On 19 December 2024, Harju Elekter Group’s Swedish subsidiary Harju Elekter AB signed a new 3- year framework agreement with on the largest Swedish distribution network company E.ON Energidistribution AB with the term of 31.12.2027, according to which approximately 2000 substations will be delivered. The total volume of the agreement is nearly 15 million euros.

The substations will be produced in the factory of Harju Elekter in Estonia.

E.ON Energidistribution AB is the largest electricity distribution company in Sweden, with more than 44,000 substations in its electricity network. Countrywide, E.ON Energidistribution AB provides electricity to over 1,000,000 private and corporate customers in Sweden. Its parent company, E.ON, is an international privately-owned energy supplier focusing on renewables, energy networks, and customer solutions, which are the building blocks of the new energy world.

 Harju Elekter is an international industrial group with extensive experience in providing future proof solutions for electrical power distribution. We engineer, manufacture, and install electrification solutions for utilities, industries, infrastructure, public and commercial buildings. The entities of Harju Elekter Group in Estonia, Finland, Sweden, and Lithuania employ around 840 people, and the Group’s revenue in nine months of 2024 was 145 million euros.

 Tiit Atso

Juhatuse esimees

Tel 674 7400

Additional info:

Martin Frank, Harju Elekter AB, managing director, phone: +46 76 134 50 80

Alvar Sass, AS Harju Elekter, managing director,  phone: +372 53933039

AS Harju Elekter Group informs that in the year 2025, the consolidated financial results will be published as following:

2024 interim report 4Q results                      20.02.2025
2025 interim report 1Q results                      24.04.2025
2025 interim report 2Q results                      24.07.2025
2025 interim report 3Q results                      30.10.2025

The annual general meeting of shareholders is scheduled for 24 April 2025.

After their release through the stock exchange information system all Harju Elekter’s announcements are also available on the company’s internet homepage at www.harjuelekter.com.

Tiit Atso
Chairman of the Management Board
+372 674 7400

The Supervisory Board of AS Harju Elekter Group decided, in line with the approval of the Group’s new development strategy, to recall all current members of the Management Board – Tiit Atso, Priit Treial and Aron Kuhi-Thalfeldt – on 31/12/2024. The recall is linked to the strategic decision to expand the Management Board to five (5) members and to allow members to start the new period on an equal term.

As of 1 January 2025, the Management Board of AS Harju Elekter Group, with a term of office of three (3) years until 31/12/2027, will consist of:

Tiit Atso – chairman of the management board

Priit Treial – financial management

Aron Kuhi-Thalfeldt – real estate

Erko Lepa – manufacturing and supply chain

Tiit Luman – sales, marketing and product management

Tiit Atso and Aron Kuhi-Thalfeldt have been members of the management board of Harju Elekter since 2016, Priit Treial since 2022.

Erko Lepa (born 1981) joined Harju Elekter in autumn 2021 and is responsible for production and strategic purchasing in Harju Elekter Group. Previously, he has worked at ABB in various positions starting as a product development engineer and ending as a transformation lead responsible for the global transformation of ABB’s motor and generator business. He holds a master’s degree in electric drives and power electronics from Tallinn University of Technology. Erko Lepa is a shareholder and member of the Management Board of LepaTec OÜ. Erko Lepa owns 23 shares in AS Harju Elekter Group.

Tiit Luman (born 1986) has worked at Harju Elekter since 2008 as Sales Director and Head of Strategic Partnership and responsible for marketing, product, and sales management in Harju Elekter Group. He holds a master’s degree in business finance and electrical power engineering from Tallinn University of Technology. Tiit Luman does not own shares in AS Harju Elekter Group.

The expansion of the Management Board will provide a solid basis for the implementation of the strategic objectives during the period 2025–2027 and reflects the Group’s growth ambitions and focus on even more efficient production and sales. The Supervisory Board of AS Harju Elekter Group is convinced that the new Management Board will contribute to increasing the Group’s competitiveness and achieving a strong market position in both domestic and foreign markets.

Harju Elekter is an international industrial group with extensive experience in providing future proof solutions for electrical power distribution. We engineer, manufacture, and install electrification solutions for utilities, industries, infrastructure, public and commercial buildings. The entities of Harju Elekter Group in Estonia, Finland, Sweden, and Lithuania employ around 840 people, and the Group’s revenue in nine months of 2024 was 145 million euros.

