YIT’s Interim Report January-September 2025

YIT’s Interim Report January-September 2025

Q3 profit driven by the contracting segments, Residential CEE growth continues

Third quarter of 2025 in brief

• Order book amounted to EUR 2,929 million (30 Jun 2025: 2,961). At the end of the period, 75% of the order book was sold (30 Jun 2025: 77%).

• Revenue decreased to EUR 402 million (453).

• Adjusted operating profit decreased to EUR 12 million (26). Adjusted operating profit margin decreased to 2.9% (5.6).

• Both revenue and adjusted operating profit were impacted by low amount of consumer apartment completions in the residential segments during the quarter.

• Operating profit for the period decreased to EUR 9 million (13).

• Operating cash flow after investments decreased to EUR 0 million (2).

• Net interest-bearing debt decreased to EUR 669 million (789), and gearing improved to 85% (98) at the end of the period.

• In Residential Finland, adjusted operating profit decreased to EUR -1 million (5). Consumer apartment sales increased to 152 (126) apartments. Consumer apartment starts in the quarter increased to 224 (0). The number of unsold completed apartments decreased to 455 (30 Jun 2025: 587).

• In Residential CEE, adjusted operating profit decreased to EUR 1 million (8). Consumer apartment sales increased to 346 (251) apartments. Consumer apartment starts increased to 321 (57). The number of unsold completed apartments amounted to 194 (30 Jun 2025: 195).

• In Building Construction, adjusted operating profit increased to EUR 7 million (6).

• In Infrastructure, adjusted operating profit increased to EUR 7 million (5).

• Result for the period was EUR -10 million (-6).

• YIT narrows the range for the adjusted operating profit guidance for year 2025 as a result of stable financial performance of the businesses during the first nine months of the year. YIT now expects its Group adjusted operating profit for continuing operations to be EUR 40-60 million in 2025. Previously, YIT expected its Group adjusted operating profit for continuing operations to be EUR 30-60 million in 2025. 

January-September 2025 in brief

• Revenue decreased to EUR 1,200 million (1,299).

• Adjusted operating profit increased to EUR 29 million (18). The adjusted operating profit margin was 2.4% (1.4). 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 22 million (-37). 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 -46 million (-4). The cash flow for the comparison period was supported by a net cash inflow of EUR 28 million from the sale of businesses.

• In Residential Finland, adjusted operating profit amounted to EUR -1 million (-8). Consumer apartment sales decreased to 393 (415) apartments. Consumer apartment starts increased to 358 (0).

• In Residential CEE, adjusted operating profit decreased to EUR 4 million (12). Consumer apartment sales increased to 960 (686) apartments. Consumer apartment starts increased to 1,515 (721).

• In Building Construction, adjusted operating profit increased to EUR 15 million (0). 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 15 million (11).

• Result for the period was EUR -28 million (-73). 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	7–9/25	7–9/24	1–9/25	1–9/24	1–12/24
Revenue	402	453	1,200	1,299	1,820
Operating profit	9	13	22	-37	-55
Operating profit margin, %	2.3	2.9	1.8	-2.9	-3.0
Adjusted operating profit	12	26	29	18	32
Adjusted operating profit margin, %	2.9	5.6	2.4	1.4	1.7
Result before taxes	-4	-6	-19	-86	-118
Result for the period	-10	-6	-28	-73	-112
Earnings per share, EUR	-0.05	-0.03	-0.14	-0.34	-0.51
Operating cash flow after investments	0	2	-46	-4	110
Net interest-bearing debt	669	789	669	789	680
Gearing ratio, %	85	98	85	98	88
Equity ratio, %	37	34	37	34	34
Return on capital employed, % (ROCE, rolling 12 months)	3.0	2.0	3.0	2.0	2.1
Order book	2,929	2,736	2,929	2,736	2,941
Combined lost time injury frequency (cLTIF, rolling 12 months)	9.6	9.7	9.6	9.7	9.6
Customer satisfaction rate (NPS)	56	58	56	58	57

Comments from the President and CEO, Heikki Vuorenmaa

“Our third quarter of 2025 progressed according to plan. Both our contracting segments delivered improved adjusted operating profit, and we announced several new projects that will strengthen our order book and market position. As anticipated, the low number of apartment completions during the quarter affected revenue and profitability in our residential segments. However, we continued to launch new residential projects in both Finland and the CEE region. These projects are expected to contribute positively to our revenue and profits from 2026 onwards, supporting our growth.

The strategic decision to increase resilience, diversify our geographical exposure and strengthen our residential platform in the Baltic and CEE countries has yielded clear benefits and is a key driver of our growth. These regions have become the principal market for our residential development and construction. As we execute our strategy, we expect this to strengthen even further.

