Company Reports

Wartsila is a global leader in marine and energy technologies, with a strategy centered on decarbonization, profitable growth, and portfolio focus. The company concentrates on areas where it holds clear strengths—medium-speed 4-stroke marine engines, engine-based power plants, and energy storage solutions—while exiting noncore businesses. Its technologies enable decarbonization through innovation, cost efficiency, and long-term service relationships.

Wartsila is a global leader in marine and energy technologies, with a strategy centered on decarbonization, profitable growth, and portfolio focus. The company concentrates on areas where it holds clear strengths—medium-speed 4-stroke marine engines, engine-based power plants, and energy storage solutions—while exiting noncore businesses. Its technologies enable decarbonization through innovation, cost efficiency, and long-term service relationships.

Wärtsilä delivered record orders in its second quarter. Order intake of EUR 2.85 billion and 43% organic growth were driven by data center power demand and a record marine result, lifting the group book/bill to 1.83. Comparable operating margin reached 14.0%, up 1.3% year on year.

Wärtsilä delivered a 12.8% comparable operating margin in the first quarter of 2026—the seasonally weakest quarter—matching the previous quarter's record, while energy order intake hit an all-time quarterly high of EUR 973 million. Shares fell 7% intraday on energy storage concerns.

Wartsila's accelerating shift toward recurring service revenue, improving capital efficiency, and a more predictable earnings profile prompt a comprehensive reassessment of the company's outlook.

Wartsila is a global leader in marine and energy technologies, with a strategy centered on decarbonization, profitable growth, and portfolio focus. The company concentrates on areas where it holds clear strengths—medium-speed 4-stroke marine engines, engine-based power plants, and energy storage solutions—while exiting noncore businesses. Its technologies enable decarbonization through innovation, cost efficiency, and long-term service relationships.

Wärtsilä closed 2025 with a strong fourth quarter, delivering all-time highs in operating profit and cash flow and a 12.8% operating margin. Full-year performance marked an important milestone, as the firm reached its 12.1% operating result target, supported by strong execution in marine and energy.

Wärtsilä delivered decent third-quarter 2025 results, posting 10% comparable EBIT growth and 6% organic order growth, reflecting steady marine and energy demand. However, organic sales were flat and energy storage orders collapsed, highlighting uneven end market conditions.

Wartsila is a global leader in marine and energy technologies, with a strategy centered on decarbonization, profitable growth, and portfolio focus. The company concentrates on areas where it holds clear strengths—medium-speed 4-stroke marine engines, engine-based power plants, and energy storage solutions—while exiting noncore businesses. Its technologies enable decarbonization through innovation, cost efficiency, and long-term service relationships.

We take a fresh look at Wartsila, a global leader in marine and energy technologies such as propulsion systems, engine-based power plants, and energy storage solutions. Its technologies support the decarbonization of shipping and power generation, while being underpinned by a large installed base.

Wärtsilä reported second-quarter sales of EUR 1.7 billion, up 11% year over year and slightly ahead of expectations. Profitability continued to improve, as EBIT margin expanded by 70 basis points to 12%. The company introduced its new segmentation, reporting its energy storage business separately.

Wärtsilä is an integrated provider of capital equipment and aftermarket parts and servicing in the global marine and energy markets. Accordingly, it reaps the benefit of sticky, high-profit-margin aftermarket sales that accrue under its installed base business model. Aftermarket maintenance and sales of spare parts account for approximately 50% of group revenue, evidencing the extent to which Wärtsilä can exert control in the lucrative aftermarket for maintenance and original parts for its marine and energy systems and equipment.

Wartsila reported a solid first-quarter 2025 result with 29% EBIT growth year on year and 40-basis-point margin expansion to 11%, driven by strong service performance. However, net sales of EUR 1.6 billion missed expectations. Total order intake dropped 1% due to a pause in US energy storage orders.

