Wärtsilä Corporation, Interim Report January-September 2025, 28 October 2025 at
8:30 (EET)
Wärtsilä's Interim Report January-September 2025
This release is a summary of Wärtsilä's Interim Report January-September 2025.
The complete report is attached to this release as a pdf file. It is also
available on the company website at www.wartsila.com.
OPERATING RESULT AND CASH FLOW INCREASED
July-September 2025 highlights
· Order intake remained stable at EUR 1,790 million (1,803), while the organic
growth, which excludes FX impact and the impact of acquisitions and divestments,
was 6%
· Service order intake remained stable at EUR 864 million (874)
· Net sales decreased by 5% to EUR 1,632 million (1,718), while organic growth
was 0%
· Book-to-bill amounted to 1.10 (1.05)
· The comparable operating result increased by 10% to EUR 195 million (177),
which represents 11.9% of net sales (10.3)
· The operating result increased by 20% to EUR 230 million (192), which
represents 14.1% of net sales (11.2)
· Earnings per share increased to 0.31 euro (0.24)
· Cash flow from operating activities increased to EUR 340 million (296)
January-September 2025 highlights
· Order intake increased by 5% to EUR 5,882 million (5,580), while organic
growth was 8%
· Service order intake remained stable at EUR 2,782 million (2,805)
· The order book at the end of the period increased by 14% to EUR 8,637
million (7,583)
· Net sales increased by 7% to EUR 4,912 million (4,595), while organic growth
was 9%
· Book-to-bill amounted to 1.20 (1.21)
· The comparable operating result increased by 18% to EUR 573 million (485),
which represents 11.7% of net sales (10.5)
· The operating result increased by 20% to EUR 582 million (487), which
represents 11.9% of net sales (10.6)
· Earnings per share increased to 0.75 euro (0.58)
· Cash flow from operating activities increased to EUR 946 million (770)
WÄRTSILÄ'S OUTLOOK
Marine
Wärtsilä expects the demand environment for the next 12 months (Q4/2025-Q3/2026)
to be better than in the comparison period.
Energy
Wärtsilä expects the demand environment for the next 12 months (Q4/2025-Q3/2026)
to be similar to that of the comparison period.
Energy Storage
Wärtsilä expects the demand environment for the next 12 months (Q4/2025-Q3/2026)
to be better than in the comparison period. However, the current geopolitical
uncertainty particularly impacts this business and may affect growth.
In general, Wärtsilä underlines that the current high external uncertainties
make forward-looking statements challenging. Due to high geopolitical
uncertainty, the changing landscape of global trade, and the lack of clarity
related to tariffs, there are risks of postponements in investment decisions and
of global economic activity slowing down.
HÅKAN AGNEVALL, PRESIDENT & CEO: GROWING ORDER INTAKE IN MARINE AND ENERGY, AND
CONTINUED IMPROVED PROFITABILITY
“Wärtsilä's third quarter of 2025 was characterised by steady activity in both
the energy and marine markets. The external macroeconomic environment remained
uncertain throughout the period. The OECD revised its 2025 global growth outlook
upward, citing resilient emerging markets, front-loaded trade flows in response
to anticipated US tariff changes, and strong investment in high technology
sectors. However, it also notes that the full impact of higher tariffs remains
unclear, with early signs of slowing output and consumption in advanced
economies.
In the energy market, global electricity demand continues to rise, driven by
accelerating electrification across sectors, growing industrial activity, and
expanding data centre capacity. In parallel, the growing deployment of renewable
energy is transforming power systems and increasing the need for flexible
generation capacity. These market dynamics were evident in customer activity
during the quarter. As an example, we secured an engineering and equipment
contract to supply 12 Wärtsilä 50DF engines for a 217 MW power plant for East
Kentucky Power Cooperative in the US. The plant is needed to provide additional
grid capacity to meet growing demand.