Tiit Atso
Chairman of the Management Board
+372 674 7400

From today, the head office of AS Harju Elekter Group is located in Tallinn. In relation to that, from 18 November 2024, the address of AS Harju Elekter Group is Tammsaare road 56, 3^rd floor, 11316 Tallinn.

In order to change the legal address in the business register, the articles of association of AS Harju Elekter Group must be changed, which will be submitted to the shareholders for approval at the  regular general meeting in the spring of 2025.

The Estonian factory of the Harju Elekter group continues to operate in Keila Tööstusküla, and the rest of the group’s contact information remains the same.

Harju Elekter is an international industrial group with extensive experience in providing future proof solutions for electrical power distribution. We engineer, manufacture, and install electrification solutions for utilities, industries, infrastructure, public and commercial buildings. The entities of Harju Elekter Group in Estonia, Finland, Sweden, and Lithuania employ around 840 people, and the Group’s revenue in nine months of 2024 was 145 million euros.

Tiit Atso
Chairman of the Management Board
+372 674 7400

Third quarter results for Harju Elekter were in line with expectations. The decline in the volume of orders, which started in the spring, had a significant impact on revenues, which fell by almost a third during the reporting quarter. In order to maintain strong profitability, the Group’s companies used several cost-saving measures, an important part of which was the adjustment of the number of employees in line with the business volumes. During this year, the number of employees in the Group decreased from 956 to 841. The company has been able to reasonably reduce labour costs and simultaneously optimize general administrative expenses.

At the end of the third quarter, we once again saw a new increase in order volumes, but these will be largely reflected in revenues in the spring and summer of the new year. It is clear that there will be at least two more difficult quarters ahead. We must continue to pursue the course of reasonable savings, without losing the high level of competence that will ensure success in the periods ahead.

We are about to begin preparing the 2025 budget. In the near future, the strategic development plan for years 2025–2030, prepared by management, will also be approved. We continue to see good opportunities for growth in both business volumes and profitability in our sector.

At the end of 2024, the parent company of the Harju Elekter Group will move from Keila to the Tondi business district of Tallinn. We began to change the role of the Group’s parent company two years ago by establishing a reasonable level of sector-specific management in the Group’s companies. One of the functions of the Harju Elekter Group is to manage all subsidiaries with equal attention. The financial results of the last two years are a testament to the success of this management model, and the move to Tallinn represents a fitting end to this phase of change.

Revenue and financial results

The revenue decline in the third quarter was influenced by a decrease in core business orders and the stabilization of previously increased order volumes in key markets.   The nine-month total results achieved exceeded the corresponding period in last year thanks to the strong financial performance achieved by the Lithuanian, Estonian, and Finnish business units in the second quarter. The growth in profitability was driven by the unravelling of supply chain difficulties in the previous year, higher order volumes in the second quarter, and optimisation of the number of employees. In the reporting quarter, revenue was 41.2 (2023 Q3: 56.2) million euros and for the nine months, it was 144.7 (2023 9M: 158.3) million euros.

 Core business and markets

Revenue from the production segment, the core business decreased by 28.1% in the third quarter compared to the previous year and by 8.6% over the nine-month comparison. The production segment generated revenue of 38.5 (2023 Q3: 53.6) million euros in the third quarter and 137.2 (2023 9M: 150.2) million euros over nine months. Sales of electrical equipment accounted for 93.4% and 94.8% of the group’s revenue for the quarter and for the nine months, respectively. The decline in revenue was primarily due to a reduction in orders in the company’s key markets, which is linked to decreased orders from distribution networks and contract manufacturing works for the second half of the year.

The Group’s largest target markets—Estonia, Finland, Sweden, and Norway – accounted for 84,3% of the total revenue in the third quarter. In the reporting quarter, the group earned 6.4 (2023 Q3: 5.1) million euros from the Estonian market, which is 24.5% more than the previous year. As a result, the revenue over nine months also grew by 13.4%, reaching 17.7 (2023 9M: 15.6) million euros. The increase in sales in Estonia was mainly driven by higher sales of compact substations to electricity distribution network customers.

