The sales of AS Tallinna Vesi in the fourth quarter of 2025 were €18.9 million, up by 5.9% compared to the same period last year. Growth in revenue was mainly affected by price changes related to investments.
In the fourth quarter, investments amounted to €18.6 million, which is 15.6% more than in the same period of 2024. Aleksandr Timofejev, the CEO of Tallinna Vesi, said that in the fourth quarter the company moved ahead with planned investments and was reassured that its earlier environmental investments had put it on the right track. “The Green Company of the Year award we received at the end of the year shows that we are making an impact and that we are on the right track in investing for the future. When planning investments, we must consider not only future trends and operational continuity, but also the affordability of water services for consumers. At Tallinna Vesi, we are responsible for providing drinking water to about half a million people, as well as ensuring that wastewater is treated in an environmentally friendly way and returned to nature,” said Timofejev. In 2025, Tallinna Vesi invested a total of €56 million.
“On the last day of 2025, an exceptional natural event put our crisis plan to the test, but the team quickly resolved the disruptions that occurred. Once again, we apologise that many people in Tallinn had to spend New Year’s Eve stocking up on water, which was otherwise readily available from their taps for all the other 364 days of the year. The water supply was restored to all consumption points during New Year’s Eve. We are analysing technologies to mitigate the impact of similar natural events and improve customer service based on this experience,” said Aleksandr Timofejev.
The quality of drinking water remained excellent throughout the fourth quarter, meeting 99.9% of all quality requirements. During the quarter, the company took 1,019 water samples. According to Timofejev, clean tap water is ensured by an efficient water treatment process, regular monitoring of the water distribution network and ongoing preventive maintenance activities, as well as timely investment. Revenue from the sale of water services increased by 7.3% year-on-year, or €1.11 million, to €16.33 million. Revenues from the sale of water services decreased for water services to business customers and increased for water services to private customers. The change in the sales of water services was mainly due to the new prices for water services introduced on 1 May. These prices took into account both the legal obligation to harmonise prices for private and business customers by 1 July 2026, and the need for investment to ensure the sustainability of water services.
Tallinna Vesi’s annual return on assets was 4.2%. The company’s net profit for the fourth quarter of 2025 was €4.51 million, which is an increase of €0.36 million compared to the same period the previous year. The growth in net profit has been driven by operational efficiency and the justified return on investments made to ensure a clean environment and service continuity.
“The services provided by our subsidiary Watercom and the successful start-up of the cogeneration plant, which produced 100% of the heat and 59% of the electricity needed for wastewater treatment, made a significant contribution to the company’s financial results,” explained Aleksander Timofejev. The effective management of treatment processes also had a positive effect on this result.
Tallinna Vesi aims to provide an excellent customer experience, future-proof its infrastructure and ensure the continuity of the vital service it provides, all the while keeping the price for the service affordable for consumers.
At the water treatment plant, activities related to the reconstruction of the osonation stage and the procurement of the new building design are ongoing.
In wastewater treatment, the installation of primary and secondary screens in the mechanical treatment, upgrading of the biological treatment, reconstruction of the sludge treatment, and renovation of the secondary clarifiers have been completed. Investments in the wastewater treatment plant amounted to €15.3 million in 2025.
By the end of the fourth quarter, we had rehabilitated and constructed 45.1 kilometres of pipes. Almost half of these, or 22 kilometres, were built using environmentally friendly no-dig methods. We are working closely with the City of Tallinn and other partners so that we can complete as much work as possible at the same time.
In the fourth quarter, major pipe construction work was carried out on Kolde Avenue as part of the development of a strategic stormwater receiving system for the North Tallinn area, on Peterburi Road in cooperation with the City of Tallinn, and on Retke Road in cooperation with Utilitas. Pipe construction also continued on Paljassaare Road. Construction of the Nõlvaku collector is in its final stages, with the final works to upgrade ventilation systems underway. Work started on the reconstruction of water and sewer pipes in Lauteri Street and at the intersection of Endla and Tehnika streets. The renovation of the water pipes on Bornhöhe Road, as well as the construction work in Tuukri and Uus-Sadama streets as part of the extension to the stormwater collector starting from Reidi Road, has been completed. In cooperation with the City of Tallinn and Utilitas, the renovation of Värvi and Mustjõe streets was completed.
