During the reporting period from 1 January 2025 to 30 June 2025, both Latvia and Lithuania demonstrated solid turnover growth compared to the same period in 2024. In Latvia, turnover increased by 15% (EUR 3,795,606 in 2025 vs. EUR 3,308,068 in 2024), while in Lithuania, rental turnover grew by 21% (EUR 807,106 in 2025 vs. EUR 669,637 in 2024). These results confirm the strong development of the Group’s core markets and highlight a positive regional growth trajectory. Overall, the Group achieved an improved EBITDA, rising by 59.6% (from EUR 316,558 in 2024 to EUR 515,300 in 2025).
The Group successfully reduced its second-quarter loss by 40% compared to 2024 (EUR -320,297 vs. EUR -532,305). Operating costs were reduced by 6%, from EUR 2.3 million to EUR 2.16 million, primarily due to effective cost-control measures. This substantial improvement underscores that the business is firmly on a recovery path. With demand strengthening during the peak construction season, the Group anticipates further improvements in profitability over the coming quarters.
The Group’s growth is driven by its 3,500 active customers, who are central to its success, as well as by the dedication of our professional employees who serve them. These strong results were achieved thanks to the work of our teams. Demand for rental equipment is rising faster than the moderate pace of overall construction growth in recent years. The strongest momentum is observed in the military, infrastructure, and energy sectors, which remain the Group’s strategic focus areas. At the same time, customers are increasingly adopting the Group’s digital solutions, such as the ability to sign rental agreements remotely, which enhances convenience and strengthens client loyalty. In addition, we have introduced a Customer Portal that allows clients to easily order equipment, track their transactions, and view invoices, further improving service quality.
In anticipation of peak rental demand, the Group has continued to invest strategically. In Q1 2025, EUR 1 million was invested into fleet expansion, followed by an additional EUR 1 million in Q2. At the same time, we have significantly increased the number of mechanics, customer service, and technical staff, and invested in their professional growth. We believe that while the first piece of equipment is sold by the salesperson, every subsequent one is sold by customer service and repair teams. This ensures not only today’s success but also future sales and rentals. These investments are designed to strengthen the equipment base, improve the fixed asset turnover ratio, and ensure the Group can fully meet growing market demand. The deployment of new equipment is expected to drive stronger financial results in Q3 and Q4 2025, significantly surpassing those of the corresponding periods in 2024. Furthermore, in Q3 we will report on the relocation of our Riga rental branch to a new site, which will provide improved accessibility and service conditions for our customers.
Taking into account the solid performance in the first half of 2025, effective cost reductions, growing demand in key sectors, and continued investments in the rental fleet, the Group is well positioned for further growth and profitability. Management remains confident that these measures will provide a strong foundation for sustained improvement in the Group’s financial results throughout the remainder of 2025.
Gints Vanags
SIA Arsenal Industrial, CEO
Mobile: + 371 26 303 848
E-mail: gints.vanags@arsenalrent.com
www.arsenalnoma.lv