The Estonian economy continued to recover during the period, but the economic environment remained affected by geopolitical uncertainty, as well as high energy and fuel prices. There are also signs of a moderate recovery in the construction market, although progress varies across segments. The market is primarily supported by investment in national defence and infrastructure, while investment activity in residential construction remains subdued.
Both of our main operating segments increased their revenue compared to the same period last year. Revenue generated by the Buildings segment grew by 34%, driven mainly by revenue from the construction of public buildings. Revenue generated by the Infrastructure segment nearly doubled due to the performance of construction work on the Rail Baltica project and a national road. The Infrastructure segment’s contribution to the group’s overall revenue rose to 26% (9M 2025: 20%).
The group’s profitability continued to be affected by rising input prices and lower average profit margins on ongoing projects. However, supported by revenue growth, both gross profit and operating profit increased year on year in absolute terms. Administrative expenses remained at the level of the previous year.
Compared to 30 September 2025, the group’s order book increased by 3%. While the order books of both the Buildings and Infrastructure segments increased, their respective proportions of the group’s total order book remained stable. A significant share of the group’s order book consists of work scheduled for 2027.
Condensed consolidated interim statement of financial position
| €’000 | 30 September 2026 | 31 December 2025 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 4,328 | 5,266 |
| Other financial assets | 1,140 | 1,088 |
| Trade and other receivables | 58,753 | 46,348 |
| Prepayments | 12,128 | 3,274 |
| Inventories | 42,493 | 26,022 |
| Total current assets | 118,842 | 81,998 |
| Non-current assets | ||
| Other investments | 77 | 77 |
| Other financial assets | 2,710 | 1,810 |
| Trade and other receivables | 10,474 | 10,142 |
| Investment property | 3,704 | 5,517 |
| Property, plant and equipment | 14,518 | 12,234 |
| Intangible assets | 14,978 | 14,922 |
| Total non-current assets | 46,461 | 44,702 |
| TOTAL ASSETS | 165,303 | 126,700 |
| LIABILITIES | ||
| Current liabilities | ||
| Borrowings | 11,108 | 12,049 |
| Trade payables | 75,908 | 49,569 |
| Other payables | 12,228 | 9,971 |
| Deferred income | 17,206 | 15,249 |
| Provisions | 790 | 3,863 |
| Total current liabilities | 117,240 | 90,701 |
| Non-current liabilities | ||
| Borrowings | 13,488 | 5,708 |
| Trade payables | 5,302 | 1,605 |
| Other non-current payables | 1,292 | 0 |
| Provisions | 2,349 | 5,730 |
| Total non-current liabilities | 22,431 | 13,043 |
| TOTAL LIABILITIES | 139,671 | 103,744 |
| EQUITY | ||
| Share capital | 14,379 | 14,379 |
| Own (treasury) shares | (660) | (660) |
| Share premium | 635 | 635 |
| Statutory capital reserve | 2,554 | 2,554 |
| Translation reserve | 4,708 | 4,522 |
| Retained earnings | 2,323 | 141 |
| Total equity attributable to owners of the parent | 23,939 | 21,571 |
| Non-controlling interests | 1,693 | 1,385 |
| TOTAL EQUITY | 25,632 | 22,956 |
| TOTAL LIABILITIES AND EQUITY | 165,303 | 126,700 |
Condensed consolidated interim statement of comprehensive income
| €’000 | 9M 2026 | Q3 2026 | 9M 2025 | Q3 2025 | 2025 |
| Revenue | 216,089 | 89,176 | 147,666 | 55,028 | 208,281 |
| Cost of sales | (205,954) | (84,961) | (137,747) | (50,559) | (194,746) |
| Gross profit | 10,135 | 4,215 | 9,919 | 4,469 | 13,535 |
| Marketing and distribution expenses | (277) | (65) | (279) | (110) | (433) |
| Administrative expenses | (4,811) | (1,452) | (4,758) | (1,686) | (6,814) |
| Other operating income | 461 | 279 | 70 | 2 | 154 |
| Other operating expenses | (296) | (237) | (196) | (36) | (6,835) |