A stormwater scheme is being developed for the Mustamäe area. The scheme uses nature-based solutions to ensure longer retention times for stormwater and create a greener urban environment. These stormwater solutions help to reduce the risk of flooding during periods of heavy rainfall.
In the fourth quarter, the quality of treated effluent from the Paljassaare wastewater treatment plant outperformed the effluent standards. To keep the Baltic Sea clean, the company uses efficient treatment processes that helped to remove approximately 326 tonnes of solid waste, 55 tonnes of grit, 511 tonnes of nitrogen and 64 tonnes of phosphorus from wastewater during the fourth quarter of 2025.
The water loss rate in the water distribution network fell to 11.87% in the fourth quarter from 12.67% a year earlier. In order to keep water loss rates low, the company carries out continuous online monitoring of the water distribution network and continues with its planned water network rehabilitation programme.
By the end of the fourth quarter of 2025, Tallinna Vesi had installed smart meters for more than 80 per cent of its customers, with the project due to be completed in 2026. The new meters provide information on water consumption, allowing leaks in customers’ pipes to be detected as early as possible. This will help to protect the environment and minimise the risk of property damage caused by water accidents. The switch to smart meters has received very positive feedback from customers, and the meters provide the water company with a clear picture of water consumption in the service area.
As a vital service provider, Tallinna Vesi recognises the importance of raising consumer awareness of the benefits of fresh tap water and of environmental protection. In the fourth quarter, we took part in the Impact Day sustainability festival, and opened the doors of the water treatment plant to the public as part of the Open House Tallinn architecture event.
We were awarded the title of Green Company of the Year at the Estonian Successful Companies Awards. The Estonian Waterworks Association recognised two of our employees and named our cogeneration plant the Water Achievement of the Year.
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.
Additional information:
Taavi Gröön
Chief Financial Officer
AS Tallinna Vesi
(372) 62 62 200
MAIN FINANCIAL INDICATORS
| € million except key ratios |
Quarter 4 | 2025/2024 | 12 months | Variance 2025/2024 | ||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||
| Sales | 18.92 | 17.86 | 15.68 | 5.9% | 72.48 | 65.08 | 61.75 | 11.4% |
| Gross profit | 7.93 | 7.39 | 5.92 | 7.3% | 29.52 | 26.72 | 24.11 | 10.5% |
| Gross profit margin % | 41.91 | 41.37 | 37.76 | 1.3% | 40.73 | 41.05 | 39.04 | -0.8% |
| Operating profit before depreciation and amortisation | 8.19 | 7.52 | 6.17 | 9.0% | 30.95 | 27.51 | 25.40 | 12.7% |
| Operating profit before depreciation and amortisation margin % | 43.30 | 42.10 | 39.37 | 2.9% | 42.70 | 42.27 | 41.14 | 1.0% |
| Operating profit | 5.65 | 5.27 | 4.05 | 7.2% | 21.22 | 18.98 | 17.35 | 11.8% |
| Operating profit – main business | 5.25 | 4.76 | 3.55 | 10.3% | 19.87 | 17.88 | 15.99 | 11.1% |
