Tallinna Sadam reports stronger quarterly earnings despite lower cargo volumes
Estonian port operator Tallinna Sadam reported higher revenue and profit for the third quarter of 2026, supported by its ferry operations and increased cruise activity, despite a decline in cargo throughput.
Revenue rose by 6.7% year-on-year to EUR 33.8 million, while adjusted EBITDA increased by 7% to EUR 16.6 million. Net profit reached EUR 9.5 million, up 10.9% from the corresponding period of 2025, with the adjusted EBITDA margin improving slightly to 49.1%.
The nine-month performance presented a more mixed picture. Revenue increased by 3.9% to EUR 93.1 million, but adjusted EBITDA declined by 6.5% to EUR 42.4 million. Net profit fell by 17.8% to EUR 15.5 million, while the adjusted EBITDA margin decreased from 50.6% to 45.5%.
Passenger activity and ferry services support revenue
Tallinna Sadam recorded a 2.1% increase in passenger numbers during the third quarter, while cargo volumes declined by 3.3%. Vessel calls remained broadly stable, reflecting different operating conditions across the group’s passenger, cargo and shipping activities.
The ferry segment recorded modest operational growth, with passenger numbers increasing by 0.3% and vehicles transported rising by 0.6%. The number of ferry trips decreased by 0.2%, although revenue from ferry services increased as contractual adjustments supported the segment’s financial performance.
For the first nine months, ferry service revenue rose by EUR 1.4 million, or 4.9%. The increase was primarily driven by contractual indexation linked to changes in Estonian fuel, labour and consumer price indices, together with higher compensation for the fixed costs of additional trips operated by the ferry Regula.
The group also recorded higher revenue from vessel dues and passenger fees. Increased cruise ship visits contributed to vessel-related income, while changes in tariffs supported revenue despite softer passenger volumes in certain parts of the business over the nine-month period.
Revenue from electricity sales increased by EUR 0.8 million, or 24.4%, during the first nine months, supported by higher electricity and network service volumes, new network tariffs introduced in March and regulatory changes affecting electricity charges.
Valdo Kalm, Chairman of the Management Board of Tallinna Sadam, said the third-quarter improvement was supported by cruise activity and ferry operations, with the quarterly adjusted EBITDA margin reaching approximately 49%.
Botnica secures additional charter employment
The group’s multipurpose icebreaker Botnica was chartered for 18% of the third quarter, representing three fewer charter days than in the same period of 2025. Nevertheless, charter fee revenue for the first nine months increased by EUR 0.9 million, or 15.8%, reflecting a higher number of charter days across the reporting period.
During the third quarter, Botnica began operations in the North Sea, while Tallinna Sadam secured two charter agreements covering future employment. One agreement provides activity extending into the fourth quarter of 2026, while another covers operations in South Africa during the summer of 2027.
The new agreements provide additional employment visibility for the vessel, which is operated through the group’s subsidiary TS Shipping. Alongside icebreaking duties in Estonia, Botnica is deployed on offshore projects in international markets.
Port investments and financial position
Tallinna Sadam invested EUR 3.3 million during the third quarter, compared with EUR 8.8 million a year earlier. Total investment expenditure for the first nine months amounted to EUR 6.8 million, down from EUR 20.8 million in the corresponding period of 2025.
Investment activity included improvements to a cargo harbour quay to provide onshore power supply for container vessels, as well as infrastructure enabling cruise ships to connect to shore-side electricity at the Old City Harbour. Other projects included ferry machinery replacement, vessel docking works, completion of a multifunctional quay at Paldiski South Harbour, and design work related to Terminal A and the company’s head office.
The group’s financial position showed a reduction in interest-bearing debt to EUR 166 million at September 30, 2026, compared with EUR 173.7 million at the end of 2025. Total assets stood at EUR 616 million, while equity amounted to EUR 377.2 million.
Operating cash flow for the first nine months decreased to EUR 32.4 million from EUR 43.3 million a year earlier. Cash and cash equivalents totalled EUR 31.2 million at the end of September, compared with EUR 32 million at the beginning of the year.
Tallinna Sadam also paid EUR 19.2 million in dividends during the second quarter, resulting in an income tax expense of EUR 5.4 million, unchanged from the corresponding period of 2025.
The latest results highlight the different trends affecting the group’s operations. Passenger and ferry services supported third-quarter earnings, while cargo volumes remained under pressure and nine-month profitability declined despite higher revenue. The company continues to invest in port infrastructure and vessel operations while maintaining a lower level of interest-bearing debt than at the end of the previous financial year.