| Operating profit (loss) | 5,212 | 2,740 | 4,756 | 2,639 | (393) |
| Finance income | 325 | 109 | 349 | 91 | 499 |
| Finance costs | (3,046) | (1,058) | (2,517) | (613) | (3,464) |
| Net finance costs | (2,721) | (949) | (2,168) | (522) | (2,965) |
| Profit (loss) before tax | 2,491 | 1,791 | 2,588 | 2,117 | (3,358) |
| Income tax expense | (1) | 0 | 0 | 0 | (141) |
| Profit (loss) for the period | 2,490 | 1,791 | 2,588 | 2,117 | (3,499) |
| Other comprehensive income (loss) | |||||
| Exchange differences on translating foreign operations | 186 | (10) | 395 | (78) | 488 |
| Total other comprehensive income (loss) | 186 | (10) | 395 | (78) | 488 |
| TOTAL COMPREHENSIVE INCOME (LOSS) | 2,676 | 1,781 | 2,983 | 2,039 | (3,011) |
| Profit (loss) attributable to: | |||||
| – Owners of the parent | 2,182 | 1,747 | 1,738 | 1,872 | (4,605) |
| – Non-controlling interests | 308 | 44 | 850 | 245 | 1,106 |
| Profit (loss) for the period | 2,490 | 1,791 | 2,588 | 2,117 | (3,499) |
| Comprehensive income (loss) attributable to: | |||||
| – Owners of the parent | 2,368 | 1,737 | 2,133 | 1,794 | (4,117) |
| – Non-controlling interests | 308 | 44 | 850 | 245 | 1,106 |
| Comprehensive income (loss) for the period | 2,676 | 1,781 | 2,983 | 2,039 | (3,011) |
| Earnings per share attributable to owners of the parent: | |||||
| Basic earnings per share (€) | 0.07 | 0.06 | 0.06 | 0.06 | (0.15) |
| Diluted earnings per share (€) | 0.07 | 0.06 | 0.06 | 0.06 | (0.15) |
Condensed consolidated interim statement of cash flows
| €’000 | 9M 2026 | 9M 2025 |
| Cash flows from operating activities | ||
| Cash receipts from customers | 244,688 | 167,978 |
| Cash paid to suppliers | (219,258) | (142,400) |
| VAT paid | (5,657) | (5,906) |
| Cash paid to and for employees | (16,924) | (16,021) |
| Income tax paid | (367) | (350) |
| Net cash from operating activities | 2,482 | 3,301 |
| Cash flows from investing activities | ||
| Paid for acquisition of property, plant and equipment | (615) | (247) |
| Proceeds from sale of property, plant and equipment | 152 | 409 |
| Loans provided | (62) | (44) |
| Repayments of loans provided | 3 | 6 |
| Dividends received | 12 | 0 |
| Interest received | 52 | 91 |
| Investments in other financial assets | (957) | (600) |
| Net cash used in investing activities | (1,415) | (385) |
| Cash flows from financing activities | ||
| Proceeds from loans received | 3,224 | 783 |
| Repayments of loans received | (1,450) | (1,074) |
| Payments of lease principal | (2,082) | (1,845) |
| Lease interest paid | (217) | (195) |
| Interest paid | (810) | (560) |
| Dividends paid | (637) | 0 |
| Other payments | (12) | 0 |
| Net cash used in financing activities | (1,984) | (2,891) |
| Net cash flow | (917) | 25 |
| Cash and cash equivalents at beginning of period | 5,266 | 8,195 |
| Effect of movements in foreign exchange rates | (21) | (137) |
| Change in cash and cash equivalents | (917) | 25 |
| Cash and cash equivalents at end of period | 4,328 | 8,083 |
Financial review
Financial performance
In the first nine months of 2026, Nordecon delivered a gross profit of €10,135 thousand (9M 2025: €9,919 thousand). The group’s gross margin decreased year on year, dropping to 4.7% for both the nine-month period (9M 2025: 6.7%) and the third quarter (Q3 2025: 8.1%). Both operating segments earned a profit in both the nine-month period and the third quarter. The Buildings segment achieved gross margins of 5.8% for the nine months and 3.8% for the third quarter (9M 2025: 7.7% and Q3 2025: 8.4%), while the Infrastructure segment achieved gross margins of 4.2% and 7.8% for the same periods (9M 2025: 5.5% and Q3 2025: 8.9%). Rising input prices and the composition of the project portfolio continued to impact profitability. Consequently, the average profit margin for projects in progress was lower than in the same period last year.
