The last quarter of 2025 was the weakest for Merko Ehitus in the past year. During this quarter, only about €3M in net profit were earned, while the first three quarters of 2025 generated between €10M – €15M each. In total, €40M in net profit were earned in 2025, which is less than in the previous couple of years: a decrease of 38% compared to 2024 and 13% compared to 2023.

Net profit

The decline in revenue was the biggest challenge in 2025. Last year's revenue fell by 42% compared to 2024, reaching €311M, due to the construction segment. A significantly higher turnover was also generated in previous years: in 2023, it amounted to €466M and in 2022, it was €410M. Although, compared to 2024, revenue in the real estate segment was 14% higher, it is still more than twice as low as it was in 2022–2023.

Results by segments for 2025

At the end of 2025, the company’s margins dropped significantly, although it had been high during the first three quarters. The costs in the fourth quarter of 2025 were lower than the previous year (cost of goods sold -53% YoY, operating expenses -17% YoY), but they decreased at a slower pace than revenue (-57% YoY). The overall annual operating margin slightly decreased compared to 2024 but remained high.

Q4 and yearly operating margin

In 2025, the company did not generate free cash flow. The fund from operations in 2025 dropped significantly by 61% YoY to €25M, which was not enough to cover even the working capital requirement of €28M.


The positive aspect of the results is the high order backlog value remaining at the end of 2025 – €467M. In 2025, contracts worth €363M were signed, which is 7% more than in 2024. Additionally, at the beginning of 2026, a PPP contract for the Rūdininkai defence campus was signed.

Valuation metrics notable increased: the P/E ratio is 13.2x and EV/EBITDA is 13.4x.

Valuation metrics