YIT Corporation Interim Report October 30, 2025, at 8:30 a.m.
YIT's Interim Report January-September 2025
Q3 profit driven by the contracting segments, Residential CEE growth continues
Third quarter of 2025 in brief
· Order book amounted to EUR 2,929 million (30 Jun 2025: 2,961). At the end of
the period, 75% of the order book was sold (30 Jun 2025: 77%).
· Revenue decreased to EUR 402 million (453).
· Adjusted operating profit decreased to EUR 12 million (26). Adjusted
operating profit margin decreased to 2.9% (5.6).
· Both revenue and adjusted operating profit were impacted by low amount of
consumer apartment completions in the residential segments during the quarter.
· Operating profit for the period decreased to EUR 9 million (13).
· Operating cash flow after investments decreased to EUR 0 million (2).
· Net interest-bearing debt decreased to EUR 669 million (789), and gearing
improved to 85% (98) at the end of the period.
· In Residential Finland, adjusted operating profit decreased to EUR -1
million (5). Consumer apartment sales increased to 152 (126) apartments.
Consumer apartment starts in the quarter increased to 224 (0). The number of
unsold completed apartments decreased to 455 (30 Jun 2025: 587).
· In Residential CEE, adjusted operating profit decreased to EUR 1 million
(8). Consumer apartment sales increased to 346 (251) apartments. Consumer
apartment starts increased to 321 (57). The number of unsold completed
apartments amounted to 194 (30 Jun 2025: 195).
· In Building Construction, adjusted operating profit increased to EUR 7
million (6).
· In Infrastructure, adjusted operating profit increased to EUR 7 million (5).
· Result for the period was EUR -10 million (-6).
· YIT narrows the range for the adjusted operating profit guidance for year
2025 as a result of stable financial performance of the businesses during the
first nine months of the year. YIT now expects its Group adjusted operating
profit for continuing operations to be EUR 40-60 million in 2025. Previously,
YIT expected its Group adjusted operating profit for continuing operations to be
EUR 30-60 million in 2025.
January-September 2025 in brief
· Revenue decreased to EUR 1,200 million (1,299).
· Adjusted operating profit increased to EUR 29 million (18). The adjusted
operating profit margin was 2.4% (1.4). The comparison period included an EUR
-11 million change in the fair value of equity investments in the first quarter
of 2024.
· Operating profit for the period increased to EUR 22 million (-37).
Comparison period's operating profit was impacted by the transformation program
costs and operations to be closed down.
· Operating cash flow after investments decreased to EUR -46 million (-4). The
cash flow for the comparison period was supported by a net cash inflow of EUR 28
million from the sale of businesses.
· In Residential Finland, adjusted operating profit amounted to EUR -1 million
(-8). Consumer apartment sales decreased to 393 (415) apartments. Consumer
apartment starts increased to 358 (0).
· In Residential CEE, adjusted operating profit decreased to EUR 4 million
(12). Consumer apartment sales increased to 960 (686) apartments. Consumer
apartment starts increased to 1,515 (721).
· In Building Construction, adjusted operating profit increased to EUR 15
million (0). The comparison period included a EUR -10 million change in the fair
value of segment's equity investments in the first quarter of 2024.
· In Infrastructure, adjusted operating profit increased to EUR 15 million
(11).
· Result for the period was EUR -28 million (-73). Comparison period's result
was impacted by the transformation program costs and operations to be closed
down.
Unless otherwise noted, the figures in brackets in this report refer to the
corresponding period in the previous year.
