YIT Corporation Stock Exchange Release April 29, 2025, at 8:30 a.m.
YIT's Interim Report January-March 2025
Adjusted operating profit increased in all segments, strong sales development in Residential CEE
First quarter of 2025 in brief
- Order book increased to EUR 3,026 million (31 Dec 2024: 2,941). At the end of the period, 77% of the order book was sold (31 Dec 2024: 79%).
- Revenue decreased to EUR 386 million (412).
- Adjusted operating profit increased to EUR 8 million (-14). The comparison period included an EUR -11 million change in the fair value of equity investments. Adjusted operating profit margin increased to 1.9% (-3.4).
- Operating profit for the period increased to EUR 6 million (-8).
- Operating cash flow after investments decreased to EUR -16 million (1). The cash flow for the comparison period was supported by a net cash inflow of EUR 29 million from the sale of businesses.
- Net interest-bearing debt decreased to EUR 689 million (768), and gearing was 91% (89) at the end of the period.
- In Residential Finland, adjusted operating profit increased to EUR -1 million (-7). Consumer apartment sales decreased to 108 (135) apartments. Consumer apartment starts in the quarter increased to 83 (0). The number of unsold completed apartments decreased to 682 (31 Dec 2024: 700).
- In Residential CEE, adjusted operating profit increased to EUR 5 million (2). Consumer apartment sales increased to 335 (237) apartments. Consumer apartment starts increased to 546 (478). The number of unsold completed apartments decreased to 273 (31 Dec 2024: 281).
- In Building Construction, adjusted operating profit increased to EUR 2 million (-11). The comparison period included a EUR -10 million change in the fair value of the segment's equity investments.
- In Infrastructure, adjusted operating profit increased to EUR 3 million (1).
- Result for the period was EUR -9 million (-16).
- YIT announced on March 13, 2025, the successful issuance of new EUR 120 million green floating rate senior secured notes. The tenor of the notes is 3 years, and they mature on 20 March 2028. YIT also announced tendering of EUR 91 million senior secured green notes due 15 January 2026 and that it had used its conditional option to extend maturities of its existing revolving credit facility and its term loan facility by one year until year 2027.
Key figures
| EUR million | 1-3/25 | 1-3/24 | 1-12/24 |
| Revenue | 386 | 412 | 1,820 |
| Operating profit | 6 | -8 | -55 |
| Operating profit, % | 1.5 | -2.0 | -3.0 |
| Adjusted operating profit | 8 | -14 | 32 |
| Adjusted operating profit margin, % | 1.9 | -3.4 | 1.7 |
| Result before taxes | -8 | -22 | -118 |
| Result for the period | -9 | -16 | -112 |
| Earnings per share, EUR | -0.04 | -0.08 | -0.51 |
| Operating cash flow after investments | -16 | 1 | 110 |
| Net interest-bearing debt | 689 | 768 | 680 |
| Gearing ratio, % | 91 | 89 | 88 |
| Equity ratio, % | 35 | 33 | 34 |
| Return on capital employed, % (ROCE, rolling 12 months) | 3.6 | 1.8 | 2.1 |
| Order book | 3,026 | 3,091 | 2,941 |
| Combined lost time injury frequency (cLTIF, rolling 12 months) | 10.0 | 11.4 | 9.6 |
| Customer satisfaction rate (NPS) | 56 | 53 | 57 |
Unless otherwise noted, the figures in brackets in this report refer to the corresponding period in the previous year.
Comments from the President and CEO, Heikki Vuorenmaa
"Our performance was in line with our plans in the first quarter of the year. All business segments increased their adjusted operating profit. Our order book increased from the previous quarter. Efficiency improvements and benefits from our transformation program are now clearly visible in our operations throughout the group. This includes strong progress in shortening lead times, tight cost discipline, implementing industrial construction methods, and progress in implementing the new procurement model. We also successfully proceeded with several projects in line with our strategy during the quarter, including entering a new city, Kladno, in the Czech Republic market and starting a new flagship residential project in Espoo, Finland.
We are moving towards reducing our dependence on the Finnish residential market, as we are driving strong growth in Central Eastern Europe. We have established a strong brand position in our operating countries, and our plot portfolio is of high quality. Apartment sales in the Residential CEE segment continued to grow strongly in the first quarter and we launched several new projects. Our Residential CEE operations will play an important strategic role in our business going forward, and the segment will be a strong driver of both volume growth and profitability for the company.
The recovery of the Finnish residential market has proceeded in line with our expectations. The secondary market is picking up and mortgage drawdowns show positive development. We have started new self-developed projects and will continue the starts as the year progresses. The residential sales mix was favorable in Finland in the first quarter, and the development of reservation rates for apartments in the premarketing phase has been positive. We stay confident that the primary apartment market sales volumes will slightly increase during 2025.
