Estonian construction firms Merko and Nordecon report profit drops amid rising input costs

Merko Ehitus, listed on the Tallinn Stock Exchange, posted higher sales revenue in the second quarter and first half of the year, but its profit figures fell short of the previous year’s levels. Management attributed the decline to rising construction input prices and highlighted a large backlog of unfinished work that keeps the market outlook optimistic.

Nordecon also saw sales growth in the same periods and noted moderate signs of market recovery. However, its profitability was squeezed by higher input costs and the composition of its project portfolio. The company said, “Ehitussektoris on märgata stabiliseerumise ja mõõduka taastumise märke,” and pointed to strong demand from defence, infrastructure and energy projects while building activity in the housing segment remains cautious.