RIGA, Jun 3 (LETA) - Train engine repair company Daugavpils Lokomotivju Remonta Rupnica (DLRR) reported a turnover of EUR 18.75 million, which is 21.5 percent less than in 2024, and the group also incurred a loss of EUR 443,556, compared to a profit the previous year, according to information from Firmas.lv.

The company's annual management report said that the drop in turnover was due to a decline in the size of projects and changing external market conditions.

Last year, the group sold products and provided services in several countries. Total sales outside Latvia amounted to EUR 18.7 million, compared to EUR 24.5 million in 2024. The main external markets in 2025 were Estonia, Azerbaijan and Ukraine.

The group's management attributes last year's losses to a number of factors: a decrease in the volume of projects and facilities executed due to external and internal conditions, an increase in the cost of procurement of raw materials and spare parts, as well as provisioning for expected losses, illiquid inventories for warranty obligations.

The management report states that the DLRR group stopped providing services to the majority of state-owned and private customers from Russia as early as 2023.

The sanctions imposed against Russia and Belarus have made the availability and logistics of materials and spare parts more difficult and have led to significant price increases, but DLRR has been able to find solutions and the availability of resources has returned to normal, the management report said.

EUR 30,987 were invested in scientific research and development last year. Work was carried out to acquire new services, obtain new certificates and improve the quality of existing products, the management report said.

This year, DLRR will continue to repair and modernize rolling stock. In addition to the existing core business, the group plans to launch a new business - the production of metal structures. This step will allow to expand the range of services and products offered, as well as to diversify the sources of revenue, thus reducing dependence on one segment of activity and strengthening the competitiveness of the concern, the management of the company explains.

The company is also expected to close 2026 without a loss.

DLRR group's turnover in 2024 was EUR 23.881 million, and the group made a profit of EUR 222,455.

DLRR was registered in 1991 with a share capital of EUR 24,445,037. The company is owned by Estonian companies Skinest Rail (95.49 percent) and European Locomotive (4.51 percent). The company's beneficial owner is Estonian businessman Oleg Osinovski.