Reported Earnings • May 08
First quarter 2026 earnings released: EPS: €0.25 (vs €0.59 in 1Q 2025) First quarter 2026 results: EPS: €0.25 (down from €0.59 in 1Q 2025). Revenue: €57.2m (down 33% from 1Q 2025). Net income: €4.34m (down 59% from 1Q 2025). Profit margin: 7.6% (down from 12% in 1Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • May 05
Upcoming dividend of €1.25 per share Eligible shareholders must have bought the stock before 12 May 2026. Payment date: 14 May 2026. Payout ratio is a comfortable 55% but the company is not cash flow positive. Trailing yield: 4.2%. Lower than top quartile of Estonian dividend payers (6.0%). Higher than average of industry peers (3.0%). Announcement • Apr 29
AS Merko Ehitus Approves Dividends for the Financial Year 2025, Payable on 14 May 2026 AS Merko Ehitus at the AGM held on 28 April 2026, approved to pay out a total of EUR 22,125,000 as dividends from the net profit of previous periods, which is EUR 1.25 per share; shareholders entered in the share register of AS Merko Ehitus as at the end of the business day of the settlement system on 13 May 2026 are entitled to dividends; respectively, the date of the change of the rights attached to the shares (ex-date) is 12 May 2026; from that date onwards, the person acquiring the shares is not entitled to receive dividends for the financial year 2025; dividends will be paid to the shareholders on 14 May 2026 by transferring the respective amount to the shareholder's bank account linked to the securities account. Reported Earnings • Apr 07
Full year 2025 earnings released: EPS: €2.26 (vs €3.65 in FY 2024) Full year 2025 results: EPS: €2.26 (down from €3.65 in FY 2024). Revenue: €310.9m (down 42% from FY 2024). Net income: €39.9m (down 38% from FY 2024). Profit margin: 13% (in line with FY 2024). Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 19% per year. Announcement • Apr 07
AS Merko Ehitus, Annual General Meeting, Apr 28, 2026 AS Merko Ehitus, Annual General Meeting, Apr 28, 2026, at 10:00 FLE Standard Time. Location: at nordic hotel forum conference centre , viru square 3, tallinn, Estonia New Risk • Feb 27
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Estonian stocks, typically moving 3.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (23% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (3.2% average weekly change). Reported Earnings • Feb 06
Full year 2025 earnings released: EPS: €2.26 (vs €3.65 in FY 2024) Full year 2025 results: EPS: €2.26 (down from €3.65 in FY 2024). Revenue: €310.9m (down 42% from FY 2024). Net income: €39.9m (down 38% from FY 2024). Profit margin: 13% (in line with FY 2024). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 27
OU Merko Kodud Announces Launch of the Second Phase of the Oielehe Apartments Development Project (Rae Parcel, Estonia) OU Merko Kodud, part of the AS Merko Ehitus group, has decided to launch the second phase of the Oielehe development project in Rae parish in Juri. As part of this, three apartment buildings with a total of 33 apartments will be completed in the spring of 2027 at the addresses Oie 6, Oie 8 and Oie 10. Sales of apartments will also begin in a five-apartment terraced house, which will be built at the address Oie 1. The sizes of the apartments in the two-story A-energy class apartment buildings of Oielehe homes (merko.ee/oielehe) range from 50 to 102 square meters, and prices per square meter start at 3,275 euros. The sizes of the two-story A- energy class apartments in the terraced house range from 128 to 144 square meters, and prices persquare meter start at 3,363 euros. Each apartment in the apartment buildings has a balcony or terrace. The apartments in the townhouse have two spaces and two parking spaces. The residential buildings have a courtyard with lush greenery and recreation and play areas. The car parking spaces are ready to install an electric car charging point. The total development volume of the Oielehe project includes the construction of 121 apartments in ten apartment buildings and 23 homes in four townhouses. The first two buildings in the block at Oie 2 and Oie 4 were completed in the spring of 2025. Announcement • Nov 27
OU Merko Kodud Launches the Leedri Apartment Development Project (Tartu County, Estonia) OU Merko Kodud, part of the AS Merko Ehitus group, has decided to launch the first phase of the Leedri development project in Tartu municipality. The entire development project includes the construction of 144 apartments in six apartment buildings. As the first phase, two apartment buildings with a total of 48 apartments will be completed in May 2027 at Leedripuu 1 and Leedripuu 2. The Leedri (merko.ee/leedri) three-storey apartment buildings will have an energy class A rating. The size of the apartments ranges from 44 to 102 square meters, and prices per square meter start at 2,830 euros. Merko will construct parking spaces and landscaping around the buildings. Reported Earnings • Nov 07