Wide-moat Wartsila continued to benefit from presently exceptional shipbuilding demand conditions in the fourth quarter of 2024. Organic order intake jumped 35% year on year in the fourth quarter, with the consequent 17% organic rise in new orders for 12 months to December 2024 eclipsing our full-year forecasts. Nonetheless, Wartsila delivered fourth-quarter and full-year sales and operating income that tracked broadly in line with our expectations. Investors reacted positively to the bumper fourth-quarter intake of new orders, pushing Wartsila shares some 6% higher in early trade. Wartsila’s order book currently sits at an all-time high of EUR 8.4 billion as at December 2024, setting it up for a bumper year of earnings growth in 2025.

While marine demand conditions remain strong in late 2024, wide-moat Wärtsilä's order intake waned 3% sequentially in the third quarter as order intake for the energy division weakened substantially. Marine equipment orders rose 15% quarter on quarter, according with presently strong shipbuilding demand. On the other hand, energy storage equipment orders plummeted—falling some 77% sequentially and coming in well below Vara consensus expectations—with Wärtsilä citing a number of energy storage projects being deferred to later quarters, affecting demand for its battery energy storage systems, or BESS, in the quarter. Equipment demand for the energy segment was otherwise relatively resilient, up some 6% sequentially, with both baseload and balancing gas power plants orders relatively stable. Wärtsilä shares are some 15% lower in early trading, with investors likely concerned that the weakness in new orders is symptomatic of rising competition in BESS markets, as opposed to being entirely the result of lumpiness in order intake.

Wärtsilä is an integrated provider of capital equipment and aftermarket parts and service in the global marine and energy markets. Accordingly, it reaps the benefit of sticky, high-profit-margin aftermarket sales that accrue under its installed base business model. Aftermarket maintenance and spare-parts sales account for approximately 50% of group revenue, evidencing the extent to which Wärtsilä can exert control in the lucrative aftermarket for maintenance and original parts for its marine and energy systems and equipment.

Wartsila is an integrated provider of capital equipment and aftermarket parts and service in the global marine and energy markets. Accordingly, Wartsila reaps the benefit of sticky, high profit margin aftermarket sales that accrue under its installed base business model. Aftermarket maintenance and spare parts sales account for approximately 50% of group revenue, evidencing the extent to which Wartsila can exert control in the lucrative aftermarket for maintenance and original parts for its marine and energy systems and equipment.

Wide-moat Wartsila reported a strong second-quarter result, with new orders rising 10% year over year to EUR 1.85 billion in broad accordance with both our full-year and consensus expectations. Nonetheless, investors cheered the significant EBIT margin strengthening--it widened by 130 basis points quarter on quarter to 11.3%--as equipment margins firmed and the marine segment's sales mix skewed further toward high-profit-margin aftermarket services. Wartsila's share price strengthened, up some 3% at the time of writing. While we expect to tweak our near-term estimates, our long-term outlook for Wartsila remains unchanged. Consequently, we don't anticipate a material change in our fair value estimate of EUR 13 per share. Shares continue to screen as expensive.

Investors welcomed wide-moat Wartsila’s stellar first-quarter results that featured a large uplift in order intake inspired by the significant uplift in global shipbuilding activity in early 2024. Wartsila shares are up 10% at the time of writing. Wartsila’s first-quarter order intake rose a substantive 17% organically—driving Wartsila’s order book to a record-high of EUR 7.3 billion—which should support elevated earnings growth in 2024 and 2025. With demand in 2024 for Wartsila’s suite of marine engines, systems, and equipment tracking significantly ahead of our prior forecast, we lift our fair value estimate by 18% to EUR 13. A swifter turnaround of Wartsila’s energy segment than we’d previously credited also contributes to our fair value estimate uplift, with the segment’s recovery in EBIT margin tracking ahead of our prior expectations. Wartsila shares screen expensively, trading at a 33% premium to our upwardly revised valuation.

Wartsila is an integrated provider of capital equipment and aftermarket parts and service in the global marine and energy markets. Accordingly, Wartsila reaps the benefit of sticky, high profit margin aftermarket sales that accrue under its installed base business model. Aftermarket maintenance and spare parts sales account for approximately 50% of group revenue, evidencing the extent to which Wartsila can exert control in the lucrative aftermarket for maintenance and original parts for its marine and energy systems and equipment.