The group’s administrative expenses for the first nine months of 2026 were €4,811 thousand, around 1% higher than a year earlier (9M 2025: €4,758 thousand). The ratio of administrative expenses to revenue (12 months rolling) decreased year on year, dropping to 2.5% (9M 2025: 4.0%).
The group’s operating profit for the first nine months of 2026 amounted to €5,212 thousand (9M 2025: €4,756 thousand) and EBITDA was €7,276 thousand (9M 2025: €6,719 thousand).
The group’s finance income and costs are affected by exchange rate fluctuations in the group’s foreign markets, particularly movements in the exchange rate of the Ukrainian hryvnia. In the first nine months of 2026, the Ukrainian hryvnia weakened against the euro by around 2% and the Swedish krona weakened against the euro by around 4.5%. As a result, the translation of the loans provided to the group’s Ukrainian and Swedish subsidiaries in euros into the local currencies gave rise to an exchange loss of €137 thousand (9M 2025: an exchange loss of €591 thousand) and an exchange loss of €18 thousand (9M 2025: an exchange gain of €21 thousand), respectively.
The group ended the period with a net profit of €2,490 thousand (9M 2025: a net profit of €2,588 thousand). Net profit attributable to owners of the parent, Nordecon AS, amounted to €2,182 thousand (9M 2025: a net profit of €1,738 thousand).
Cash flows
In the first nine months of 2026, the group’s operating activities produced a net cash inflow of €2,482 thousand (9M 2025: an inflow of €3,301 thousand). The items with the strongest impact were cash receipts from customers and cash paid to suppliers, which increased due to revenue growth, amounting to €244,688 thousand (9M 2025: €167,978 thousand) and €219,258 thousand (9M 2025: €142,400 thousand), respectively.
Investing activities of the period resulted in a net cash outflow of €1,415 thousand (9M 2025: an outflow of €385 thousand). Payments made to acquire property, plant and equipment totalled €615 thousand (9M 2025: €247 thousand) and proceeds from the sale of property, plant and equipment amounted to €152 thousand (9M 2025: €409 thousand). Loans provided amounted to €62 thousand (9M 2025: €44 thousand), interest received amounted to €52 thousand (9M 2025: €91 thousand) and investments in long-term deposits (reported as ‘Investments in other financial assets’) totalled €957 thousand (9M 2025: €600 thousand).
Financing activities generated a net cash outflow of €1,984 thousand (9M 2025: an outflow of €2,891 thousand). The largest items were related to loans and leases. Proceeds from loans received were €3,224 thousand, consisting of the use of development loans (9M 2025: €783 thousand). Repayments of loans received totalled €1,450 thousand (9M 2025: €1,074 thousand), consisting of regular repayments of long-term investment and development loans and the change in the overdraft balance. Lease payments amounted to €2,082 thousand (9M 2025: €1,845 thousand). Dividends paid during the period amounted to €637 thousand (9M 2025: no dividend payments).
At 30 September 2026, the group’s cash and cash equivalents amounted to €4,328 thousand (30 September 2025: €8,083 thousand).
