Earnings Release • Oct 31, 2025
Earnings Release
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Tallinna Vesi's third-quarter sales reached €18.2 million
The sales of AS Tallinna Vesi in the third quarter of 2025 were EUR18.2 million,
increasing 10.8% compared to the same period last year. Revenue growth was most
affected by a change in price due to the need for critical investments.
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 pipeline construction projects, and our team made the most of
it. Four important stormwater receiving systems have been completed or are
nearing completion in various districts of Tallinn. This creates the conditions
necessary for developing a stormwater network," he said. Timofejev noted that
creating modern stormwater solutions is essential for the functioning of the
city in changing climatic conditions. He also highlighted the installation of
generators at pumping stations as a significant investment made during the
quarter to ensure the continuity of the vital service. The total planned
investment for 2025 is approximately EUR60 million.
"The summer heat in the third quarter also warmed up our main source of drinking
water, Lake Ülemiste, which meant our company's specialists had to work harder
to ensure good water quality. However, it should be noted that high-quality
drinking water reaches taps through the cooperation of the water company and the
customer. For example, after returning from a long summer holiday, one should
open the tap and let the water run for a while to replace the stagnant water in
the pipes with fresh water," said Timofejev. During the quarter, the company
took more than 800 water samples and drinking water met over 98 percent of all
quality requirements. According to Timofejev, clean tap water has been ensured
through an efficient water treatment process and regular monitoring of the water
distribution network, as well as ongoing preventive maintenance activities and
timely investments.
The company also supplied fresh tap water to participants in the Song and Dance
Celebration "Iseoma" that took place this summer. During the song and dance
celebrations, approximately 3 million litres of tap water were consumed from
taps and tanks at the festival grounds and accommodation sites, thus allowing to
avoid tens of thousands of plastic bottles from being produced.
Throughout the quarter, the operation of the wastewater treatment was excellent,
with the quality of the treated effluent discharged into the Baltic Sea
outperforming statutory standards for all parameters.
The company's third-quarter sales were up 10.8%, or EUR1.77 million. Revenue
growth was most affected by a change in prices due to the critical investments
made.
Revenues from the sale of water services increased by EUR1.35 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 revenue from the
sale 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 third quarter of 2025 was EUR4.96 million, which
is EUR1.03 million more than in the same period of the previous year. The net
profit for the nine-month period was EUR9.76 million, which is an increase of
6.9% compared to the same period last year. The growth in net profit has been
driven by operational efficiency and the justified return on investments made to
ensure a clean environment and service continuity.
"The successful operation of the cogeneration plant made a significant
contribution to the company's financial results - in 9 months, we have produced
as much energy from wastewater as we planned to produce in a whole year,"
explained Aleksandr Timofejev. The result was also positively impacted by the
efficient running of the treatment processes and significant contribution from
the subsidiary Watercom through the provision of construction services.
Tallinn Vesi aims to develop the resilience of its infrastructure and to ensure
the continuity of the vital service it provides, all the while keeping some of
the lowest prices for service in Estonia. At the water treatment plant,
procurement activities for the reconstruction of the ozonation system and the
design of the new building continue.
At the wastewater treatment plant, the installation of primary and secondary
screens has been completed, while the installation of a new air blower, the
reconstruction of the sludge dewatering unit and the renovation of the secondary
clarifiers are underway. The investments in the wastewater treatment plant
planned for 2025 amount to EUR8 million.
By the end of the third quarter, we had rehabilitated and constructed 32
kilometres of pipelines, of which almost half, or over 14 kilometres, were built
using the environmentally friendly no-dig techniques. We work closely with the
City of Tallinn and other partners in order to carry out as many work as
possible at the same time.
