YIT’s Interim Report January-September 2022

YIT Corporation Stock exchange release 27 October 2022 at 9:00 a.m.

Improved performance in a challenging business environment

Third quarter 2022 highlights:

  • Adjusted operating profit increased to EUR 21 million (11).
  • Adjusted operating profit margin improved to 3.7% (2.0), reflecting a stable underlying performance across the segments.
  • Determined strategy execution continued successfully, while increased construction material costs had a negative impact on margins.
  • Result for the period was EUR 7 million (-3).
  • Operating cash flow after investments amounted to EUR -149 million (-23), impacted by self-developed projects in Housing and Property Development, investments in plots as well as the increase in number of unsold completed apartments in Housing to 280 (30 Jun 2022: 204).
  • Net interest-bearing debt was at EUR 590 million (411) and gearing at 69% (40).
  • Order book increased to EUR 4,089 million (30 Jun 2022: 4,067).
  • Land bank amounted to 2,172,000 sqm (30 Jun 2022: 2,145,000), which enables the construction of approx. 34,000 new homes.
  • YIT has a large wind power development portfolio. At the end of the quarter, the portfolio consisted of approx. 3,000 MW of project opportunities in the preliminary study phase. In addition, YIT had approx. 550 MW of projects in the permitting phase.
  • The number of safety observations, which YIT uses as a leading key performance indicator in safety management, has in 2022 improved by 109% compared to the corresponding period. On the other hand, the combined lost time injury frequency in the third quarter increased to 12.5 (11.7). The increase is disappointing, and YIT carries on its dedicated work to decrease accident frequency and pursue a zero-harm workplace.
  • YIT took an important step towards low-carbon construction by starting to use Consolis Parma’s lowcarbon hollow-core slabs in housing production in Finland.

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From the first quarter of 2022 onwards, YIT has four reportable segments: Housing, Business Premises, Infrastructure and Property Development. Sold Russian businesses are reported as discontinued operations. On 25 April 2022, YIT restated financial information for comparative periods reflecting an operating model change, where certain operations and functions were transferred between reportable segments, and the reporting of the sold Russian businesses as discontinued operations. Balance sheet and cash flow statement for comparative periods were not restated. Unless otherwise noted, all figures in this report concern continuing operations.


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


Markku Moilanen, President and CEO

“I am pleased with our performance in the third quarter. In a challenging business environment, we delivered solid results and almost doubled our adjusted operating profit to EUR 21 million from the previous year. I am particularly content of the entire YIT team's achievement, as this was the third quarter in a row when we improved both our adjusted operating profit and adjusted operating profit margin compared to last year, demonstrating that our strategy execution is proceeding according to plan.

We made good progress in each of our four segments during the quarter despite the market challenges. Our Housing segment achieved stable results despite softer consumer demand and a weaker apartment sales mix. In our Infrastructure and Business Premises segments the transformation continued successfully.  We have already achieved substantial productivity gains in project management and with the new operating model. However, these gains have been partly offset especially by the increased material costs. In the Property Development segment, we continued to strengthen our capabilities in wind power and renewable energy to boost our wind power development further.

While our businesses progressed favourably, the environment in which we operate weakened further, driven by rising interest rates, inflation and the emerging energy crisis that escalated during the quarter. Therefore, we expect consumer demand in the Housing segment to remain muted in the short term. Despite the prevailing weak market sentiment, we carefully continued to invest in selected, attractive  plots in growing cities and made housing project start-ups to safeguard future earnings.

During the quarter, we took an important step in our ESG efforts towards low-carbon construction. We will use low-carbon hollow-core slabs in apartment buildings in the Helsinki Metropolitan Area and Uusimaa, gradually expanding the usage to all of Finland. This will considerably reduce the material-based emissions of our residential construction.


YIT’s outlook for the full year 2022 remains unchanged. Our diversified business model provides us balance in the cyclical construction sector and our order book will support our volumes in this tough market.


Several market indicators point towards a downturn. We focus firmly on executing our strategy to improve our productivity and invest in ESG and other future growth opportunities. Moreover, we are taking determined actions to manage through this challenging period and secure our future earnings. We are disciplined in our cost management and will pursue further opportunities to increase efficiencies in both the short and the long term. I am confident that with these actions and our strong capabilities we will steer YIT forward through the current market turmoil.“




YIT’s order book increased to EUR 4,089 million at the end of the third quarter (30 Jun 2022: 4,067). The increase was driven by the strengthened order book in Business Premises and Property Development. In Housing and Infrastructure, the order book remained stable. At the end of the quarter, 74% of the order book was sold (30 Jun 2022: 79%. The comparative period figure has been corrected from the previously reported 92%).


