Greek port operator Piraeus Port Authority and construction firm EKTER recorded net profit declines of nearly 24 percent in the first half of 2026, though operational expansions and rising contract backlogs signal a stronger performance in the second half of the year.
Piraeus Port Authority, which operates Greece's main maritime hub in Piraeus, saw its first-half revenue drop 8.8 percent to 111.9 million euros. Net profit fell 24.4 percent to 35.35 million euros compared to 46.74 million euros in the same period of 2025.
Despite the drop in net income, earnings before interest, taxes, depreciation and amortization reached 56.1 million euros, or 56.09 million euros, down from 69.27 million euros in 2025. Operating profitability remained robust, with the operating margin holding at 50.1 percent.
Container throughput and Pier I upgrade works
The majority of the earnings decline at Piraeus Port Authority stemmed from Pier I container operations. Handling volumes at the terminal dropped 38.7 percent to 241,290 twenty-foot equivalent units from 393,876 units in the first half of 2025.
Revenue at Pier I fell 30.5 percent to 22.57 million euros, while operating earnings plunged to 0.33 million euros from 7.88 million euros. Pier I alone removed approximately 7.55 million euros in operating earnings from the annual comparison, representing more than half of the company's total earnings drop of 13.18 million euros.
Management attributed the drop at Pier I to three specific factors. First-half 2025 comparison figures were inflated by cargo owners rushing shipments ahead of global trade tariffs. In 2026, ongoing vessel diversions away from the Red Sea continued to limit ship arrivals in Piraeus.
Additionally, mandatory port infrastructure upgrades and dredging works at Pier I temporarily reduced available stacking space and container handling capacity. Port officials expect the completed upgrades to increase total capacity and productivity once Suez Canal transits fully recover.
Traffic recovery and terminal concession revenue
Container volumes across Piraeus began rebounding in July and August with an 8 percent year-on-year increase. Ocean carrier Maersk restored its AE19 regular container service line in August, although security conditions in regional shipping lanes remain volatile.
Management reported that performance at Piers II and III improved over recent months, with gains strengthening since July and contributing directly to third-quarter earnings. Concession revenue for Piers II and III reached 46.50 million euros in the first half, up 0.64 percent, generating operating earnings of 38.29 million euros with an 82.35 percent margin despite a 2.9 percent decrease in handled units. The concession accounted for roughly 68 percent of the port authority's total operating earnings.
Accounting notes reveal that port management conducted an asset impairment test on Pier I container facilities using an 8.9 percent discount rate. The recoverable value exceeded book value, requiring no impairment charge against earnings. Management also signed major commercial agreements with key container clients to drive future volume growth, though financial terms remain unquantified.
Fee adjustments, cruise operations and fleet repairs
A 50 percent discount on port fees remained in effect through April 30, costing 1.1 million euros in lost revenue during the first half. Standard fee rates resumed in May, leading to a recovery in port fee income that will cover the entire second half of the year.
Cruise operations faced headwinds from Middle East geopolitical tensions, with passenger numbers dropping 12.9 percent and operating earnings falling to 5.15 million euros from 7.26 million euros. Port officials noted that cruise revenue is heavily concentrated in the third quarter, making first-half figures unrepresentative of annual performance.
Car terminal cargo volumes grew 8 percent, driven by a 12.4 percent rise in transshipments and a 4.8 percent increase in domestic vehicles, though revenue fell 4.3 percent as storage duration normalized following 2025 supply chain disruptions. Ship repair activity expanded, with docked vessels increasing 24.5 percent from 53 to 66 and working days rising 23.4 percent to 774 days.
Capital expenditure and major infrastructure projects
Piraeus Port Authority closed the half-year with 83.06 million euros in cash reserves and zero bank debt. Capital expenditure payments for tangible assets reached 109.5 million euros, more than double the 48 million euros spent in the first half of 2025, while operating cash flow reached 39.5 million euros.