Key figures
+-----------------------------+------+------+------+------+-------+
|EUR million |7-9/25|7-9/24|1-9/25|1-9/24|1-12/24|
+-----------------------------+------+------+------+------+-------+
|Revenue |402 |453 |1,200 |1,299 |1,820 |
+-----------------------------+------+------+------+------+-------+
|Operating profit |9 |13 |22 |-37 |-55 |
+-----------------------------+------+------+------+------+-------+
|Operating profit margin, % |2.3 |2.9 |1.8 |-2.9 |-3.0 |
+-----------------------------+------+------+------+------+-------+
|Adjusted operating profit |12 |26 |29 |18 |32 |
+-----------------------------+------+------+------+------+-------+
|Adjusted operating profit |2.9 |5.6 |2.4 |1.4 |1.7 |
|margin, % | | | | | |
+-----------------------------+------+------+------+------+-------+
|Result before taxes |-4 |-6 |-19 |-86 |-118 |
+-----------------------------+------+------+------+------+-------+
|Result for the period |-10 |-6 |-28 |-73 |-112 |
+-----------------------------+------+------+------+------+-------+
|Earnings per share, EUR |-0.05 |-0.03 |-0.14 |-0.34 |-0.51 |
+-----------------------------+------+------+------+------+-------+
|Operating cash flow after |0 |2 |-46 |-4 |110 |
|investments | | | | | |
+-----------------------------+------+------+------+------+-------+
|Net interest-bearing debt |669 |789 |669 |789 |680 |
+-----------------------------+------+------+------+------+-------+
|Gearing ratio, % |85 |98 |85 |98 |88 |
+-----------------------------+------+------+------+------+-------+
|Equity ratio, % |37 |34 |37 |34 |34 |
+-----------------------------+------+------+------+------+-------+
|Return on capital employed, %|3.0 |2.0 |3.0 |2.0 |2.1 |
|(ROCE, rolling 12 months) | | | | | |
+-----------------------------+------+------+------+------+-------+
|Order book |2,929 |2,736 |2,929 |2,736 |2,941 |
+-----------------------------+------+------+------+------+-------+
|Combined lost time injury |9.6 |9.7 |9.6 |9.7 |9.6 |
|frequency (cLTIF, rolling 12 | | | | | |
|months) | | | | | |
+-----------------------------+------+------+------+------+-------+
|Customer satisfaction rate |56 |58 |56 |58 |57 |
|(NPS) | | | | | |
+-----------------------------+------+------+------+------+-------+
Comments from the President and CEO, Heikki Vuorenmaa
“Our third quarter of 2025 progressed according to plan. Both our contracting
segments delivered improved adjusted operating profit, and we announced several
new projects that will strengthen our order book and market position. As
anticipated, the low number of apartment completions during the quarter affected
revenue and profitability in our residential segments. However, we continued to
launch new residential projects in both Finland and the CEE region. These
projects are expected to contribute positively to our revenue and profits from
2026 onwards, supporting our growth.
The strategic decision to increase resilience, diversify our geographical
exposure and strengthen our residential platform in the Baltic and CEE countries
has yielded clear benefits and is a key driver of our growth. These regions have
become the principal market for our residential development and construction. As
we execute our strategy, we expect this to strengthen even further.
Production volumes for the owner-occupied homes in the Residential CEE segment
are currently at the same level as the historical peak years volumes of our
Finnish residential business. By the end of the third quarter, we had launched
new projects valued at nearly EUR 450 million with healthy margins, which are
scheduled for completion in 2026. Our growth plan is supported by our strong
plot portfolio enabling construction of approximately 14,000 homes corresponding
to over EUR 3 billion sales value. The segment's productivity is constantly
improving, which is reflected, among other things, in shorter lead-times. A good
example is our first project in Krakow, which was completed ahead of schedule
now in the third quarter of 2025.
According to the Confederation of Finnish Construction Industries' autumn
economic review 2025, zero economic growth and weak consumer confidence are
still hindering the recovery in the primary market in Finland. The primary
apartment market is not expected to significantly recover in 2026, and
production volumes are likely to remain lower than average. While macroeconomic
developments are beyond our control, we are strongly committed to operating with
a level of productivity that enables us to achieve our strategic targets, even
in a lower-volume market. We continue to initiate new projects in locations
where demand exists and remain focused on increasing our market share.
We continued to launch new self-developed residential projects in Finland during
the third quarter. Customer expectations have changed, and the primary apartment
market in Finland is currently consumer-driven. Our new product launches reflect
the market change over the past three years, as the share of studios in the
newly launched projects has significantly declined and average apartment sizes
have increased. In addition, lead-time reductions and new designs enable us to
price new production in a competitive market with a lower price level than
before.
