YIT (YIT) Investor update summary

Change in revenue recognition method

• Segment reporting will adopt the percentage of completion (POC) method for self-developed projects starting Q1 2026, recognizing revenue throughout construction instead of at completion.

• POC provides more timely and predictable financial information, reducing quarterly revenue variance and reflecting market dynamics more quickly.

• Financial information will be presented under both IFRS and POC, with reconciliations and restated 2025 figures for comparability.

• Segment reporting will focus on POC numbers, while IFRS figures and balance sheet remain at the group level.

• The change does not impact group full-year guidance or strategic financial targets for 2025–2029.

Organizational and operational changes

• Finnish residential business shifts to a function-based model, centralizing production and quality control.

• Internal product development, centralized production, and customer engagement are now distinct organizational elements.

• Sales, marketing, and consumer insights are leveraged to improve gross margin and production efficiency.

• New structure aims to enhance production efficiency, quality, and sales performance.

Financial implications and illustrative examples

• POC impacts timing of revenue recognition but not overall project profitability; after completion, cumulative revenue is the same under both methods.

• For 2025, segment revenue for Finland slightly decreases, CEE region sees increased sales and EBIT, and group-level segment reporting shows €1,803 million revenue and €58 million adjusted operating profit.

• Group result for 2025 was a net loss of €17 million, with earnings per share at -€0.11.

• Capital employed increases by €17 million at end of 2025 under POC, with operative capital employed at €976 million.