YIT's Interim Report January-March 2026

Revenue and profitability increased in Residential CEE, order books strengthened in contracting segments

First quarter of 2026 in brief

• Revenue increased to EUR 399 million (391).
• Adjusted operating profit decreased to EUR 12 million (14). Adjusted operating profit margin decreased to 2.9% (3.5).
• Operating profit decreased to EUR -18 million (12). Operating profit was mainly impacted by changes in the fair values of Tripla Mall Ky amounting to EUR -16 million and OP Vuokrakoti Ky amounting to EUR -9 million, related to non-strategic items, and the costs related to change negotiations amounting to EUR -4 million.
• Operating cash flow after investments increased to EUR 19 million (-10).
• In Residential Finland, adjusted operating profit decreased to EUR -3 million (-1). Consumer apartment sales increased to 131 (108) apartments, supported by a bundle deal of 79 completed apartments. Consumer apartment starts in the quarter decreased to 64 (83). The number of unsold completed apartments decreased to 415 (31 Dec 2025: 524).
• In Residential CEE, adjusted operating profit increased to EUR 13 million (11). During the quarter, 429 (580) apartments were sold and 290 (669) started. The number of unsold completed apartments increased to 258 (31 Dec 2025: 236).
• In Building Construction, order book increased to EUR 1,016 million (31 Dec 2025: 978). Adjusted operating profit increased to EUR 3 million (1).
• In Infrastructure, order book increased to EUR 922 million (31 Dec 2025: 875). Adjusted operating profit decreased to EUR 2 million (3).
• Result for the period was EUR -34 million (-4).
• Net interest-bearing debt amounted to EUR 588 million (689), and gearing was 83% (91) at the end of the period. YIT redeemed its outstanding hybrid bond of EUR 46 million, issued in 2021, on March 31, 2026.
• YIT's combined lost time injury frequency was 8.5 (10.0) in the first quarter of 2026.
• YIT announced on January 8, 2026, that Mari Puoskari had been appointed as EVP, Residential Finland segment and a member of YIT's Leadership Team, effective July 8, 2026, at the latest.
• YIT announced on March 17, 2026, that Erkka Repo had been appointed as Chief Financial Officer and a member of YIT's Leadership Team, effective September 2026, at the latest.

YIT announced on March 6, 2026, that it will adopt percentage of completion revenue recognition method in segment reporting. Unless otherwise noted, the figures in this report are based on segment reporting. YIT has different revenue recognition method for self-developed projects in its segment reporting compared to IFRS financial reporting. The difference in revenue recognition methods does not impact operating cash flow after investments or net interest-bearing debt. Order book, gearing ratio and equity ratio are presented based on IFRS accounting principles. Key figures according to IFRS reporting are presented in the table below. For more information on accounting principles, see Basis of preparation and accounting policies of the interim report.

Unless otherwise noted, the figures in brackets in this report refer to the corresponding period in the previous year.

Key figures

Comments from the President and CEO, Heikki Vuorenmaa

"Our business performance remained consistent throughout the first quarter of 2026. While the sentiment in the Finnish residential market remained weak, residential sales in the CEE region demonstrated steady progress towards strategic targets, and we started new apartment projects in Prague, Riga, Kaunas and Vilnius during the quarter. The contracting segments performed as anticipated, with further improvements in order books and operational performance. We continued to implement targeted measures to reduce indebtedness by repaying debt and releasing capital from non-strategic assets during the quarter.

Ongoing global uncertainty is contributing to continued market volatility. We have strong procurement processes and capabilities to manage the uncertainty, and we implement necessary changes across the supply chain if needed. Our full year guidance is unchanged, and we continue to take proactive measures to optimize our operations and cost structure. 

In Finland, consumer confidence is awaiting to recover. However, investor activity in the residential market has shown early signs of improvement, as demonstrated by recently announced transactions on the market. YIT also benefited from this development in the first quarter, enabling us to free up capital from our non-strategic assets. Our inventory of unsold completed apartments has decreased and is approaching normal levels, also in the Helsinki metropolitan area. We started three self-developed projects in Oulu, Tampere and Kaarina during the quarter, supported by local demand.