In the third quarter, major pipeline works started in the following locations:
construction of a strategic stormwater receiving system in North Tallinn on
Kolde Avenue, construction of Peterburi and Bornhöhe roads in cooperation with
the City of Tallinn, and construction work on Retke Road. Work is ongoing on
Värvi and Mustjõe streets, Tuukri and Uus-Sadama streets, Paljassaare Road and
on the construction of the Nõlvaku collector.
In the third quarter, the renovation of the water pipeline on Tammsaare Road and
the construction of the emergency overflow and stormwater outlet on Kopli Street
and Paljassaare Road were completed. Works were also completed on Jaama, Raudtee
and Vilmsi streets. The plan is to construct and rehabilitate a total on 44
kilometres of pipeline by the end of this year.
A scheme for the construction of a separate stormwater network in the city
centre has been finalised, and work is underway on a stormwater scheme for the
Mustamäe area. Both schemes apply near-natural solutions, which aim to ensure a
longer retention time for stormwater and create a greener urban environment.
These stormwater solutions help to reduce the risk of flooding during periods of
heavy rainfall.
In the third quarter of 2025, the quality of the effluent treated at the
Paljassaare Wastewater Treatment Plant outperformed the effluent standards. To
keep the Baltic Sea clean, the company uses efficient treatment processes that
helped to remove approximately 200 tonnes of solid waste, 63 tonnes of grit,
476 tonnes of nitrogen and 62 tonnes of phosphorus from wastewater during the
third quarter of 2025.
The quality of tap water in the third quarter was high, similar to last year,
meeting 98% of all quality requirements.
The water loss rate in the water distribution network fell to 12.24% in the
third quarter from 12.47% a year earlier. In order to keep water loss rates low,
the company carries out continuous online monitoring of the water distribution
network and continues with its planned water network rehabilitation programme.
By the end of the third quarter of 2025, Tallinna Vesi had installed smart
meters for 79% 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 saves the environment and minimizes potential damage to property
due to water emergencies. Customer feedback on the switch to smart meters has
been very positive, and the meters give the water company a good overview of
water consumption in the service area.
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. As a summer period, the third quarter is an active time for the
company in terms of participation in events and promotion of water issues. As an
example, we took part in Baltic Sea Day, an information day for kindergartens,
the IRONMAN race, the Kõrvemaa Run, and the 53rd Run around Lake Ülemiste,
hosted by Tallinna Vesi, by providing drinking water and introducing water
services at these events.
At the beginning of the summer, Tallinna Vesi opened 60 public drinking water
taps across Tallinn, which remain open for the use of residents until the end of
October.
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 3 9 months
EUR million Variance
except key ratios 2025 2024 2023 2025/2024 2025 2024 2023 2025/2024
Sales 18.17 16.39 15.77 10.8% 53.57 47.22 46.06 13.4%
Gross profit 7.86 6.92 6.65 13.6% 21.60 19.33 18.19 11.7%
Gross profit
margin % 43.26 42.21 42.19 2.5% 40.32 40.93 39.48 -1.5%
Operating profit
before
depreciation and
amortisation 8.70 7.44 7.26 16.9% 23.28 20.48 19.65 13.7%
Operating profit
before
depreciation and
amortisation
margin % 47.87 45.40 46.04 5.4% 43.46 43.36 42.65 0.2%
Operating profit 5.95 5.13 5.10 15.9% 15.57 13.71 13.30 13.5%
Operating profit
