“Due to a higher interest rate, YIT’s hybrid loan interest expenses are estimated to increase by approximately EUR 3 million annually, and thus there is upward pressure on our forecasts. We will incorporate the arrangement into our forecasts with the next update.”
The interest rate is rising, but forecasts are subject to upward pressure?
Could someone explain the logic here?
The new loan replaces a previous loan. The interest rate of the previous loan was 5.75%, which was clearly lower than this new one’s 8.5%.
I interpret this to mean that there is upward pressure on interest expense forecasts. Not that earnings forecasts would be raised because of this.
Overall, it’s good that funding was available for YIT, and apparently the cost was slightly lower than initial estimates. It’s sensible to act proactively in this volatile environment - a few years ago, the bond markets were closed for YIT.
But still, “The announced 8.5% fixed coupon rate was lower than our previous expectations, which is positive for the company.”
Apparently, Inderes’ forecasts ≠ expectations.
Could this be it? I’m referring to the three-year decline in housing prices. A turn for the better has been predicted several times, so it’s still too early to confirm it, but it looks good, writes Nordea economist Juho Kostiainen on the X messaging service.
There has been talk about the reconstruction of Ukraine and potential orders for Finnish companies. YIT might be one of them in one way or another.
But now there’s interesting news from Germany! There, the roads, bridges, and railway network are in complete disrepair. Merz is reportedly allocating 500 billion euros for renovation over the next 12 years. Interesting.
When you add the planned 1000 billion euros for defense to this, it seems Germany will have plenty of work in the future. And apparently, money isn’t the only problem, but where will the planners and engineers come from?
^YIT doesn’t seem to have any operations in Germany. When asked about Ukraine sometime earlier, YIT stated that it has no plans to be involved in the reconstruction of Ukraine. Of course, the situation can always change.
YIT stated in some publication about 1.5 years ago that their representative regularly participates in EU-organized meetings coordinating Ukraine’s reconstruction. It’s possible they have withdrawn later. The focus might have been on shorter-term domestic challenges.
2022
The first reconstruction meeting has begun in Lugano.
(EK: Ukrainassa on edessä massiivinen jälleenrakentaminen, joka vaatii satoja miljardeja - "Suunnittelutyö on aloitettava jo nyt" - Suomenmaa.fi)
2023
40 Finnish companies to participate in Ukraine’s reconstruction - Government
2024
Prime Minister Orpo to Berlin for Ukraine Reconstruction Conference - Government
These have been progressing in the background all the time, and plans are already quite advanced, divided into sub-groups where companies are considering practical implementation.
Of course, reconstruction is already being done on a billion-euro scale even now, but the peace is missing for the big wheel to start turning. It’s a shame if YIT wants to stay out of a multi-trillion-euro construction project for which funding is already largely clear.
Thank you, good summary and reminder! It’s hard to believe that Finland’s largest construction company would not be involved in any way in the reconstruction of Ukraine.
My 2 skeptical cents.
They certainly want to be involved, but getting people who do construction work to work abroad can have its own challenges. When one has encountered year-long assignments, for example, to Estonia, the willingness to leave Finland plummets. So I wouldn’t hold my breath regarding Germany, and especially not Ukraine.
Then, as for local labor, what is the advantage by which YIT secures them before other similar companies?
From an investment perspective, YIT’s situation could also turn out such that the construction markets open up in Finland, but here, more or less everything is messed up, and the prices and availability of all construction materials skyrocket.
This material issue will certainly happen in Finland and elsewhere in the electricity grid markets.
YIT will surely secure some share in Ukraine, and I truly hope I’m wrong.
If I were YIT, I wouldn’t start branching out elsewhere. Then, when Finland turns back to construction, they will lose that leverage if they have started other ventures when that happens. It’s a bit like Outokumpu starting to make nails during a bad time because their own business isn’t doing well right now. Then when the turnaround happens, you lose the leverage and we, the shareholders, won’t get those doubles and triples we’ve been waiting for 4 years.
Of YIT’s 4000 employees, about 1000 are in Eastern Europe, and thus it likely has relatively good prerequisites to operate in Ukraine as well.
YIT and A-Kruunu have agreed on the construction of long-term interest-subsidized rental apartments in Niemenranta, Tampere. A-Kruunu is a state-owned special purpose company that commissions the construction of affordable rental apartments. Earthworks will begin in June 2025, and the project is estimated to be completed in August 2026. The value of the agreement for YIT is approximately 9 million euros, and it will be recorded in the order book for the second quarter of the year.
As Oy Tampereen Polaris has a floor area of approximately 3,000 square meters. The project is designed to energy class A, and the building will feature solar panels. The apartments contracted for A-Kruunu are part of YIT’s Niemenranta area project in Tampere.
Helsinki Region Environmental Services HSY has selected YIT Infra Oy as the contractor to implement the construction of the Esplanadi water utility tunnel. The value of the contract is 18 million euros, and the agreement will be signed in mid-August.
The Esplanadi water utility tunnel is located in the Kaartinkaupunki and Kamppi districts. The tunnel is situated between Esplanadi Park and the Munkkisaari–Mäntymäki water utility tunnel.
The Esplanadi water utility tunnel is a tunnel excavated into rock, where part of the tunnel is a so-called wet tunnel, in which the sewer runs as an open sewer. The eastern section of the tunnel is a so-called dry tunnel, where, in addition to the sewer pipes to be constructed and a water pipe intended for maintenance use, it is possible to move with vehicles and on foot.
