YIT Oyj

Reported Q2 hard numbers: revenue was EUR 472 million, up 3.5% year over year; adjusted operating profit was EUR 19 million, equal to 3.9% of revenue. Residential CEE revenue was EUR 87 million with adjusted operating profit of EUR 14 million and a 16.5% margin; Building Construction revenue was EUR 186 million with adjusted operating profit of EUR 7 million and a 3.5% margin; Infra revenue was EUR 154 million with adjusted operating profit of EUR 6 million and a 4.2% margin; Residential Finland revenue was EUR 52 million, down 40%, with a EUR 6 million loss. Operating cash flow after investments was EUR 12 million negative, an improvement of EUR 15 million year over year; net debt was EUR 618 million, down EUR 52 million year over year; gearing was 91%; and ROCE was 6.1%, up from 5.4%. Guidance was unchanged: group adjusted operating profit for continuing operations is expected to be between EUR 70 million and EUR 100 million in 2026.

Heikki Vuorenmaa said the quarter showed gradual improvement in revenue, profitability, and strategy execution, with continued strength in Residential CEE and Infra and an upgraded view of the Finnish building construction market because of data centers and some renovation recovery. He framed data centers as a major long-term opportunity, citing Finland’s attractiveness and YIT’s investment in a dedicated team of more than 100 people. His tone was constructive and confident, but he repeatedly emphasized prudent risk management and the need to keep capital efficiency under control as growth scales.

Markus Pietikainen focused on cash flow, balance sheet, and financing. He said operating cash flow after investments was EUR 12 million negative in Q2, improved by EUR 15 million year over year, while trailing-12-month operating cash flow was close to EUR 120 million positive. He noted net debt of EUR 618 million, gearing at 91%, operating capital employed of EUR 981 million, and nonstrategic items of EUR 298 million. He also highlighted the refinancing progress: a new EUR 150 million green bond maturing in 2030 was issued, a EUR 100 million green bond due 2027 was redeemed, and the excess EUR 50 million will support Residential CEE growth.

Analysts focused heavily on cash flow, Residential CEE capital efficiency, and the new data center business. Management explained that Q2 cash flow was affected by seasonality, payment terms, and higher production in CEE, and said the business remains cash under control despite the quarter being mildly negative. On data centers, management would not disclose MW, profitability, or detailed phasing, but said the work is design-and-build, typically back-end weighted, and that YIT has already announced five projects and believes it is well positioned with the capabilities and talent to take on more.