In This Article:
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Revenue: EUR 450 million for the third quarter.
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Profitability: Increased to EUR 26 million during the quarter.
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Operating Profit Margin: Overall operating profit reached 5.6%.
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Housing Baltic and CEE Operating Margin: Nearly 10% during the quarter.
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Infra Segment Profitability: Maintained at a solid 5% level.
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Net Debt Reduction: Decreased by EUR 80 million from the comparison period.
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Operating Cash Flow: Positive for the quarter, with a last 12 months cash flow of EUR 63 million.
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Capital Release: EUR 140 million released over the last 4 quarters.
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Equity Ratio: Increased to 34%.
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Net Interest-Bearing Debt: EUR 790 million at the end of the quarter.
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Transformation Program Cost Savings: EUR 40 million run rate cost savings achieved ahead of schedule.
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Guidance: Group adjusted operating profit expected to be between EUR 20 million and EUR 60 million for the year.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Profitability increased in all segments during the quarter, resulting in a positive cash flow.
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The company upgraded its view on the Baltics residential market, indicating a return to normal market conditions.
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YIT Oyj (FRA:YIT) sold a total of 550 homes to consumers during the quarter, showing strong sales performance.
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The Infra segment showed consistent performance with a strong order book and solid profitability.
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The transformation program achieved its cost savings target of EUR40 million ahead of schedule, contributing to improved profitability.
Negative Points
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Revenue declined to EUR450 million, partly due to the absence of one-off transactions from the previous year.
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The order backlog decreased by 19% year-on-year, which could impact future revenues.
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Housing Finland's turnover and profitability decreased year-on-year, despite a positive EUR6 million item.
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The company did not launch any new self-developed projects in Finland during the first 9 months, limiting future growth potential.
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Net debt remained high at EUR790 million, with only minor amortizations planned for the near future.
Q & A Highlights
Q: Could you elaborate on the order backlog situation and its impact on revenues? A: The order backlog is down due to low start-ups in Finland. In the Baltics and CEE, completions exceeded start-ups, causing a small decline. However, growth is expected in these areas. The Infra segment has a strong order book for 24 months, and Business Premises is focusing on maintaining healthy margins.