Tallinna Vesi’s second-quarter sales reached €19.4 million

AS Tallinna Vesi’s sales in the second quarter were €19.4 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 €3.67 million. The increase in revenue was mainly driven by the subsidiary’s sales of construction services, which increased by €2.65 million compared to the same period the year before. Sales of water services increased by €0.95 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.

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The company’s net profit in the second quarter of 2025 was €1.37 million, which is €0.83 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 €61 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

€ million
except key ratios
Quarter 2 2025/2024 6 months Variance 2025/2024
2025 2024 2023 2025 2024 2023
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%
Payout ratio % 79.80 79.41   79.80 79.41  

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

€ thousand                          
ASSETS       Note as of
30 June
2025
as of
31 December
2024
 
                   
CURRENT ASSETS              
  Cash and cash equivalents     3 2,533 3,589  
  Trade receivables, accrued income and prepaid expenses     11,695 10,746  
  Inventories         1,255 1,180  
TOTAL CURRENT ASSETS       15,483 15,515  
                   
NON-CURRENT ASSETS            
  Property, plant, and equipment     4 312,083 296,264  
  Intangible assets       5 2,220 2,062  
TOTAL NON-CURRENT ASSETS       314,303 298,326  
TOTAL ASSETS         329,786 313,841  
                   
LIABILITIES AND EQUITY            
                   
CURRENT LIABILITIES            
  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  
  Prepayments         2,363 2,646  
TOTAL CURRENT LIABILITIES       23,548 20,543  
                   
NON-CURRENT LIABILITIES            
  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  
  Other payables         177 108  
TOTAL NON-CURRENT LIABILITIES       191,881 173,145  
TOTAL LIABILITIES         215,429 193,688  
                   
EQUITY              
  Share capital         12,000 12,000  
  Share premium         24,734 24,734  
  Statutory legal reserve       1,278 1,278  
  Retained earnings         76,345 82,141  
TOTAL EQUITY         114,357 120,153  
TOTAL LIABILITIES AND EQUITY       329,786 313,841  

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€ thousand          Quarter 2 for the 6 months
ended 30 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
Other income and expenses 1, 10 -171 -108 -232 -323
OPERATING PROFIT     5,136 4,457 9,623 8,584
                 
Financial income 11 30 67 64 149
Financial expenses 11 -937 -1,104 -1,969 -2,285
PROFIT BEFORE TAXES   4,229 3,420 7,718 6,448
Income tax     -2,861 -1,226 -2,914 -1,244
NET PROFIT FOR THE PERIOD   1,368 2,194 4,804 5,204
COMPREHENSIVE INCOME FOR THE PERIOD 1,368 2,194 4,804 5,204
                       
Attributable profit to:          
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

€ thousand for the 6 months
ended 30 June
 
      Note 2025 2024  
CASH FLOWS FROM OPERATING ACTIVITIES        
  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  
  Change in liabilities involved in operating activities   -892 351  
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 13,698 12,134  
             
CASH FLOWS USED IN INVESTING ACTIVITIES        
  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  
  Interest received   64 149  
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES -19,180 -12,601  
             
CASH FLOWS USED IN FINANCING ACTIVITIES        
  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  
  Income tax paid on dividends   -254 -303  
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

Attachment

  • Stock Exchange report Q2’25

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