Cumulative mandatory investments at the port reached 426.7 million euros. Port management is accelerating the construction of a 60,000 square meter logistics center budgeted at 77.5 million euros through a dedicated subsidiary. Plans also include a new 55 million euro cruise passenger terminal, while a second five-year investment phase began on August 10 with benchmark projects totaling 56 million euros.
Market analyst Apostolos Manthos noted that holding stock price levels between 45 euros and 45.50 euros could pave the way for shares to test levels above 50 euros, though technical analysis does not constitute investment advice.
EKTER revenue surge and profit margin pressure
Greek construction firm EKTER, which builds public infrastructure and commercial developments, reported a 23.3 percent decline in first-half net profit to 3.46 million euros from 4.51 million euros in 2025. Operating earnings fell to 6.46 million euros from 7.06 million euros, lowering the operating margin to 10.8 percent from 16.9 percent.
The profit decline occurred despite a 42.4 percent surge in half-year turnover to 59.63 million euros and a 6.3 percent rise in gross profit to 7.66 million euros. Operating cash flow grew 75.8 percent to 11.34 million euros, reaching more than three times net profit.
Gross profit margin compressed to 12.9 percent from 17.2 percent as EKTER absorbed higher material and input costs while maintaining a conservative stance on price adjustments. Management explained that turnover growth came primarily from large projects in early execution stages, where profit margins are initially lower before expanding as construction matures.
Expansion of project backlog and private developments
EKTER's project backlog expanded dramatically from 115 million euros at the start of 2026 to 206.4 million euros on June 30, up 79.5 percent, and reached 258.7 million euros by September 27. The September backlog represents more than double the company's total revenue for 2025, supported by 199.9 million euros in contracts signed during 2026.
The composition of EKTER's portfolio shifted heavily toward private projects, which grew from 2.9 million euros or 7 percent of sales in early 2025 to 29.4 million euros or 49.3 percent of revenue in the first half of 2026. By late September, private developments comprised 79.8 percent of total backlog, representing 206.5 million euros.
Six major contracts account for 205.8 million euros of the backlog. These include the Infinity Six Senses resort in Porto Heli at 86.35 million euros, Panathinaikos sports facilities at 33.34 million euros, Marina Residences at 26.99 million euros, the Ampelokipoi swimming pool at 24.53 million euros, ANT1 media facilities at 20.62 million euros, and residential developments in Piraeus at 13.96 million euros.
Contract additions outside the first-half reporting period include a second amendment for the Six Senses project signed on July 17 and a construction contract for the Democritus University Medical School.
Financial strength, workforce expansion and contractor status
Operating cash flow generated 6.61 million euros before working capital adjustments, while private project advance payments contributed 4.73 million euros. After capital expenditures of approximately 1 million euros, free cash flow reached 10.4 million euros.
Cash reserves grew to 19.7 million euros from 12.4 million euros, while total debt fell to 12.4 million euros. EKTER maintained a net cash position of 7.3 million euros at the end of June after paying 2.21 million euros in dividends, with total equity standing at 56.2 million euros.
Administrative expenses increased 69 percent to 2.04 million euros from 1.21 million euros, reducing operating income by over 800,000 euros. Management attributed the cost increase to expanding staff by 42.5 percent from 221 to 315 employees to support larger project volumes.
Seasonal hospitality operations at the Summer Senses hotel generated 1.13 million euros in revenue and an operating loss of 0.59 million euros through June. Full-year hotel revenue is projected to reach 4.8 million euros, up 12.7 percent from 4.26 million euros in 2025.
EKTER secured a 7th Class contracting license on July 15, gaining entry to a market sector that generated 4.05 billion euros in 2025. The license allows the firm to tender for projects valued between 50 million euros and 300 million euros that were previously inaccessible due to technical or financial capital requirements.
Shares in EKTER would need to clear technical resistance between 5 euros and 5.10 euros to approach record highs above 5.63 euros, according to the market analysis.
