Merko Ehitus Reports Mixed H1 2026 Results Amid Rising Input Costs — AS Merko Ehitus

Event summary

Merko Ehitus reported EUR 150 million revenue and EUR 12.8 million net profit for H1 2026, with Q2 revenue at EUR 93 million.
Secured order book reached an all-time high of EUR 836 million as of June 30, 2026.
Construction input prices increased as anticipated, with no easing of price pressures expected.
New contracts signed in H1 2026 totaled EUR 486.4 million, including the Rūdninkai defence force campus project (EUR 370 million).
Apartments delivered increased more than twofold in Q2 2026 compared to Q1 2026.

The big picture

Merko Ehitus's H1 2026 results reflect a mixed performance, with strong revenue growth and a record-high order book offset by declining profitability due to rising input costs. The company's strategic focus on large-scale projects like the Rūdninkai defence force campus and residential developments in Riga highlights its diversification across construction services and real estate development. However, the broader economic environment, marked by persistent price pressures and moderating market activity in Vilnius, poses challenges for maintaining profitability and growth.

What we're watching

Profitability Pressures: How sustained input cost increases will affect Merko Ehitus's profit margins in the second half of 2026.
Order Book Execution: The pace at which the company can convert its record-high order book into revenue and maintain growth momentum.
Market Dynamics: Whether Merko Ehitus can sustain its performance amid moderating activity in Vilnius's new apartment market and price-sensitive customers across all home markets.