AS Tallink Grupp Unaudited Consolidated Interim Report For The Q3 2026

(MENAFN- GlobeNewsWire - Nasdaq) The results of AS Tallink Grupp for the Q3 2026 will be introduced at an Investor Webinar held today at 12:00 (EEST). To participate, please join via the following link; we kindly ask participants to provide their questions latest by 11:00 am by email to: .... Further details are available in a previously published announcement.

In the third quarter of 2026, AS Tallink Grupp and its subsidiaries (the Group) carried 1,816,174 passengers, representing a 2.8% increase year-on-year. The number of cargo units transported increased by 7.8% to 64,980, while the number of passenger vehicles decreased by 1.1% to 249,100.

The Group's unaudited consolidated revenue increased by EUR 13.6 million to EUR 246.7 million (EUR 233.1 million in the third quarter of 2025). Unaudited EBITDA amounted to EUR 67.9 million (EBITDA of EUR 68.9 million in the third quarter of 2025) and the unaudited net profit for the period increased to EUR 43.8 million (EUR 40.8 million in the third quarter of 2025).

The Group's revenue and operating results in the third quarter 2026 were impacted by a number of key business and operational factors:

• ongoing geopolitical tensions, particularly in the Middle East, which contributed to volatility in energy markets and increased fuel costs by EUR 9.2 million, or 45.5%, year-on-year.
• Despite ongoing economic uncertainty and subdued consumer and business confidence in the Group's core markets, passenger and cargo volumes increased. The decrease in cargo volumes on the Estonia-Sweden routes was primarily attributable to the closure of the Paldiski-Kapellskär route.
• As at the end of the quarter, the Group operated a fleet of 11 vessels, including 2 shuttle vessels, 5 passenger vessels, 3 vessels chartered out and 1 vessel in lay-up.
• Share of emissions to be surrendered under the EU ETS (European Union Emissions Trading System) increased to 100% of the emitted CO2 equivalent in 2026 (70% in 2025). The cost of EU ETS increased by 64.3% to EUR 5.9 million (EUR 3.6 million in third quarter of 2025) year-on-year.
• The Group operated three hotels in Tallinn and one in Riga.
• Dividend payment and related income tax payment of EUR 28.6 million impacted the Group's cash position.
• Total loan repayment and interest payment (less lease liabilities related to right-to-use assets) amounted to EUR 20.6 million while the drawn overdraft amounted to EUR 18.9 million (EUR 27.3 million as at 30 June 2026).
• As at 30 September 2026, the Group's net debt amounted to EUR 398.6 million (EUR 409.6 million as at 30 June 2026). The net debt to EBITDA ratio stood at 3.0 as at 30 September 2026 (3.1 as at 30 June 2026).
• The Group continues to focus on cost efficiencies from the previously implemented measures and maintaining profitable operations on its core routes.
• The Group regularly monitors the developments on its core routes, including the capacity of each route and continues to look for new chartering options for vessels not used on the main routes and to work on extending the existing chartering agreements.

Sales and Segments

In the third quarter 2026, the Group's total revenue amounted to EUR 246.7 million, up by EUR 13.6 million or 5.8% year-on-year.

Revenue from route operations (the Group's core operations) increased by EUR 10.7 million to EUR 205.5 million compared to the third quarter 2025. The segment result from route operations amounted to EUR 45.0 million compared to EUR 46.5 million in the third quarter 2025, down by 3.2% year-on-year.

The number of passengers carried on the Estonia-Finland route increased by 1.5% year-on-year. The number of transported cargo units increased by 15.9%. Revenue from the Estonia-Finland route increased by EUR 5.3 million year-on-year to EUR 100.7 million, while the segment result remained broadly unchanged at EUR 30.1 million (EUR 30.2 million in third quarter 2025). The segment reflects the operations of two shuttle vessels, MyStar and Megastar, and the cruise ferry Victoria I.

