Merko Ehitus Secures EUR 30M Defence Campus Contract in Latvia

Event summary

  • Defence Construction Canada (DCC) issued a notice to proceed for a EUR 30M defence campus project in Latvia, awarded to Merko Ehitus' joint venture PS MB.MEE.
  • The contract includes construction of permanent accommodations and support infrastructure, with completion scheduled for Q3 2027.
  • Merko Ehitus group reported EUR 311M revenue in 2025, with 613 employees across Estonia, Latvia, and Lithuania.

The big picture

This contract marks Merko Ehitus' entry into defence infrastructure, a strategic pivot from its traditional commercial and residential construction focus. The EUR 30M deal underscores the growing demand for defence-related projects in Eastern Europe, driven by regional security concerns. Merko Ehitus' ability to execute this project efficiently could open doors to similar high-value contracts in the future.

What we're watching

Execution Risk
Whether Merko Ehitus can deliver the EUR 30M project on time amid potential geopolitical tensions in the region.
Market Positioning
How this defence contract positions Merko Ehitus in the Baltic defence infrastructure market.
Revenue Diversification
The pace at which Merko Ehitus can secure additional defence-related contracts to balance its revenue streams.

Related topics

Revenue Construction