Harju Elekter earnings declined in the third quarter of 2026 as delayed projects and underused factories weighed on sales. The electrical-equipment group reported revenue of €41.0 million, down 4.8% from a year earlier, and net profit of €1.3 million, down 54.7%. Still, the quarter was its strongest of the year for profitability, while a new Finnish data-centre contract helped strengthen its order book.
Key Takeaways
- Third-quarter operating margin reached 5.7%, above the group’s 5% minimum target but below 8.7% a year earlier.
- A roughly €15.5 million Finnish data-centre contract supported order growth as Harju Elekter expanded production capacity.
- Management is shifting Finnish operations toward higher-value projects and seeking more work for its Lithuanian factory.
Table of Contents
- Harju Elekter earnings show an uneven recovery
- Lower volumes strain costs as Nordic sales grow
- Data-centre demand drives orders and factory expansion
- Manufacturing changes target a more balanced workload
- Conclusion
Harju Elekter earnings show an uneven recovery
The unaudited results released on October 22 show improvement from the first half without a return to last year’s profitability. Third-quarter operating profit fell 38.2% year on year to €2.3 million, even as the operating margin exceeded the group’s minimum target.
For January–September 2026, revenue declined 6.6% to €118.2 million. Operating profit dropped 61.4% to €3.9 million, and net profit fell 80.3% to €1.6 million. The nine-month operating margin was 3.3%, compared with 8.0% a year earlier.
Management said some planned production was delayed again because previously postponed projects depended partly on deliveries of customer-specific components. Workloads also remained below expectations at several units, particularly in Lithuania, where orders were insufficient.
| Item | Details |
|---|---|
| Q3 EBITDA | €3.486 million in 2026 versus €4.840 million in 2025; down 28.0%. |
| Q3 earnings per share | €0.07 in 2026 versus €0.16 in 2025. |
| Nine-month gross profit | €17.482 million in 2026 versus €20.564 million in 2025. |
| Nine-month non-current asset investment | €5.5 million in 2026 versus €2.9 million in 2025. |
| Cash at September 30, 2026 | €1.484 million, compared with €1.545 million at December 31, 2025. |
Lower volumes strain costs as Nordic sales grow
Lower production volumes weakened fixed-cost coverage, reducing the third-quarter gross margin to 16.6% from 17.3%. Operating expenses fell 2.0%, but labour costs increased 9.0% to €9.2 million as the group retained employees and capacity for upcoming projects.
Sales and administrative spending also rose. Harju Elekter attributed higher distribution costs to investments in sales teams, marketing and international trade fairs intended to support future sales volumes.
Finland and Sweden provided a counterweight to declines elsewhere. Together, they accounted for 60.1% of quarterly revenue, up from 41.7% a year earlier. Nine-month sales increased 19.0% in Finland and 50.8% in Sweden, while Norway and Estonia recorded declines linked to project timing and strong prior-year comparisons.
Data-centre demand drives orders and factory expansion
During the third quarter, Harju Elekter signed a contract worth approximately €15.5 million to design and manufacture E-house solutions for a data centre under development in Finland. Management identified data-centre investment as the main driver of order-intake growth.
Harju Elekter’s E-house product description explains how these factory-assembled electrical and mechanical units support power distribution and data-centre infrastructure. Factory assembly and testing can shorten installation work at the customer’s site.
The group completed a new 4,000-square-metre production facility in Keila at the end of the quarter, bringing the factories’ total production area there to 30,000 square metres. The expansion will manufacture electrical equipment and power-control solutions for data-centre customers in Europe and other markets.
These orders and investments expand the group’s future delivery capacity, but they are not equivalent to revenue already earned. The latest quarter’s component-related delays illustrate the importance of converting backlog into completed projects.
Manufacturing changes target a more balanced workload
With utilisation rising at its Estonian units, Harju Elekter aims to allocate more group production to Lithuania and broaden that factory’s customer base beyond its historical concentration in marine-sector work. Management said ongoing tenders and projects offered opportunities for additional Lithuanian production.
In Finland, the group plans to gradually reduce lower-value contract manufacturing and redirect resources toward larger, higher-margin projects. Management said a business model based primarily on selling capacity and labour hours had become less competitive in a high-cost environment.
After the quarter ended, Harju Elekter accepted an offer from Siemens International Holding B.V. for a partial disposal of its stake in Skeleton Technologies Group. The company said the transaction would recover its original investment with a return and improve financial flexibility, while leaving it with a remaining shareholding. Acceptance of the offer does not establish that the disposal has been completed.
Conclusion
Harju Elekter earnings remain well below 2025 levels despite improving profitability within 2026. The next operational test is delivering the growing project backlog through the expanded Keila facility while increasing utilisation in Lithuania and shifting Finland toward higher-value work.
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