Wärtsilä Corporation, Half-year Financial Report January-June 2025, 18 July 2025
at 8:30 (EEST)
Wärtsilä's Half-year Financial Report January-June 2025
This release is a summary of Wärtsilä's Half-year Financial Report January-June
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.
ORDER INTAKE, NET SALES, OPERATING RESULT AND CASH FLOW ALL INCREASED
Highlights from April-June 2025
· Order intake increased by 18% to EUR 2,190 million (1,854), while the
organic growth, which excludes FX impact and the impact of acquisitions and
divestments, was 20%
· Service order intake decreased by 6% to EUR 926 million (982)
· Net sales increased by 11% to EUR 1,719 million (1,556), while organic
growth was 13%
· Book-to-bill amounted to 1.27 (1.19)
· The comparable operating result increased by 18% to EUR 207 million (176),
which represents 12.0% of net sales (11.3)
· The operating result increased by 11% to EUR 186 million (168), which
represents 10.8% of net sales (10.8)
· Earnings per share increased to 0.23 euro (0.20)
· Cash flow from operating activities increased to EUR 416 million (216)
Highlights from January-June 2025
· Order intake increased by 8% to EUR 4,092 million (3,778).
· Service order intake remained stable at EUR 1,918 million (1,931)
· The order book at the end of the period increased by 15% to EUR 8,764
million (7,607)
· Net sales increased by 14% to EUR 3,279 million (2,877)
· Book-to-bill amounted to 1.25 (1.31)
· The comparable operating result increased by 23% to EUR 378 million (308),
which represents 11.5% of net sales (10.7)
· The operating result increased by 19% to EUR 352 million (295), which
represents 10.7% of net sales (10.2)
· Earnings per share increased to 0.44 euro (0.34)
· Cash flow from operating activities was on a good level at EUR 606 million
(475)
WÄRTSILÄ'S PROSPECTS
Marine
Wärtsilä expects the demand environment for the next 12 months (Q3/2025-Q2/2026)
to be better than in the comparison period.
Energy
Wärtsilä expects the demand environment for the next 12 months (Q3/2025-Q2/2026)
to be similar to that of the comparison period.
Energy Storage
Wärtsilä expects the demand environment for the next 12 months (Q3/2025-Q2/2026)
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: Strong order intake and improved profitability
“The second quarter of 2025 was strong for Wärtsilä, with increases in order
intake, net sales, operating result and cash flow. We ended the quarter with an
all-time-high order book of EUR 8,764 million.
However, the global economic outlook remained uncertain due to increased trade
barriers and policy uncertainty. This, combined with the risk of further
protectionism, could add to inflationary pressures and dampen growth in global
economic activity.
In the energy market, the rising global electricity demand is driving the need
for new power generation capacity. The ongoing global energy transition is
expected to continue, with renewables meeting most of the upcoming capacity
growth, as these are the most affordable way to generate electricity. This trend
will continue to support the demand for Wärtsilä's balancing power offering,
which includes both engine power plants and battery energy storage systems.
However, the US market for battery energy storage is currently facing challenges
due to increased tariffs, leading to heightened competition in other markets.
Baseload generation remains a consistent source of demand for engine power
plants, particularly in remote areas and locations where grid power access is
uncertain or time sensitive. For example, in the second quarter, we secured a
large EPC order to supply 12 Wärtsilä 50 engines and auxiliaries for the Reko
Diq copper-gold mining project in Pakistan. The solution will provide a
critically needed reliable and economical power supply, enabling mining
operations to function efficiently.
Our medium-speed engines also provide an excellent baseload solution for data
centres, a rapidly expanding market with unique power requirements. I am very
pleased to highlight the fact that we secured our first data centre order from
the US during the second quarter. We will supply a total of 15 Wärtsilä 50
engines ensuring high availability of power. The data centre segment continues
to offer interesting business potential for Wärtsilä in both equipment and
services.
In the marine market, the uncertain global economic outlook has dampened demand
for new ship capacity in 2025. Slowing demand for tonnage, coupled with
uncertainties in global trade policies and a strong supply of new ships, has led
to mixed market conditions across many vessel segments. However, activity in
Wärtsilä's key segments, such as cruise and ferry, remains supportive.