The steady performance continued in the Infrastructure segment in the first quarter, supported by increased volumes, especially in industrial construction. Public sector demand in the infrastructure market is expected to remain at a good level, with many investments currently in the design phase, including defense sector investments. Private sector demand is driven by industrial construction and the transition to renewable energy.
The Building Construction segment improved its results during the first quarter of the year. We have obtained control over the project margin deviations, which supports financial performance. Despite the highly competitive market, we also increased our order book during the quarter by winning both public and private sector projects that support our core competences and expertise.
Satisfied customers are at the core of our strategy. According to the recently published EPSI Rating Residential Construction 2024 survey in Finland, YIT's customer satisfaction and customer loyalty have developed positively. YIT also has the most loyal customers in the construction industry, who are happy to recommend YIT to others. Our customers feel that they get the best value for money from YIT.
According to the Confederation of Finnish Construction Industries RT, all construction sectors are expected to turn into moderate growth this year in Finland. The growth in our Central Eastern European operational markets is expected to continue. There are several indicators, such as declining outlook for mortgage interest rates and stable raw material prices, that are pointing in a favorable direction for us. However, there is historical uncertainty in the global economy, which may impact the consumer confidence. Supported by the measures executed during our transformation program, we are in a better position to withstand the ongoing uncertainty in the global economy."
Results
January-March
YIT's order book increased from the previous quarter to EUR 3,026 million (31 Dec 2024: 2,941). At the end of the quarter, 77% of the order book was sold (31 Dec 2024: 79%).
YIT's revenue decreased from the comparison period to EUR 386 million (412). Revenue increased in Residential CEE and Infrastructure and decreased in Residential Finland and Building Construction.
Adjusted operating profit for the quarter increased to EUR 8 million (-14). The comparison period included an EUR -11 million change in the fair value of equity investments. Adjusted operating profit margin increased to 1.9% (-3.4). Adjusted operating profit increased in all four segments.
YIT's operating profit increased to EUR 6 million (-8). Adjusting items were EUR 2 million in the first quarter (-6). Net finance costs amounted to EUR 14 million (14). The result for the period was EUR -9 million (-16).
Guidance and outlook for 2025
Guidance for 2025
YIT expects its Group adjusted operating profit for continuing operations to be EUR 20-60 million in 2025.
Outlook for 2025
The residential market in the Baltic countries and Central Eastern Europe is expected to continue favorable, contributing positively to Residential CEE segment's capability to generate profit. Timing of the residential project completions may deviate from the original estimates leading to revenue and profit recognition shifting from one quarter or a year to another.
In Finland, the primary apartment market sales volumes are expected to slightly increase during 2025. In Residential Finland segment, low amount of completions during 2025 will limit the segment's capability to generate profit.
In Building Construction, the operational performance is expected to improve. Actions to release capital may have an impact on the segment's profit.
In Infrastructure, the operational performance is expected to remain stable.
Changes in the macroeconomic environment, especially in interest rates, may impact the residential market demand and the fair value of investments. The escalation of geopolitical risks reflected in general uncertainty and demand could have a negative impact on the company's financial position.
Webcast for investors and the media
A webcast in English and an international telephone conference will be arranged on April 29, 2025, at 10:00 a.m. EEST. The results will be presented by Heikki Vuorenmaa, President and CEO of YIT Corporation, and CFO Tuomas Mäkipeska.
The webcast can be followed at https://yit.events.inderes.com/q1-2025/. A recording of the webcast will be available at the company's website after the event.
The teleconference can be accessed by registering at: https://palvelu.flik.fi/teleconference/?id=50051805. After the registration, participants will be provided with phone numbers and a conference ID to access the conference. To ask a question, please dial *5 on your telephone keypad to enter the queue.
The event is targeted for investors, analysts, and the media. Welcome!?
For further information:
Essi Nikitin, Vice President, Investor Relations, YIT Corporation, tel. +358 50 581 1455, essi.nikitin@yit.fi
YIT Corporation
Tuomas Mäkipeska
CFO
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
We build and develop sustainable living environments: functional and attractive homes, future-proof public and commercial buildings, infrastructure to support the green transition as well as industrial, production, and energy facilities to support our customers' processes. YIT's vision is to be the expert partner in developing sustainable homes, spaces, and cities - for a good life. There are approximately 4,100 professionals in our team and our revenue in 2024 was EUR 1.8 billion. YIT Corporation's shares are listed on Nasdaq Helsinki.
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