Stock Markets April 28, 2026 01:55 AM

YIT posts Q1 loss after asset revaluations and restructuring hit results

First-quarter earnings weighed down by fair value adjustments on non-core properties and costs linked to restructuring; revenue edges up

By Priya Menon
YIT posts Q1 loss after asset revaluations and restructuring hit results

Finnish construction group YIT reported a first-quarter net loss of 34 million euros, driven primarily by fair value write-downs on non-strategic assets and restructuring charges. Revenue rose modestly to 399 million euros, while adjusted operating profit fell to 12 million euros, with an adjusted EBIT margin of 2.90%. The company has begun steps to lower leverage, and reiterated its 2026 adjusted operating profit outlook for continuing operations at 70-100 million euros.

Key Points

  • YIT reported a Q1 net loss of 34 million euros, mainly due to fair value changes in non-strategic assets and restructuring costs - impacts construction and real estate sectors.
  • First-quarter revenue rose slightly to 399 million euros; adjusted operating profit fell to 12 million euros with an adjusted EBIT margin of 2.90% - relevant for investors monitoring margins in construction and infrastructure.
  • YIT is executing measures to reduce indebtedness, including debt repayment and capital release from non-strategic assets; the company sees Baltic and CEE residential markets as favourable for 2026, but expects no increase in Finnish primary apartment sales volumes this year.

YIT reported a net loss of 34 million euros for the first quarter, with management attributing the negative result mainly to fair value movements on non-strategic properties and to costs incurred as part of ongoing restructuring activities.

Group revenue for the quarter was 399 million euros, a slight increase compared with the same quarter in the prior year. Despite the revenue uptick, adjusted operating profit declined year-on-year to 12 million euros, equating to an adjusted EBIT margin of 2.90%. Reported operating profit for the period was negative 18 million euros.

The company identified specific fair value reductions at Tripla Mall Ky and OP Vuokrakoti Ky as material contributors to the net loss, alongside the direct impact of restructuring costs. Management said it has put in place targeted measures intended to reduce the company's indebtedness, naming debt repayment and the release of capital from non-strategic assets as actions taken to strengthen the balance sheet.

Revenue growth during the quarter was led by the Residential CEE, Building Construction and Infrastructure segments. By contrast, the Residential Finland segment experienced a decline in revenue during the same period.

Looking ahead, YIT reiterated guidance for 2026, expecting Group adjusted operating profit for continuing operations to be in the range of 70 million to 100 million euros. The company expects the Baltic and CEE residential markets to remain favorable through 2026, but does not anticipate an increase in Finnish primary apartment sales volumes this year.


Operational context - The items that most affected first-quarter profitability were non-cash fair value changes tied to non-strategic assets and the one-off and transitional costs associated with restructuring. Management is pursuing balance-sheet actions aimed at debt reduction and capital release, while top-line performance showed mixed dynamics across regions and business lines.

Financial outlook - The 2026 guidance range for adjusted operating profit on continuing operations was confirmed at 70-100 million euros, and the company flagged regional variability in market conditions, with Baltic and CEE residential markets seen as supportive but Finnish primary sales not expected to grow.

Risks

  • Fair value adjustments to non-strategic assets can materially affect reported profitability and lead to volatility in earnings - this impacts the real estate and construction sectors.
  • Restructuring costs are weighing on short-term results and could continue to pressure operating profit until actions are completed - affecting investor perception in the construction and infrastructure sectors.
  • Lack of expected growth in Finnish primary apartment sales volumes introduces uncertainty for the Residential Finland segment's revenue and backlog conversion - relevant to residential developers and housing market participants.

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