In the third quarter 2026, the year-on-year increase in the number of passengers on Finland-Sweden routes was 5.3%. The number of transported cargo units increased by 20.5%. The routes' revenue increased by EUR 5.8 million to EUR 78.8 million and the segment result decreased by EUR 1.0 million to EUR 11.2 million, year-on-year. The segment reflects the operations of one cruise ferry on the Turku-Stockholm (the cruise ferry Baltic Princess) and two cruise ferries on the Helsinki-Stockholm route (the cruise ferries Silja Serenade and Silja Symphony).

On the Estonia-Sweden route the number of carried passengers increased by 5.8%. The number of transported cargo units decreased by 50.1% compared to the same period a year ago. Year-on-year, the revenue of Estonia-Sweden routes decreased by EUR 0.4 million to EUR 26.1 million. The segment result decreased by EUR 0.4 million to EUR 3.8 million. The third quarter results for the Estonia-Sweden route reflect the operation of the Tallinn-Stockholm route by the cruise ferries Baltic Queen and Romantika, with Romantika operating on the route in July and for three days in August. A year ago, the Estonia-Sweden routes were operated by the cruise ferry Baltic Queen on the Tallinn-Stockholm route and Superfast IX on the Paldiski-Kapellskär route. Following the commencement of the charter agreement for the passenger vessel Superfast IX on 1 May 2026, operations on the Paldiski-Kapellskär route were discontinued, resulting in a significant decrease in cargo volumes in the Estonia-Sweden segment.

Revenue from the segment Other increased by EUR 2.6 million compared to the third quarter 2025 amounting to EUR 42.6 million. The segment result was EUR 14.8 million, up by EUR 4.8 million year-on-year.

As at the end of the third quarter 2026, the Group had the following vessels chartered out:

• The cruise ferry Galaxy I was chartered out in September 2022 to Slaapschepen Public BV, an organisation nominated by Centraal Orgaan Opvang Asielzoekers (COA) in the Netherlands. In August 2026, the charter agreement of Galaxy I was extended until April 2027 with an option to further extend the charter term.
• The cruise ferry Silja Europa was chartered out in August 2022 to Slaapschepen Public BV, an organisation nominated by Centraal Orgaan Opvang Asielzoekers (COA) in the Netherlands. The recent charter agreement from December 2024 was extended in December 2025 until the end of January 2027 with the option of extending the agreement for another year.
• The passenger vessel St Patrick (formerly Superfast IX) was chartered out for 36 months from 1 May 2026. The agreement includes an option to extend the charter period by two additional 12-month periods (12+12 months) and a purchase option for the vessel.
• As at the end of the quarter, the Group had one vessel in lay-up, the cruise ferry Romantika, which had operated additional departures on the Tallinn–Stockholm route in July and early August before being temporarily chartered out to provide accommodation and catering services during the Mediterranean Games held in Italy from 21 August to 3 September 2026.

Earnings

In the third quarter of 2026, the Group's gross profit increased by EUR 2.7 million to EUR 69.8 million (EUR 67.2 million in the third quarter of 2025). EBITDA amounted to EUR 67.9 million compared to EUR 68.9 million a year ago.

Amortisation and depreciation expense decreased by EUR 4.2 million year-on-year to EUR 18.8 million. The decline was mainly attributable to the alignment of the estimated useful lives of the cruise and passenger vessels (excluding shuttle vessels) to 45 years, resulting in lower depreciation rates, as well as the sale of cargo vessel Regal Star in August 2025.

Net finance costs increased by EUR 0.2 million year-on-year to EUR 5.2 million in the third quarter of 2026 (EUR 4.9 million in the third quarter of 2025).

The Group's unaudited net profit for the third quarter of 2026 amounted to EUR 43.8 million, or EUR 0.059 per share compared to a net profit of EUR 40.8 million, or EUR 0.055 per share in the third quarter 2025.

Liquidity and Cash Flow

The Group's cash position in the third quarter of 2026 was affected by capital expenditure, dividend payments and related income tax payments, as well as loan repayments and interest payments. These outflows were partially offset by proceeds of EUR 2.5 million from the issuance of new shares under the Group's share option programme.