Third quarter 2025 earnings released: EPS: €0.85 (vs €1.54 in 3Q 2024) Third quarter 2025 results: EPS: €0.85 (down from €1.54 in 3Q 2024). Revenue: €73.9m (down 58% from 3Q 2024). Net income: €15.0m (down 45% from 3Q 2024). Profit margin: 20% (up from 16% in 3Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 26% per year. Announcement • Oct 16
SIA Merko Majas Launches the Second Stage of Arena Garden Towers Residential Project in Skanste District in Riga SIA Merko majas, part of AS Merko Ehitus group, has launched the second stage of Arena Garden Towers residential project in Skanste district in Riga. One 13-storey building with 80 apartments at Arena St.3 will be completed in the beginning of 2027. The residential building will have energy class A rating. The size of the standard apartments ranges between 53 and 129 square meters and the price per square meter ranges from 2,601 to 3,510 euros. This is the first residential project by Merko majas to incorporate energy pile technology, providing sustainable solutions for heating and cooling. The contemporary complex will offer a variety of apartments, including distinctive two-storey penthouses with 6.3-metre ceilings and private rooftop terraces. The buildings will feature two elevators per staircase, a shared room for events and rooftop terraces, a secure private courtyard for recreation and play, as well as new amenities such as a dedicated bicycle maintenance area and a pet washing station. Parking spaces will be available on the ground floor and in a designated outdoor area. Arena Garden Towers is located in the Skanste district, a modern and rapidly developing area of Riga. The project comprises in total of four residential buildings with around 400 apartments. The first stage includes on 13-storey building with 84 apartments at Arena str 1, which will be completed in the summer of 2026. Almost 80% of the apartments in the first stage have been sold. Announcement • Sep 16
Sia Merko Majas Launches the Third Stage of Mezpilseta Residential Project (Riga, Latvia) SIA Merko majas, part of AS Merko Ehitus group, has launched the third stage of Mezpilseta residential project in Mezciems area in Riga. A six-storey building with 53 apartments at Hipokrata St. 16 is set to be completed at the end of 2026. The Mezpilseta (mezpilseta.merkomajas.lv) residential building will have an energy class A rating. The size of the apartments ranges from 44 to 87 square meters, with the prices per square meter ranging from 2,567 to 2,975 euros. The residential development is located in the green and fast-growing Mezpilseta neighbourhood, right next to the forest. Each apartment will have a balcony, floor-to-ceiling windows and heated floors in all apartments will create a bright and comfortable living environment. Apartment prices include private storage rooms in the basement, with the option to purchase larger storage units if needed. The project will feature in total of 44 outdoor parking spaces, including 13 covered spaces and four spaces equipped with electric charging options. Residents will also benefit from a stroller room on the ground floor, shared amenities include a spacious community lounge area with a kitchen and restroom facilities, as well as direct access to a terrace. The landscaped grounds will feature a children's playground and green recreational areas. The fenced yard will be a safe place with security cameras and an access control system for the building entrance, stroller room and storage room block in the basement. Additional features include a bicycle repair station and enhance technical solutions such as decentralized ventilation units and underfloor heating with individual room temperature control. HIPokrata St. 16 will be the fifth building in the Mezpilseta Residential development. Four buildings containing 164 apartments have been completed to date, out of a total of 11 buildings and 535 apartments planned for the entire project. Reported Earnings • Aug 08
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: €82.6m (down 33% from 2Q 2024). Net income: €11.2m (down 14% from 2Q 2024). Profit margin: 14% (up from 11% in 2Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 30% per year and the company’s share price has also increased by 30% per year. New Risk • Jul 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Estonian stocks, typically moving 4.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (4.4% average weekly change). Upcoming Dividend • May 21
