Harju Elekter Group Reports Strong Profit Margin in Q3 2026

In the third quarter of 2026, Harju Elekter Group generated sales revenue of 41 million euros, approximately 5% lower than in the corresponding period last year. While sales volumes have not yet reached the desired level, the quarter marked the strongest performance of the year in terms of profitability. Operating profit amounted to 2.3 million euros, and the operating margin increased to 5.7%, exceeding the Group’s minimum target level of 5%.

The Group signed a significant contract worth approximately 15.5 million euros for the design and manufacture of E-house solutions for the electrical distribution system of a data centre being developed in Finland. E-house solutions integrate power distribution and control systems into a factory-built modular solution, reducing the amount of on-site work and shortening overall project implementation time. This contract is driven by strong investment activity in the data centre sector and the growing demand for more advanced power distribution solutions.

To support the increasing project volumes, a new 4,000-square-metre production facility was completed in Keila at the end of the quarter. This new factory will manufacture electrical equipment and power control solutions for data centres, which will be exported to customers across Europe and other global markets. This investment significantly enhances the Group’s production capacity and supports its long-term growth strategy in the rapidly expanding data centre market.

Harju Elekter Group’s revenue for the third quarter amounted to 41.0 million euros (Q3 2025: 43.0 million euros), and for the nine months, it reached 118.2 million euros (9M 2025: 126.5 million euros). Despite the decline in sales, the Group’s operating expenses decreased by 2.0% and 2.5% in the third quarter and nine months, respectively. Distribution costs increased to 2.1 million euros (Q3 2025: 1.7 million euros) in the third quarter and 5.8 million euros (9M 2025: 4.4 million euros) in the nine months. Administrative expenses increased by 12.7% to 2.3 million euros (Q3 2025: 2.1 million euros) in the third quarter and by 13.5% to 8.0 million euros (9M 2025: 7.0 million euros) in the nine months, accounting for 6.7% (9M 2025: 5.5%) of nine-month revenue.

Labour costs increased by 9.0% to 9.2 million euros (Q3 2025: 8.5 million euros) in the third quarter and by 8.8% to 30.6 million euros (9M 2025: 28.1 million euros) in the nine months. Labour costs as a percentage of revenue rose to 22.5% (Q3 2025: 19.7%) in the third quarter and to 25.9% (9M 2025: 22.2%) in the nine months, as the Group retained its team and production capacity to serve upcoming project volumes.

Gross profit decreased to 6.8 million euros (Q3 2025: 7.5 million euros), and the gross margin fell to 16.6% (Q3 2025: 17.3%). The decline in margin was mainly due to lower production volumes, which resulted in weaker coverage of fixed costs. Third-quarter operating profit (EBIT) amounted to 2.3 million euros (Q3 2025: 3.8 million euros), resulting in an operating margin of 5.7% (Q3 2025: 8.7%). Gross profit for the nine months was 17.5 million euros (9M 2025: 20.6 million euros), and the gross margin was 14.8% (9M 2025: 16.3%). Operating profit (EBIT) for the nine months was 3.9 million euros (9M 2025: 10.1 million euros), with an operating margin of 3.3% (9M 2025: 8.0%). Net profit for the nine months was 1.6 million euros (9M 2025: 8.2 million euros).

The Group’s sales are increasingly concentrated in Finland and Sweden. These two markets accounted for 60.1% (Q3 2025: 41.7%) of the Group’s revenue in the third quarter. Revenue in Finland amounted to 17.0 million euros (Q3 2025: 13.7 million euros) in the third quarter and 48.1 million euros (9M 2025: 40.4 million euros) in the nine months, an increase of 19.0% and 20.7%, respectively. Sales in Sweden recorded the strongest growth among the markets, with revenue of 7.6 million euros (Q3 2025: 4.2 million euros) in the quarter and 21.6 million euros (9M 2025: 14.4 million euros) in the nine months, an increase of 50.8% over the nine months. Sales were supported by the realisation of larger projects and demand for substations and technical buildings.