Production volumes for the owner-occupied homes in the Residential CEE segment are currently at the same level as the historical peak years volumes of our Finnish residential business. By the end of the third quarter, we had launched new projects valued at nearly EUR 450 million with healthy margins, which are scheduled for completion in 2026. Our growth plan is supported by our strong plot portfolio enabling construction of approximately 14,000 homes corresponding to over EUR 3 billion sales value. The segment’s productivity is constantly improving, which is reflected, among other things, in shorter lead-times. A good example is our first project in Krakow, which was completed ahead of schedule now in the third quarter of 2025.

According to the Confederation of Finnish Construction Industries’ autumn economic review 2025, zero economic growth and weak consumer confidence are still hindering the recovery in the primary market in Finland. The primary apartment market is not expected to significantly recover in 2026, and production volumes are likely to remain lower than average. While macroeconomic developments are beyond our control, we are strongly committed to operating with a level of productivity that enables us to achieve our strategic targets, even in a lower-volume market. We continue to initiate new projects in locations where demand exists and remain focused on increasing our market share.

We continued to launch new self-developed residential projects in Finland during the third quarter. Customer expectations have changed, and the primary apartment market in Finland is currently consumer-driven. Our new product launches reflect the market change over the past three years, as the share of studios in the newly launched projects has significantly declined and average apartment sizes have increased. In addition, lead-time reductions and new designs enable us to price new production in a competitive market with a lower price level than before.

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. Over the past few months, we have successfully broadened our talent base within the Infrastructure segment. By recruiting diverse expertise across key areas, we have reinforced our team’s capacity to meet increasing demand and support future growth. This ensures we are well-positioned to deliver on our commitments and capture emerging opportunities in the infrastructure market.

In the Building Construction segment, we have continued to win both public and private sector projects, supported by our core competencies and expertise. Activity in data center and industrial construction markets is supporting our strategic focus. Our recent wins in the data center field leverage our extensive experience and proven expertise in executing large-scale industrial projects. These projects further strengthen YIT’s position as the leading builder of data centers in Finland.

Our customer satisfaction index NPS has continued to be at a high level for several quarters. Proactive and systematic customer engagement contributes to YIT’s reputation and enables further understanding of customers, which is reflected in products and services provided across all four segments, as well as our strategic decisions. Recognizing customer needs enables us to differentiate from competitors and supports adaptation to market changes.

According to our recently completed comprehensive employee survey, the employee satisfaction measured by eNPS improved significantly to 37 (2024: 30). This indicates increased wellbeing and commitment — conditions that foster a good working environment and generate strong performance and productivity. This is a significant sign of trust from our employees that we are developing YIT in the right direction. I want to warmly thank our employees for their dedication and contribution. Our employees' efforts drive our success and enable us to build for the future together.”

Results

July–September

YIT’s order book amounted to EUR 2,929 million (30 Jun 2025: 2,961). At the end of the quarter, 75% of the order book was sold (30 Jun 2025: 77%).

YIT’s revenue decreased from the comparison period to EUR 402 million (453). Revenue increased in Infrastructure and decreased in Residential Finland, Residential CEE and Building Construction.

Adjusted operating profit for the quarter decreased to EUR 12 million (26). Adjusted operating profit margin decreased to 2.9% (5.6). Adjusted operating profit decreased in Residential Finland and Residential CEE as a result of lower amount of consumer apartment completions. Adjusted operating profit increased in Building Construction and Infrastructure.

YIT’s operating profit decreased to EUR 9 million (13). Adjusting items amounted to EUR 2 million in the third quarter (12). Net finance costs amounted to EUR 14 million (20). The result for the period was EUR -10 million (-6).

January–September

YIT’s revenue decreased to EUR 1,200 million (1,299). Revenue increased in Infrastructure and decreased in Residential Finland, Residential CEE and Building Construction.

YIT’s adjusted operating profit increased to EUR 29 million (18) and the adjusted operating profit margin increased to 2.4% (1.4). 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 22 million (-37). Adjusting items amounted to EUR 7 million (56). 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 41 million (48). The result for the period amounted to EUR -28 million (-73). Earnings per share was EUR -0.14 (-0.34).

Guidance and outlook for 2025

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

Revised guidance for 2025

YIT expects its Group adjusted operating profit for continuing operations to be EUR 40-60 million in 2025.

Previous guidance for 2025, issued on July 25, 2025

YIT expects its Group adjusted operating profit for continuing operations to be EUR 30-60 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 October 30, 2025, at 10:00 a.m. EET.

The webcast can be followed at https://yit.events.inderes.com/q3-2025/register. 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://events.inderes.com/yit/q3-2025/dial-in. 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.

Read more: www.yitgroup.com and follow us on Linkedin I X I Instagram I Facebook