Our infrastructure segment continued to operate in a favorable environment. At the beginning of the year, we announced the acquisition of Electric Power Finland Oy's railway services business, which provides us broader capabilities to address the future rail and railway market in Finland. Later during the quarter we announced that YIT had been selected to carry out Area Contract 4 of the Espoo Urban Railway project. Our strategic investments in the development of rail construction strengthen YIT's ability to deliver comprehensive rail infrastructure solutions for even the most complex projects.

In March, we signed an agreement for the interior finishing, building services engineering and commissioning of XTX's second data center in Kajaani, building on the successful completion of the structure and envelope works. Our recent wins underline our proven capability of delivering large-scale industrial projects and further strengthen YIT's position as Finland's leading data center builder.

YIT's operating model in Finland has undergone a significant transformation, which has reshaped our organization during the quarter and resulted in a reduction of 95 positions. The renewed operating model strengthens our ability to serve customers and is expected to support our 2026 adjusted operating profit by EUR 7 million, providing us total annual inflation-adjusted cost savings of EUR 18 million by the end of 2027.

Encouragingly, we regained the number one position in customer satisfaction among residential developers in Finland, according to the EPSI Rating survey published in March. This reflects our focused efforts on deepening customer insight and continuously improving the customer experience to meet homebuyers' needs even better.

While the recovery of the Finnish residential market is taking longer than expected, our strategy of building a geographically and operationally resilient business model is providing us with a solid foundation on which to build the future business. We are redeploying capital released from non-strategic items to businesses and regions with stronger return potential, and driving growth where market conditions are most supportive."

Results

January-March

YIT's revenue increased from the comparison period to EUR 399 million (391). Revenue increased in Residential CEE, Infrastructure and Building Construction and decreased in Residential Finland.

Adjusted operating profit for the quarter decreased to EUR 12 million (14). Adjusted operating profit margin decreased to 2.9% (3.5). Adjusted operating profit increased in Building Construction and Residential CEE and decreased in Residential Finland and Infrastructure.

YIT's operating profit decreased to EUR -18 million (12). Adjusting items amounted to EUR -30 million in the first quarter (-1). Adjusting items consisted mainly of changes in the fair values of Tripla Mall Ky amounting to EUR -16 million and OP Vuokrakoti Ky amounting to EUR -9 million and the costs related to change negotiations amounting to EUR -4 million. The change related to Tripla Mall Ky mainly reflects the fair value impact of the profit-sharing agreement, while the change related to OP Vuokrakoti Ky relates to the sale of the apartment portfolio held by the investment. Net finance costs amounted to EUR 12 million (14). The result for the period was EUR -34 million (-4).

Revenue for the period according to IFRS was EUR 373 million (386). Operating profit for the period according to IFRS amounted to EUR -25 million (6). Result for the period according to IFRS was EUR -39 million (-9).

Guidance and outlook for 2026

Guidance for 2026

YIT expects its Group adjusted operating profit* for continuing operations to be EUR 70-100 million in 2026.

Outlook for 2026

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.

In Finland, the primary apartment market sales volumes are not expected to increase in 2026.

In Building Construction, the operational performance is expected to improve.

In Infrastructure, the operational performance is expected to remain stable.

Changes in the macroeconomic or global political environment 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 performance.

*Adjusted operating profit is based on segment reporting.

Webcast for investors and the media

A webcast in English and an international telephone conference will be arranged on April 28, 2026, at 10:00 a.m. EEST. The results will be presented by Heikki Vuorenmaa, President and CEO of YIT Corporation, and interim CFO Markus Pietikäinen.

The webcast can be followed at https://yit.events.inderes.com/q1-2026/register. 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://events.inderes.com/yit/q1-2026/dial-in. 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.

The event is targeted for investors, analysts, and the media. Welcome!

For further information:
Essi Nikitin, Vice President, Investor Relations, YIT Corporation, tel. +358 50 581 1455, essi.nikitin@yit.fi

YIT Corporation

Markus Pietikäinen
CFO, interim

Distribution: Nasdaq Helsinki, major media, www.yitgroup.com

YIT builds thriving living environments in Europe. For more than 110 years, we have made everyday life smoother by building homes for a good life, spaces where people and businesses can thrive, and infrastructure that supports the essential functions of society. We operate in seven countries and employ approximately 4,100 professionals. In 2025, our revenue was EUR 1.8 billion. YIT Corporation's shares are listed on Nasdaq Helsinki.

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