The second quarter and first half of 2025 had been profitable for the Harju Elekter when it comes to outcomes. Though now we have seen a decline in income in comparison with earlier intervals, now we have continued to enhance profitability — a long-term strategic objective of the Group.
The Estonian manufacturing unit delivered the strongest efficiency within the first half-year, supported by continued excessive demand for substation options for distribution networks in addition to for extra complicated E-house kind options utilized in information centres. A notable consequence was additionally achieved by the Finnish subsidiary Telesilta OY, which specializes within the design and set up {of electrical} options for the shipbuilding business.
Whereas the outcomes of the Lithuanian, Finnish, and Swedish manufacturing items had been extra modest, the expansion so as books in these items signifies elevated buyer curiosity and readiness to launch new initiatives — a improvement anticipated to have a constructive affect within the second half of the 12 months and into 2026. Though curiosity in industrial automation and vitality effectivity options has remained steady or grown, the economic sector as an entire stays beneath strain — primarily as a result of excessive enter costs and weak export efficiency, each of which proceed to have an effect on our key goal markets the place funding exercise has been cautious.
Total, we anticipate sturdy monetary outcomes for the total 12 months 2025. This outlook is supported by declining rates of interest, which have improved the funding local weather and contributed to a extra lively financial surroundings.
In April, AS Harju Elekter Group’s Finnish subsidiary Harju Elekter OY exited a monetary funding by divesting a 9.15% stake in IGL Applied sciences OY, a number one Finnish developer and operator of parking and e-mobility options. This transfer aligns with the Group’s technique to concentrate on core operations and direct extra sources towards product improvement and innovation — significantly the event of next-generation chargers that meet the rising demand for sustainable and good vitality options.
Income and monetary outcomes
The Group’s income decreased by 19% in comparison with the identical interval final 12 months – each in quarterly and half-year comparisons. The income for the reporting quarter was 46.1 (Q2 2024: 56.8) million euros, and complete income for the primary half of the 12 months was 83.5 (6M 2024: 103.6) million euros. Though the decline was noticeable in comparison with the file gross sales volumes of the previous two years, the income remained at a great stage contemplating seasonality and is corresponding to the extra steady in earlier years.
|
EUR’000 |
|
Q2 |
Q2 |
+/- |
6M |
6M |
+/- |
|
|
|
2025 |
2024 |
|
2025 |
2024 |
|
|
Income |
|
46,071 |
56,801 |
-18.9% |
83,497 |
103,577 |
-19.4% |
|
Gross revenue |
|
7,436 |
8,172 |
-9.0% |
13,103 |
13,008 |
0.7% |
|
EBITDA |
|
4,658 |
5,450 |
-14.5% |
8,524 |
7,389 |
15.3% |
|
Working revenue (EBIT) |
|
3,585 |
4,450 |
-19.4% |
6,380 |
5,425 |
17.6% |
|
Revenue for the interval |
|
2,628 |
3,467 |
-24.2% |
5,263 |
3,827 |
37.5% |
|
Earnings per share (EPS) (euros) |
|
0.14 |
0.19 |
-26.3% |
0.28 |
0.21 |
33.3% |
Within the second quarter, the Group continued to regulate its price construction in keeping with adjustments so as volumes and market circumstances. Complete working bills decreased by 18.8% in comparison with the identical interval within the earlier 12 months, amounting to 42.4 (Q2 2024: 52.2) million euros. An analogous discount continued within the six-month comparability, the place complete bills fell by 20.3%, reaching 78.0 (6M 2024: 97.8) million euros.
Distribution and administrative bills elevated barely in each the second quarter and the primary half-year — every by 0.1 million euros on a quarterly foundation, reaching 2.4 and 1.4 million euros respectively, and by 0.2 million euros over six months, totaling 2.7 and 4.9 million euros. This improve was essential to assist income stability, strengthen buyer relationships, and safe new contracts. Labour prices decreased by 0.5 million euros within the second quarter, amounting to 10.1 million euros. Over the six-month interval, labour prices declined by 1.0 million euros to 19.6 million euros. The financial savings primarily resulted from a decreased headcount in Finland and Lithuania. Regardless of the nominal lower, the share of labour prices in income elevated by 3.4 share factors to 22.0% within the quarter, because the decline in income exceeded the discount in labour prices.
Within the second quarter, gross revenue decreased to 7.4 (Q2 2024: 8.2) million euros, however the gross margin improved to 16.1% (Q2 2024: 14.4%). The advance within the margin was supported by extra environment friendly price management. Working revenue (EBIT) for the quarter was 3.6 (Q2 2024: 4.4) million euros, and the working margin remained on the identical stage as in the identical interval final 12 months – 7.8% (Q2 2024: 7.8%). Web revenue was 2.6 (Q2 2024: 3.5) million euros, being near the results of the primary quarter. Regardless of the decline in gross sales within the first half of the 12 months, gross revenue remained steady at 13.1 (6M 2024: 13.0) million euros and the margin improved to fifteen.7% (6M 2024: 12.6%). Working revenue grew to six.4 (6M 2024: 5.4) million euros and the working margin elevated to 7.6% (6M 2024: 5.2%). Along with improved cost-efficiency, favorable foreign money change actions within the first quarter contributed considerably to the consequence. Web revenue for the six-month interval was 5.3 (6M 2024: 3.8) million euros.