| Operating profit margin % | 29.85 | 29.51 | 25.85 | 1.2% | 29.27 | 29.17 | 28.10 | 0.4% |
| Profit before taxes | 4.67 | 4.27 | 3.07 | 9.5% | 17.43 | 14.78 | 14.21 | 18.0% |
| Profit before taxes margin % | 24.70 | 23.89 | 19.59 | 3.4% | 24.05 | 22.71 | 23.01 | 5.9% |
| Net profit | 4.51 | 4.15 | 2.98 | 8.7% | 14.27 | 13.28 | 12.84 | 7.4% |
| Net profit margin % | 23.84 | 23.24 | 18.98 | 2.6% | 19.69 | 20.41 | 20.80 | -3.5% |
| ROA % | 1.28 | 1.34 | 1.08 | -5.1% | 4.21 | 4.46 | 3.30 | -5.6% |
| Debt to total capital employed % | 66.02 | 61.71 | 58.47 | 7.0% | 66.02 | 61.71 | 58.47 | 7.0% |
| ROE % | 3.71 | 3.51 | 2.58 | 5.6% | 11.70 | 11.20 | 7.43 | 4.5% |
| Current ratio | 0.93 | 0.76 | 1.30 | 22.4% | 0.93 | 0.76 | 1.30 | 22.4% |
| Quick ratio | 0.89 | 0.70 | 1.24 | 27.1% | 0.89 | 0.70 | 1.24 | 27.1% |
| Investments into fixed assets | 18.63 | 16.11 | 12.09 | 15.6% | 55.74 | 49.53 | 34.93 | 12.5% |
| Payout ratio % | – | 79.80 | 79.41 | – | 79.80 | 79.41 | ||
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
| € thousand | |||||||||
| ASSETS | Note | as of 31 December 2025 |
as of 31 December 2024 |
||||||
| CURRENT ASSETS | |||||||||
| Cash and cash equivalents | 3 | 11,294 | 3,589 | ||||||
| Trade receivables, accrued income and prepaid expenses | 10,762 | 10,746 | |||||||
| Inventories | 1,163 | 1,180 | |||||||
| TOTAL CURRENT ASSETS | 23,219 | 15,515 | |||||||
| NON-CURRENT ASSETS | |||||||||
| Property, plant, and equipment | 4 | 338,654 | 296,264 | ||||||
| Intangible assets | 5 | 2,699 | 2,062 | ||||||
| TOTAL NON-CURRENT ASSETS | 341,353 | 298,326 | |||||||
| TOTAL ASSETS | 364,572 | 313,841 | |||||||
| LIABILITIES AND EQUITY | |||||||||
| CURRENT LIABILITIES | |||||||||
| Current portion of long-term lease liabilities | 765 | 875 | |||||||
| Current portion of long-term loans | 3,742 | 3,441 | |||||||
| Trade and other payables | 17,604 | 13,581 | |||||||
| Prepayments | 2,781 | 2,646 | |||||||
| TOTAL CURRENT LIABILITIES | 24,892 | 20,543 | |||||||
| NON-CURRENT LIABILITIES | |||||||||
| Deferred income from connection fees | 52,112 | 50,106 | |||||||
| Leases | 1,502 | 2,178 | |||||||
| Loans | 155,391 | 114,241 | |||||||
| Provision for possible third-party claims | 6 | 6,018 | 6,018 | ||||||
| Deferred tax liability | 697 | 494 | |||||||
| Other payables | 165 | 108 | |||||||
| TOTAL NON-CURRENT LIABILITIES | 215,885 | 173,145 | |||||||
| TOTAL LIABILITIES | 240,777 | 193,688 | |||||||
| EQUITY | |||||||||
| Share capital | 12,000 | 12,000 | |||||||
| Share premium | 24,734 | 24,734 | |||||||
| Statutory legal reserve | 1,278 | 1,278 | |||||||
| Retained earnings | 85,783 | 82,141 | |||||||
| TOTAL EQUITY | 123,795 | 120,153 | |||||||
| TOTAL LIABILITIES AND EQUITY | 364,572 | 313,841 | |||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| € thousand | Quarter 4 | for the 12 months ended 31 December | |||||||||||||||||
| Note | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| Revenue | 1, 7 | 18,915 | 17,855 | 72,481 | 65,078 | ||||||||||||||
| Cost of goods and services sold | 1, 9 | -10,988 | -10,469 | -42,958 | -38,364 | ||||||||||||||
| GROSS PROFIT | 1 | 7,927 | 7,386 | 29,523 | 26,714 | ||||||||||||||