YIT’s revenue increased by 5% to EUR 560 million (535). This was the result of increased revenues in all segments.


YIT´s adjusted operating profit increased to EUR 21 million (11) and the adjusted operating profit margin improved to 3.7% (2.0). Improved profitability reflects stable underlying performance across the segments, although increased construction material costs had a negative impact on margins. The comparison period was burdened by a write-down in one project in Property Development and margin reductions in Infrastructure, partly offset by a plot sale in Business Premises.


YIT’s operating profit was EUR 16 million (0). Adjusting items were EUR 5 million in the third quarter (11). Adjusting items were mainly related to merger related fair value allocations. The result for the period, including discontinued operations, was EUR 7 million (-3).



YIT´s revenue was EUR 1,623 million (1,782). Revenue increased in Business Premises and Property Development, but decreased in Housing and Infrastructure.


YIT´s adjusted operating profit increased to EUR 67 million (49) and the adjusted operating profit margin to 4.1% (2.8). Improved profitability reflects stable underlying performance across the segments, particularly the successful continued transformation in Business Premises and Infrastructure. In Housing, the adjusted operating profit decreased as a result of the lower number of apartment completions resulting from a lower number of start-ups during the COVID-19 pandemic, and lower sales.


YIT’s operating profit was EUR 60 million (31). The adjusting items amounted to EUR 7 million (19). Adjusting items were mainly related to merger related fair value allocations. The result for the period amounted to EUR -403 million (12) and the earnings per share amounted to EUR -1.94 (0.04). The result was impacted by the impairment booked in the first quarter following the held for sale classification of the Russian operations and the booking of the accumulated RUB/EUR translation difference in the second quarter.


Guidance for 2022

In Housing, completions of consumer apartments are expected to decrease compared to 2021. In Business Premises, operational performance will continue to improve. Infrastructure will gradually improve, while still impacted by certain legacy low-margin projects. In Property Development, there are several promising projects in the pipeline.


YIT expects its Group adjusted operating profit for continuing operations to be higher than in 2021 (2021: EUR 85 million).


Temporary shutdowns or slower progress on construction sites and delayed completions due to the COVID-19 pandemic or challenges in construction material and labour availability could lead to the postponement of revenue and profit from one quarter or year to another. YIT aims to mitigate the impact of increased construction material costs by actively managing its customer relations, contracts, and procurement. Rising interest rates and overall inflation could have an impact on consumer demand and result in lower-than-expected apartment sales. Due to an increased number of apartments under construction, YIT expects to tie up more capital as the year progresses.


News conference for investors and media

YIT will arrange a news conference on Thursday, 27 October 2022 at 10:00 a.m. EEST (8:00 a.m. BST). The results will be presented by Markku Moilanen, President and CEO of YIT Corporation, and CFO Tuomas Mäkipeska. The news conference will be held as a live webcast that can be followed on the company’s web site at www.yitgroup.com/webcast. A recording of the webcast will be available at the same address later that day.


The news conference can be participated also through a conference call. Questions can be asked via the conference call and should be asked in English.


Conference call participants are requested to dial in at least five minutes prior to the start of the conference, at 9:55 a.m. EEST (7:55 a.m. BST). Conference call numbers are:

  • Participants from Finland +358 (0)9 2319 5437
  • Participants from Sweden +46 (0)8 5052 0424
  • Participants from UK and outside of Nordic countries +44 (0)33 0551 0200
  • Participants from US +1 212 999 6659


The participants will be asked to provide the following call identifier: YIT / 3525471.


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


For further information:

Samu Heikkilä, Investor Relations Manager, YIT Corporation, tel. +358 44 581 7979, samu.heikkila@yit.fi

YIT Corporation


Tuomas Mäkipeska



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


YIT is the largest Finnish and a significant North European development and construction company. For 110 years, we have been creating better living environments for our customers: functional homes for sustainable living, future-proof public and commercial buildings and infrastructure for smoother flow of people, businesses and society. We employ 5,500 professionals in nine countries: Finland, Sweden, Norway, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. Our revenue in 2021 was EUR 2.7 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com