YIT’s Half-Year Report January–June 2025

YIT’s Half-Year Report January–June 2025

Adjusted operating profit improved in Q2, production accelerated in Residential CEE to meet the market demand

Second quarter of 2025 in brief

• Order book amounted to EUR 2,961 million (31 Mar 2025: 3,026). At the end of the period, 77% of the order book was sold (31 Mar 2025: 77%).

• Revenue decreased to EUR 412 million (434), primarily impacted by zero apartment completions in the residential segments in the second quarter.

• Adjusted operating profit increased to EUR 10 million (7). Adjusted operating profit margin increased to 2.4% (1.6).

• Operating profit for the period increased to EUR 7 million (-42). Comparison period's operating profit was impacted by the transformation program costs and operations to be closed down.

• Operating cash flow after investments decreased to EUR -29 million (-6).

• Net interest-bearing debt decreased to EUR 670 million (788), and gearing decreased to 84% (97) at the end of the period.

• In Residential Finland, adjusted operating profit increased to EUR 2 million (-6). Consumer apartment sales decreased to 133 (154) apartments. Consumer apartment starts in the quarter increased to 51 (0). The number of unsold completed apartments decreased to 587 (31 Mar 2025: 682).

• In Residential CEE, adjusted operating profit decreased to EUR -2 million (2). Consumer apartment sales increased to 279 (198) apartments. Consumer apartment starts increased to 648 (186). The number of unsold completed apartments decreased to 195 (31 Mar 2025: 273).

• In Building Construction, adjusted operating profit increased to EUR 6 million (5).

• In Infrastructure, adjusted operating profit decreased to EUR 5 million (6).

• Result for the period was EUR -8 million (-51). Comparison period's result was impacted by the transformation program costs and operations to be closed down.

• YIT announced in May 2025 the successful issuance of new EUR 100 million hybrid bond and tendering of EUR 53,940,000 of its old EUR 100 million hybrid bond issued in 2021.

• YIT announced in May 2025, that Justyna Filipczak has been appointed as Executive Vice President, Residential CEE segment and member of the YIT Leadership Team starting August 4, 2025.

• YIT narrows the range for the adjusted operating profit guidance for year 2025 as a result of solid financial performance of the businesses during the first half of the year. YIT now expects its Group adjusted operating profit for continuing operations to be EUR 30-60 million in 2025. Previously, YIT expected its Group adjusted operating profit for continuing operations to be EUR 20-60 million in 2025.

January-June 2025 in brief

• Revenue decreased to EUR 798 million (846).

• Adjusted operating profit increased to EUR 17 million (-7). The adjusted operating profit margin was 2.2% (-0.9). The comparison period included an EUR -11 million change in the fair value of equity investments in the first quarter of 2024.

• Operating profit for the period increased to EUR 13 million (-51). Comparison period's operating profit was impacted by the transformation program costs and operations to be closed down.

• Operating cash flow after investments decreased to EUR -45 million (-6).

• In Residential Finland, adjusted operating profit amounted to EUR 0 million (-13). Consumer apartment sales decreased to 241 (289) apartments. Consumer apartment starts increased to 134 (0).

• In Residential CEE, adjusted operating profit decreased to EUR 3 million (4). Consumer apartment sales increased to 614 (435) apartments. Consumer apartment starts increased to 1,194 (664).

• In Building Construction, adjusted operating profit increased to EUR 8 million (-6). The comparison period included a EUR -10 million change in the fair value of segment's equity investments in the first quarter of 2024.

• In Infrastructure, adjusted operating profit increased to EUR 8 million (6).

• Result for the period was EUR -18 million (-67). Comparison period's result was impacted by the transformation program costs and operations to be closed down.

Unless otherwise noted, the figures in brackets in this report refer to the corresponding period in the previous year.

