In This Article:
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Revenue: EUR434 million for the quarter, declined mainly due to onetime events in the Housing segment.
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Adjusted Operating Profit: EUR7 million for the quarter.
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Onetime Costs: EUR49 million, including EUR28 million for transformation cost savings and EUR19 million related to project closures in Sweden.
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Housing Finland Revenue Decline: Over 50% decrease in revenue.
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Infrastructure Segment Profitability: Achieved an adjusted operating profit of over 6% for the quarter.
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Order Book: EUR600 million, impacted by low start-ups and investor demand.
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Net Debt Reduction: Decreased by EUR80 million from the comparison period.
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Capital Release: EUR140 million released over the last four quarters.
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Cash Flow: Slightly negative due to plot payments; last 12 months' cash flow was EUR59 million positive.
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Equity Ratio: Stable at 33%.
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Gearing: Increased from Q1 but decreased from Q2 last year.
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Transformation Program Savings: EUR40 million annual savings achieved ahead of schedule.
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Guidance: Group adjusted operating profit expected between EUR20 million and EUR60 million for the year; operating cash flow after investments expected to be positive.
Release Date: July 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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YIT Oyj (YITYY) achieved its transformation program's cost savings target of EUR40 million ahead of schedule.
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The Infrastructure segment significantly increased its profitability, achieving an adjusted operating profit of over 6% for the quarter.
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Apartment sales in Finland have been growing for the fifth consecutive quarter, with a 13% reduction in unsold apartments.
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The company successfully completed a comprehensive multistep financing process, improving the maturity profile of its debt portfolio.
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YIT Oyj (YITYY) released approximately EUR140 million of capital over the last four quarters through its capital release program.
Negative Points
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Quarterly revenue declined to EUR434 million, primarily due to onetime events in the Housing segment.
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The adjusted operating profit decreased to EUR7 million for the quarter, impacted by onetime costs.
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The Housing Finland segment reported a negative result of EUR6 million, with a significant decline in revenue and profitability.
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Onetime costs amounted to EUR49 million, including EUR28 million related to transformation cost savings and EUR19 million from historical project closures in Sweden.
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The Finnish housing market remains weak, with no new start-ups observed and a low supply expected in 2025.