Q1 2025 YIT Oyj Earnings Call Transcript
Key Points
- Adjusted operating profit increased in all segments, indicating overall profitability improvement.
- Residential CEE apartment sales saw significant growth, with a 25% revenue increase over the past year.
- Infrastructure segment revenue increased by 30%, with profitability improvements due to internal efficiencies.
- The transformation program has led to efficiency gains and improved capital employed across operations.
- The order book in the infrastructure segment remains strong, equating to approximately 24 months of work.
- Group revenue decreased by 6% from the previous year, amounting to €386 million in the first quarter.
- Residential Finland segment's revenue continued to decline due to lower production volumes and sales.
- The low amount of completions in Finland limits the capability to generate profit from the residential segment.
- Cash flow for the quarter was negative €160 million due to typical business seasonality.
- Gearing was at 91% at the end of the first quarter, indicating a high level of indebtedness.
Good morning, everyone and welcome to YIT's first quarter 2025 results webcast. My name is Esse Nikitin and I'm heading the investor relations at YIT. Together with me here are our CEO Heikki Vuorenmaa and CFO Tuomas Mäkipeskaâs. Without further ado, I will hand over to Heikki. Please go ahead.
Thank you, Esse and good morning to you all. Let me start with the key highlights from our first quarter results. Our adjusted operating profit increased in all segments.
The residential CEE apartment sales increased, and the market remained favorable in all operating countries. In Finland, residential profitability improved due to a favorable sales mix.
And the market is recovering as we have expected. All segments also contributed to our profitability improvement, and the benefits of our transformation program are already visible across our operations. So overall solid start for the year.
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