 15.72 15.55 23.4% 35.40 30.83 30.30 14.8%
Gross profit 7.15 6.34 5.81 12.8% 13.74 12.41 11.53 10.7%
Gross profit
margin % 36.84 40.30 37.37 -8.6% 38.80 40.25 38.07 -3.6%
Operating profit
before
depreciation and
amortisation 7.65 6.66 6.24 14.9% 14.60 13.05 12.40 11.9%
Operating profit
before
depreciation and
amortisation
margin % 39.46 42.35 40.11 -6.8% 41.24 42.32 40.92 -2.6%
Operating profit 5.14 4.46 4.13 15.2% 9.62 8.58 8.20 12.1%
Operating profit
- main business 4.69 4.17 3.81 12.6% 9.00 8.33 7.73 8.0%
Operating profit
margin % 26.48 28.35 26.54 -6.6% 27.19 27.84 27.07 -2.4%
Profit before
taxes 4.23 3.42 3.41 23.7% 7.72 6.45 6.93 19.7%
Profit before
taxes margin % 21.80 21.75 21.91 0.2% 21.80 20.92 22.89 4.2%
Net profit 1.37 2.19 2.31 -37.7% 4.80 5.20 5.81 -7.7%
Net profit margin
% 7.05 13.95 14.88 -49.5% 13.57 16.88 19.19 -19.6%
ROA % 0.42 0.77 0.90 -45.1% 1.49 1.83 1.52 -18.6%
Debt to total
capital employed
% 65.32 60.76 57.66 7.5% 65.32 60.76 57.66 7.5%
ROE % 1.15 1.89 2.06 -39.2% 4.10 4.54 3.46 -9.8%
Current ratio 0.66 0.69 1.31 -4.3% 0.66 0.69 1.31 -4.3%
Quick ratio 0.60 0.63 1.24 -4.8% 0.60 0.63 1.24 -4.8%
Investments into
fixed assets 15.88 11.39 5.77 39.4% 22.64 18.04 10.44 25.5%
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
Main business - Water services related activities, excl. connections profit and
government grants, construction services, doubtful receivables
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR thousand
as of as of
30 June 31 December
ASSETS Note 2025 2024
Cash and cash equivalents 3 2,533 3,589
Trade receivables, accrued income and prepaid
expenses 11,695 10,746
TOTAL CURRENT ASSETS 15,483 15,515
Property, plant, and equipment 4 312,083 296,264
TOTAL ASSETS 329,786 313,841
LIABILITIES AND EQUITY
Current portion of long-term lease
liabilities 803 875
Current portion of long-term loans 3,407 3,441
Trade and other payables 16,975 13,581
TOTAL CURRENT LIABILITIES 23,548 20,543
Deferred income from connection fees 51,011 50,106
Leases 1,801 2,178
Loans 132,455 114,241
Provision for possible third-party claims 6 6,018 6,018
Deferred tax
liability 419 494
TOTAL LIABILITIES 215,429 193,688
Share capital 12,000 12,000
Share premium 24,734 24,734
Statutory legal reserve 1,278 1,278
TOTAL LIABILITIES AND EQUITY 329,786 313,841
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the 6
months
ended 30
EUR thousand Quarter 2 June
Note 2025 2024 2025 2024
Revenue 1, 7 19,395 15,724 35,399 30,829
Cost of goods and
services sold 1, 9 -12,250 -9,387 -21,663 -18,422
GROSS PROFIT 1 7,145 6,337 13,736 12,407
Marketing expenses 9 -239 -241 -495 -475
General administration
expenses 9 -1,599 -1,531 -3,386 -3,025
OPERATING
PROFIT 5,136 4,457 9,623 8,584
Financial income 11 30 67 64 149
PROFIT BEFORE TAXES 4,229 3,420 7,718 6,448
Income tax -2,861 -1,226 -2,914 -1,244
COMPREHENSIVE INCOME FOR THE
PERIOD 1,368 2,194 4,804 5,204
Equity holders of A-
shares 1,368 2,194 4,804 5,204
Earnings per A share (in
euros) 13 0.07 0.11 0.24 0.26
CONSOLIDATED STATEMENT OF CASH FLOWS
for the 6 months
EUR thousand ended 30 June
Note 2025 2024
Operating profit 9,623 8,584
Adjustment for depreciation/amortisation 9 4,618 4,131
Adjustment for revenues from connection fees 7 -394 -340
Other non-cash adjustments 28 -91
Profit (-)/loss (+) from sale of property, plant
and equipment, and intangible assets -46 -55
Change in current assets involved in operating activities -1,023 -446
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 13,698 12,134
Acquisition of property, plant, and equipment,
and intangible assets -25,367 -13,800
Proceeds from targeted funding of property, plant,
and equipment. 4 5,454 0
Compensations received for construction of pipelines,
incl. connection fees 623 952
Proceeds from sale of property, plant and equipment,
and intangible assets 46 98
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES -19,180 -12,601
Interest and loan financing costs paid -2,482 -2,572
Lease payments -452 -584
Loans received 20,000 5,000
Repayment of loans -1,786 -1,818
Dividends paid 12 -10,600 -10,069
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES 4,426 -10,346
CHANGE IN CASH AND CASH EQUIVALENTS -1,056 -10,813
CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE PERIOD 3 3,589 14,736
CASH AND CASH EQUIVALENTS AT THE END
OF THE PERIOD 3 2,533 3,923
Additional information:
Taavi Gröön
Chief Financial Officer
AS Tallinna Vesi
(372) 62 62 200
Have a question? We'll get back to you promptly.