The Group's investments of EUR 3.4 million (EUR 5.5 million in the third quarter of 2025) were mainly related to vessel maintenance, repair and interior upgrades, as well as improvements to the Group's IT systems.

As at the end of third quarter 2026, the Group has 3 outstanding loan agreements, including a syndicated loan and two shipbuilding loans related to the shuttle vessels MyStar and Megastar.

In September 2026, the Group amended and restated its EUR 298 million syndicated loan agreement signed in December 2023. The maturity of the EURIBOR-based floating interest rate loan was extended by two years until 21 December 2030, with options for two additional one-year extensions. The outstanding loan balance at the time of the amendment was EUR 169.4 million. The amended agreement reduces the Group's refinancing risk.

At the end of the third quarter 2026, the interest-bearing liabilities totalled EUR 420.4 million of which long-term bank loans were EUR 332.3 million. During the quarter, the Group repaid loans and related interest expense (less lease liabilities related to right-to-use assets) in the amount of EUR 20.6 million (EUR 20.9 million in the third quarter of 2025).

At the end of the third quarter of 2026, the Group's net debt amounted to EUR 398.6 million, decreasing by EUR 11.0 million compared to the end of the second quarter of 2026. The net debt to EBITDA ratio stood at 3.0 as at the reporting date (3.1 as at 30 June 2026).

As at 30 September 2026, the Group's cash and cash equivalents amounted to EUR 21.8 million (EUR 39.6 million as at 30 June 2026), while unused credit facilities totalled EUR 81.1 million (EUR 72.7 million as at 30 June 2026). The Group's total liquidity buffer, comprising cash, cash equivalents and unused credit facilities, amounted to EUR 102.8 million (EUR 112.4 million as at 30 June 2026).

Dividends

In 2018, the Group adopted a dividend policy subject to which dividends of a minimum amount of EUR 0.05 per share would be paid if the economic performance enables it.

The Annual General Meeting of Shareholders held on 19 May 2026 adopted a resolution to pay a dividend of EUR 0.06 per share in 2026. The dividends are paid in two instalments. The first instalment of EUR 0.03 per share in the total amount of EUR 22.3 million was paid out on 1 July 2026 and the second instalment of EUR 0.03 per share in the total amount of EUR 22.5 million will be paid out on 24 November 2026.

Results of the 9 Months of the Financial Year 2026

In the first 9 months (1 January – 30 September) of the 2026 financial year, the Group carried 4,307,304 passengers, up 2.0% year-on-year.

The Group's unaudited revenue for the period increased by 4.5% and amounted to EUR 603.0 million (EUR 577.3 million in January-September 2025). Unaudited EBITDA was EUR 104.3 million (EUR 102.5 million in January-September 2025) and unaudited net profit was EUR 19.4 million (EUR 5.1 million in January-September 2025).

Revenue from route operations (the Group's core operations) increased by EUR 23.6 million to EUR 496.8 million compared to the same period a year ago. The segment result from route operations amounted to EUR 54.4 million (EUR 54.4 million in January-September 2025).

The number of passengers carried on the Estonia-Finland route increased year-on-year by 0.8% to 2,795,158. The number of transported cargo units increased by 13.4%. Revenue from the Estonia-Finland route increased by EUR 14.4 million compared to the same period a year ago and amounted to EUR 251.3 million while the segment result increased by EUR 3.3 million to EUR 56.9 million, year-on-year.

In the first 9 months of 2026, the year-on-year increase in the number of passengers on Finland-Sweden routes was 7.5% amounting to 1,110,095. The number of transported cargo units increased by 25.5%. The routes' revenue increased by EUR 12.7 million to EUR 183.7 million. The segment recorded a loss of EUR 2.7 million compared to a profit of EUR 3.3 million in the corresponding period of 2025, mainly reflecting higher fuel costs.

