Harju Elekter Group’s third quarter result was strong, as is typical for the peak season. We can be very satisfied with the record operating profit, which exceeded the 10 million euros for the first time. The Estonian production unit achieved strong results, but the Group’s other subsidiaries are also moving in the right direction, considering the current difficult economic situation. Operating profitability has shown strong improvement – we have reached 8.7% for the quarter and 8.0% for the nine-month period. These results reflect the impact of changes made in recent years to the Group’s strategy and structure and confirm that we are moving step by step towards our set goals. At the same time, there is still a considerable way to go before the first important goal, 10% profitability, is achieved, which requires continued focus and purposeful action.
To improve profitability, we will continue to implement the activities agreed upon in the strategy in the coming years. This provides for investments in the expansion of the Group’s factories and machine park, as well as seeking opportunities to increase production capacity outside of existing business units. As a first step in this direction, we have decided to begin construction of the long-planned expansion of the Keila plant. The plant is set to expand by 4,000 m2, with completion scheduled for October 2026. The return on investment is based on the growing trend in energy consumption, which is primarily due to the boom in the construction of network and data centres. Although Harju Elekter Group’s last quarter and the beginning of the new year have traditionally been modest in terms of results, the record profits achieved in the first nine months, and the accumulated reserves allow us to face the low season with confidence and continue with our planned activities.
Revenue and financial results
The Group’s revenue for the reporting quarter amounted to 43.0 (Q3 2024: 41.2) million euros, which is 4.5% more than in the same period last year. Total revenue for the nine-month period was 126.5 (9M 2024: 144.7) million euros, representing a 12.6% decrease compared to the previous year. Although revenue did not reach the record levels of the past two years, the result was stable and comparable to the Group’s traditionally successful operating years.
| EUR’000 | Q3 | Q3 | +/- | 9M | 9M | +/- |
| 2025 | 2024 | 2025 | 2024 | |||
| Revenue | 43,034 | 41,172 | 4.5% | 126,531 | 144,749 | -12.6% |
| Gross profit | 7,461 | 6,113 | 22.1% | 20,564 | 19,121 | 7.5% |
| EBITDA | 4,840 | 3,694 | 31.0% | 13,364 | 11,083 | 20.6% |
| Operating profit (EBIT) | 3,759 | 2,710 | 38.7% | 10,139 | 8,135 | 24.6% |
| Profit for the period | 2,898 | 1,651 | 75.5% | 8,161 | 5,478 | 49.0% |
| Earnings per share (EPS) (euros) | 0.16 | 0.09 | 77.8% | 0.44 | 0.30 | 46.7% |
The Group’s operating expenses amounted to 39.4 (Q3 2024: 38.5) million euros in the third quarter and 117.4 (9M 2024: 136.4) million euros over the nine-month period. The majority of operating expenses consisted of the cost of sales, which slightly increased in the reporting quarter compared to the previous year, totaling 35.6 (Q3 2024: 35.1) million euros. Over the nine-month period, the cost of sales decreased by 15.7%, amounting to 106.0 (9M 2024: 125.6) million euros. The significant reduction in costs was mainly driven by lower order volumes, optimization of production processes, and more efficient supply chain management.
Distribution expenses increased in both comparison periods – by 0.6 million euros in the quarter and by 0.8 million euros over the nine-month period, totaling 1.7 and 3.4 million euros, respectively. The increase in expenses was due to strategic investments aimed at maintaining revenue stability, strengthening customer relationships, and securing new contracts. In contrast, administrative expenses decreased to 2.1 (Q3 2024: 2.4) million euros in the reporting quarter and to 7.0 (9M 2024: 7.1) million euros over the nine-month period. Labour costs increased by 3.9% in the third quarter, reaching 8.5 (Q3 2024: 8.2) million euros. However, over the nine-month period, labour costs decreased by 2.3%, totaling 28.1 (9M 2024: 28.8) million euros.
Although revenue was lower than in the second quarter, the gross profit level was maintained – 7.5 (Q3 2024: 6.1) million euros. The gross margin improved to 17.3% (Q3 2024: 14.8%), supported by targeted cost management and expense monitoring. Operating profit (EBIT) for the quarter was 3.8 (Q3 2024: 2.7) million euros, resulting in an improvement in the operating margin to 8.7% (Q3 2024: 6.6%). Net profit for the quarter was 2.9 (Q3 2024: 1.7) million euros. Earnings per share increased to 0.16 (Q3 2024: 0.09) euros. Gross profit increased to 20.6 (9M 2024: 19.1) million euros and the margin improved to 16.3% (9M 2024: 13.2%), supported by a strategic focus on quality, cost-efficiency, and stable profitability. Operating profit grew to 10.1 (9M 2024: 8.1) million euros and the operating margin improved to 8.0% (9M 2024: 5.6%). In addition to overall cost-efficiency improvements, favorable currency exchange movements in the first quarter contributed significantly to the result. Net profit for the nine-month period was 8.2 (9M 2024: 5.5) million euros and earnings per share were 0.44 (9M 2024: 0.30) euros.