In the marine market, sentiment has improved recently following a slow start to
the year, supported by trade agreements between major economies, and the
resilience in global trade. However, the impact on shipping demand has been
uneven across segments, and growth in seaborne trade has moderated. Factors such
as the ongoing uncertainty around trade policies, elevated newbuild prices, and
softer demand in some segments have negatively affected new vessel orders this
year. While new vessel ordering activity has slowed compared to the
extraordinary levels seen in 2024, it remains above the 10-year average.
Notably, activity in Wärtsilä's key segments continued to be healthy. Also, the
demand for alternative-fuel-capable vessels remained strong, representing 48
percent of contracted capacity so far in 2025.
After the reporting period, the vote to adopt the IMO's Net Zero Framework was
postponed by one year. This outcome opens the door to a fragmented landscape of
carbon pricing mechanisms introduced by individual regions and countries. The EU
already has its system in place, while China is signalling plans for its own
programs, adding complexity to global shipping. At Wärtsilä, we offer a broad
and flexible portfolio of technologies to support a wide range of
decarbonisation strategies. We are helping our customers navigate the transition
by optimising fuel efficiency and de-risking the future through fuel
flexibility, leveraging hybrid solutions, alternative fuels, and carbon capture.
Our commitment to sustainable innovation remains strong, aligned with evolving
customer needs.
Order intake in the third quarter increased organically by 6%. Equipment order
intake increased in Marine and Energy, while it decreased in Energy Storage. The
Energy Storage business is facing headwinds from elevated US tariffs and
regulatory changes particularly related to FEOC (Foreign Entity of Concern), as
well as intensified competition in other markets. Service order intake remained
stable, supported by several new long-term agreements and renewals, while
retrofits and upgrades decreased. The rolling 12-month book-to-bill ratio in
service remains well above 1, indicating future growth. Organic net sales
remained stable. Service net sales increased, while equipment net sales
decreased primarily due to the timing of deliveries in Energy.
The comparable operating result increased by 10% to EUR 195 million,
representing 11.9% of net sales. The result was supported by increases in Marine
and Energy Storage, while results in Energy and Portfolio Business decreased. In
Energy, the comparable operating result was mainly impacted by lower equipment
sales. In Portfolio Business, the comparable operating result decreased as the
ANCS business unit is no longer reported under the segment following the
successful closure of its divestment on 1 July 2025.
Cash flow from operating activities increased to EUR 340 million, following the
improved result and a good level of received customer payments. The current
working capital position is very favourable for our business, and we expect the
negative level to be sustained over the next years. We will continue our active
efforts to manage working capital to maintain it well below the long-term
historical average.
We expect the demand environment for the coming 12 months to be better than in
the comparison period in Marine and Energy Storage, while the demand environment
in Energy is expected to remain at a similar level. However, as previously
outlined, the current high external uncertainties make forward-looking
statements challenging. It is worth noting that order intake in Energy has been
strong over the past 12 months, whereas Energy Storage has experienced weaker
development. The market dynamics in Energy Storage have changed significantly
following the implementation of the April 2025 US tariff measures, which were
introduced shortly after the completion of our strategic review and the launch
of the new financial targets. The current situation is challenging, and we need
orders for next year's deliveries. While we remain focused on profitable
customer segments, we are also looking at measures that improve the
competitiveness of the Energy Storage business. We anticipate ordering to pick
up in the fourth quarter. We also note that the positive development in Marine
and Energy combined continues, with net sales growing organically by 13% and
reaching a 13.2% operating margin during the last twelve months.
We are executing our strategy with discipline and purpose, supporting our
customers to succeed in the fast-changing marine and energy sectors. We are
building a resilient foundation for long-term success that enables us to
innovate consistently, adapt swiftly, and remain a trusted partner in an
increasingly complex global environment.”
