2025-02-07 07:30:00 CET
2025-02-07 07:30:24 CET
REGULATED INFORMATION
YIT - Financial Statement Release
YIT's Financial Statements Bulletin January-December 2024
YIT Corporation Stock Exchange Release February 7, 2025, at 8:30 a.m. YIT's Financial Statements Bulletin January-December 2024 Apartment sales and new apartment starts increased towards the end of the year Fourth quarter of 2024 in brief · Order book at the end of the period increased to EUR 2,941 million (30 Sep 2024: 2,736). At the end of the period, 79% of the order book was sold (30 Sep 2024: 77%). · Revenue decreased to EUR 521 million (597). · Operating profit for the period decreased to EUR -17 million (33). · Adjusted operating profit remained stable at EUR 13 million (13). Adjusted operating profit margin increased to 2.6% (2.2). · Operating cash flow after investments increased to EUR 114 million (67). · Net interest-bearing debt decreased to EUR 680 million (795), and gearing to 88% (94) at the end of the period. · In Housing, adjusted operating profit decreased to EUR 12 million (15). Consumer apartment sales increased in both Finland and the Baltic and CEE countries. In Finland, consumer apartment sales increased to 174 (122) apartments and in the Baltic and CEE countries to 300 (220) apartments in the fourth quarter. Consumer apartment starts increased to 222 (204), out of which 160 (30) were in Finland, and 62 (174) in the Baltic and CEE countries. The number of unsold completed apartments decreased to 981 (30 Sep 2024: 1,048) in total, out of which 700 (30 Sep 2024: 771) were located in Finland and 281 (30 Sep 2024: 277) in the Baltic and CEE countries. · In Business Premises, adjusted operating profit increased to EUR 2 million ( -4). · In Infrastructure, adjusted operating profit decreased to EUR 6 million (9). · Result for the period was EUR -39 million (17). Year 2024 in brief · Revenue decreased to EUR 1,820 million (2,163). · Operating profit for the period decreased to EUR -55 million (51). · Adjusted operating profit decreased to EUR 32 million (41), increasing in Infrastructure and Business Premises and decreasing in Housing. The adjusted operating profit margin was 1.7% (1.9). · Operating cash flow after investments increased to EUR 110 million (-137). · In Housing, adjusted operating profit decreased to EUR 17 million (32), mainly attributable to the decrease in adjusted operating profit in Housing Finland. Consumer apartment sales increased in both Finland and the Baltic and CEE countries in 2024. In Finland, consumer apartment sales increased to 589 (419) apartments and in the Baltic and CEE countries to 986 (767) apartments. Consumer apartment starts in 2024 increased to 943 (863), of which 160 (91) were in Finland, and 783 (772) in the Baltic and CEE countries. · In Business Premises, adjusted operating profit increased to EUR 3 million (0). · In Infrastructure, adjusted operating profit increased to EUR 17 million (14), supported by the steady performance of the projects in Finland. · Result for the period was EUR -112 million (3), impacted by EUR 45 (17) million costs from closing down the operations in Norway and Sweden and by EUR 54 (19) million pre-tax costs from the transformation program in 2024. · YIT's Board of Directors has decided, that it will not propose dividend to be distributed based on the balance sheet to be adopted for 2024. · YIT's transformation program was finalized at the end of 2024. The annualized inflation-adjusted run-rate cost savings achieved with the program exceeded the target of EUR 40 million set for the program and were EUR 43 million. YIT continues to seek further savings and efficiencies. Transformation program costs for the program altogether were EUR 73 million. Program costs are recorded in operating profit adjusting items. Key figures +-----------------------------+--------+--------+-------+-------+ |EUR million |10-12/24|10-12/23|1-12/24|1-12/23| +-----------------------------+--------+--------+-------+-------+ |Revenue | 521| 597| 1,820| 2,163| +-----------------------------+--------+--------+-------+-------+ |Operating profit | -17| 33| -55| 51| +-----------------------------+--------+--------+-------+-------+ |Operating profit, % | -3.3| 5.5| -3.0| 2.4| +-----------------------------+--------+--------+-------+-------+ |Adjusted operating profit | 13| 13| 32| 41| +-----------------------------+--------+--------+-------+-------+ |Adjusted operating profit | 2.6| 2.2| 1.7| 1.9| |margin, % | | | | | +-----------------------------+--------+--------+-------+-------+ |Result before taxes | -33| 13| -118| -5| +-----------------------------+--------+--------+-------+-------+ |Result for the period | -39| 17| -112| 3| +-----------------------------+--------+--------+-------+-------+ |Earnings per share, EUR | -0.18| 0.08| -0.51| -0.01| +-----------------------------+--------+--------+-------+-------+ |Operating cash flow after | 114| 67| 110| -137| |investments | | | | | +-----------------------------+--------+--------+-------+-------+ |Net interest-bearing debt | 680| 795| 680| 795| +-----------------------------+--------+--------+-------+-------+ |Gearing ratio, % | 88| 94| 88| 94| +-----------------------------+--------+--------+-------+-------+ |Equity ratio, % | 34| 33| 34| 33| +-----------------------------+--------+--------+-------+-------+ |Return on capital employed, %| 2.1| 2.5| 2.1| 2.5| |(ROCE, rolling 12 months) | | | | | +-----------------------------+--------+--------+-------+-------+ |Order book | 2,941| 3,157| 2,941| 3,157| +-----------------------------+--------+--------+-------+-------+ |Combined lost time injury | 9.6| 12.1| 9.6| 12.1| |frequency (cLTIF, rolling 12 | | | | | |months) | | | | | +-----------------------------+--------+--------+-------+-------+ |Customer satisfaction rate | 57| 52| 57| 52| |(NPS) | | | | | +-----------------------------+--------+--------+-------+-------+ Unless otherwise noted, the figures in brackets in this report refer to the corresponding period in the previous year. Comments from the President and CEO, Heikki Vuorenmaa “Adjusted operating profit for 2024 was EUR 32 million (41), and our operating profit for the year weakened to EUR -55 million (51). Despite our achievements this year, we cannot be satisfied with the fact that the full-year result was negative. During the year, we continued measures to execute our transformation program including closing down our operations in Sweden and Norway, which burdened our operating profit heavily. However, these measures have been critical for building YIT's long-term competitiveness. We made strong progress in our apartment sales in all our operating countries in the fourth quarter of 2024. In the Baltic and CEE countries, fourth quarter consumer apartment sales was the highest quarterly apartment sales in three years. In Finland, the increasing trend in apartment sales continued supported by December, which was the best sales month of the year. Overall, consumer apartment sales increased by more than 30% in 2024. The stock of unsold completed apartments continues to decline and is expected to reach normal levels during 2025. In 2024, we sold nearly 600 consumer apartments in Finland, despite the challenging market conditions. Towards the end of the year, we started four new projects in selected cities in Finland, supported by regional market demand. However, overall low production volumes and the low number of apartment completions will limit the Residential Finland segment's capability to generate profit in 2025. Our residential business operations in the Baltic and CEE countries continue on a solid track. Both our apartment sales and revenue grew substantially throughout the year as market conditions improved. Production reached new levels, and apartment starts increased altogether by over 50% during the year. This forms a solid foundation for achieving our strategic objectives in the coming years. In the infrastructure business, key indicators showed positive trends in 2024. Over the year, the Finnish operations increased their revenue, adjusted operating profit and order book, along with a reduction in capital employed to negative, in alignment with the strategic goals. With a strong order book, the Infrastructure segment begins 2025 from a solid position. The Building Construction segment is renewing its business model and refocusing on selected customer segments. The segment's operational performance improved in 2024, while balance sheet items burdened the profitability. The segment's operational performance is expected to continue improving. Our newly announced strategy for 2025-2029 aims at enhancing our resilience and ensuring successful performance in all market conditions. In December, we secured contracts worth over EUR 300 million consistent with the strategy, including data center and industrial construction operations. Our customer satisfaction increased in 2024 with our NPS increasing from 52 to 57. I want to express my gratitude to our customers in all our businesses for their loyalty and good collaboration during the year. We will continue to collaborate closely with our customers to develop optimal solutions together. We met the targets set for our transformation program ahead of schedule, achieving cost efficiencies, reorganizing financing and improving our financial position. Net debt decreased by EUR 115 million compared to the previous year, and we will continue to release capital in the coming years. I am especially pleased with the strong cash flow in the year's final quarter. The completed transformation program simplified our operating model. Investments in strategic capabilities, continuous improvement and leadership excellence are supporting the shift to our