YIT (YIT) Q2 2024 earnings summary

Executive summary

• Transformation program achieved €40 million annual cost savings ahead of schedule, supporting profitability in Q2 2024, with continued focus on operational efficiency and capital release.

• Contracting segments (Infrastructure, Business Premises, Housing Baltics/CEE) were main profit drivers, while Housing Finland remained weak but showed improving sales trends.

• Comprehensive multi-step financing process completed, improving debt maturity and liquidity by over €100 million and reducing gross debt by €130 million since March.

• Consumer apartment sales in Finland increased for the fifth consecutive quarter; unsold inventory down 13% to 867 units.

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

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.

• 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.

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

• Net debt at quarter-end was €788 million, down from €865 million a year ago; cash and cash equivalents at €119 million.

Outlook and guidance

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

• No material improvement expected in the Finnish housing market during 2024; outlook for other segments remains positive, with recovery in Baltics/CEE expected to continue.

• Underlying operational performance in Business Premises and Infrastructure expected to improve; macroeconomic changes and delayed completions are key risks.