Merko Ehitus posts Q2 2026 revenue of 93 million euros
Merko Ehitus generated revenue of EUR 93 million in the second quarter of 2026 and EUR 150 million in the first half of the year. Net profit amounted to EUR 8.5 million for the second quarter and EUR 12.8 million for the first six months of 2026. As of the end of the first half of the year, the company’s secured order-book reached an all-time high of EUR 836 million.
“In the second quarter, we saw an increase in activity in both the construction services and real estate development segments. Several large-scale projects secured last year entered a more active construction phase, which was reflected in our revenue figures. In addition, we delivered more than twice as many apartments to our customers in the second quarter as in the first quarter of this year,” said Ivo Volkov, Chairman of the Management Board of Merko Ehitus. “The increase in construction input prices that we anticipated in the first quarter has materialised, and there are currently no developments in the economy or global politics that would suggest any easing of price pressures. There were no unexpected changes in the construction and real estate markets during the second quarter, and all of our home markets performed in line with our expectations.”
“In early July, we completed all preparatory stages required for the development of the Rūdninkai defence force campus project, the contract entered into full force, and construction activities have now commenced in full scale. The construction cost of the two phases exceeds 370 million euros in total, and the project’s contribution to revenue will increase significantly in the coming quarters. In the second quarter, we also signed new construction contracts worth approximately 80 million euros, including the main building, an event centre and infrastructure in Krulli quarter in Tallinn. As of the end of the first half of the year, the company’s secured order-book reached an all-time high of EUR 836 million,“ Ivo Volkov added.
“Following a prolonged period of growth, activity in Vilnius’s new apartment market has moderated somewhat, while the pace of signing new presale agreements has picked up in Riga. During the second quarter, we launched the construction of more than 160 apartments in Riga, including the Pētersala residential development, which incorporates architecturally significant heritage buildings, as well as the second phase of the Magnolijas development. The market for new residential developments in Tallinn is moving at a pace similar to last year. Across all our home markets, customers remain highly price-sensitive, with the majority of transactions involving more affordable apartments,” commented Ivo Volkov on the real estate development segment.
During the first six months of the year, Merko delivered 120 apartments and five commercial units to buyers and launched the construction and sales of 204 apartments and four commercial units. As of the end of the first half of the year, Merko had a total of 1,253 apartments under construction and completed, of which approximately 40% are covered by presale agreements. In the second quarter of 2026, major development projects included
Uus-Veerenni, Noblessner and Lahekalda in Tallinn, Õielehe near Tallinn, and Erminurme and Leedri in Tartu; Lucavsala, Arena Garden Towers and Mežpilsēta in Riga; and Vilnelės Skverai and Šnipiškių Urban in Vilnius.
In Estonia, the group’s larger construction projects in progress during the second 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, a hotel and event centre in Pärnu, the Rail Baltica Ülemiste passenger terminal, and the fourth stage of the Rail Baltica main line in Harju County, including the Tallinn–Pärnu section. In Lithuania, the major projects under construction were wind farm infrastructure facilities in the Pagėgiai and Telšiai districts and the Rūdninkai military campus. In Latvia, the group was engaged in the construction of military campuses, a student hotel in Riga, and wind farm infrastructure facilities in the Smiltene municipality.