In April, the 83rd session of the Marine Environment Protection Committee of the
International Maritime Organization proposed a set of measures to drive the
decarbonisation of global shipping. Although these measures are still awaiting
adoption in October 2025, they underscore the regulatory push to reduce
emissions and encourage shipowners to continue their investments in
decarbonisation. During the first half of 2025, 183 orders for new alternative
fuel capable vessels were reported, accounting for 55% of the capacity of
contracted vessels.
Wärtsilä continues to play an important role in the maritime industry's
decarbonisation efforts, exemplified by the launch of our carbon capture
solution during the second quarter. This innovative technology supports the
ongoing efforts to significantly reduce vessel emissions and avoid stranded
assets.
During the quarter we also announced that we will expand our state-of-the-art
Sustainable Technology Hub in Vaasa, Finland, with a €50 million total
investment. Expanding the R&D testing and manufacturing capacity will enhance
Wärtsilä's ability to meet the growing demand for developing and delivering
sustainable technologies in marine and energy.
Order intake in the second quarter increased organically by 20%. Equipment order
intake increased as a result of strong equipment orders in Energy and Marine.
Service order intake decreased mainly due to lower project-oriented activities
in retrofits and upgrades. All other service disciplines continue to grow, with
rolling 12-month book-to-bill ratios above 1. Net sales increased organically by
13%, with increases in both equipment and service net sales.
The comparable operating result increased by 18% to EUR 207 million,
representing 12.0% of net sales. The result was supported by increases in
Energy, Marine and Portfolio Business. Cash flow from operating activities
almost doubled, following the improved result and a good level of received
customer payments. The current negative working capital level is very favourable
for our business, and we expect it to normalise going forward. We will continue
our active efforts to manage working capital to maintain it clearly 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. It is worth noting that
order intake in Energy has been very strong over the past 12 months. However, as
we have outlined, the current high external uncertainties make forward-looking
statements challenging.
We are making continued progress towards our financial targets, driven by our
focus on supporting our customers towards a marine and energy future that is
both environmentally sustainable and financially viable. Our strong financial
position, industry-leading offering and mindset of continuous improvement equip
us to navigate future challenges and capture the many opportunities offered by
the decarbonisation transformation.”
KEY FIGURES
MEUR 4-6/20 4-6/20 Change 1-6/20 1-6/2024 Change 2024
25 24 25
Order intake 2,190 1,854 18% 4,092 3,778 8% 8,072
of which 926 982 -6% 1,918 1,931 -1% 3,812
services
of which 1,264 872 45% 2,174 1,847 18% 4,260
equipment
Order book, 8,764 7,607 15% 8,366
end of
period
Net sales 1,719 1,556 11% 3,279 2,877 14% 6,449
of which 907 834 9% 1,792 1,666 8% 3,422
services
of which 812 722 12% 1,488 1,211 23% 3,027
equipment
Book-to-bill 1.27 1.19 1.25 1.31 1.25
EBITDA 251 205 23% 458 367 25% 847
% of net 14.6 13.2 14.0 12.8 13.1
sales
Comparable 207 176 18% 378 308 23% 694
operating
result
% of net 12.0 11.3 11.5 10.7 10.8
sales
Operating 186 168 11% 352 295 19% 716
result
% of net 10.8 10.8 10.7 10.2 11.1
sales
Result 186 160 16% 350 278 26% 687
before taxes
Earnings per 0.23 0.20 0.44 0.34 0.85
share
(EPS), basic
and
diluted, EUR
Return on 44.6 24.3 37.1
capital
employed
(ROCE)*, %
Cash flow 416 216 606 475 1,208
from
operating
activities
Net interest -1,123 -250 -777
-bearing
debt, end of
period
Gearing -0.45 -0.11 -0.31
Solvency, % 36.6 35.3 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 on the same
day, today, Friday 18 July 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.
wartsila.events.inderes.com/q2-2025
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.
palvelu.flik.fi/teleconference/?id=50052210
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