YIT provided guidance and outlook for 2023 in connection with its Financial Statements Release 2022 on 10 February 2023. As part of the guidance and outlook, YIT stated that its Group adjusted operating profit for continuing operations is expected to be lower than in 2022 (2022: EUR 110 million), and that developments in housing markets may have an impact on the outlook.
The activity in housing markets has been unprecedentedly low during the first quarter of 2023. Markets have been negatively impacted by major economic uncertainty aggravated by instability in the banking sector that emerged during March, and volatile interest rates. Consequently, the demand outlook in the Housing segment is expected to remain weak for the first half of 2023 and recover slower than originally anticipated. YIT lowers its full year guidance to reflect the change in the outlook.
YIT expects its Group adjusted operating profit for continuing operations to be lower than in 2022, but at least EUR 50 million (2022: EUR 110 million).
In Housing, the demand outlook remains weak for the first half of the year but is expected to gradually recover in the second half of the year. In Business Premises and Infrastructure, the underlying operational performance is expected to improve, but certain legacy low-margin projects will still affect Infrastructure’s performance.
YIT’s performance will be supported by the increased efficiencies from the transformation program launched on 10 February 2023.
Developments in housing markets may have an impact on the outlook. Rising interest rates may have a negative impact on the fair value of investments.
YIT expects its Group adjusted operating profit for continuing operations to be lower than in 2022 (2022: EUR 110 million).
In Housing, the demand outlook remains muted in the short term. In Business Premises and Infrastructure, the underlying operational performance is expected to improve, but certain legacy low-margin projects will still affect Infrastructure’s performance.
YIT’s performance will be supported by the increased efficiencies from the transformation program launched on 10 February 2023.
Developments in housing markets may have an impact on the outlook. Rising interest rates may have a negative impact on the fair value of investments.
The company expects its revenue in the first quarter to amount to EUR 455 million (Q1 2022: 518). Adjusted operating profit in the first quarter is expected to amount to EUR -4 million (Q1 2022: 22), and operating cash flow after investments to EUR -211 million (Q1 2022: -41). Adjusted operating profit and operating cash flow after investments were burdened primarily by very low consumer sales in Housing.
The financial figures stated in this release are preliminary and unaudited. YIT will publish its January–March 2023 Interim Report on 3 May 2023.