Forth Quarter Report
The main activity of the Group, the Parent Company of which is SIA Arsenal Industrial (hereinafter- the Parent Company, together with daughter companies – “the Group”), is rent and sale of construction equipment and hand tools with complementary activities of transportation and technical services.
Currently, the Group works in all three Baltic countries. The Group's goal is to provide products and services of high quality and to be an effective company that listens to the wishes of customers and implements them. To be a stable cooperation partner providing high quality customer service, establishing partnerships with entrepreneurs and continuing to invest in the Group’s infrastructure.
During the reporting period from 1 January 2025 to 31 December 2025, the Group achieved solid and sustainable growth across its core markets. Group turnover increased by 4%, reaching EUR 11,203,130 compared with EUR 10,803,202 in 2024. Rental turnover recorded strong growth of 9.5%, reflecting continued demand for the Group’s services. The Group’s net result improved significantly to a loss of EUR -7,572, compared with a loss of EUR -400,000 in the previous year, representing a substantial year-on-year improvement. EBITDA increased by 27.4%, reaching EUR 1,659,989. These results confirm that the strategic direction pursued by the Group continues to deliver measurable outcomes, supported by a gradually recovering market environment and disciplined operational management.
Performance in Latvia was particularly strong, with total turnover increasing by 16.8% compared with 2024 and reaching EUR 8,132,353. Sales turnover grew by 22%, exceeding EUR 3 million in 2025. In Lithuania, rental turnover from own equipment increased by 28%, while reliance on re-rented equipment decreased, improving operational efficiency and margins. This positive development was supported by continued and gradual investments in the fixed asset base throughout 2025, enabling the Group to respond effectively to rising demand.
During 2025, the Group made significant investments in fixed assets totaling EUR 2.9 million. These investments played an important role in supporting revenue growth and operational capacity. As the newly acquired assets have not yet been utilized for a full financial year, their full EBITDA contribution is not yet reflected in the current results, and additional positive impact is expected going forward.
To further strengthen the capital structure, the Group increased its share capital by EUR 200,000 during the year. This contributed to a stronger equity position and enabled the Group to achieve the Adjusted Equity / Assets covenant ratio of 15.2%. While the Net Debt / EBITDA covenant target of below 3.5 was not fully met, with the ratio reaching 4.14, this represents a meaningful improvement compared with the previous year. The ratio was influenced by the significant investment program, the benefits of which are expected to be more fully reflected in future periods.
Demand for rental equipment continues to grow at a rate exceeding that of the broader construction sector. The strongest momentum is observed in the military, infrastructure, and energy segments, which remain key focus areas for the Group. In parallel, the continued adoption of digital solutions, including remote signing of rental agreements, has enhanced operational efficiency and improved the overall customer experience.
Considering the strong results delivered in 2025, supported by disciplined cost management and steady demand across priority segments, the Group remains well positioned for further improvement. Management will continue to focus on operational efficiency, the attraction of new customers, and the strategic enhancement of the equipment fleet through targeted investments and the gradual replacement of older units.
In addition, as the maturity of the outstanding bond is approaching, the Group is actively evaluating refinancing options. Management is working to ensure a timely and structured refinancing process that will support financial stability and the Group’s long-term development objectives.
Gints Vanags
SIA Arsenal Industrial, CEO
Mobile: + 371 26 303 848
E-mail: gints.vanags@arsenalrent.com
www.arsenalnoma.lv
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