Stable SOE financial returns: more than €230 million contributed to the State budget

For the fourth consecutive year, the financial return generated by state-owned enterprises (SOEs) has remained stable. For 2025, a total of €230.9 million in dividends, profit contributions, and other non-standard taxes paid by SOEs was allocated to the State budget. Nearly two-thirds of SOEs not only achieved all long-term financial targets set by the Government but also contributed to increasing State budget revenues.

In total, 25 SOEs contributed €230.9 million to the State budget this year through dividends, profit contributions, and other payments. Compared with previous years, the financial return remained virtually unchanged and has consistently exceeded €230 million since 2022.

The largest contributions based on 2025 results came from AB Ignitis Group (€74.2 million), AB Lithuanian Railways (€25.6 million), State Forest Enterprise (€24.1 million), AB Klaipėda State Seaport Authority (€18.1 million), and State Enterprise Centre of Registers (€12.6 million).

According to Minister of Economy and Innovation Edvinas Grikšas, the SOE financial return of more than €230 million—equivalent to almost €76 per resident of Lithuania—should serve as a foundation for further strengthening the national economy and advancing innovation.

“Public expectations of SOEs continue to grow, which means that every strategic decision must be focused on creating long-term value for the State and its citizens. Digitalisation, artificial intelligence, data-driven decision-making, and advanced infrastructure are becoming essential for improving operational efficiency and strengthening Lithuania’s competitiveness. It is encouraging to see more and more SOEs investing purposefully in the development and implementation of innovations, while their experience and solutions contribute to the broader transformation of Lithuania’s economy,” says Minister Grikšas.

Stable financial returns were accompanied by growing SOE revenues in 2025. Total portfolio sales revenue reached €4.7 billion, an increase of 8.2% compared with the previous year. Overall, SOE sales revenue accounted for 5.6% of Lithuania’s GDP.

Despite higher revenues, SOEs collectively generated €439.8 million in net profit, which was 18.8% lower than the year before.

The energy sector continued to play the most significant role within the SOE portfolio, accounting for 51.5% of total aggregated net profit. However, a substantial decline of €112.2 million in the net profit of AB Ignitis Group, largely driven by increased electricity procurement costs, had a significant impact on the overall portfolio result.

Net profit also declined in the forestry sector. The State Forest Enterprise reported a 9.0% decrease due to rising costs and more expensive contractor services. Nevertheless, its adjusted profit of €68.3 million remained a significant contribution to the overall SOE portfolio.

Meanwhile, SOEs operating in the transport sector generated €93.1 million in net profit, an increase of 6.2% compared with the previous year. The Lithuanian Railways Group accounted for 46.5% of this result, with its profit increasing by 17% during the reporting period. Government subsidies allocated to balance the company’s operations amid declining freight transport volumes increased by almost one-fifth, positively affecting both the company’s results and the financial performance of the transport sector as a whole.

The combined annual net profit of other SOEs increased by 44.1%, although their overall contribution represented less than 12% of the aggregated SOE portfolio result.

According to Jurgita Bagdonienė, Acting Head of the Governance Coordination Centre (VKC), the SOE sector continues to demonstrate resilience and create long-term value for the State even under more challenging economic conditions and fluctuations in revenue and profit.

“It is equally important that financial returns are accompanied by investments that support future growth, particularly through the faster adoption of advanced technological solutions. Today, we already see tangible examples of innovation in SOEs—from renewable energy development and advanced road maintenance solutions to modern aviation security technologies and innovative forestry practices. At the same time, there remains room for improvement in governance, operational efficiency, and ambition to achieve even stronger results. Maintaining a consistent focus on these areas will continue to be one of our key priorities,” says J. Bagdonienė.

The State currently owns 33 enterprises, which employed 26,777 people at the end of 2025—an increase of 288 employees compared with the previous year. The largest employers remained AB Ignitis Group, AB Lithuanian Railways, Lithuanian Post, the State Forest Enterprise, and AB Road Maintenance, together employing more than 65% of all SOE employees.