Merko Ehitus posts 2025 revenue of 311 million euros
In the fourth quarter of 2025, Merko Ehitus generated revenue of EUR 69 million and net profit of EUR 3.2 million; for the full year, revenue was EUR 311 million and net profit EUR 39.9 million. In coordination with the supervisory board, the management board of Merko Ehitus proposes paying a dividend of 1.25 euros per share.
“Our results in 2024 were remarkably strong in terms of both turnover and profit, as contracts signed a few years ago in turbulent market conditions reached completion and various large-scale projects were delivered. In 2025, we returned to more typical volumes and revenue structure, with real estate development playing a larger role in our results. The group’s financial position remains solid and net debt is negative,” said Ivo Volkov, Chairman of the Management Board of Merko Ehitus, commenting on the group’s results.
“In 2025, we completed construction of two of the largest projects in Merko’s history: the Arter Quarter in Tallinn and the Pabradė defence campus in Lithuania. Gradually improving consumer confidence and economic growth recorded for several consecutive quarters are reflected above all in increasing demand in the real estate market. Private-sector clients remain cautious in ordering construction services, while tenders are dominated by large public-sector defence infrastructure projects. As the market is extremely concentrated, competition in tenders is strong and margins have been driven down to very low levels,” Volkov commented on the construction services segment.
In 2025, Merko signed new construction contracts worth EUR 363 million, the largest of which were agreements for the Rail Baltica Ülemiste passenger terminal and the Tallinn–Pärnu main line, a hotel and event centre in Pärnu, the Viktor Masing office building in Tallinn, and the construction of foundations for the Augstkalni wind farm in Latvia. The balance of secured order-book work for external clients stood at EUR 467 million at the end of 2025. “In 2025, we signed new construction contracts in a slightly higher volume than in 2024. As a result of the long-term and thorough preparatory work of our Lithuanian colleagues, we concluded Merko’s largest contracts in the first days of 2026 for the construction of two stages of the Rūdninkai defence force campus, which has by now raised our portfolio of unfinished work for external clients to a historically highest level of more than 800 million euros,” Volkov added.
“Companies operating under the Connecto brand, in which Merko holds a financial investment, also made a strong contribution to the group’s 2025 results. Connecto’s workload has been high over the past couple of years, but the future outlook is considerably more modest due to the completion of many large-scale projects in 2025 and gradually declining investments in energy infrastructure,” Volkov commented.
“The residential real estate market has taken an upward turn across all our home markets. Compared to 2024, in 2025 we handed over more apartments to buyers, signed significantly more pre-sale agreements in our developments under construction, and launched construction of over a three times as more apartments, the majority of them in Vilnius, which remains the most active market,” Volkov commented on the apartment development segment. In 2025, Merko delivered 358 apartments and 3 commercial units to buyers in Estonia, Latvia and Lithuania and started the construction and sale of 894 apartments and 21 commercial premises, of which 26% are covered by pre-sale agreements. Larger development projects underway in 2025 included Uus-Veerenni, Noblessner and Lahekalda in Tallinn, Õielehe in the settlement of Jüri, and Erminurme and Leedri in Tartu; Lucavsala, Arena Garden Towers and Mežpilsēta in Riga; and Vilnelės Skverai and Šnipiškių Urban in Vilnius.
In the fourth quarter of 2025, the larger construction projects in progress included the Tallinn Kullo Hobby Centre and the City Plaza 2 office building 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, the largest construction projects were wind farm infrastructure in the Pagėgiai, Telšiai and Pasvalys districts/regions, as well as various national defence buildings and infrastructure. In Latvia, a student hotel was under construction in Riga and infrastructure facilities at the Augstkalni wind farm.