YIT (YIT) Q2 2025 earnings summary

Executive summary

• Q2 2025 adjusted operating profit improved to EUR 10 million with a margin of 2.4%, driven by contracting segments, while residential segments were muted due to zero completions; Finnish residential market shows signs of recovery and CEE markets remain strong.

• Revenue for Q2 2025 was EUR 412 million, down from EUR 434 million in Q2 2024, reflecting weak market conditions in Finland and the timing of completions.

• Gearing decreased to 84% (Q2/24: 97%) and net debt to EUR 670 million (Q2/24: 788 million), supported by positive rolling 12-month operating cash flow.

• Strategic focus on capital efficiency, operational improvements, and ramping up new residential projects with strong pre-reservation and sales rates.

• Capital release measures and growth in high-demand European markets are ongoing.

Financial highlights

• Q2 2025 revenue: EUR 412 million (down from 434 million in Q2 2024); Q2 adjusted operating profit: EUR 10 million (up from 7 million); margin 2.4% (up from 1.6%).

• Net interest-bearing debt at EUR 670 million; adjusted net debt (excluding leases and long-maturity loans): EUR 247 million.

• Operating cash flow after investments: Q2 EUR -29 million (Q2/24: -6 million); 12-month rolling cash flow positive at EUR 70 million.

• Return on capital employed (ROCE) improved to 3.9% (Q2/24: 1.4%).

• Order book remained strong: Infrastructure at EUR 805 million and Building Construction over EUR 1 billion.

Outlook and guidance

• Adjusted operating profit guidance for 2025 narrowed to EUR 30–60 million (previously EUR 20–60 million), reflecting solid H1 performance.

• Residential CEE expected to benefit from favorable markets and backend-loaded completions in Q4/2025.

• Residential Finland profit generation limited by low completions in 2025, despite improving market activity.

• Building Construction profitability to improve; Infrastructure performance to remain stable.

• Macroeconomic and geopolitical risks, especially interest rates, may impact demand and asset values.