Upcoming dividend of €1.90 per share Eligible shareholders must have bought the stock before 28 May 2025. Payment date: 02 June 2025. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 5.9%. Lower than top quartile of Estonian dividend payers (6.3%). Higher than average of industry peers (3.5%). Reported Earnings • May 17
First quarter 2025 earnings released: EPS: €0.59 (vs €0.25 in 1Q 2024) First quarter 2025 results: EPS: €0.59 (up from €0.25 in 1Q 2024). Revenue: €85.2m (up 5.0% from 1Q 2024). Net income: €10.5m (up 136% from 1Q 2024). Profit margin: 12% (up from 5.5% in 1Q 2024). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 27% per year. Declared Dividend • Apr 23
Dividend increased to €1.90 Dividend of €1.90 is 46% higher than last year. Ex-date: 28th May 2025 Payment date: 2nd June 2025 Dividend yield will be 6.6%, which is higher than the industry average of 2.9%. Sustainability & Growth Dividend is covered by both earnings (52% earnings payout ratio) and cash flows (60% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 32% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 12
Full year 2024 earnings released: EPS: €3.65 (vs €2.60 in FY 2023) Full year 2024 results: EPS: €3.65 (up from €2.60 in FY 2023). Revenue: €539.0m (up 16% from FY 2023). Net income: €64.7m (up 40% from FY 2023). Profit margin: 12% (up from 9.9% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Announcement • Apr 11
AS Merko Ehitus, Annual General Meeting, May 15, 2025 AS Merko Ehitus, Annual General Meeting, May 15, 2025, at 10:00 FLE Standard Time. Location: nordic hotel forum conference centre, viru square 3, tallinn, Estonia Announcement • Apr 10
AS Merko Ehitus Proposes Dividend for the Financial Year 2024, Payable on 2 June 2025 AS Merko Ehitus proposed to approve the net profit for the financial year 2024 in the amount EUR 64,667,471; To pay a total of EUR 33,630,000 as dividends to the shareholders from the net profit of previous periods, which is EUR 1.90 per share or 52% of net profit and is in line with the long-term dividend policy of paying dividends of 50%-70% of the previous year's net profit; shareholders entered in the share register of AS Merko Ehitus at the end of the business day of the settlement system on 30 May 2025 are entitled to dividends; respectively, the date of the change of the rights attached to the shares (ex-date) is 28 May 2025; from that date onwards, the person acquiring the shares is not entitled to receive dividends for the financial year 2024; dividends will be paid to the shareholders on 2 June 2025 by transferring the corresponding amount to the shareholder's current account linked to the securities account. Reported Earnings • Feb 07
Full year 2024 earnings released: EPS: €3.65 (vs €2.60 in FY 2023) Full year 2024 results: EPS: €3.65 (up from €2.60 in FY 2023). Revenue: €539.0m (up 16% from FY 2023). Net income: €64.7m (up 40% from FY 2023). Profit margin: 12% (up from 9.9% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. New Risk • Jan 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Estonian stocks, typically moving 3.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (3.7% average weekly change). Reported Earnings • Nov 08
Third quarter 2024 earnings released: EPS: €1.54 (vs €0.72 in 3Q 2023) Third quarter 2024 results: EPS: €1.54 (up from €0.72 in 3Q 2023). Revenue: €175.1m (up 43% from 3Q 2023). Net income: €27.3m (up 115% from 3Q 2023). Profit margin: 16% (up from 10% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 09
Second quarter 2024 earnings released: EPS: €0.74 (vs €0.77 in 2Q 2023) Second quarter 2024 results: EPS: €0.74 (down from €0.77 in 2Q 2023). Revenue: €122.4m (down 14% from 2Q 2023). Net income: €13.1m (down 3.8% from 2Q 2023). Profit margin: 11% (up from 9.6% in 2Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 31
Upcoming dividend of €1.30 per share Eligible shareholders must have bought the stock before 07 June 2024. Payment date: 21 June 2024. Payout ratio is a comfortable 52% and this is well supported by cash flows. Trailing yield: 7.3%. Within top quartile of Estonian dividend payers (7.3%). Higher than average of industry peers (3.9%). Reported Earnings • May 10
First quarter 2024 earnings released: EPS: €0.25 (vs €0.33 in 1Q 2023) First quarter 2024 results: EPS: €0.25 (down from €0.33 in 1Q 2023). Revenue: €81.2m (up 7.2% from 1Q 2023). Net income: €4.43m (down 25% from 1Q 2023). Profit margin: 5.5% (down from 7.8% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • May 09