Key figures

EUR million	4–6/25	4–6/24	1–6/25	1–6/24	1–12/24
Revenue	412	434	798	846	1,820
Operating profit	7	-42	13	-51	-55
Operating profit, %	1.6	-9.8	1.6	-6.0	-3.0
Adjusted operating profit	10	7	17	-7	32
Adjusted operating profit margin, %	2.4	1.6	2.2	-0.9	1.7
Result before taxes	-7	-57	-15	-79	-118
Result for the period	-8	-51	-18	-67	-112
Earnings per share, EUR	-0.05	-0.23	-0.09	-0.31	-0.51
Operating cash flow after investments	-29	-6	-45	-6	110
Net interest-bearing debt	670	788	670	788	680
Gearing ratio, %	84	97	84	97	88
Equity ratio, %	37	33	37	33	34
Return on capital employed, % (ROCE, rolling 12 months)	3.9	1.4	3.9	1.4	2.1
Order book	2,961	2,980	2,961	2,980	2,941
Combined lost time injury frequency (cLTIF, rolling 12 months)	9.4	10.0	9.4	10.0	9.6
Customer satisfaction rate (NPS)	58	55	58	55	57

Comments from the President and CEO, Heikki Vuorenmaa

“Our operational performance continued to improve in the second quarter of the year. Execution of our strategy is progressing well, supporting the improvement of the Group’s financial performance. While our profitability improved, the revenue continued to decline. The six-month gap in apartment completions across both our residential segments is impacting revenue and profit generation. We can therefore expect the revenue and profit generation in the third quarter to reflect similar limitations. At the same time, we are launching new residential projects with good reservation and sales rates. These project starts will support our financial performance in 2026.

Demand continued to be favorable in the Residential CEE segment, with consumer apartment sales increasing by over 40% from the previous year in the first half of 2025. We have launched new projects valued at nearly EUR 400 million with healthy margins, which are scheduled to be completed in 2026. Our strong portfolio of plots with existing building rights supports the growth in Central Eastern Europe, and we are prepared to start new projects. Demand and supply have remained balanced, and the inventory is at a desired level. This year, completions in the segment will be heavily concentrated into the fourth quarter of the year. Recognizing profit at completion will thus make the profit generation backend-loaded in the segment in 2025.

The recovery of the Finnish residential market has progressed gradually, in line with our expectations. The secondary market is gaining momentum, and mortgage drawdowns increased by 18% in January-May 2025 according to the Bank of Finland statistics. We have also observed increased activity in the investor market, with new capital flowing into the sector. We anticipate that primary apartment market sales volumes will slightly increase during 2025. A decrease in interest rates and increased consumers' purchasing power have a positive impact on demand.

Operational efficiency in the Residential Finland segment has improved, and the sales mix was favorable in the first half of the year. We have initiated new self-developed projects in locations where the demand supports the starts and plan to continue with project starts as the year progresses. Our stock of completed apartments has reached normal levels outside the capital area. The excess stock in the capital region is gradually decreasing.

Accelerating production in the Residential CEE segment has not required significant amount of new capital. This is attributed to our strong existing plot portfolio enabling the construction of over 13,000 new homes. On a Group level, we identify potential to release approximately EUR 200 million of capital from our current apartment inventory. In addition, we identify potential to release up to EUR 300 million through divestments of non-core assets, in line with our current strategy. The released capital will be reallocated to support the growth of residential construction in European markets where we identify the strongest demand and value creation potential.

The infrastructure market in Finland is active in both the public and private sectors, driven by increased defense sector investments and positive developments in industrial construction and the renewable energy market. Our Infrastructure segment continued its solid performance, improving both revenue and profit in the first half of the year. The segment is well positioned to pursue growth and further enhance operational efficiencies.

The Building Construction segment has continued to improve its profitability. Despite the highly competitive market, we have continued to win both public and private sector projects, supported by our core competencies and expertise. Activity in data centers and industrial projects is increasing, in line with our strategic focus. Our ability to successfully execute these complex projects gives us a competitive advantage in the market. The segment's performance is developing positively, and our efforts continue.

The market outlook for our businesses looks favorable on many fronts. The investment plans within our operating countries in the industrial construction, energy and defense sectors are substantial and are likely to create opportunities for both of our contracting segments. At the same time, global turbulence and uncertainty is affecting consumer confidence and is also likely to bring uncertainty into companies’ decision-making in relation to investments.

We have been chosen as the number one employer for students and professionals in the construction industry in Finland for several years, with the latest recognition coming from Universum in June 2025. We offer trainee positions to hundreds of young people each year. We are proud to provide our trainees with an excellent training experience and to help them advance in their career by offering continuous learning opportunities, guidance and feedback. Our success is built on our versatile and skilled professionals. We have succeeded in strategic recruitments that support growth, while maintaining our core competencies through challenging years. This will strengthen our performance as we steer the business onto a selective growth path and help us further improve the customer experience.”