Key financial figures and ratios
| Figure/ratio | 9M 2026 | 9M 2025 | 9M 2024 | 2025 |
| Revenue (€’000) | 216,089 | 147,666 | 178,722 | 208,281 |
| Revenue change | 46.3% | (17.4)% | 36.6% | (7.0)% |
| Net profit (loss) (€’000) | 2,490 | 2,588 | 4,547 | (3,499) |
| Net profit (loss) attributable to owners of the parent (€’000) | 2,182 | 1,738 | 3,376 | (4,605) |
| Weighted average number of shares | 31,528,585 | 31,528,585 | 31,528,585 | 31,528,585 |
| Earnings per share (€) | 0.07 | 0.06 | 0.11 | (0.15) |
| Administrative expenses to revenue | 2.2% | 3.2% | 2.8% | 3.3% |
| Administrative expenses to revenue (rolling) | 2.5% | 4.0% | 3.1% | 3.3% |
| EBITDA (€’000) | 7,276 | 6,719 | 9,154 | 2,206 |
| EBITDA margin | 3.4% | 4.6% | 5.1% | 1.1% |
| Gross margin | 4.7% | 6.7% | 7.1% | 6.5% |
| Operating margin | 2.4% | 3.2% | 3.9% | (0.2)% |
| Operating margin excluding gain on asset sales | 2.4% | 3.2% | 3.8% | (0.2)% |
| Net margin | 1.2% | 1.8% | 2.5% | (1.7)% |
| Return on invested capital | 7.6% | 7.2% | 13.0% | (5.5)% |
| Return on equity | 10.2% | 9.2% | 18.4% | (14.1)% |
| Equity ratio | 15.5% | 23.6% | 22.1% | 18.1% |
| Return on assets | 1.7% | 2.2% | 3.8% | (2.9)% |
| Gearing | 40.4% | 15.8% | 12.6% | 30.7% |
| Current ratio | 1.01 | 0.94 | 1.00 | 0.90 |
| 30 Sept 2026 | 30 Sept 2025 | 30 Sept 2024 | 31 Dec 2025 | |
| Order book (€’000) | 284,380 | 276,332 | 195,628 | 273,060 |
Performance by geographical market
Revenue generated in Ukraine accounted for approximately 1% of the group’s total revenue for the first nine months of 2026. Compared to the same period in 2025, revenue generated in Ukraine, as well as its share of the group’s total revenue, decreased. This was primarily due to the extremely challenging conditions in the country. At the start of the year, frequent power cuts and severe winter weather hindered work on construction sites and in building materials production. Labour shortages are also becoming an increasingly serious problem. No revenue was generated in Sweden because the group had no construction contracts in progress in that market.
| 9M 2026 | 9M 2025 | 9M 2024 | 2025 | |
| Estonia | 99% | 98% | 98% | 98% |
| Ukraine | 1% | 2% | 2% | 2% |
Performance by business line
Segment revenues
The group’s goals include maintaining a balance between the revenues of its two main operating segments (Buildings and Infrastructure) if market conditions permit. This helps diversify risk and provides better opportunities to continue construction activities in challenging market conditions, when volumes in one subsegment decline sharply, while volumes in another start to grow more rapidly.
The group’s revenue for the first nine months of 2026 was €216,089 thousand, approximately 46% higher than in the same period in 2025, when revenue amounted to €147,666 thousand. The Buildings segment generated revenue of €159,206 thousand, while the Infrastructure segment generated revenue of €56,860 thousand. The corresponding figures for the first nine months of 2025 were €118,569 thousand and €29,082 thousand. Both segments increased their revenue year on year, in line with projections. The growth achieved was 34% for Buildings and 96% for Infrastructure.
| Revenue by operating segment | 9M 2026 | 9M 2025 | 9M 2024 | 2025 |
| Buildings | 74% | 80% | 84% | 81% |
| Infrastructure | 26% | 20% | 16% | 19% |
Subsegment revenues
Currently, most of the revenue in the Buildings segment comes from the construction of public and commercial buildings. During the period, revenue generated by the public buildings subsegment increased by around 80% year on year. Revenue from the industrial and warehouse facilities subsegment also increased, although the number of projects in progress remains small. Meanwhile, revenue generated by the commercial buildings and apartment buildings subsegments decreased by around 14% and 32%, respectively.
