Tallinna Vesi
AS Tallinna Vesi’s sales in the first quarter of 2026 were €17.99 million, which is an increase of 12.4% compared to the same period last year. Growth in sales was mostly driven by sales of construction services and changes in the price for water service related to increased investment.
In the first quarter, investments totalling €7.86 million were made, which is 16% more than in the same period of 2025. Aleksandr Timofejev, the CEO of Tallinna Vesi, said that in the first quarter, the company focused on strengthening operational continuity and preparing for the busy construction and renovation season in the upcoming summer. “Investments are crucial for ensuring the sustainability of the water infrastructure and for coping with changing climatic conditions – for example, the Kolde-Lahepea detention pond in North Tallinn is due to be completed this summer, which will help to reduce flooding in the area,” Timofejev explained. He said the construction and reconstruction of water, sewer and stormwater systems will peak during the summer months, and the company aims to carry out all the work with as little disruption to traffic and people’s lives as possible.
“Important projects are also underway at the water and wastewater treatment plants. At the water treatment plant, we are progressing with an ozonation project aimed at ensuring high-quality water treatment, improving operational reliability and reducing the plant’s energy consumption. At the wastewater treatment plant, work is continuing on the renovation of the secondary clarifiers and on the implementation of AI to optimise treatment processes,” explained Aleksandr Timofejev. To improve the reliability of the water network, the company is constructing more borehole pumping stations in the Lasnamäe area. The total investment planned for this year amounts to €60 million.
Preparations were also made during the quarter for upgrades aimed at improving customer communications. These included a new self-service portal and website, as well as a new corporate identity. The upgrades were launched in the second half of April. Preparations were also made for the start of the public tap season. This time, a significantly larger number of taps was opened than before – 78 in total. In addition to Tallinn, taps were also turned on for the first time in Saue and Maardu.
The quality of drinking water remained high throughout the first quarter, meeting all quality standards 100%. During the quarter, the company took 761 water samples. Clean tap water is ensured through an efficient water treatment process and regular monitoring of the water distribution network, along with the ongoing preventive maintenance activities and timely investments. Revenue from the sale of water services increased by 8.7% year-on-year, or €1.29 million, reaching €16.14 million. Revenue from water services sold to business customers decreased, while revenue from water services sold to private customers increased. The change in the sales of water services was mainly due to the new prices for water services introduced on 1 May 2025. 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 return on assets over the last 12 months was 4.4%. The company’s net profit for the first quarter of 2026 was €4.28 million, which is €0.82 million higher than in the same period of the previous year. The growth in net profit has been driven by operational efficiency and the justified profitability of investments made to ensure a clean environment and service continuity.
“The services provided by our subsidiary Watercom and the successful operation of the combined heat and power plant — which generated 100% of the heat energy and 57% of the electricity required for the wastewater treatment process — have made a significant contribution to the company’s financial performance,” explained Aleksandr Timofejev. The effective operation 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.
Construction work on a new building has begun at the water treatment plant, while the Paljassaare building is still in the design phase. Another major project is the ongoing construction of the energy complex in Paljassaare by Utilitas. The energy complex will start producing heat for Tallinn’s district heating network using wastewater and seawater in early winter 2026.
By the end of the first quarter, we had rehabilitated and constructed 5 kilometres of pipelines, of which 0.5 kilometres were built using environmentally friendly no-dig techniques. 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.
Work continued on several major construction projects in the first quarter, including the construction of a stormwater detention pond near the junction of Lahepea Street and Kolde Avenue in North Tallinn, which will help reduce flooding in the area. Pipes are also being replaced at Paljassaare Street and Paljassaare Lane. Construction work on Peterburi Road is being carried out in cooperation with the City of Tallinn and Rail Baltic. Work has begun on the reconstruction of A. Lauteri Street in the City Centre, as well as on the construction of a new stormwater detention tank in the area around A. Laikmaa Street, Maakri Street and Rävala Avenue.
A stormwater management scheme has been developed for the Mustamäe area. This scheme uses nature-based solutions to increase the retention time of stormwater and create a greener urban environment. These stormwater solutions help to reduce the risk of flooding during periods of heavy rainfall.
In the first quarter, the quality of the effluent treated at 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 around 286 tonnes of solid waste, 36 tonnes of grit, 527 tonnes of nitrogen and 63 tonnes of phosphorus from wastewater during the first quarter of 2026.
The rate of water loss in the water distribution network remained at roughly the same level in the first quarter as a year ago, standing at 15.99 per cent. 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 first quarter of 2026, Tallinna Vesi had installed smart meters for around 85 per cent of its customers, and the project will be completed during 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.
In the first quarter, we set up ice rinks in Haabersti, Nõmme, North Tallinn and Saue, and helped build snow castles in Mustamäe and Lasnamäe with the support of Tallinna Vesi and volunteers from the rescue services. To raise awareness of the work involved in providing vital water services, the company took part in the family day at the Nõmme Snow Park to spark young people’s interest and raise their awareness of water and environmental care.
As a long-standing supporter of para-athletes, Tallinna Vesi has renewed its cooperation agreement with the Estonian Paralympic Committee for this year to support the preparation of para-athletes for the Winter Paralympics and to advance sporting opportunities and the overall quality of life for people with disabilities in Estonia.