Results

April–June

YIT’s order book amounted to EUR 2,961 million (31 Mar 2025: 3,026). At the end of the quarter, 77% of the order book was sold (31 Mar 2025: 77%).

YIT’s revenue decreased from the comparison period to EUR 412 million (434). Revenue increased in Infrastructure and decreased in Residential Finland, Residential CEE and Building Construction.

Adjusted operating profit for the quarter increased to EUR 10 million (7). Adjusted operating profit margin increased to 2.4% (1.6). Adjusted operating profit increased in Residential Finland and Building Construction and decreased in Residential CEE and Infrastructure.

YIT’s operating profit increased to EUR 7 million (-42). Adjusting items amounted to EUR 3 million in the second quarter (49). Adjusting items in the comparison period included costs of transformation program and operating profit from operations to be closed down in Sweden. Net finance costs amounted to EUR 13 million (15). The result for the period was EUR -8 million (-51).

January–June

YIT’s revenue decreased to EUR 798 million (846). Revenue increased in Residential CEE and Infrastructure and decreased in Residential Finland and Building Construction.

YIT’s adjusted operating profit increased to EUR 17 million (-7) and the adjusted operating profit margin increased to 2.2% (-0.9). Adjusted operating profit increased in Residential Finland, Building Construction and Infrastructure and decreased in Residential CEE. The comparison period included an EUR -11 million change in the fair value of equity investments in the first quarter of 2024.

YIT’s operating profit increased to EUR 13 million (-51). Adjusting items amounted to EUR 5 million (43). Adjusting items in the comparison period included costs of transformation program and operating profit from operations to be closed down. Net finance costs amounted to EUR 27 million (29). The result for the period amounted to EUR -18 million (-67). Earnings per share was EUR -0.09 (-0.31).

Guidance and outlook for 2025

YIT narrows the range for the adjusted operating profit guidance for year 2025 as a result of solid financial performance of the businesses during the first half of the year.

New guidance for 2025

YIT expects its Group adjusted operating profit for continuing operations to be EUR 30-60 million in 2025.

Previous guidance for 2025, issued on February 7, 2025

YIT expects its Group adjusted operating profit for continuing operations to be EUR 20-60 million in 2025.

Outlook for 2025

The residential market in the Baltic countries and Central Eastern Europe is expected to continue favorable, contributing positively to Residential CEE segment's capability to generate profit. Timing of the residential project completions may deviate from the original estimates leading to revenue and profit recognition shifting from one quarter or a year to another.

In Finland, the primary apartment market sales volumes are expected to slightly increase during 2025. In Residential Finland segment, low amount of completions during 2025 will limit the segment's capability to generate profit.

In Building Construction, the operational performance is expected to improve. Actions to release capital may have an impact on the segment’s profit.

In Infrastructure, the operational performance is expected to remain stable.

Changes in the macroeconomic environment, especially in interest rates, may impact the residential market demand and the fair value of investments. The escalation of geopolitical risks reflected in general uncertainty and demand could have a negative impact on the company’s financial position.

Webcast for investors and the media

A webcast in English and an international telephone conference will be arranged on July 25, 2025, at 10:00 a.m. EEST. The results will be presented by Heikki Vuorenmaa, President and CEO of YIT Corporation, and CFO Tuomas Mäkipeska.

The webcast can be followed at https://yit.events.inderes.com/q2-2025/. A recording of the webcast will be available at the company’s website after the event.

The teleconference can be accessed by registering at: https://palvelu.flik.fi/teleconference/?id=50051806. After the registration, participants will be provided with phone numbers and a conference ID to access the conference. To ask a question, please dial *5 on your telephone keypad to enter the queue.

The event is targeted for investors, analysts, and the media. Welcome! 

For further information:
Essi Nikitin, Vice President, Investor Relations, YIT Corporation, tel. +358 50 581 1455, essi.nikitin@yit.fi

YIT Corporation

Tuomas Mäkipeska
CFO

Distribution: Nasdaq Helsinki, major media, www.yitgroup.com

We build and develop sustainable living environments: functional and attractive homes, future-proof public and commercial buildings, infrastructure to support the green transition as well as industrial, production, and energy facilities to support our customers' processes. YIT's vision is to be the expert partner in developing sustainable homes, spaces, and cities - for a good life. There are approximately 4,100 professionals in our team and our revenue in 2024 was EUR 1.8 billion. YIT Corporation's shares are listed on Nasdaq Helsinki.

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