Our largest projects in the public buildings subsegment were the design and construction of the Loodusmaja (Nature Hub) building, and the new Television Building for Estonian Public Broadcasting in Tallinn. We continued work on projects for the Estonian Centre for Defence Investments and completed the construction of barracks in Tapa and the building of Tiskre School in the Harku rural municipality.
The largest projects in the commercial buildings subsegment were the construction of a commercial building at Väike-Turu 7 in Tartu, a Maksimarket hypermarket in Narva, the LEED Gold compliant Uusküla spa hotel on the northern shore of Lake Peipus in the Alutaguse rural municipality, and a spa hotel and a swimming complex in Viljandi.
In the apartment buildings subsegment, we are not currently carrying out any large-scale construction projects for third parties and the main revenue source is property development. In the nine months of 2026, the amount of relevant revenue decreased to €7,431 thousand (9M 2025: €9,079 thousand). During the period, work continued on the construction of phase 2 of the Seileri Kvartal housing estate in Pärnu (https://seileri.ee) the Tammepärja Kodu housing estate in the Tammelinn district of Tartu (https://tammelinn.ee), and the Pärnasalu residential development project on the outskirts of Tartu (https://parnasalutee.ee). When carrying out our own development activities, we carefully monitor potential risks in the housing development market.
| Buildings segment | 9M 2026 | 9M 2025 | 9M 2024 | 2025 |
| Public buildings | 64% | 48% | 70% | 52% |
| Commercial buildings | 27% | 41% | 21% | 39% |
| Apartment buildings | 5% | 10% | 7% | 8% |
| Industrial and warehouse facilities | 4% | 1% | 2% | 1% |
In the first nine months of 2026, most of the revenue generated by the Infrastructure segment came from road construction and maintenance. Compared to the same period last year, the subsegment’s revenue increased nearly twofold. The largest projects were the construction of the Rail Baltica main line railway infrastructure, including the Hagudi–Alu section of stage III in Rapla County and the Selja–Tootsi section of stage I in Pärnu County, and the construction of the Päädeva–Orgita road section on km 62.2–64.8 of national road no. 4 (E67), Tallinn–Pärnu–Ikla.
| Infrastructure segment | 9M 2026 | 9M 2025 | 9M 2024 | 2025 |
| Road construction and maintenance | 99% | 83% | 94% | 87% |
| Other engineering | 1% | 17% | 6% | 13% |
Order book
At 30 September 2026, the group’s order book (backlog of contracts signed but not yet performed) stood at €284,380 thousand, reflecting an increase of approximately 3% year on year. In the nine months of 2026, we signed new contracts for €201,819 thousand (9M 2025: €191,857 thousand), of which €20,167 thousand in the third quarter (Q3 2025: €19,621 thousand).
| 30 Sept 2026 | 30 Sept 2025 | 30 Sept 2024 | 31 Dec 2025 | |
| Order book (€’000) | 284,380 | 276,332 | 195,628 | 273,060 |
The proportions of the two operating segments, Buildings and Infrastructure, in the group’s order book remained unchanged compared to the same period in 2025. The Buildings segment accounts for 68% and the Infrastructure segment for 32% of the group’s total order book. The order books of both segments increased at the same rate as the total order book, i.e. by 3% compared to 30 September 2025. The main growth drivers were public buildings and industrial and warehouse facilities in the Buildings segment, and road construction and maintenance in the Infrastructure segment.