On Estonia-Sweden routes, the number of passengers carried decreased by 3.9% and the number of transported cargo units declined by 35.2% compared to the same period a year ago. Year-on-year, the revenue of Estonia-Sweden routes decreased by EUR 3.6 million and was EUR 61.7 million. The segment result improved by EUR 2.7 million to EUR 0.2 million. The revenues decreased primarily due to the ceasing of the Paldiski-Kapellskär route following the chartering of the passenger vessel Superfast IX from 1 May 2026.

Revenue from the segment Other increased by EUR 1.1 million year-on-year amounting to EUR 109.4 million. The segment result increased by EUR 12.7 million to EUR 27.3 million, mainly due to cost savings from fewer idle vessels.

The financial results of the first 9 months of 2026 were impacted by the following factors:

• Low consumer and business confidence in the Group's core markets, alongside heightened geopolitical tensions that increased volatility in energy markets and drove up the Group's fuel costs by EUR 18.9 million or 30.5% year-on-year.
• Investments in the amount of EUR 25.0 million (EUR 27.2 million in January-September 2025), mainly related to upgrades of the cruise ferries Baltic Queen, Silja Symphony and Victoria I in the first quarter, and maintenance and refurbishment of passenger vessel Superfast IX in the second quarter. The planned maintenance works totalling 63 days (68 days in January-September 2025) affected the passenger and cargo levels.
• Dividend payment and related income tax in the amount of EUR 28.6 million in the third quarter of 2026. Income tax expense on dividends in the amount of EUR 12.5 million was recorded in the second quarter of 2026.
• Repayment of long-term loans and interest expense (less lease liabilities related to right-to-use assets) in the amount of EUR 51.8 million (EUR 94.8 million in January-September 2025).
• EU ETS cost increased by 44.2% year-on-year to EUR 14.9 million (EUR 10.3 million in January–September 2025).
• Chartering of passenger vessel Superfast IX for 36 months from 1 May 2026.
• The cruise ferry Romantika returned from charter after the expiry of the agreement in March 2026. During the summer, the vessel operated additional departures on the Tallinn-Stockholm route in July and early August, before being chartered out to Italy to provide accommodation and catering services during the Mediterranean Games held from 21 August to 3 September 2026. As at the end of the quarter the cruise vessel Romantika was in lay-up.
• Alignment of the estimated useful lives of the cruise and passenger vessels (except for shuttle vessels) to 45 years retrospectively for the financial year 2025 reduced depreciation expense.

Key Figures

For the period	Q3 2026	Q3 2025	Q3 2024	Jan-Sep 2026	Jan-Sep 2025	Jan-Sep 2024
Revenue (EUR million)	246.7	233.1	231.9	603.0	577.3	602.3
Gross profit/loss (EUR million)	69.8	67.2	67.0	114.1	101.5	127.6
EBITDA1 (EUR million)	67.9	68.9	68.4	104.3	102.5	149.5
EBIT1 (EUR million)	49.1	45.9	44.0	46.7	33.3	76.1
Net profit/loss for the period (EUR million)	43.8	40.8	36.8	19.4	5.1	45.5
Depreciation and amortisation (EUR million)	18.8	23.0	24.4	57.6	69.2	73.3
Capital expenditures1 2(EUR million)	3.4	5.5	5.6	25.0	27.2	16.5
Weighted average number of ordinary shares outstanding	745,307,831	743,569,064	743,569,064	744,148,653	743,569,064	743,569,064
Earnings/loss per share1 (EUR)	0.059	0.055	0.050	0.026	0.007	0.061
Number of passengers	1,816,174	1,766,335	1,715,496	4,307,304	4,224,822	4,270,002
Number of cargo units	64,980	60,306	66,865	199,544	185,174	238,628
Average number of employees	4,837	4,988	5,063	4,780	4,936	5,004
As at	30.09.2026	30.06.2026	31.12.2025	30.09.2026	30.09.2025	30.09.2024
Total assets (EUR million)	1,316.1	1,351.9	1,330.8	1,316.1	1,359.1	1,498.9
Total liabilities (EUR million)	588.1	670.2	580.7	588.1	621.4	711.5
Interest-bearing liabilities (EUR million)	420.4	449.2	445.9	420.4	464.6	588.3
Net debt1 (EUR million)	398.6	409.6	432.4	398.6	432.7	555.7
Net debt to EBITDA1	3.0	3.1	3.3	3.0	3.4	3.0
Total equity (EUR million)	728.0	681.7	750.1	728.0	737.7	787.4
Equity ratio1 (%)	55%	50%	56%	55%	54%	53%
Number of ordinary shares outstanding	748,785,364	743,569,064	743,569,064	748,785,364	743,569,064	743,569,064
Shareholders' equity per share (EUR)	0.97	0.92	1.01	0.97	0.99	1.06
Ratios1	Q3 2026	Q3 2025	Q3 2024	Jan-Sep 2026	Jan-Sep 2025	Jan-Sep 2024
Gross margin (%)	28.3%	28.8%	28.9%	18.9%	17.6%	21.2%
EBITDA margin (%)	27.5%	29.6%	29.5%	17.3%	17.8%	24.8%
EBIT margin (%)	19.9%	19.7%	19.0%	7.7%	5.8%	12.6%
Net profit/loss margin (%)	17.8%	17.5%	15.9%	3.2%	0.9%	7.6%
ROA (%)	4.8%	2.4%	5.6%	4.8%	2.4%	5.6%
ROE (%)	4.4%	0.0%	6.1%	4.4%	0.0%	6.1%
ROCE (%)	5.9%	2.9%	6.7%	5.9%	2.9%	6.7%