The infrastructure market in Finland is active in both the public and private
sectors, driven by increased defense sector investments and positive
developments in industrial construction and the renewable energy market. Over
the past few months, we have successfully broadened our talent base within the
Infrastructure segment. By recruiting diverse expertise across key areas, we
have reinforced our team's capacity to meet increasing demand and support future
growth. This ensures we are well-positioned to deliver on our commitments and
capture emerging opportunities in the infrastructure market.
In the Building Construction segment, we have continued to win both public and
private sector projects, supported by our core competencies and expertise.
Activity in data center and industrial construction markets is supporting our
strategic focus. Our recent wins in the data center field leverage our extensive
experience and proven expertise in executing large-scale industrial projects.
These projects further strengthen YIT's position as the leading builder of data
centers in Finland.
Our customer satisfaction index NPS has continued to be at a high level for
several quarters. Proactive and systematic customer engagement contributes to
YIT's reputation and enables further understanding of customers, which is
reflected in products and services provided across all four segments, as well as
our strategic decisions. Recognizing customer needs enables us to differentiate
from competitors and supports adaptation to market changes.
According to our recently completed comprehensive employee survey, the employee
satisfaction measured by eNPS improved significantly to 37 (2024: 30). This
indicates increased wellbeing and commitment — conditions that foster a good
working environment and generate strong performance and productivity. This is a
significant sign of trust from our employees that we are developing YIT in the
right direction. I want to warmly thank our employees for their dedication and
contribution. Our employees' efforts drive our success and enable us to build
for the future together.”
Results
July-September
YIT's order book amounted to EUR 2,929 million (30 Jun 2025: 2,961). At the end
of the quarter, 75% of the order book was sold (30 Jun 2025: 77%).
YIT's revenue decreased from the comparison period to EUR 402 million (453).
Revenue increased in Infrastructure and decreased in Residential Finland,
Residential CEE and Building Construction.
Adjusted operating profit for the quarter decreased to EUR 12 million (26).
Adjusted operating profit margin decreased to 2.9% (5.6). Adjusted operating
profit decreased in Residential Finland and Residential CEE as a result of lower
amount of consumer apartment completions. Adjusted operating profit increased in
Building Construction and Infrastructure.
YIT's operating profit decreased to EUR 9 million (13). Adjusting items amounted
to EUR 2 million in the third quarter (12). Net finance costs amounted to EUR 14
million (20). The result for the period was EUR -10 million (-6).
January-September
YIT's revenue decreased to EUR 1,200 million (1,299). Revenue increased in
Infrastructure and decreased in Residential Finland, Residential CEE and
Building Construction.
YIT's adjusted operating profit increased to EUR 29 million (18) and the
adjusted operating profit margin increased to 2.4% (1.4). Adjusted operating
profit increased in Residential Finland, Building Construction and
Infrastructure and decreased in Residential CEE. The comparison period included
an EUR -11 million change in the fair value of equity investments in the first
quarter of 2024.
YIT's operating profit increased to EUR 22 million (-37). Adjusting items
amounted to EUR 7 million (56). Adjusting items in the comparison period
included costs of transformation program and operating profit from operations to
be closed down. Net finance costs amounted to EUR 41 million (48). The result
for the period amounted to EUR -28 million (-73). Earnings per share was EUR
-0.14 (-0.34).
Guidance and outlook for 2025
YIT narrows the range for the adjusted operating profit guidance for year 2025
as a result of stable financial performance of the businesses during the first
nine months of the year.
Revised guidance for 2025
YIT expects its Group adjusted operating profit for continuing operations to be
EUR 40-60 million in 2025.
Previous guidance for 2025, issued on July 25, 2025
YIT expects its Group adjusted operating profit for continuing operations to be
EUR 30-60 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 October 30, 2025, at 10:00 a.m. EET.
The webcast can be followed at https://yit.events.inderes.com/q3-2025/register.
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://events.inderes.com/yit/q3-2025/dial-in. 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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