The Rail Baltica project and road construction projects financed by the European Cohesion Fund through the Estonian Transport Administration have revitalised the infrastructure sector. However, this has not fully offset the underfunding of road construction. The overall volume of public investment in building construction has declined. The market continues to be supported mainly by the defence sector. Although the private sector has also experienced a revival, tendering processes often take months and projects are sometimes put on hold for years due to high construction costs or insufficient customer interest.
Major contracts secured in the first nine months of 2026 include:
- Construction of the first building and the related outdoor areas of Park Rae, a logistics and light industrial park in the Rae rural municipality, with an approximate cost of €15,800 thousand.
- Construction of a new building for Helen’s School in Põhja-Tallinn, with an approximate cost of €12,600 thousand.
- Construction of a building and infrastructure for AS Tallinna Vesi at the Ülemiste Water Treatment Plant site in Tallinn, with an approximate cost of €11,800 thousand.
- Construction of supporting infrastructure for the Estonian Centre for Defence Investments in Pärnu County, with an approximate cost of €110,400 thousand.
- Year-round maintenance of national roads in Lääne County in the period 2026–2031, with an approximate cost of €7,900 thousand.
- Year-round maintenance of national roads in Hiiu County in the period 2026–2031, with an approximate cost of €4,000 thousand.
- Construction of a stock office-type commercial building in Peetri, Harju County, with an approximate cost of €3,300 thousand.
- Construction of a sports building incorporating commercial premises in the Serv Quarter in Tallinn, with an approximate cost of €4,750 thousand.
Between the reporting date (30 September 2026) and the date of release of this report, group companies have secured additional construction contracts of approximately €12,782 thousand.
In a highly competitive environment, management has avoided taking unjustified risks that could materialise during contract execution and adversely affect the group’s results. Our main focus is on assessing and mitigating the risks arising from market changes, particularly those relating to rising input costs. We also prioritise managing fixed costs, increasing productivity, and executing pre-construction and design activities effectively in order to leverage our professional competitive advantages.
People
Employees and staff costs
The average number of the group’s employees (at the parent and the subsidiaries) in the first nine months of 2026 was 454, including 301 engineers and technical professionals (ETP). Compared to the same period last year, the number of employees increased by around 7%.
Average number of employees at group companies (the parent company and the subsidiaries):
| 9M 2026 | 9M 2025 | 9M 2024 | 2025 | |
| ETPs | 301 | 272 | 283 | 275 |
| Workers | 153 | 153 | 154 | 156 |
| Total average | 454 | 425 | 437 | 431 |
The group’s staff costs for the first nine months of 2026, including all taxes, were €17,603 thousand compared with €14,694 thousand in the same period last year. Staff costs grew by around 20% year on year due to a general pay rise and an increase in the headcount.
In the first nine months of 2026, the service fees of the members of the council of Nordecon AS totalled €203 thousand and the related social security charges amounted to €67 thousand (9M 2025: €173 thousand and €57 thousand, respectively).
The service fees of the members of the board of Nordecon AS totalled €444 thousand and the related social security charges amounted to €146 thousand (9M 2025: €424 thousand and €140 thousand, respectively).
Labour productivity and labour cost efficiency
We measure the efficiency of our operating activities using the following productivity and efficiency indicators, which are based on the number of employees and the staff costs incurred:
| 9M 2026 | 9M 2025 | 9M 2024 | 2025 | |
| Nominal labour productivity (rolling), (€’000) | 611.1 | 452.7 | 557.4 | 483.3 |
| Change against the comparative period, % | 35.0% | (18.8)% | 14.1% | (6.0)% |
| Nominal labour cost efficiency (rolling), (€) | 11.4 | 8.5 | 11.0 | 9.8 |
| Change against the comparative period, % | 33.8% | (22.4)% | 5.0% | 5.4% |
The group’s labour productivity and labour cost efficiency increased year on year, as revenue growth exceeded the increase in the number of employees and the staff costs incurred.