YIT and A-Kruunu have agreed on the construction of long-term interest-subsidized rental apartments in the center of Jyväskylä. A-Kruunu is a state-owned special purpose company that commissions the construction of affordable rental apartments. Earthworks will begin in August 2025, and the project is estimated to be completed in December 2026. The value of the agreement for YIT is approximately 13 million euros, and it will be entered into the order book for the second quarter of the year.
Kiinteistö Oy Jyväskylän Kauppakulma D has an area of approximately 4,000 floor square meters. The project is designed to energy class A. The apartments contracted for A-Kruunu are part of the Kauppakulma area project.
Port of Helsinki Ltd has selected YIT to implement the field expansion contract for the southern tip of West Harbour. The project is part of the Port of Helsinki’s development program, which is the City of Helsinki’s long-term plan for renewing port areas. As part of the development program, all Tallinn traffic will be concentrated in West Harbour, located in Jätkäsaari.
The project’s value for YIT is approximately 27.6 million euros, which will be recorded in the company’s order book for the second quarter.
The field expansion of the southern tip is a key part of the overall renovation of West Harbour, where the quays and field areas will be rearranged with the port tunnel and a new terminal. The berths for Tallink and Eckerö Line ships, which are in daily use, will remain unchanged, but new quay areas will be built as an extension to them, using sea fillings towards the south.
The contract covers extensive construction works for the quay and field area, including the demolition of existing structures, dredging works, fillings, manufacturing and installation of quay elements, and the implementation of technical systems and surface structures.
Works will begin in summer 2025 and continue until autumn 2027. The port’s operational activities are planned to continue without disruption throughout the project.
The contract will be carried out in close cooperation with other port operators, and its planning has specifically taken into account safety, environmental impacts, and the undisturbed operation of port traffic.
Statistically, however, it seems that professional investors are now trading significantly more actively than before.
According to KTI, which compiles statistics on transactions between professional players, residential property transactions worth 600 million euros were made in Finland last year.
YIT Corporation Press Release July 11, 2025 at 12:00 p.m.
YIT is commencing the construction of an own-developed residential apartment building project named Asunto Oy Helsingin Taikalyhty in the Hermannin residential area of Helsinki. Taikalyhty will comprise three six-story residential apartment buildings, offering 52 homes. The project’s value is approximately 21 million euros. Construction will begin in August, and the property is scheduled for completion by the end of 2026.
Located in Hermanni, Taikalyhty has a residential floor area of approximately 3,400 square meters. The apartments range in size from 33 to 96.5 square meters, and one can choose a home from many different floor plans, from studios to four-room apartments. Large windows are positioned to maximize natural light.
Taikalyhty’s common facilities include, among other things, a panoramic sauna located on the roof of building A, from which one can cool down on a glazed balcony, as well as a lounge-style clubroom with roof terraces. Smooth everyday life in Taikalyhty is also facilitated by a laundry room, drying rooms, outdoor equipment and stroller storage rooms, and a bicycle maintenance room, whose washing point is also suitable for cleaning strollers or dog paws.
Taikalyhty will be built in accordance with the EU Taxonomy and will have an A energy class rating; its heating and summer cooling will be implemented with geothermal energy. Apartment-specific monitoring of cold and hot water consumption helps save water. A carbon footprint calculation has been carried out for the project, which helped in the design phase to select materials and solutions that are less burdensome to the environment. During construction, only electricity produced with renewable energy will be used on the site, and at least 75% of the site’s waste will be sorted for recycling.
“It’s excellent that we are able to launch a new YIT-developed project in Helsinki. There is demand for new, high-quality homes in Helsinki. Helsingin Taikalyhty is located close to the good services and transport connections of Kalasatama,” said Esa Turkka, Director of the Capital Region unit for YIT’s Housing segment.
“In Helsingin Taikalyhty, special attention has been paid to the functionality of the apartments. All homes offer spaciousness and clear areas for different activities. Even in studios, there are designated areas for cooking, living, and sleeping. Kitchen cabinets, wardrobes, walk-in closets, and other storage spaces are dimensioned according to the apartment size, ensuring sufficient space for every resident and various belongings,” Turkka added.
Taikalyhty’s three different, lush courtyard areas offer spaces for relaxed socializing, play, and quiet activities. Plant selections have emphasized supporting biodiversity, durability, and ease of maintenance.
It’s Thursday now, which means Kalle Day, but these Kaisa’s pre-comments are not related to that, but rather to YIT’s results to be published tomorrow, i.e., Friday. 
https://news.cision.com/fi/yit-oyj/r/yit-n-puolivuosikatsaus-tammi-kesakuu-2025,c4211025
And today YIT delivered operating profit largely as expected by consensus. On the other hand, quite clearly above Inderes’ forecast. And at the same time, a slight positive surprise was received, as the lower end of the operating profit range was raised.
YIT now expects the adjusted operating profit for the Group’s continuing operations to be EUR 30–60 million in 2025. Previously, YIT expected the adjusted operating profit for the Group’s continuing operations to be EUR 20–60 million in 2025.
The midpoint of the guidance thus rose to EUR 45 million from the previous EUR 40 million. In that respect, it probably doesn’t change forecasts much, as Inderes, for example, expected EUR 52 million even before this increase.
And a few highlights from market activity.
Demand remained favorable in the Housing CEE segment.
The recovery of the Finnish housing market has progressed gradually as expected.
The Finnish infrastructure market is active in both the public and private sectors. The market is boosted by increased investments in the defense sector and the positive development of the industrial construction and renewable energy markets.
The market outlook for our businesses appears favorable on many fronts.
Edit:
Will the share price start with the number 3 today?
A taste of a breakout.
Here is the pre-earnings recommendation distribution, i.e., target prices between €2.20-3.00, and the average recommendation is Hold or Neutral.
