YIT Oyj

Latest Results (20.08.2024):

Revenue Decline

In Q2 2024, YIT Oyj reported a revenue decrease to EUR 434 million from EUR 558 million in the same period the previous year. This decline was primarily attributed to a reduction in revenue from the Housing segment. The comparison period had included significant sales of apartments in Finland to YIT’s joint venture and sale and leaseback transactions of plots.

Operating Profit

YIT Oyj's adjusted operating profit for Q2 2024 decreased to EUR 7 million from EUR 14 million in Q2 2023. The adjusted operating profit margin also fell to 1.6% from 2.6%. The decrease in adjusted operating profit was mainly due to lower profitability in the Housing segment, although Infrastructure saw an increase and Business Premises remained stable.

Cash Flow

Operating cash flow after investments for YIT Oyj in Q2 2024 was EUR -6 million, down from EUR 14 million in the same quarter of the previous year. This negative cash flow included EUR -39 million from investments related to housing plots, primarily due to payments for plots committed before 2024 in Central and Eastern European (CEE) countries.

Net Debt and Gearing

At the end of Q2 2024, YIT Oyj's net interest-bearing debt stood at EUR 788 million, a decrease from EUR 865 million at the end of Q2 2023. The gearing ratio also improved to 97% from 104% in the previous year, indicating a reduction in the company's leverage.

Transformation Program

YIT Oyj achieved its transformation program savings target ahead of schedule by the end of June 2024, with annualised inflation-adjusted run-rate cost savings of EUR 40 million. The program costs are estimated to be EUR 50–70 million in total, with EUR 51 million realised by the end of June 2024. The company continues to seek further savings and efficiencies as part of its ongoing transformation efforts.