Core enterprise and markets
The Group’s income for the second quarter and first half of 2025 mirrored a continued downward pattern within the Scandinavian core markets in comparison with the identical interval within the earlier 12 months. The 4 largest goal markets – Estonia, Finland, Sweden, and Norway – accounted for a complete of 80% of the Group’s quarterly income. Of those, income elevated in Norway and reasonably additionally in Estonia.
In Estonia, income reached 7.0 (Q2 2024: 6.9) million euros within the reporting quarter, marking the best second-quarter consequence on the house market so far. Income for the primary half of the 12 months amounted to 11.8 (6M 2024: 11.4) million euros. The expansion was primarily supported by the amount of compact substation orders from electrical energy distribution community clients, in addition to steady rental earnings from the actual property section.
Finland remained the most important market within the quarter; nonetheless, it additionally skilled essentially the most vital decline – quarterly income decreased by 32.9%, and within the half-year view, by 28.9%. Income amounted to 13.8 (Q2 2024: 20.6) million euros within the quarter and 26.7 (6M 2024: 37.5) million euros for the half-year. The principle causes for the decline had been the decrease gross sales quantity of compact substations and the discount in contractual manufacturing volumes.
Income within the Swedish market additionally declined – by 40.0% within the quarterly comparability and by 34.9% within the half-year view. Income amounted to five.2 (Q2 2024: 8.7) million euros within the quarter and 10.2 (6M 2024: 15.6) million euros within the six-month interval. The decline was a results of a strategic shift within the enterprise mannequin – the providing of turnkey (EPC) initiatives was discontinued, and the main target shifted to standardized factory-made merchandise. This led to a short lived discount in quantity however helped cut back enterprise dangers.
Norway stood out among the many Scandinavian markets with constructive development: quarterly income elevated by 33%, reaching 10.6 (Q2 2024: 8.0) million euros. For the primary half of the 12 months, income was 17.5 (6M 2024: 17.3) million euros, remaining primarily on the identical stage because the earlier 12 months. The distinction within the quarterly comparability was primarily as a result of the truth that a part of the orders signed in 2024 had been realized within the second quarter of 2025, leading to a extra modest income determine within the first quarter.
Investments
The Group invested a complete of 1.9 (6M 2024: 1.5) million euros in non-current property throughout the reporting interval, together with 0.2 (6M 2024: 0.7) million euros in funding properties, 0.8 (6M 2024: 0.4) million euros in property, plant, and gear, and 0.9 (6M 2024: 0.4) million euros in intangible property. The investments had been geared toward buying manufacturing know-how property and growing manufacturing and course of administration programs. Investments additionally included product improvement actions specializing in the creation of recent and improved merchandise.
As of the reporting date, the worth of the Group’s long-term monetary investments was 27.2 (31.12.24: 27.7) million euros. Proceeds from the disposal of the 9.15% stake in IGL-Applied sciences Oy amounted to 0.9 million euros within the reporting quarter, with a realized achieve of 0.4 million euros. The achieve was acknowledged via different complete earnings.
Share
The corporate’s share worth on the final buying and selling day of the reporting quarter on the Nasdaq Tallinn Inventory Change closed at 4.81 euros.
