Construction firm Merko Ehitus Q3 profit declines on higher fuel, energy costs
Overview
Estonia construction and real estate group's Q3 revenue rose yr/yr, net profit declined
Profitability pressured by higher fuel and energy costs, especially in road construction
Secured order book stood at EUR 769.1 mln at quarter end
Outlook
Merko says public sector contracts dominate order book, driven by defence and infrastructure projects
Company notes rising fuel and energy prices are pressuring construction margins
Management says consumer confidence has improved but does not expect apartment pre-sale growth to continue
Result Drivers
SEGMENT CONTRIBUTION - Co said real estate development and construction services contributed equally to Q3 results
APARTMENT DELIVERIES - Co completed and handed over 118 apartments and 18 commercial units in Q3, nearly matching total from first two quarters combined
PUBLIC SECTOR DEMAND - Construction services segment driven by public sector contracts, mainly defence and infrastructure projects
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | EUR 118.23 mln | ||
Q3 Net Income | EUR 12.57 mln | ||
Q3 Gross Profit | EUR 15.80 mln | ||
Q3 Operating Income | EUR 11.82 mln | ||
Q3 Pretax Profit | EUR 14.24 mln |
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)