YIT (YIT) Pre-Silent call summary

Executive summary

• Housing market recovery in Central Eastern Europe (CEE) is expected to continue, while Finland's market remains weak through Q2 and Q3 2024.

• Apartment sales in the Baltics and CEE have increased for five consecutive quarters, with over 70% of completions in these regions for 2024.

• Joint ventures with RSJ Investments in Lithuania, Latvia, and Slovakia aim to enhance capital efficiency in housing development.

• Finnish apartment inventory stands at 1,000 units, expected to last 12–16 months at current sales pace.

Trading performance and revenue trends

• Strong housing sales in CEE and Baltics, with startups more than doubling in Q1 compared to the previous quarter.

• Business premises segment saw improved operational performance and revenue, supported by a healthy order book.

• Infrastructure segment performance improved, aided by divestments and strong Finnish market activity.

Profitability and margins

• Business premises segment experienced lower material costs and improved project management, reducing negative margin deviations.

• Transformation program delivered 15% lower fixed costs in Q1 versus prior year, with EUR 30 million annualized cost savings expected by end of 2024.