1 Alternative performance measures based on ESMA guidelines are disclosed in the Alternative Performance Measures section of Interim Report.
2 Does not include additions to right-of-use assets.

EBITDA: result from operating activities before net financial items, share of profit of equity-accounted investees, taxes, depreciation and amortization
EBIT: result from operating activities
Earnings/loss per share: net profit or loss/ weighted average number of shares outstanding
Equity ratio: total equity / total assets
Shareholder's equity per share: shareholder's equity / number of shares outstanding
Gross profit/loss margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit/loss margin: net profit or loss / net sales
Capital expenditure: additions to property, plant and equipment – additions to right-of-use assets + additions to intangible assets
ROA: earnings before net financial items, taxes 12-months trailing / average total assets
ROE: net profit 12-months trailing / average shareholders' equity
ROCE: earnings before net financial items, taxes 12-months trailing / (total assets – current liabilities (average for the period))
Net debt: interest-bearing liabilities less cash and cash equivalents
Net debt to EBITDA: net debt / EBITDA 12-months trailing

Consolidated statement of profit or loss and other comprehensive income

Unaudited, in thousands of EUR	Q3 2026	Q3 2025	Jan-Sep 2026	Jan-Sep 2025
Revenue	246,696	233,072	603,048	577,302
Cost of sales	-176,866	-165,894	-488,944	-475,822
Gross profit	69,830	67,178	114,104	101,480
Sales and marketing expenses	-10,072	-10,686	-32,439	-32,550
Administrative expenses	-10,853	-11,778	-36,710	-37,118
Other operating income	205	1,438	2,007	3,246
Other operating expenses	-46	-274	-267	-1,768
Result from operating activities	49,064	45,878	46,695	33,290
Finance income	35	202	92	316
Finance costs	-5,204	-5,132	-14,635	-16,982
Profit before income tax	43,895	40,948	32,152	16,624
Income tax	-46	-173	-12,756	-11,536
Net profit for the period	43,849	40,775	19,396	5,088
Net profit for the period attributable to equity holders of the Parent	43,849	40,775	19,396	5,088
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations	-107	-43	33	-76
Revaluation of property, plant and equipment	0	-1,356	0	-5,607
Other comprehensive loss/income for the period	-107	-1,399	33	-5,683
Total comprehensive income for the period	43,742	39,376	19,429	-595
Total comprehensive income for the period attributable to equity holders of the Parent	43,742	39,376	19,429	-595
EPS (in EUR)	0.059	0.055	0.026	0.007
Diluted EPS (in EUR)	0.058	0.054	0.026	0.007

