Strategy

Group-level targets 

YIT will assess the success of its strategy with the following group financial targets to be reached by the end of 2029. 

Financial targets: 

• Adjusted operating profit margin at least 7%  

• Return on capital employed at least 15%  

• Annual net sales growth of at least 5%, with the compound annual growth rate (CAGR) based on year 2024. 

In addition, YIT will introduce a financial framework and non-financial targets for the strategy period. 

Financial framework:  

• Dividend payout ratio at least 50%, subject to fulfillment of certain conditions in current financial agreements  

• Net debt to equity (gearing) in the range of 30-70% over the cycle  

Non-financial targets:  

• Maintain high customer NPS level of over 50 across the operations  

• Employee NPS at least 50 

• Combined Lost Time Injury Frequency (cLTIF) below 5 in all operations 

• SBTi commitment implemented by 2030 (scope 1 & 2 CO2 -90% and scope 3 -30%)   

The targets set for the strategy period include an assumption of the Finnish residential market recovering to a historical average level during the period. YIT’s view of 2010-2020 average self-developed multi-family residential starts in Finland is 16,000 apartments per year.  

To ensure and support the targeted growth and resilience, YIT has decided to change its segment structure. From January 1, 2025 onwards, YIT will have four segments as the former Housing segment will be renamed and divided into two separate segments Residential Finland and Residential CEE. The name of the former Business Premises segment is updated to Building Construction segment to better illustrate the content of the operations.

YIT's business segments' financial targets to be reached by the end of 2029 are:  

Residential Finland, focusing on residential development and construction in Finnish growth centers for consumers and investors.  

• Target is to gain market share, achieve at least 10% adjusted operating margin, and at least 20% return on capital employed.  

• The financial targets set for the strategy period include an assumption of the Finnish residential market recovering to a historical average level during the period.  

• YIT’s view of 2010-2020 average self-developed multi-family residential starts in Finland is 16,000 apartments per year. 

Residential CEE, focusing on residential development and construction for consumers and investors in growth areas in CEE countries (Poland, Slovakia, Czechia, Estonia, Lithuania and Latvia).  

• Target is to achieve at least 15% annual growth, at least 15% adjusted operating margin, and at least 25% return on capital employed. 

Building Construction, focusing on contracting and selective development of commercial premises in Finland and in CEE countries for public sector and investor clients.  

• Target is to achieve at least 2% annual growth, at least 6% adjusted operating profit margin and to continuously operate with negative capital employed. 

Infrastructure focusing on infrastructure construction in Finland for public sector and private industrial clients.  

• Target is to achieve at least 5% annual growth, at least 6% adjusted operating margin and to continuously operate with negative capital employed. 

Industry-leading productivity and financial performance will be delivered by focusing on solid project and cost management, construction lead-time reductions on projects, dynamic pricing models for consumers and developing YIT towards more data, technology and process-led organization.  

Moreover, significant benefits are expected to be materialized from the efficiency actions already implemented or initiated as a part of the ongoing transformation program ended in 2024.  

YIT aims to generate targeted growth and resilience from its current business portfolio by targeting a more balanced geographical revenue distribution and focusing on businesses providing the greatest potential for profitable, capital-efficient growth.  

To underline this, a new business segment Residential CEE will be established where the plan is to achieve significant growth. Simultaneously, the new Residential Finland business segment continues to seek operational efficiencies and build readiness to capture market share when market recovery in the Finnish housing market starts.  

The newly named Building Construction business segment will target growing industry sector investments, growing its own capabilities in building technology and focusing on growth in CEE countries. Growth in the Infrastructure business segment will be mainly driven by energy and industrial construction, rail infrastructure and defense sector. All YIT businesses and selected focus areas will be strongly supported by the key global megatrends such as urbanization and demographic changes, climate change and energy transition, digitalization, and rising focus on global security. 

To elevate customer and employee experience, YIT aims to build strong differentiation through delivering projects with industry-leading total customer value. In addition, to complement the strategic priority to become more data, technology and process-led organization, YIT will focus on fostering its company culture, strategic capabilities and attracting the best talent.  

Moreover, the company is aiming to take a step change in work safety to demonstrate YIT’s uncompromising commitment to continuous improvement in this focus area.  

Commitment to sustainability 

One of key enablers of the new strategy is sustainability. In line with YIT’s vision, sustainability is an integral part of good life and considered a key competitive advantage for the company.  

In terms of environmental criteria, we are committed to the Science Based Targets (SBTi) initiative to limit global warming to 1.5 degrees Celsius in line with the Paris Climate Agreement. In November 2021, YIT became the first Finnish construction company to commit to the Science Based Targets (SBTi). The Science Based Targets (SBTi) validated YIT's emission targets in June 2023. With this commitment, we are strengthening our climate work and aiming to reduce both our own and our customers' emissions. 

In terms of social criteria, we will continue our work to improve society and build a better living environment. We aim to halve the amount of workplace accidents by the end of the strategy period, and we will invest in strengthening well-being at work and personal growth. 

On governance criteria, we continue our rigorous approach to the grey economy. We do not tolerate corruption, labour exploitation or discrimination. We promote our sustainability objectives throughout our supply chain. We hold our suppliers to the same environmental, social and governance standards we have set ourselves.  

More financial information on our Investor's page