Harju Elekter announced a substantial increase in dividends due to a growth in gross profit and EBITDA, despite a slight decline in sales revenue compared to the previous year.
Harju Elekter, an Estonian electrical engineering company, reported a total sales revenue of 174 million euros for 2025, which is a slight decrease from the 174.7 million euros in 2024. However, the company experienced significant growth in gross profit, which rose by 23.9 percent to 25.9 million euros. Additionally, earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 58.5 percent, reaching 16.4 million euros. This robust financial performance has allowed Harju Elekter to propose a significant increase in dividends to shareholders, reflecting the company’s strong operational results and financial health.
The net profit for the year amounted to 10.8 million euros, translating to an increase in earnings per share from 0.17 euros to 0.58 euros. Such growth in profit margins highlights the company's effective cost management and market strategies. Moreover, the company’s shares closed at 4.85 euros on the last trading day of the reporting quarter on the Nasdaq Tallinn stock exchange, which may influence investor sentiment positively as the company continues to grow and expand its market presence.
In summary, the dividend hike is a positive indicator for shareholders and reflects a well-managed company capable of navigating challenging market conditions. As Harju Elekter prepares for the next steps in its business strategy, maintaining this growth trajectory will be crucial for sustaining investor confidence and attracting further investment in future.