desired organization culture. Consequently, our employee NPS improved from 20 to 30 compared to previous year, and we remained the number one employer for students and professionals in the construction industry in Finland. We are building our success on our versatile and skilled professionals. Engaged and empowered personnel will continue to be the company's most important asset also in the future. We remain realistic about Finnish residential market recovery. Market indicators are showing more positive trends, and we have initiated new residential projects to meet the demand in selected cities. Nonetheless, there are no definitive signs of a strong recovery in the Finnish residential construction market in 2025. We remain confident in our capabilities and will continue to drive robust growth in segments where the market conditions are favorable. At the same time, we will focus on achieving our strategic objectives for 2025 and 2026, aimed at building a stronger and more competitive YIT.” Results October-December YIT's order book increased from the previous quarter to EUR 2,941 million (30 Sep 2024: 2,736). At the end of the quarter, 79% of the order book was sold (30 Sep 2024: 77%). YIT's revenue decreased from the comparison period to EUR 521 million (597). Revenue decreased in all segments. Adjusted operating profit for the quarter remained stable at EUR 13 million (13). Adjusted operating profit margin increased to 2.6% (2.2). Adjusted operating profit increased in Business Premises and decreased in Housing and Infrastructure segments in the fourth quarter. YIT's operating profit was EUR -17 million (33). Adjusting items were EUR 31 million in the fourth quarter (-20), mainly related to the costs of the transformation program and operating profit from operations to be closed down in Sweden. The adjusting items in the comparison period were mainly related to the gain on sale of the renewable energy development portfolio, operating profit from operations to be closed down in Sweden and the costs of the transformation program. Net finance costs decreased to EUR 15 million (20) year-on-year. The result for the period was EUR -39 million (17). January-December YIT's revenue decreased to EUR 1,820 million (2,163). Revenue decreased in all segments. In Housing, revenue decreased in Finland and increased in the Baltic and CEE countries. In Business Premises the comparison period was supported by the sale of the Maistraatinportti office property. In Infrastructure, revenue increased in Finland but declined overall due to a decrease in revenue from businesses that are being closed down. YIT's adjusted operating profit decreased to EUR 32 million (41), and the adjusted operating profit margin was 1.7% (1.9). In Housing, adjusted operating profit decreased mainly attributable to the decrease in adjusted operating profit in Housing Finland. In Business Premises and Infrastructure adjusted operating profit increased. YIT's operating profit was EUR -55 million (51). Adjusting items amounted to EUR 86 million (-10), mainly related to the costs of transformation program and operating profit from operations to be closed down, offset by the gain on sale of the equipment services business YIT Kalusto Oy. Net finance costs amounted to EUR 64 million (56). The result for the period amounted to EUR -112 million (3), impacted by EUR 45 (17) million costs from closing down the operations in Norway and Sweden and by EUR 54 (19) million pre-tax costs from the transformation program in 2024. Earnings per share was EUR -0.51 (-0.01). Guidance and outlook for 2025 Guidance for 2025 YIT expects its Group adjusted operating profit for continuing operations to be EUR 20-60 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. Board of Directors' proposal for profit distribution The distributable funds of YIT Corporation on 31 December 2024 amounted to EUR 758 million, of which the profit for the period 2024 amounted to EUR -44 million. YIT's Board of Directors has decided, that it will not propose dividend to be distributed based on the balance sheet to be adopted for 2024. Webcast for investors and the media A webcast in English and an international telephone conference will be arranged on February 7, 2025, at 10:00 a.m. EET. The results will be presented by Heikki Vuorenmaa, President and CEO of YIT Corporation, and CFO Tuomas Mäkipeska. The webcast can be followed at https://yit.events.inderes.com/q4-2024/. 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://palvelu.flik.fi/teleconference/?id=50051804. 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. 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 (https://www.linkedin.com/company/yit/) I X (https://twitter.com/YITGroup) I Instagram (https://www.instagram.com/yitsuomi/) I Facebook (https://www.facebook.com/yitsuomi/)
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