AS Merko Ehitus Approves Dividend for the Financial Year 2023, Payable on 21 June 2024 AS Merko Ehitus announced that at the annual general meeting of shareholders held on 8 May 2024 approved to pay a total of EUR 23,010,000 as dividends from net profit of previous periods, which is EUR 1.30 per share; shareholders entered into the share register of AS Merko Ehitus as of the close of the business of the settlement system on 10 June 2024 will be entitled to dividends; respectively, the date of the change of the rights attached to the shares (ex-date) is set to 7 June 2024; from that date onwards, the person acquiring the shares is not entitled to receive dividends for the financial year 2023; dividends will be paid to shareholders on 21 June 2024 by transferring the respective amount to a current account linked to the shareholder's securities account. Announcement • May 01
AS Merko Ehitus Appoints Egija Smila as Country Head for the Group's Latvian Subsidiaries AS Merko Ehitus decided to appoint Egija Smila as the country head for the group's Latvian subsidiaries for a period of three years, with the term of authority beginning on 1 May 2024. The term of office of Andris Bišmeistars, the previous country head of the group's Latvian subsidiaries, ended on 31 March 2024 due to his resigning from the group. Announcement • Apr 30
OU Merko Kodud, Part of as Merko Ehitus Group Launch of the Sixth Stage of the Uus-Veerenni Residential Project OÜ Merko Kodud, part of AS Merko Ehitus group, has decided to launch the construction of the sixth stage of the Uus-Veerenni residential development project in the city centre of Tallinn. As part of this, an apartmentbuilding with a total of 63 apartments will be completed in the summer of 2026. The 8-storey energy class A building at Tiiu 14 will have apartments ranging in size from 35 to 115 square metres, with prices starting from 4,744 euros per square metre. The apartments will have readiness for the installation of an air conditioning system, larger apartments will have the system already installed. Parking spaces with readiness for electric car charging facilities will be located on the underground level of the building. The building will be surrounded by a landscaped yard with recreation and play areas. Since 2019, 38 buildings with 504 apartments and 20 commercial premises have been completed in Uus-Veerenni. The courtyard between the buildings of the first stage won the 2020 annual award of the Association of Landscape Architects in the courtyard category and the Uus-Veerenni park won the annual award of the Association of Landscape Architects in 2023. As part of the Uus-Veerenni development project, up to 50 apartment buildings with nearly 1,400 new homes will be built over the years. On the properties awaiting the construction of the next stages, there is an intermediate park for community use, which offers the residents of Uus-Veerenni recreation and exercise opportunities. A kindergarten operates in the quarter, and in the future a commercial building will be added to Uus-Veerenni. Declared Dividend • Apr 20
Dividend increased to €1.30 Dividend of €1.30 is 30% higher than last year. Ex-date: 7th June 2024 Payment date: 21st June 2024 Dividend yield will be 7.6%, which is higher than the industry average of 2.9%. Sustainability & Growth Dividend is well covered by both earnings (50% earnings payout ratio) and cash flows (20% cash payout ratio). The dividend has increased by an average of 16% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 19% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 07
Full year 2023 earnings released: EPS: €2.60 (vs €1.96 in FY 2022) Full year 2023 results: EPS: €2.60 (up from €1.96 in FY 2022). Revenue: €466.3m (up 14% from FY 2022). Net income: €46.0m (up 33% from FY 2022). Profit margin: 9.9% (up from 8.5% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 23
OU Merko Kodud Launches the Fifth Stage of the Erminurme Residential Project (Tartu, Estonia) OU Merko Kodud, part of AS Merko Ehitus group, has decided to launch the fifth stage of Erminurme residential development project in Tartu Parish. The stage includes two buildings at Erminurme Road 2 and Erminurme Road 22 with 36 apartments, which will be completed in May 2025. Erminurme residential quarter is located on the border of Tartu Parish and the City of Tartu close to Estonian National Museum and Raadi Manor complex. The development project comprises of twelve 2-3-storeyed residential buildings with 224 apartments, of which 9 buildings with a total of 161 apartments have been completed. Reported Earnings • Feb 09
Full year 2023 earnings released: EPS: €2.60 (vs €1.96 in FY 2022) Full year 2023 results: EPS: €2.60 (up from €1.96 in FY 2022). Revenue: €466.3m (up 14% from FY 2022). Net income: €46.0m (up 33% from FY 2022). Profit margin: 9.9% (up from 8.5% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Feb 08
AS Merko Ehitus Proposes Dividend AS Merko Ehitus Board proposed to the Supervisory Board to distribute to shareholders EUR 17.7 million in dividends (EUR 1 per share) from retained earnings in 2024. This is equivalent to a 38% dividend rate for 2023. Announcement • Nov 24