Revenue from the Finnish market decreased by 17.7%, reaching 16.9 million euros, compared to 20.5 million euros in the same period last year. Over the nine months, the decline was 14.5%, resulting in revenue falling to 54.5 (2023 9M: 63.7) million euros. The decline in revenue in Finland was due to lower demand for compact substations, resulting from changes in utility price control methods implemented at the beginning of 2024 and also by a decrease in sales of electric vehicle charging stations and solar energy solutions.

Revenue from the Norwegian market halved compared to the third quarter of the previous year. In the reporting quarter, revenue was 5.7 (2023 Q3: 12.6) million euros, and over nine months, a total of 23.1 (2023 9M: 28.1) million euros. The largest decline occurred in the sales of drive cabinets and motor control centers to contractual customers in the maritime sector.

Similar to other Scandinavian countries, the group’s revenue in the reporting quarter also declined on the Swedish market, decreasing by 26.1% compared to the previous year. The quarterly revenue was 5.7 (2023 Q3: 7.7) million euros, and over nine months, it reached 21.2 (2023 9M: 23.3) million euros. The main reason for the revenue decline was significant changes in the business model, including the decision to discontinue the sale of EPC projects, or turnkey solutions, and to focus on factory-made products.

Investments

During nine months, Harju Elekter invested a total of 2.8 (2023 9M: 5.0) million euros in non-current assets, including 1.4 (2023 9M: 4.2) million euros in investment properties, 0.7 (2023 9M: 0.6) million euros in property, plant, and equipment, and 0.7 (2023 9M: 0.2) million euros in intangible assets. The investments included large-scale renovation and reconstruction work at the Keila industrial park, aimed at meeting the needs of the long-term tenant, Prysmian Group Baltics. Additionally, production technology equipment’s were acquired, and production and process management systems were developed.

As of the reporting date, the value of the Group’s long-term financial investments was 27.7 (31.12.23: 29.2) million euros. In the second quarter, most of the listed securities were sold. The fair value of the remaining securities slightly increased in the reporting quarter but decreased by 66 thousand euros over nine months of the reporting year

Share

The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 4.66 euros.

Priit Treial
CFO and Member of the Management Board
+372 674 7400

priit.treial@harjuelekter.com

On 29.09.2023, AS Harju Elekter Group and Reinvent OÜ concluded a contract of sale of a share in a private limited company, in which AS Harju Elekter Group acquires a 19.48% share in Energo Veritas OÜ. As a result of the transaction, AS Harju Elekter Group will become the sole shareholder of Energo Veritas OÜ, holding the sole share of Energo Veritas OÜ with a nominal value of EUR 2,500.

A part of the Harju Elekter Group, Energo Veritas OÜ is a company that provides electrical materials and equipment, including technical consultancy and development of solutions, bundling of goods according to the customer’s requirements and deliveries to the construction site. In line with the strategy of AS Harju Elekter Group to focus on the production of its own factory, the purpose of the transaction is to discontinue the retail and wholesale activities of Energo Veritas OÜ.

As the sole shareholder of Reinvent OÜ, Kristo Reinhold, is a Member of the Management Board of Energo Veritas OÜ, the transaction qualifies as a transaction with related parties and is not a material transaction for the purposes of the Rules and Regulations of Nasdaq Tallinn Stock Exchange. The members of the supervisory board and management board of AS Harju Elekter Group are not personally or in other way interested in the transaction.

As a result of the transaction, Kristo Reinhold will be recalled from the Management Board of Energo Veritas OÜ as of 30.09.2023, and Aron Kuhi-Thalfeldt, a Member of the Management Board of AS Harju Elekter Group and Head of the Real Estate Unit, will be appointed as the new Member of the Management Board.

Harju Elekter is an international industrial group with extensive experience in providing future proof solutions for electrical power distribution. We engineer, manufacture, and install electrification solutions for utilities, industries, infrastructure, public and commercial buildings. The entities of Harju Elekter Group in Estonia, Finland, Sweden, and Lithuania employ around 1000 people, and the Group’s revenue in the first six months of 2023 was 102 million euros.

Tiit Atso

Chairman of the Management Board

+372 674 7400