We made donations to the Estonian Agrenska Foundation, the Autismikool Charity Fund, The Gift of Life cancer treatment fund, the Tallinn Women’s Crisis Centre, the Food Bank and the Tallinn Children’s Hospital Foundation after achieving the target for the annual campaign inviting our staff to move.
AS Tallinna Vesi is the largest water utility in Estonia, providing services to around 25,000 private and business customers and about 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) 626 2200
taavi.groon@tvesi.ee
MAIN FINANCIAL INDICATORS
€ million
except key ratios
Quarter 1
2026/2025
2026
2025
2024
Sales
17.99
16.00
15.11
12.4%
Gross profit
7.63
6.59
6.08
15.7%
Gross profit margin %
42.38
41.18
40.23
2.9%
Operating profit before depreciation and amortisation
8.12
6.96
6.39
16.8%
Operating profit before depreciation and amortisation margin %
45.15
43.48
42.29
3.9%
Operating profit
5.45
4.48
4.13
21.6%
Operating profit margin %
30.27
27.99
27.37
8.1%
Profit before taxes
4.32
3.49
3.04
23.8%
Profit before taxes margin %
24.02
21.81
20.09
10.1%
Net profit
4.28
3.44
3.02
24.3%
Net profit margin %
23.77
21.49
19.97
10.6%
ROA %
1.17
1.08
1.38
8.0%
Debt to total capital employed %
64.95
61.42
58.10
5.7%
ROE %
3.40
2.82
3.11
20.3%
Current ratio
1.34
1.08
1.44
24.1%
Quick ratio
1.29
1.01
1.37
27.7%
Investments into fixed assets
7.86
6.76
6.65
16.3%
Payout ratio %
na
na
na
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
as of
as of
€ thousand
31 March
31 December
ASSETS
Note
2026
2025
CURRENT ASSETS
Cash and cash equivalents
3
14,996
11,294
Trade receivables, accrued income and prepaid expenses
11,358
10,762
Inventories
1,104
1,163
TOTAL CURRENT ASSETS
27,458
23,219
NON-CURRENT ASSETS
Property, plant, and equipment
4
334,646
338,654
Intangible assets
5
3,284
2,699
TOTAL NON-CURRENT ASSETS
337,930
341,353
TOTAL ASSETS
365,388
364,572
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current portion of long-term lease liabilities
743
765
Current portion of long-term loans
3,735
3,742
Trade and other payables
13,818
17,604
Prepayments
2,204
2,781
TOTAL CURRENT LIABILITIES
20,500
24,892
NON-CURRENT LIABILITIES
Deferred income from connection fees
53,205
52,112
Leases
1,355
1,502
Loans
155,427
155,391
Provision for possible third-party claims
6
6,018
6,018
Deferred tax liability
742
697
Other payables
69
165
TOTAL NON-CURRENT LIABILITIES
216,816
215,885
TOTAL LIABILITIES
237,316
240,777
EQUITY
Share capital
12,000
12,000
Share premium
24,734
24,734
Statutory legal reserve
1,278
1,278
Retained earnings
90,060
85,783
TOTAL EQUITY
128,072
123,795
TOTAL LIABILITIES AND EQUITY
365,388
364,572
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the 3 months
ended on 31 March
€ thousand
Note
2026
2025
Revenue
7
17,993
16,004
Cost of goods and services sold
9
-10,366
-9,413
GROSS PROFIT
7,627
6,591
Marketing expenses
9
-267
-255
General administration expenses
9
-1,865
-1,787
Other income and expenses
10
-49
-61
OPERATING PROFIT
5,446
4,488
Financial income
11
24
33
Financial expenses
11
-1,148
-1,032
PROFIT BEFORE TAXES
4,322
3,489
Income tax
-45
-53
NET PROFIT FOR THE PERIOD
4,277
3,436
COMPREHENSIVE INCOME FOR THE PERIOD
4,277
3,436
Attributable profit to shareholders
4,277
3,436
Earnings per share (in euros)
12
0.21
0.17
CONSOLIDATED STATEMENT OF CASH FLOWS
for the 3 months
ended 31 March
€ thousand
Note
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES
Operating profit
5,446
4,488
Adjustment for depreciation/amortisation
9
2,496
2,281
Adjustment for revenues from connection fees
7
-193
-182
Other non-cash adjustments
-36
0
Profit (-) / loss (+) from sale of property, plant and equipment, and intangible assets
0
-46
Change in current assets involved in operating activities
-538
1,204
Change in liabilities involved in operating activities
-82
-343
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES
7,093
7,402
CASH FLOWS USED IN INVESTING ACTIVITIES
Acquisition of property, plant, and equipment,
and intangible assets
-12,648
-12,547
Proceeds from targeted funding of property, plant, and equipment.
8,827
5,454
Compensations received for construction of pipelines, incl connection fees
654
207
Proceeds from sale of property, plant and equipment,
and intangible assets
0
46
Interest received
24
33
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES
-3,143
-6,807
CASH FLOWS USED IN FINANCING ACTIVITIES
Interest and loan financing costs paid
-33
-32
Lease payments
-215
-230
Loans received
0
5,000
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES
-248
4,738
CHANGE IN CASH AND CASH EQUIVALENTS
3,702
5,333
CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE PERIOD
3
11,294
3,589
CASH AND CASH EQUIVALENTS AT THE END
OF THE PERIOD
3
14,996
8,922
Attachment