Core business and markets
The four largest target markets – Estonia, Finland, Sweden, and Norway – accounted for a total of 86.8% of the Group’s quarterly revenue, which is 2.5 percentage points more than a year earlier. Revenue growth was primarily driven by the Estonian and Norwegian markets, while revenue in Finland and Sweden declined compared to the same period last year.
The Estonian market showed strong growth both in the quarterly and nine-month comparisons. Revenue in the reporting quarter amounted to 8.7 (Q3 2024: 6.4) million euros, marking one of the highest quarterly results in the domestic market. Revenue for the nine-month period reached 20.6 (9M 2024: 17.8) million euros. The growth was mainly supported by increased delivery volumes of compact substations to electricity distribution network customers and stable rental income from the real estate segment.
Finland remained the Group’s largest market in the reporting quarter, although revenue declined significantly. Quarterly revenue decreased by 18.8%, amounting to 13.7 (Q3 2024: 16.9) million euros, and by 25.8% over the nine-month period, totaling 40.4 (9M 2024: 54.5) million euros. The decline was mainly due to lower sales volumes of compact substations and reduced contractual manufacturing volumes.
In the Swedish market, the decline in revenue continued, primarily due to a strategic shift in the business model – the offering of turnkey (EPC) projects was discontinued, and the focus shifted to standardized factory-made products with a lower risk profile. Revenue in the quarterly comparison decreased by 26.2% and by 32.6% over the nine-month period, amounting to 4.2 (Q3 2024: 5.7) and 14.4 (9M 2024: 21.3) million euros, respectively. Although sales volumes declined, the changes are aimed at improving long-term profitability and risk management.
The Norwegian market stood out with strong growth, being a clear positive exception among the Scandinavian core markets. As a result of the successful performance of the Group’s Lithuanian subsidiary, revenue in the reporting quarter increased by 85.7%, reaching 10.7 (Q3 2024: 5.8) million euros, and by 22.2% over the nine-month period, totaling 28.2 (9M 2024: 23.1) million euros. Sales were primarily directed to the marine and shipping sectors.
In the German market, revenue decreased by 89.3% in the quarterly comparison, amounting to 0.6 (Q3 2024: 5.4) million euros, due to the completion of a large project-based order in the substation product group. However, in the nine-month view, revenue was 4.4% higher than in the previous year, totaling 11.8 (9M 2024: 11.3) million euros. In contrast, the Netherlands market saw significant growth – revenue increased more than tenfold in the quarterly comparison, reaching 3.3 (Q3 2024: 0.3) and 6.7 (9M 2024: 2.8) million euros over the nine-month period.
Investments
The Group invested a total of 2.9 (9M 2024: 2.8) million euros in non-current assets during the reporting period, including 0.3 (9M 2024: 1.4) million euros in investment properties, 1.2 (9M 2024: 0.7) million euros in property, plant, and equipment, and 1.4 (9M 2024: 0.47) million euros in intangible assets. The investments included the acquisition of production technology equipment and the development of production and process management systems, aimed at improving efficiency and quality. Investments also covered product development activities, focusing on the creation of new and improved products. In addition, part of the investments was directed towards the renovation of existing buildings.
As of the reporting date, the value of the Group’s long-term financial investments amounted to 27.2 (31.12.24: 27.7) million euros. Proceeds from the disposal of the 9.15% stake in IGL-Technologies Oy totaled 0.9 million euros in the reporting quarter, with a realized gain of 0.4 million euros. The gain was recognized through other comprehensive income.
Share
The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 4.60 euros.
