Merko Ehitus posts Q1 revenue of EUR 85.2 million

Merko Ehitus posted revenue of EUR 85.2 million and net profit of EUR 10.5 million in Q1 2025. Real estate development accounted for 30% of the group’s Q1 revenue, having more than doubled in this category compared to the same period a year ago.

“Merko’s Q1 results are characterised primarily by increased activity on the real estate market in Lithuania and increase in sales from real estate development, as well as by the continuing realisation of the strong construction services portfolio and the completion of some projects ahead of schedule,“ said the Chairman of the Management Board of Merko Ehitus, Ivo Volkov.

“The real estate market has clearly improved in Lithuania compared to last year. Although we have not seen a significant increase in new apartment sales in Estonia, we have increased our market share. Whereas real estate development accounted for 16% of the group’s revenue in Q1 of 2024, this year it provided close to 30%. Of course, we have to bear in mind the low comparison base in terms of sales volumes in 2024. Apartment buyers are currently preferring to buy apartments that are ready or nearly ready and are significantly less willing to sign contracts for apartments in projects that have not yet started construction process. As a result, we are keeping our stock of apartments at slightly higher level than in previous years,” said Volkov commenting on the real estate development business area.

“In Q1, we signed a significantly higher volume of new construction contracts compared to last year. Although the balance of secured order-book is lower than in Q1 of 2024, our portfolio is strong and comparable with 2022 volumes. The largest projects in progress are wind farms’ infrastructure and national defence projects in Lithuania, Vārme solar park in Latvia and City Plaza 2 office building in Tallinn, as well as the interior work on the 28-storey building in the Arter Quarter, where Swedbank will move its head office. In recent months, we have submitted the best or winning bids at several large public procurements, but due to the complexity of the projects, the customers have not yet made the final decisions,” said Volkov. Merko group signed new construction contracts worth EUR 50.6 million in Q1 of 2025, compared to EUR 10.5 million in the same period in 2024.  Our secured order-book stood at EUR 332 million at the end of first quarter.

In Q1 of 2025, Merko delivered 121 apartments and one commercial unit to buyers in Estonia, Latvia and Lithuania, compared to 59 apartments and seven commercial units in the first quarter of last year. Revenue from real estate development was EUR 26 million in Q1 of 2025 compared to EUR 13 million in Q1 of 2024. In Q1 2025, Merko launched Allveelaeva 2 residential development in Tallinn and Šnipiškių Urban in Vilnius. The largest developments under construction were Uus-Veerenni, Noblessner and Lahekalda in Tallinn, Erminurme in Tartu; Lucavsala, Arena Garden Towers, Viesturdārzs, Mežpilsēta and Magnolijas in Riga; and Vilnelės Skverai in Vilnius.

The largest construction projects under way in Q1 of 2025 in Estonia were the Hyatt hotel building, Arter Quarter, the City Plaza 2 office building in Tallinn, the national defence building in Tartu, the first stage of the Ülemiste multimodal transport junction for Rail Baltica and the fourth stage of the mainline of the Rail Baltica. In Lithuania, the largest ones were wind farm infrastructure projects in the Pagėgiai, Telšiai and Pasvalys regions and various national defence buildings and infrastructures. In Latvia, a solar park in Vārme Municipality and a student hotel in Riga were under construction.