AS Merko Ehitus Announces Executive Changes The Supervisory Board of AS Merko Ehitus decided to appoint current Chairman of the Management Board of group’s subsidiary AS Merko Ehitus Eesti Mr. Ivo Volkov as the Chairman of the Management Board of AS Merko Ehitus for the three-year period, starting from 1 January 2024. The term of office of Mr. Andres Trink, who has been working as the Chairman of the Management Board of AS Merko Ehitus group since 1 January 2012, ends on 31 December 2023. Due to moving to Berlin for family reasons, Mr. Andres Trink will not extend his contract as a Member of the Board. Mr. Toomas Annus, Chairman of the Supervisory Board of AS Merko Ehitus will propose to the next upcoming general meeting of shareholders to appoint Mr. Andres Trink as a Member of the Supervisory Board of AS Merko Ehitus. Reported Earnings • Nov 02
Third quarter 2023 earnings released: EPS: €0.72 (vs €0.56 in 3Q 2022) Third quarter 2023 results: EPS: €0.72 (up from €0.56 in 3Q 2022). Revenue: €122.5m (up 11% from 3Q 2022). Net income: €12.7m (up 29% from 3Q 2022). Profit margin: 10% (up from 8.9% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 04
Second quarter 2023 earnings released: EPS: €0.77 (vs €0.24 in 2Q 2022) Second quarter 2023 results: EPS: €0.77 (up from €0.24 in 2Q 2022). Revenue: €141.6m (up 61% from 2Q 2022). Net income: €13.6m (up 223% from 2Q 2022). Profit margin: 9.6% (up from 4.8% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 20% per year. Announcement • May 27
AS Merko Ehitus Announces Management Appointments The Supervisory Board of AS Merko Ehitus decided to appoint Mr. Urmas Somelar as a Member of the Management Board of the company for the three-year period, starting from 1 June 2023, with the areas of responsibility in financial management, investor relations and compliance. The Management Board of AS Merko Ehitus will continue with three members: Mr. Andres Trink (Chairman), Mr. Tõnu Toomik and Mr. Urmas Somelar. The sole shareholder of AS Merko Ehitus Eesti decided to appoint Mr. Urmas Somelar as a Member of the Supervisory Board of the company for the three-year period, starting from 1 June 2023. The Supervisory Board of AS Merko Ehitus Eesti will continue with four members: Mr. Andres Trink (Chairman), Mr. Tõnu Toomik, Mr. Martin Rebane and Mr. Urmas Somelar. Upcoming Dividend • May 26
Upcoming dividend of €1.00 per share at 6.2% yield Eligible shareholders must have bought the stock before 02 June 2023. Payment date: 16 June 2023. Payout ratio is a comfortable 47% but the company is not cash flow positive. Trailing yield: 6.2%. Within top quartile of Estonian dividend payers (5.5%). Higher than average of industry peers (3.7%). Announcement • May 04
AS Merko Ehitus Announces Audit Committee Changes AS Merko Ehitus announced that The Supervisory Board of AS Merko Ehitus decided to amend the composition of the Audit Committee by appointing Kristina Siimar as a new member and recalling Teet Roopalu and appointing Indrek Neivelt as the chairman of the audit committee for a two-year period. The amendments will enter into force on 5 May 2023. AS Merko Ehitus Audit Committee continues with three members: Indrek Neivelt (the Chairman), Kristina Siimar and Viktor Mõisja. Reported Earnings • Apr 08
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: €1.96 (up from €1.65 in FY 2021). Revenue: €409.6m (up 21% from FY 2021). Net income: €34.6m (up 19% from FY 2021). Profit margin: 8.5% (in line with FY 2021). Revenue exceeded analyst estimates by 31%. Earnings per share (EPS) also surpassed analyst estimates significantly. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 10
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: €1.96 (up from €1.65 in FY 2021). Revenue: €409.6m (up 21% from FY 2021). Net income: €34.6m (up 19% from FY 2021). Profit margin: 8.5% (in line with FY 2021). Revenue exceeded analyst estimates by 31%. Earnings per share (EPS) also surpassed analyst estimates significantly. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Feb 09
AS Merko Ehitus Proposes Dividend The Management Board of AS Merko Ehitus proposes to distribute to shareholders EUR 17.7 million in dividends (EUR 1 per share) from retained earnings in 2023. This is equivalent to a 51% dividend rate for 2022. Announcement • Dec 17
AS Merko Ehitus to Report Fiscal Year 2022 Final Results on Apr 06, 2023 AS Merko Ehitus announced that they will report fiscal year 2022 final results at 10:00 AM, USSR Zone1 on Apr 06, 2023 Reported Earnings • Nov 05
