YIT (YIT) Q2 2024 earnings summary

Executive summary

• Transformation program achieved €40 million cost savings ahead of schedule, supporting profitability in Q2 2024, with contracting segments (Infrastructure, Business Premises, Baltics/CEE) as main profit drivers while Housing Finland remained weak.

• Apartment sales in Finland grew for the fifth consecutive quarter; unsold inventory declined by 13%.

• Revenue and adjusted operating profit declined year-over-year, mainly due to weak Housing performance in Finland and one-time costs.

• Result for the period was significantly negative, impacted by transformation costs and business closures in Sweden.

• Financing renewal completed, improving liquidity and extending loan maturities.

Financial highlights

• Q2 2024 revenue was €434 million (down from €558 million in Q2 2023), mainly due to one-time events in the housing segment in the comparison period.

• Adjusted operating profit was €7 million (Q2 2023: €14 million); reported operating profit was -€42 million due to €49 million in adjusting items.

• Net loss for Q2 2024 was €-51 million; EPS was €-0.23.

• Net debt at quarter-end was €788 million, down from €865 million a year ago; gross debt reduced by over €130 million since March 2024.

• Operating cash flow after investments was €-6 million, including €-39 million from plot investments.

Outlook and guidance

• Group adjusted operating profit for 2024 expected between €20–60 million; positive operating cash flow after investments anticipated.

• Housing market in Finland not expected to materially improve in 2024; recovery may take longer, while Baltics/CEE expected to continue gradual recovery.

• Underlying operational performance in Business Premises and Infrastructure expected to improve.

• Transformation program efficiencies to support performance; macroeconomic changes and delayed completions are key risks.