Merko Ehitus posts Q1 2026 revenue of 57 million euros
Merko Ehitus generated revenue of EUR 57 million in the first quarter of 2026, with a net profit of EUR 4.3 million. As of the end of the first quarter, the company’s secured order-book reached an all-time high of EUR 826 million.
“The first-quarter results were in line with expectations. By mid-2025, we had completed several large-scale projects that made a significant contribution to our revenue and profit, while also creating a high comparison base for the first half of this year. Although the results for the first quarter of 2026 were lower than in the same period last year, they are comparable to the results of preceding years,” said Ivo Volkov, Chairman of the Management Board of Merko Ehitus, commenting on the group’s results.
“The private sector remains cautious in placing orders, and the market continues to be driven primarily by public sector tenders in defense and infrastructure. In January, we signed the largest contracts in Merko’s history for the construction of two phases of the Rūdninkai military campus in Lithuania. Under these PPP contracts we are responsible for building sections B and C of the campus and managing them for more than ten years after completion. In March, we also launched construction works on a military campus in Latvia. The total construction cost of these projects in Lithuania and Latvia exceeds EUR 400 million, which has increased our order-book to a record-high level of EUR 826 million. For large-scale construction projects, the preparation and design phases are lengthy, meaning their impact on our figures will become more visible towards the end of 2026. For current year, our goal is to exceed last year’s sales revenue. It is important to note that due to the scale of these projects, our results are more volatile, as the impact of each individual project is substantial. This is what we experienced already last year with the Arter and Pabradė projects, and this will remain the case in the coming years,” Ivo Volkov commented on the construction services segment. In the first quarter of 2026, Merko signed new construction contracts worth EUR 407 million.
“Global uncertainty persists. In addition to the war in Ukraine, a new crisis hotspot has emerged in the Strait of Hormuz, constraining one of the world’s key energy and oil supply routes and raising concerns not only about oil prices but also about availability. This has a significant impact on the construction sector, as oil is not only a direct energy source but also a key raw material for the chemical and plastics industries. For construction companies, this creates additional risks, particularly in fulfilling long-term, non-indexed contracts signed over the past year. The successful completion of such projects and the performance of construction companies will depend on the willingness of clients and contractors to cooperate,” Ivo Volkov added.
“In real estate development, we are seeing the effects of the market downturn from three to four years ago, which led us to launch fewer new developments at that time. As a result, we are reporting significantly fewer apartment handovers in the first quarter. Demand for new apartments has increased over the past 12–18 months, enabling us to start construction on a larger number of new apartments, which creates a solid basis for improved results going forward. Over 800 apartments are scheduled for completion this year, with a substantial proportion located in Vilnius, the most active market. Over 40% of the apartments under construction have already been pre-sold,” Ivo Volkov commented on the real estate segment.
In the first quarter of 2026, major development projects included Uus-Veerenni, Noblessner and Lahekalda in Tallinn; Erminurme and Leedri in Tartu; Lucavsala, Arena Garden Towers and Mežpilsēta in Riga; and Vilnelės Skverai and Šnipiškių Urban in Vilnius. During the first three months of the year, Merko delivered 36 apartments and 3 commercial units to buyers and launched the construction and sales of 38 apartments in the Õielehe project in Jüri.
In Estonia, the company’s largest ongoing projects in the first quarter of 2026 included the City Plaza 2 and Viktor Masing office buildings, the Kullo Hobby Centre in Tallinn, the National Defence Building in Tartu, and the hotel and event centre in Pärnu, as well as the Rail Baltica Ülemiste passenger terminal and the fourth stage of the Rail Baltica mainline in Harju County and the Tallinn-Pärnu section. In Lithuania, major construction projects included wind farm infrastructure in the Pagėgiai and Telšiai regions and the Rūdninkai military campus. In Latvia, Merko was engaged in the construction of a student hotel in Riga and wind farm infrastructure in the Smiltene municipality.