Consolidated statement of financial position

Unaudited, in thousands of EUR	30.09.2026	30.09.2025	31.12.2025
ASSETS
Cash and cash equivalents	21,759	31,937	13,491
Trade and other receivables	30,604	33,347	36,830
Prepayments	13,846	11,409	8,303
Inventories	45,277	42,513	45,770
Intangible assets	67	1,226	1,503
Current assets	111,553	120,432	105,897
Other financial assets and prepayments	443	508	438
Deferred income tax assets	21,840	21,840	21,840
Investment property	300	300	300
Property, plant and equipment	1,163,155	1,195,032	1,182,216
Intangible assets	18,830	20,965	20,073
Non-current assets	1,204,568	1,238,645	1,224,867
TOTAL ASSETS	1,316,121	1,359,077	1,330,764
LIABILITIES AND EQUITY
Interest-bearing loans and borrowings (Note 8)	89,726	74,517	77,156
Trade and other payables	102,262	88,452	97,297
Payables to owners	22,469	22,313	6
Income tax liability	6,507	6,222	4
Deferred income	36,458	39,723	37,458
Current liabilities	257,422	231,227	211,921
Interest-bearing loans and borrowings	330,666	390,129	368,770
Non-current liabilities	330,666	390,129	368,770
Total liabilities	588,088	621,356	580,691
Share capital	351,929	349,477	349,477
Share premium	1,302	663	663
Reserves	59,076	59,314	59,760
Retained earnings	315,726	328,267	340,173
Equity attributable to equity holders of the Parent	728,033	737,721	750,073
Total equity	728,033	737,721	750,073
TOTAL LIABILITIES AND EQUITY	1,316,121	1,359,077	1,330,764

Consolidated statement of cash flows

Unaudited, in thousands of EUR	Q3 2026	Q3 2025	Jan-Sep 2026	Jan-Sep 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss/profit for the period	43,849	40,775	19,396	5,088
Adjustments	24,024	28,673	84,396	98,775
Changes in:
Receivables and prepayments related to operating activities	-154	10,302	678	-11,848
Inventories	1,727	3,308	426	3,837
Liabilities related to operating activities	-23,933	-27,820	5,170	11,033
Changes in assets and liabilities	-22,360	-14,210	6,274	3,022
Cash generated from operating activities	45,513	55,238	110,066	106,885
Income tax paid	-6,094	-4,918	-6,254	-4,994
NET CASH USED IN/FROM OPERATING ACTIVITIES	39,419	50,320	103,812	101,891
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, equipment and intangible assets	-3,415	-5,491	-24,963	-27,196
Proceeds from disposals of property, plant, equipment	39	6,349	95	70,966
Interest received	35	81	92	175
NET CASH USED IN/FROM INVESTING ACTIVITIES	-3,341	939	-24,776	43,945
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of loans received (Note 8)	-16,778	-16,778	-39,990	-80,283
Change in overdraft (Note 8)	-8,347	-7,956	15,799	0
Payment of lease liabilities (Note 8)	-4,109	-3,809	-13,083	-13,531
Interest paid	-4,409	-4,451	-13,187	-15,867
Payment of transaction costs related to loans	-452	0	-452	-616
Dividends paid	-22,307	-22,307	-22,307	-22,307
Issue of shares	2,452	0	2,452	0
NET CASH FROM/USED IN FINANCING ACTIVITIES	-53,950	-55,301	-70,768	-132,604
TOTAL NET CASH FLOW	-17,872	-4,042	8,268	13,232
Cash and cash equivalents at the beginning of period	39,631	35,979	13,491	18,705
Change in cash and cash equivalents	-17,872	-4,042	8,268	13,232
Cash and cash equivalents at the end of period	21,759	31,937	21,759	31,937

Anneli Simm
Investor Relations Manager

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail ...
Phone: +372 56157170

Attachments

• AS Tallink Grupp Q3 2026 Webinar Presentation
• Tallink Grupp 2026 Q3 ENG
• Tallink Grupp 2026 Q3 Financial Data

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