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
|
|
|
|
|||
|
Unaudited |
|
|
|
|
|||
|
EUR ‘000 |
30.06.2025 |
31.12.2024 |
30.06.2024 |
|
|||
|
ASSETS |
|
|
|
|
|
||
|
Present property |
|
|
|
|
|
||
|
Money and money equivalents |
2,925 |
3,773 |
1,632 |
|
|||
|
Commerce and different receivables |
42,582 |
29,606 |
48,655 |
|
|||
|
Prepayments |
2,076 |
2,096 |
1,173 |
|
|||
|
Inventories |
25,124 |
19,845 |
28,745 |
|
|||
|
Complete present property |
72,707 |
55,320 |
80,205 |
|
|||
|
Non-current property |
|
|
|
|
|||
|
Deferred earnings tax property |
526 |
687 |
722 |
|
|||
|
Non-current monetary investments |
27,221 |
27,717 |
27,715 |
|
|||
|
Funding properties |
28,927 |
29,432 |
28,901 |
|
|||
|
Property, plant, and gear |
32,238 |
32,420 |
33,275 |
|
|||
|
Intangible property |
8,864 |
8,121 |
7,576 |
|
|||
|
Complete non-current property |
97,776 |
98,377 |
98,189 |
|
|||
|
TOTAL ASSETS |
170,483 |
153,697 |
178,394 |
|
|||
|
LIABILITIES AND EQUITY |
|
|
|
|
|||
|
Liabilities |
|
|
|
|
|||
|
Borrowings |
9,625 |
9,885 |
17,481 |
|
|||
|
Prepayments from clients |
16,872 |
11,600 |
13,495 |
|
|||
|
Commerce and different payables |
26,232 |
17,426 |
27,761 |
|
|||
|
Tax liabilities |
3,502 |
3,260 |
4,598 |
|
|||
|
Present provisions |
671 |
270 |
185 |
|
|||
|
Complete present liabilities |
56,902 |
42,441 |
63,520 |
|
|||
|
Borrowings |
19,939 |
20,184 |
23,207 |
|
|||
|
Different non-current liabilities |
17 |
39 |
54 |
|
|||
|
Complete non-current liabilities |
19,956 |
20,223 |
23,261 |
|
|||
|
TOTAL LIABILITIES |
76,858 |
62,664 |
86,781 |
|
|||
|
Fairness |
|
|
|
|
|||
|
Share capital |
11,655 |
11,655 |
11,655 |
|
|||
|
Share premium |
3,306 |
3,306 |
3,306 |
|
|||
|
Reserves |
23,035 |
23,135 |
23,063 |
|
|||
|
Retained earnings |
55,629 |
52,937 |
53,589 |
|
|||
|
Complete fairness attributable to the homeowners of the mother or father firm |
93,625 |
91,033 |
91,613 |
|
|||
|
TOTAL LIABILITIES AND EQUITY |
170,483 |
153,697 |
178,394 |
|
|||
|
CONSOLIDATED STATEMENT OF PROFIT AND LOSS |
|
|
|
|
|
|
|||||
|
Unaudited |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||
|
EUR ‘000 |
Q2 |
Q2 |
6M |
6M |
|
|
|||||
|
|
2025 |
2024 |
2025 |
2024 |
|
|
|||||
|
Income |
46,071 |
56,801 |
83,497 |
103,577 |
|
|
|||||
|
Value of gross sales |
-38,635 |
-48,629 |
-70,394 |
-90,569 |
|
|
|||||
|
Gross revenue |
7,436 |
8,172 |
13,103 |
13,008 |
|
|
|||||
|
Distribution prices |
-1,395 |
-1,328 |
-2,681 |
-2,524 |
|
|
|||||
|
Administrative bills |
-2,366 |
-2,227 |
-4,945 |
-4,744 |
|
|
|||||
|
Different earnings |
7 |
75 |
1,030 |
94 |
|
|
|||||
|
Different bills |
-97 |
-242 |
-127 |
-409 |
|
|
|||||
|
Working revenue |
3,585 |
4,450 |
6,380 |
5,425 |
|
|
|||||
|
Finance earnings |
267 |
11 |
900 |
104 |
|
|
|||||
|
Finance prices |
-1,067 |
-540 |
-1,352 |
-1,131 |
|
|
|||||
|
Revenue earlier than tax |
2,785 |
3,921 |
5,928 |
4,398 |
|
|
|||||
|
Earnings tax |
-157 |
-454 |
-665 |
-571 |
|
|
|||||
|
Revenue for the interval |
2,628 |
3,467 |
5,263 |
3,827 |
|
|
|||||
|
Earnings per share |
|
|
|
|
|
|
|||||
|
Fundamental earnings per share (euros) |
0.14 |
0.19 |
0.28 |
0.21 |
|
|
|||||
|
Diluted earnings per share (euros) |
0.14 |
0.19 |
0.28 |
0.21 |
|
|
|||||
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
|
|
|
|
|
|
|||
|
Unaudited |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
EUR ‘000 |
Q2 |
Q2 |
6M |
6M |
|
||||
|
|
2025 |
2024 |
2025 |
2024 |
|
||||
|
Revenue/loss (-) for the interval |
2,628 |
3,467 |
5,263 |
3,827 |
|
||||
|
Different complete earnings (loss) |
|
|
|
|
|
||||
|
Gadgets that could be reclassified to revenue or loss |
|
|
|
|
|
||||
|
Impression of change fee adjustments of a overseas subsidiaries |
300 |
-46 |
-288 |
60 |
|
||||
|
Gadgets that won’t be reclassified to revenue or loss |
|
|
|
|
|
||||
|
Achieve on gross sales of monetary property |
385 |
185 |
204 |
185 |
|
||||
|
Web achieve on revaluation of monetary property |
-1 |
-141 |
175 |
-72 |
|
||||
|
Complete complete earnings for the interval |
684 |
-2 |
91 |
173 |
|
||||
|
Different complete earnings |
3,312 |
3,465 |
5,354 |
4,000 |
|
||||
|
|
|
|
|
|
|
|
|
||
Priit Treial
CFO and Member of the Administration Board
priit.treial@harjuelekter.com
+372 674 7400
Attachment
2025-07-24 04:00:00