YIT's Data Center Pivot Takes Shape as Group Returns to Growth

Q2 2026: CEE residential shines, data center order book swells with EUR 300M atNorth win, and the group finally turns the page on years of decline.

YIT.HE · Earnings Call · 2026-07-24

A Turn in the Cycle

After nearly six years of consecutive revenue decline, YIT is finally seeing a modest inflection. In the second quarter, group revenue grew 3.5% to EUR 472 million, with Residential CEE – the company's core growth engine – revenue surging over 30% and delivering an adjusted operating margin of 16.5%, comfortably above the 15% strategic target. The turnaround is not just headline numbers: group adjusted operating profit rose to EUR 19 million (3.9% of revenue), and the rolling 12-month figure is now positive. CEO Heikki Vuorenmaa framed it plainly: “We are actually gradually now turning into the modest growth, if you look at our rolling 12 months figures.” The other segments show a mixed but improving picture. Infrastructure revenue grew over 20% year-on-year, with an order book up 20% to above EUR 900 million. Building Construction, while flat in revenue, saw adjusted operating profit improve to EUR 7 million on better project execution and internal efficiencies. The weak spot remains Residential Finland, where revenue fell 40% to EUR 52 million and losses reached EUR 6 million; the company does not expect investor demand to pick up in 2026. Yet even here, unsold inventory is down 60% from its peak, and the group is positioning for a structural housing deficit.

The Data Center Inflection

The most consequential development concerns data centers. During the quarter, YIT announced a EUR 300 million design-and-build contract with atNorth in Kouvola, along with continued work for XTX Markets and others. The company now has over 100 dedicated professionals and a clear strategy to expand its data center value chain. As Vuorenmaa said:

We have created capabilities to deliver and prove that we can actually work from the site clearance to the commissioning. Something that we have done actually for the first data centers that are already completed.
Heikki Vuorenmaa, CEO · 2026-07-24

This is not just a one-off win. The global tape shows data center themes dominating momentum across sectors – from HPC data centers to co-packaged optics – and YIT is riding that wave. The company sees “plenty of opportunities in all operating countries,” and even upgraded its view on the Finnish building construction market, citing data center activity as a compensating force. This pivot is company-unique: unlike pure-play contractors, YIT is building a specialized, repeatable franchise.

Capital Discipline and the Path Ahead

Interim CFO Markus Pietikainen laid out a strengthening balance sheet. Net debt fell to EUR 618 million, and the group refinanced with a new EUR 150 million green bond, completing a multi-step program. Gearing rose to 91% due to a hybrid bond redemption, but operating cash flow after investments improved EUR 15 million year-on-year, and the past 12 months show close to EUR 120 million of positive cash flow. Crucially, growth in Residential CEE is not consuming cash, thanks to milestone-based payments and dynamic pricing. Management remained tight-lipped on the profitability of individual data center projects, but emphasized that decision-making always targets the strategic threshold. The strategic target for the group is 7% operating margin, and while Q2 came in at 3.9%, the improvement trajectory is clear. As Vuorenmaa put it: “We have set ourselves a target – financial target to be above 7%.” The prior calls show continuity in the sales-cure theme: in February, the company said it was applying “different type of campaigns” to reduce inventory, and in October, it noted that noncore assets would be disposed of by 2029. The Q2 call reinforced that non strategic items are now EUR 298 million, with a clear timeline to divest. The consistent discipline is paying off.

Why It Matters

YIT is at a genuine inflection point. After years of shrinkage, it is again growing, and the growth is increasingly concentrated in the highest-margin, addressable market: data center construction. The company has the order book, the team, and the balance sheet to execute. The market context – both global and within Finland – strongly supports this strategic pivot. The risk lies in execution on these large, fast-track projects, but YIT's track record with XTX and now atNorth suggests it is becoming a credible player. In short, this is not a routine quarterly report; it is a narrative change. YIT is no longer just a residential contractor waiting for a housing recovery. It is a diversified builder with a differentiated data center franchise and a clear path back to its 7% margin target.