Third quarter 2022 earnings released: EPS: €0.55 (vs €0.31 in 3Q 2021) Third quarter 2022 results: EPS: €0.55 (up from €0.31 in 3Q 2021). Revenue: €110.0m (up 36% from 3Q 2021). Net income: €9.82m (up 78% from 3Q 2021). Profit margin: 8.9% (up from 6.8% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is expected to decline by 3.1% p.a. on average during the next 2 years, while revenues in the Construction industry in Europe are expected to grow by 3.2%. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Sep 28
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be €14.81, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 22%. Reported Earnings • Aug 05
Second quarter 2022 earnings released: EPS: €0.24 (vs €0.36 in 2Q 2021) Second quarter 2022 results: EPS: €0.24 (down from €0.36 in 2Q 2021). Revenue: €87.8m (up 2.4% from 2Q 2021). Net income: €4.20m (down 34% from 2Q 2021). Profit margin: 4.8% (down from 7.5% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 27
Upcoming dividend of €1.00 per share Eligible shareholders must have bought the stock before 03 June 2022. Payment date: 17 June 2022. Payout ratio is a comfortable 61% but the company is not cash flow positive. Trailing yield: 6.3%. Within top quartile of Estonian dividend payers (6.3%). Higher than average of industry peers (3.6%). Reported Earnings • May 06
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: €0.17 (down from €0.19 in 1Q 2021). Revenue: €68.4m (up 14% from 1Q 2021). Net income: €3.01m (down 11% from 1Q 2021). Profit margin: 4.4% (down from 5.6% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 6.4%. Earnings per share (EPS) exceeded analyst estimates by 230%. Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 17% per year. Buying Opportunity • Mar 07
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 7.5%. The fair value is estimated to be €18.21, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.7% per annum over the last 3 years. Earnings per share has grown by 17% per annum over the last 3 years. Reported Earnings • Feb 12
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: €1.65 (up from €1.30 in FY 2020). Revenue: €339.4m (up 7.4% from FY 2020). Net income: €29.1m (up 27% from FY 2020). Profit margin: 8.6% (up from 7.3% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 32%. Earnings per share (EPS) also surpassed analyst estimates by 230%. Over the next year, revenue is expected to shrink by 12% compared to a 8.4% growth forecast for the industry in Estonia. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 19% per year. Buying Opportunity • Jan 24
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 4.5%. The fair value is estimated to be €18.52, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.7% per annum over the last 3 years. Earnings per share has grown by 12% per annum over the last 3 years. Reported Earnings • Nov 05
Third quarter 2021 earnings released: EPS €0.31 (vs €0.28 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €80.7m (up 1.2% from 3Q 2020). Net income: €5.51m (up 13% from 3Q 2020). Profit margin: 6.8% (up from 6.1% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 06
Second quarter 2021 earnings released: EPS €0.36 (vs €0.35 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: €85.8m (up 16% from 2Q 2020). Net income: €6.40m (up 3.9% from 2Q 2020). Profit margin: 7.5% (down from 8.3% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • May 28
Upcoming dividend of €1.00 per share Eligible shareholders must have bought the stock before 04 June 2021. Payment date: 18 June 2021. Trailing yield: 6.3%. Within top quartile of Estonian dividend payers (5.4%). Higher than average of industry peers (2.7%). Valuation Update With 7 Day Price Move • May 19
Investor sentiment deteriorated over the past week After last week's 16% share price decline to €14.30, the stock trades at a trailing P/E ratio of 10.4x. Average trailing P/E is 15x in the Construction industry in Europe. Total returns to shareholders of 59% over the past three years. Reported Earnings • May 07
First quarter 2021 earnings released: EPS €0.19 (vs €0.11 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: €60.1m (up 7.6% from 1Q 2020). Net income: €3.37m (up 67% from 1Q 2020). Profit margin: 5.6% (up from 3.6% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 14% per year. Reported Earnings • Apr 10
Full year 2020 earnings released: EPS €1.30 (vs €0.92 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: €315.9m (down 3.3% from FY 2019). Net income: €23.0m (up 41% from FY 2019). Profit margin: 7.3% (up from 5.0% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 12% per year. Is New 90 Day High Low • Mar 02
New 90-day high: €12.60 The company is up 34% from its price of €9.40 on 02 December 2020. The Estonian market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is up 2.0% over the same period.