Tallinna Vesi's Second-Quarter Sales Reached €19.4 Million

Compared to the second quarter of 2024, revenue was up 23.4%, or €3.67 million. The increase in revenue was mainly driven by the subsidiary's sales of construction services, which increased by €2.65 million compared to the same period the year before. Sales of water services increased by €0.95 million, with a decrease in water services provided to business customers and an increase in water services provided to private customers. The change in the sales of water services came mainly from the new price for water services effective from 1 May, which took into account both the legal obligation to harmonise the price of the service for private and business customers by 1 July 2026, and the need for investment to ensure the sustainability of water services.

The company's net profit in the second quarter of 2025 was €1.37 million, which is €0.83 million less than in the same period of the previous year. Net profit was significantly affected by higher tax cost.

"The second quarter marks the start of summer, which is a busy time for our industry. We have made good progress with the investment plan and more than 20 kilometres of pipelines have already been built or rehabilitated," said Aleksandr Timofejev , CEO of Tallinna Vesi.

In 2025, the company plans to build and rehabilitate approximately 45 kilometres of pipelines. The company's aim is to carry out construction work with as little disruption to traffic and city life as possible and in cooperation with other utility owners. Approximately half, or 9.2 kilometres, of the 20 kilometres completed this year have been built using no-dig techniques instead of excavating trenches.

In the second quarter, major construction work started on Kopli Street, the next phase of Paljassaare Road, A. H. Tammsaare Road, and Tuukri and Uus-Sadama streets. The pipeline to be replaced on Tammsaare Road is an important supply line for the Mustamäe and Õismäe area. Work on Tuukri and Uus-Sadama streets also involves the construction of large stormwater pipelines to mitigate flooding in that area.

At the beginning of the year, the subsidiary Watercom started to rehabilitate pipelines with new equipment that allows the rehabilitation to be carried out using a no-dig technique instead of excavating trenches.

In the second quarter, the company continued to invest in future-proofing its infrastructure and ensuring the continuity of the vital service it provides.

"In the first half of the year, there have been significant developments in our core business, for example, we completed the reconstruction of the filters at the water treatment plant and launched the procurement for the upgrading of the ozonation process applied in the production of clean drinking water," said Aleksander Timofejev.

He also highlighted the extensive work completed at the wastewater treatment plant to upgrade the mechanical treatment stage, which will make the first stage of the long treatment cycle more efficient and help keep the environmental footprint of our customers as small as possible.

The total investment planned for this year amounts to €61 million. With recent investments, such as the successful operation of a combined heat and power plant that produces energy from biogas, Tallinna Vesi continues to move towards a more sustainable operating model.

In the second quarter, the quality of treated wastewater from the Paljassaare Wastewater Treatment Plant exceeded the effluent standards . To keep the Baltic Sea clean, the company uses efficient treatment processes that helped to remove more than 270 tonnes of solid waste, 50 tonnes of sand, 514 tonnes of nitrogen and 65 tonnes of phosphorus from wastewater during the second quarter of 2025.

Tap water quality was excellent in the second quarter, as in the previous year , meeting 100% of all quality requirements. "A customer survey carried out in spring showed that trust in the drinking water we offer is high, with 89% of respondents saying they drink tap water. In addition, there is a growing desire to protect the environment and contribute to reducing plastic production by drinking tap water from a reusable bottle," Aleksander Timofejev said.

The water loss rate in the water distribution network fell to 12.4% in the second quarter of the year, compared with 13% a year earlier. In order to keep water loss rates low, the company carries out continuous online monitoring of the water network and continues with its planned water network rehabilitation programme.

As a vital service provider, Tallinna Vesi believes it is important to raise consumer awareness of the benefits of fresh tap water and environmental protection. In the second quarter, the company organised an open day at the wastewater treatment plant and attended many public events, providing fresh drinking water from tanks and organising activities to promote the water sector. On 30 June, we started providing fresh drinking water in the rehearsal fields of the Dance Celebration, followed by the supply of drinking water to Song and Dance Celebration participants throughout the celebration week.

At the beginning of May, Tallinna Vesi opened 59 public drinking water taps across Tallinn, which will be available for everyone to use until the end of summer.

By the end of the second quarter of 2025, Tallinna Vesi had installed smart meters for 72% of its customers. The new meters provide information on water consumption, enabling the detection of leaks in the customer's pipes as early as possible. This will save the environment and minimise potential damage to property caused by water damage. "The feedback from customers on the switch to smart meters has been very positive, and we hope to have a new meter installed for everyone by the end of next year," said Aleksandr Timofejev.

Tallinna Vesi's long-standing commitment to environmental sustainability was recognised with the gold level in 2025 Corporate Social Responsibility Index. Tallinn Vesi was also awarded the silver level "Supporter of National Defence" recognition by the Ministry of Defence.

As the largest employer in the water sector, Tallinna Vesi offers traineeships to more than 20 students during the summer, who can later join the company if suitable.

AS Tallinna Vesi is the largest water utility in Estonia, providing services to approximately 25,000 private and business customers and approximately 500,000 end consumers in Tallinn and its surrounding municipalities. Tallinna Vesi is listed on the main list of the Nasdaq Tallinn Stock Exchange. The largest shareholdings in the company are held by the City of Tallinn (55.06%) and the energy group Utilitas (20.36%). 24.58% of the company's shares are freely floating on the Nasdaq Tallinn Stock Exchange.

FINANCIAL INDICATORS

Gross profit margin – Gross profit / Net sales
Operating profit margin – Operating profit / Net sales
Operating profit before depreciation and amortisation – Operating profit + depreciation and amortisation
Operating profit before depreciation and amortisation margin – Operating profit before depreciation and amortisation / Net sales
Net profit margin – Net profit / Net sales
ROA – Net profit / Average Total assets for the period
Debt to Total capital employed – Total liabilities / Total capital employed
ROE – Net profit / Average Total equity for the period
Current ratio – Current assets / Current liabilities
Quick ratio – (Current assets – Stocks) / Current liabilities
Payout ratio – Total Dividends per annum/ Total Net Income per annum
Main business – Water services related activities, excl. connections profit and government grants, construction services, doubtful receivables

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF CASH FLOWS

Additional information:

Taavi Gröön
Chief Financial Officer
AS Tallinna Vesi
(372) 62 62 200

Attachment

• Stock Exchange report Q2'25

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