Merko Ehitus posts nine-month revenue of EUR 268 million
Merko’s third-quarter revenue was EUR 118 million and its nine-month revenue EUR 268 million. Net profit amounted to EUR 12.6 million for the third quarter and EUR 25.4 million for the nine months. In the third quarter, Merko handed over a total of 136 apartments and commercial units to buyers – almost as many as in the previous two quarters combined.
“Both real estate development and construction services contributed equally to our third-quarter results. During the quarter, we completed and handed over 118 apartments and 18 commercial units to buyers, almost as many as in the first two quarters of the year combined. Our secured order-book remains strong at close to EUR 770 million, and several large projects moved into the active construction phase in the third quarter. Our main task now is to complete the projects under way and keep risks under control,” said Ivo Volkov, Chairman of the Management Board of Merko Ehitus.
“The construction market continues to be dominated by the public sector, driven by defence and infrastructure procurements, and public-sector related contracts also account for the majority of our order book. The rise in fuel and energy prices over the year has taken its toll on the profitability of construction services. Our road construction company has been most affected by rising fuel prices, as it is proportionally the most exposed to fuel prices,” said Ivo Volkov commenting the construction services business. In the third quarter, Merko signed new construction contracts worth EUR 22 million, the largest of which was for the Volta 1b residential development in the Krulli Quarter in Tallinn.
“Consumer confidence has been edging up in all of our home markets, which has supported growth in the share of apartments sold under pre-sale agreements. As times remain uncertain, we are cautious about predicting that this trend will continue. Apartment supply remains high across all markets, giving buyers plenty of choice, which in turn keeps competition between developers intense and puts pressure on margins. This year, the new-build apartment market in Riga has picked up considerably, and we have launched several new development projects there as well,” commented Ivo Volkov on the real estate development segment.
“To focus on our core business – construction services and residential real estate development – we sold majority shareholding in the companies linked to the large-scale Rūdninkai military campus PPP project in Lithuania in the third quarter. Kapitel acquired a 70% stake in the companies delivering the PPP project and managing and maintaining the completed facilities. We retain a 30% minority stake in these companies. As general contractor, we remain responsible for delivering design-and-build contracts worth more than EUR 370 million in total. Engaging an investor helps us to maintain our strong liquidity,” Ivo Volkov added.
Over the nine months, Merko handed over 238 apartments and 23 commercial units and started construction and sales of 394 apartments and four commercial units. At the end of the third quarter, 1325 apartments were under construction or completed, approximately one third of which were covered by pre-sale agreements. The largest development projects under way in the third quarter of 2026 were Uus-Veerenni, Noblessner and Lahekalda in Tallinn, Õielehe near Tallinn and Leedri in Tartu; Lucavsala, Arena Garden Towers, Magnolijas and Mežpilsēta in Riga; and Vilnelės Skverai and Šnipiškių Urban in Vilnius.
In the third quarter of 2026, major construction projects under way in Estonia included the City Plaza 2 and Viktor Masing House office buildings, the Kullo Hobby Centre, and the Event Centre, Kasvuhoone, Volta 1b apartment buildings and infrastructure in the Krulli Quarter 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 and the Tallinn–Pärnu section. In Lithuania, the largest projects were wind farm infrastructure in the Pagėgiai district and the Rūdninkai military campus. In Latvia, the group was building military campuses and wind farm infrastructure in Smiltene municipality.