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||
| Unaudited | ||||
| EUR ‘000 | 30.09.2025 | 31.12.2024 | 30.09.2024 | |
| ASSETS | ||||
| Current assets | ||||
| Cash and cash equivalents | 2,698 | 3,773 | 1,967 | |
| Trade and other receivables | 45,350 | 29,606 | 39,555 | |
| Prepayments | 1,846 | 2,096 | 905 | |
| Inventories | 26,689 | 19,845 | 22,743 | |
| Total current assets | 76,583 | 55,320 | 65,170 | |
| Non-current assets | ||||
| Deferred income tax assets | 529 | 687 | 724 | |
| Non-current financial investments | 27,234 | 27,717 | 27,723 | |
| Investment properties | 28,564 | 29,432 | 29,357 | |
| Property, plant, and equipment | 32,102 | 32,420 | 32,685 | |
| Intangible assets | 9,342 | 8,121 | 7,834 | |
| Total non-current assets | 97,771 | 98,377 | 98,323 | |
| TOTAL ASSETS | 174,354 | 153,697 | 163,493 | |
| LIABILITIES AND EQUITY | ||||
| Liabilities | ||||
| Borrowings | 12,857 | 9,885 | 9,738 | |
| Prepayments from customers | 13,739 | 11,600 | 11,289 | |
| Trade and other payables | 26,192 | 17,426 | 21,149 | |
| Tax liabilities | 4,573 | 3,260 | 4,496 | |
| Current provisions | 464 | 270 | 274 | |
| Total current liabilities | 57,824 | 42,441 | 46,946 | |
| Borrowings | 19,939 | 20,184 | 23,282 | |
| Other non-current liabilities | 17 | 39 | 32 | |
| Total non-current liabilities | 19,956 | 20,223 | 23,314 | |
| TOTAL LIABILITIES | 77,780 | 62,664 | 70,260 | |
| Equity | ||||
| Share capital | 11,672 | 11,655 | 11,655 | |
| Share premium | 3,410 | 3,306 | 3,306 | |
| Reserves | 22,965 | 23,135 | 23,032 | |
| Retained earnings | 58,527 | 52,937 | 55,240 | |
| Total equity attributable to the owners of the parent company | 96,574 | 91,033 | 93,233 | |
| TOTAL LIABILITIES AND EQUITY | 174,354 | 153,697 | 163,493 |
| CONSOLIDATED STATEMENT OF PROFIT AND LOSS | |||||||||||
| Unaudited | |||||||||||
| EUR ‘000 | Q3 | Q3 | 9M | 9M | |||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Revenue | 43,034 | 41,172 | 126,531 | 144,749 | |||||||
| Cost of sales | -35,573 | -35,059 | -105,967 | -125,628 | |||||||
| Gross profit | 7,461 | 6,113 | 20,564 | 19,121 | |||||||
| Distribution costs | -1,748 | -1,118 | -4,429 | -3,642 | |||||||
| Administrative expenses | -2,062 | -2,352 | -7,007 | -7,096 | |||||||
| Other income | 145 | 93 | 1,175 | 188 | |||||||
| Other expenses | -37 | -26 | -164 | -436 | |||||||
| Operating profit | 3,759 | 2,710 | 10,139 | 8,135 | |||||||
| Finance income | 226 | 6 | 1,125 | 110 | |||||||
| Finance costs | -392 | -691 | -1,743 | -1,823 | |||||||
| Profit before tax | 3,593 | 2,025 | 9,521 | 6,422 | |||||||
| Income tax | -695 | -374 | -1,360 | -944 | |||||||
| Profit for the period | 2,898 | 1,651 | 8,161 | 5,478 | |||||||
| Earnings per share | |||||||||||
| Basic earnings per share (euros) | 0.16 | 0.09 | 0.44 | 0.30 | |||||||
| Diluted earnings per share (euros) | 0.16 | 0.09 | 0.44 | 0.30 | |||||||
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||||||||
| Unaudited | |||||||||||
| EUR ‘000 | Q3 | Q3 | 9M | 9M | |||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Profit for the period | 2,898 | 1,651 | 8,161 | 5,478 | |||||||
| Other comprehensive income | |||||||||||
| Items that may be reclassified to profit or loss | |||||||||||
| Impact of exchange rate changes of a foreign subsidiaries | -9 | -50 | -376 | 11 | |||||||
| Items that will not be reclassified to profit or loss | |||||||||||
| Gain on sales of financial assets | 0 | 0 | 385 | 185 | |||||||
| Net gain on revaluation of financial assets | 14 | 6 | 8 | -66 | |||||||
| Total comprehensive income (- loss) for the period | 5 | -44 | 17 | 130 | |||||||
| Other comprehensive income | 2,903 | 1,607 | 8,178 | 5,608 | |||||||
Priit Treial
CFO and Member of the Management Board
[email protected]
+372 674 7400
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