YIT (YIT) Q1 2025 earnings summary

Executive summary

• Adjusted operating profit turned positive, rising from negative EUR 14 million to positive EUR 8 million year-over-year, with all segments contributing to the improvement.

• Residential CEE saw strong apartment sales and revenue growth, while Residential Finland's profitability improved due to a favorable sales mix, internal efficiencies, and market recovery.

• Transformation program benefits are visible, driving efficiency, cost discipline, and improved return on capital employed.

• Order book rose to EUR 3,026 million, with 77% sold, and strategic focus is shifting toward Central Eastern Europe.

• Revenue declined to EUR 386 million from EUR 412 million year-over-year, but profitability improved.

Financial highlights

• Group revenue decreased by 6% year-over-year to EUR 386 million, with growth in residential CEE and infrastructure segments but declines in building construction and residential Finland.

• Adjusted operating profit margin rose to 1.9% from -3.4% year-over-year.

• Net interest-bearing debt decreased to EUR 689 million, while gearing stood at 91% at quarter-end.

• Operating cash flow after investments was EUR -16 million, impacted by seasonality; rolling 12-month cash flow after investments was EUR 93 million.

• A new green bond of EUR 120 million was issued, extending average debt maturity and stabilizing the financial position.

Outlook and guidance

• Guidance for 2025 remains unchanged: group-adjusted operating profit expected between EUR 20 million and EUR 60 million.

• Residential CEE is expected to continue favorable performance; Residential Finland's profit generation will be limited by low completions.

• Building Construction operational performance is expected to improve; Infrastructure performance to remain stable.

• Profitability for residential segments expected to be back-end loaded in Q4 due to timing of completions.

• Market risks include interest rate changes, geopolitical uncertainties, and macroeconomic changes.