Illar Kaasik

Managing Partner, Prudentia TallinnPrudentia Tallinn juhtivpartner

Intense Baltic duel: Estonia's most valuable companies collectively outperform Latvia's, but Swedbank's Baltic headquarters, registered in Latvia, is the undisputed leader in the region

Prudentia and Nasdaq have continued an important tradition by publishing the 2025 TOP101 rankings of the most valuable companies in Estonia and Latvia in recent weeks, providing a valuable overview of the economic health and development trends of both countries. In both countries, the total value of companies showed significant growth, confirming the improvement in the economic situation despite the challenging geopolitical and macroeconomic environment. In the category of total value of the 101 most valuable companies, the winner of the Baltic duel is Estonia – the total value of Estonia's TOP101 grew by 13% to €35.7 billion, with the lower limit for entry into the ranking rising from €82 million to €89 million. Latvia's TOP101 total value also grew strongly, by 12.4%, but only reached €31 billion. However, Latvians can point to the fact that the top companies in the Latvian ranking, especially AS Swedbank Baltics, showed exceptionally high growth, contributing to approximately half of the growth in the total value of the Latvian TOP101.

The financial sector was the undisputed leader in both countries and showed strong growth in value. In Estonia, banks accounted for nearly a quarter of the total value of the TOP101 (€8.8 billion), with the value of Swedbank's Estonian unit growing by 20%, Luminor by 29% and SEB Pank by 21%. Rapid growth was also seen at Bigbank (51%) and newcomer Inbank, which immediately reached 31st place, while Coop Pank fell nine places, reflecting intense competition in the domestic market. In Latvia, the total value of the financial sector reached €8.78 billion (approximately 28% of the total value of the TOP101), growing by 36.4% over the year. The most valuable company in Latvia was AS Swedbank Baltics, whose value grew by 39% to €6 billion. When assessing these figures, however, it is important to note that Swedbank consolidates its Baltic businesses into a company registered in Latvia, while Luminor, for example, consolidates them into its Estonian registred company. SEB will also start consolidating its Baltic subsidiarys in Estonia this year after moving its Baltic headquarters from Vilnius to Tallinn, so Estonia's chances of remaining the winner in this competition will continue to improve in the coming years.

The energy and utilities sector is of strategic importance in both countries. In Estonia, AS Eesti Energia tops the list of most valuable companies with a value of €3.35 billion, accounting for 19% of the total value of the list. Eesti Energia regained its leading position thanks to changes in energy policy, which focus on energy security and competitiveness. Infortar has also achieved a significant position, expanding rapidly from passenger transport to the natural gas transport market and making a major expansion deal in Poland last year. In Latvia, the utilities sector ranks second in terms of value, accounting for 18% of the total value of the table with EUR 5.57 billion. The sector is led by AS Latvenergo, which ranks second in Latvia's TOP101 and has shown the second-highest growth (603%) among Latvia's most valuable companies over the past 20 years.

Manufacturing companies continue to play an important role in both countries. In Estonia, manufacturers of industrial and consumer goods account for 13.4% of the total value of the ranking. Despite its small share, Estonia's flexibility and educated workforce are emphasised, which also attracts foreign investors (e.g. Ericsson, ABB). In Latvia, the manufacturing sector accounts for 12.8% of the total value (EUR 4.11 billion), but this decreased by about 4% over the year. The leaders in the sector are SIA Mikrotīkls and AS Latvijas Finieris, both of which showed strong growth in value (19% and 39% respectively).

The Estonian ranking clearly shows that the highest values are concentrated in oligopolistic (banking, energy/utilities) and export-oriented (services/IT) sectors. For Estonia, the rapid development of AI and IT technologies is more of an opportunity than a risk, given the large share of the technology sector in the economy. Latvia shows a stronger concentration: AS Swedbank Baltics' contribution to total value growth is striking, and Latvia's "TOP Gini" index indicates that the share of the 10 most valuable companies in the total value of the table has increased significantly in recent years. Particularly noteworthy is the 75% increase in the value of the Latvian airline airBaltic, which reached EUR 542 million in the latest table.

However, a comparison with Finland, for example, clearly highlights the differences in scale between the Baltic business landscape and Scandinavia, where the total value of Finland's TOP100 and the value of individual giants (Neste, Nokia, Nordea) significantly exceeds the total value of Estonia's TOP101. This highlights the need for Estonian and Latvian companies to increase their international reach and capitalisation. Overall, the TOP101 rankings for 2025 reflect the resilience and vitality of the Estonian and Latvian economies, with both countries showing strong growth in the financial and energy sectors.