KEY FIGURES
MEUR 7-9/20 7-9/20 Change 1-9/20 1-9/2024 Change 2024
25 24 25
Order intake 1,790 1,803 -1% 5,882 5,580 5% 8,072
of which 864 874 -1% 2,782 2,805 -1% 3,812
services
of which 926 929 0% 3,100 2,776 12% 4,260
equipment
Order book, 8,637 7,583 14% 8,366
end of
period
Net sales 1,632 1,718 -5% 4,912 4,595 7% 6,449
of which 821 807 2% 2,613 2,473 6% 3,422
services
of which 811 911 -11% 2,299 2,122 8% 3,027
equipment
Book-to-bill 1.10 1.05 1.20 1.21 1.25
EBITDA 273 230 19% 731 597 22% 847
% of net 16.7% 13.4% 14.9% 13.0% 13.1%
sales
Comparable 195 177 10% 573 485 18% 694
operating
result
% of net 11.9% 10.3% 11.7% 10.5% 10.8%
sales
Operating 230 192 20% 582 487 20% 716
result
% of net 14.1% 11.2% 11.9% 10.6% 11.1%
sales
Result 227 190 19% 577 469 23% 687
before taxes
Earnings per 0.31 0.24 0.75 0.58 0.85
share
(EPS), basic
and
diluted, EUR
Return on 51.1 28.6 37.1%
capital
employed
(ROCE)*, %
Cash flow 340 296 946 770 1,208
from
operating
activities
Net interest -1,415 -405 -777
-bearing
debt, end of
period
Gearing -0.53 -0.17 -0.31
Solvency, % 39.3 36.9 37.4%
*Rolling 12
months.
Wärtsilä presents certain alternative performance measures in accordance with
the guidance issued by the European Securities and Markets Authority (ESMA). The
definitions of these alternative performance measures are presented in the
Calculations of financial ratios section.
ANALYST AND PRESS CONFERENCE
A virtual analyst and press conference will be held as a webinar today, Tuesday
28 October 2025, at 10.00 a.m. Finnish time (8.00 a.m. UK time).
Participating via the web
Register and login to the web interface via the web address below. When you
register, you are prompted to participate as a listener or as an active Q&A
participant. Once the event starts, the event page will switch to the
presentation mode automatically.
https://wartsila.events.inderes.com/q3-2025
If you are participating via the web, you can enter the Q&A que by clicking the
raise hand button on the bottom-right corner of the video/audio player. Once the
event host announces your name, please open your microphone from the bottom-left
corner of the video/audio player to be able to be heard.
Participating via the teleconference
Please use the teleconference dial-in option only if you experience issues with
the web participation or your organisations firewalls set limitations for the
web participation.
You can access the teleconference by registering on the link below. After the
registration you will receive an email with the dial-in numbers and your
personal PIN code to access the conference.
https://events.inderes.com/wartsila/q3-2025/dial-in
If you are participating via the dial-in teleconference, you can enter the que
by clicking *5 (star-five) in the telephone keypad, and if you want to withdraw
your question, click *6 (star-six) respectively.
A recording of the webcast will be available on the company website as soon as
possible after the event.
For further information, please contact:
Arjen Berends
Executive Vice President & CFO
Tel. +358 10 709 5444
arjen.berends@wartsila.com
Hanna-Maria Heikkinen
Vice President, Investor Relations
Tel. +358 10 709 1461
hanna-maria.heikkinen@wartsila.com
For press information, please contact:
Anne Alarotu
Head of External Communications
Tel. +358 50 487 1308
anne.alarotu@wartsila.com
Wärtsilä in brief
Wärtsilä is a global leader in innovative technologies and lifecycle solutions
for the marine and energy markets. We emphasise innovation in sustainable
technology and services to help our customers continuously improve environmental
and economic performance. Our dedicated and passionate team of 18,300
professionals in more than 230 locations in 77 countries shape the
decarbonisation transformation of our industries across the globe. In 2024,
Wärtsilä's net sales totalled EUR 6.4 billion. Wärtsilä is listed on Nasdaq
Helsinki. www.wartsila.com