| Marketing expenses | 9 | -257 | -228 | -974 | -908 | ||||||||||||||
| General administration expenses | 9 | -1,788 | -1,719 | -6,770 | -6,261 | ||||||||||||||
| Other income and expenses | 1, 10 | -236 | -171 | -562 | -563 | ||||||||||||||
| OPERATING PROFIT | 5,646 | 5,268 | 21,217 | 18,982 | |||||||||||||||
| Financial income | 11 | 16 | 23 | 106 | 191 | ||||||||||||||
| Financial expenses | 11 | -991 | -1,026 | -3,889 | -4,394 | ||||||||||||||
| PROFIT BEFORE TAXES | 4,671 | 4,265 | 17,434 | 14,779 | |||||||||||||||
| Income tax | -192 | -116 | -3,192 | -1,496 | |||||||||||||||
| NET PROFIT FOR THE PERIOD | 4,479 | 4,149 | 14,242 | 13,283 | |||||||||||||||
| COMPREHENSIVE INCOME FOR THE PERIOD | 4,479 | 4,149 | 14,242 | 13,283 | |||||||||||||||
| Attributable profit to: | |||||||||||||||||||
| Equity holders of A-shares | 4,479 | 4,149 | 14,242 | 13,283 | |||||||||||||||
| Earnings per A share (in euros) | 13 | 0.22 | 0.21 | 0.71 | 0.66 | ||||||||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS
| € thousand | for the 12 months ended 31 December |
||||||||
| Note | 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
| Operating profit | 21,217 | 18,982 | |||||||
| Adjustment for depreciation/amortisation | 9 | 9,735 | 8,526 | ||||||
| Adjustment for revenues from connection fees | 7 | -770 | -701 | ||||||
| Other non-cash adjustments | 28 | 32 | |||||||
| Profit (-)/loss (+) from sale of property, plant and equipment, and intangible assets | -115 | -62 | |||||||
| Change in current assets involved in operating activities | 2 | -2,182 | |||||||
| Change in liabilities involved in operating activities | 730 | 1,652 | |||||||
| TOTAL CASH FLOWS FROM OPERATING ACTIVITIES | 30,827 | 26,247 | |||||||
| CASH FLOWS USED IN INVESTING ACTIVITIES | |||||||||
| Acquisition of property, plant, and equipment, and intangible assets |
-53,231 | -42,730 | |||||||
| Proceeds from targeted funding of property, plant, and equipment. | 4 | 5,869 | 0 | ||||||
| Compensations received for construction of pipelines, incl connection fees | 1,975 | 1,996 | |||||||
| Proceeds from sale of property, plant and equipment, and intangible assets |
130 | 111 | |||||||
| Interest received | 11 | 106 | 191 | ||||||
| TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES | -45,151 | -40,432 | |||||||
| CASH FLOWS USED IN FINANCING ACTIVITIES | |||||||||
| Interest and loan financing costs paid | -4,934 | -5,506 | |||||||
| Lease payments | -876 | -1,144 | |||||||
| Loans received | 45,000 | 25,000 | |||||||
| Repayment of loans | -3,571 | -3,604 | |||||||
| Dividends paid | 12 | -10,600 | -10,069 | ||||||
| Withheld income tax paid on dividends | 12 | 0 | -131 | ||||||
| Income tax paid on dividends | 12 | -2,990 | -1,508 | ||||||
| TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES | 22,029 | 3,038 | |||||||
| CHANGE IN CASH AND CASH EQUIVALENTS | 7,705 | -11,147 | |||||||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD |
3 | 3,589 | 14,736 | ||||||
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
3 | 11,294 | 3,589 | ||||||
Attachment
- Stock Exchange report Q4'25
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