- main business 5.61 4.78 4.72 17.4% 14.62 13.11 12.44 11.5%
Operating profit
margin % 32.74 31.29 32.32 4.6% 29.07 29.04 28.86 0.1%
Profit before
taxes 5.04 4.07 4.20 24.1% 12.76 10.51 11.13 21.4%
Profit before
taxes margin % 27.76 24.80 26.64 11.9% 23.82 22.26 24.17 7.0%
Net profit 4.96 3.93 4.05 26.2% 9.76 9.13 9.87 6.9%
Net profit margin
% 27.29 23.97 25.71 13.9% 18.22 19.34 21.42 -5.8%
ROA % 1.47 1.33 1.54 10.6% 2.97 3.12 3.76 -4.7%
Debt to total
capital employed
% 65.20 61.82 57.42 5.5% 65.20 61.82 57.42 5.5%
ROE % 4.24 3.45 3.62 23.2% 8.15 7.84 8.77 4.0%
Current ratio 0.83 0.83 1.09 0.0% 0.83 0.83 1.09 0.0%
Quick ratio 0.76 0.78 1.03 -2.6% 0.76 0.78 1.03 -2.6%
Investments into
fixed assets 14.47 15.38 12.40 -5.9% 37.11 33.42 22.84 11.0%
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 September 31 December
ASSETS Note 2025 2024
Cash and cash equivalents 3 5,369 3,589
Trade receivables, accrued income and prepaid
expenses 10,786 10,746
TOTAL CURRENT ASSETS 17,554 15,515
Property, plant, and equipment 4 322,757 296,264
TOTAL ASSETS 342,842 313,841
LIABILITIES AND EQUITY
Current portion of long-term lease
liabilities 783 875
Current portion of long-term loans 3,407 3,441
Trade and other payables 14,109 13,581
TOTAL CURRENT LIABILITIES 21,184 20,543
Deferred income from connection fees 51,610 50,106
Leases 1,638 2,178
Loans 142,496 114,241
Provision for possible third-party
claims 6 6,018 6,018
Deferred tax
liability 505 494
TOTAL LIABILITIES 223,527 193,688
Share capital 12,000 12,000
Share premium 24,734 24,734
Statutory legal reserve 1,278 1,278
TOTAL LIABILITIES AND EQUITY 342,842 313,841
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the 9 months ended
EUR thousand Quarter 3 30 September
Note 2025 2024 2025 2024
Revenue 1, 7 18,167 16,393 53,566 47,222
Cost of goods and services
sold 1, 9 -10,307 -9,473 -31,970 -27,985
GROSS PROFIT 1 7,860 6,920 21,596 19,327
Marketing expenses 9 -222 -205 -716 -680
General administration
expenses 9 -1,596 -1,514 -4,982 -4,539
OPERATING PROFIT 5,947 5,130 15,571 13,714
Financial income 11 25 19 89 168
PROFIT BEFORE TAXES 5,044 4,066 12,762 10,514
Income tax -86 -136 -3,000 -1,380
Equity holders of A-shares 4,958 3,930 9,762 9,134
Earnings per A share (in
euros) 13 0.25 0.20 0.49 0.46
CONSOLIDATED STATEMENT OF CASH FLOWS
for the 9 months
EUR thousand ended 30 September
Note 2025 2024
Operating profit 15,571 13,714
Adjustment for depreciation/amortisation 9 7,191 6,279
Adjustment for revenues from connection fees 7 -580 -516
Other non-cash adjustments 26 -88
Profit (-)/loss (+) from sale of property, plant and
equipment, and intangible assets -57 -63
Change in current assets involved in operating activities -258 -1,627
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 21,827 17,846
Acquisition of property, plant, and equipment,
and intangible assets -38,702 -25,955
Proceeds from targeted funding of property, plant, and
equipment. 4 5,528 0
Compensations received for construction of pipelines,
incl connection fees 1,523 1,517
Proceeds from sale of property, plant and equipment,
and intangible assets 58 111
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES -31,504 -24,159
Interest and loan financing costs paid -2,505 -2,617
Lease payments -662 -916
Loans received 30,000 15,000
Repayment of loans -1,786 -1,818
Dividends paid 12 -10,600 -10,069
Withheld income tax paid on dividends 12 0 -131
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES 11,457 -2,059
CHANGE IN CASH AND CASH EQUIVALENTS 1,780 -8,372
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 5,369 6,364
Additional information:
Taavi Gröön
Chief Financial Officer
AS Tallinna Vesi
(372) 62 62 200
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