Wärtsilä (WRT1V) Investor presentation summary

Strategic focus and business structure

• Group restructured into two main businesses: Marine and Energy, each targeting decarbonisation and carbon neutrality through advanced technologies and services.

• Marine focuses on engines, propulsion, hybrid systems, and integrated power transmission, supporting sustainable fuels and retrofits.

• Energy targets 100% renewable electricity with grid-balancing power plants, hybrid solutions, storage, and optimisation technology.

• Key financial targets: 5% annual organic growth, 12% operating margin, gearing below 0.5, and dividend payout of at least 50% of earnings.

• Portfolio business divestments and continuous R&D investment (4% of net sales) support innovation and focus.

Market fundamentals and regulatory drivers

• Accelerated decarbonisation targets in marine (IMO net zero by 2050) and energy (EU, US, China net zero commitments) drive demand for green solutions.

• Regulatory changes, such as EU Fit for 55 and carbon levies, are increasing fuel costs and incentivising alternative fuels.

• Technology trends include a shift to carbon-neutral/zero-carbon fuels, battery systems, hybrid solutions, and digital optimisation.

• Connectivity, data, and cybersecurity are increasingly important for both marine and energy sectors.

Performance and growth highlights

• All-time high order book (€8.4bn), with order intake up 34% and net sales up 13% in Q4 2024.

• Service order intake and net sales increased by 15% and 12% respectively, with >€3.4bn in service net sales in 2024.

• Marine and Energy both delivered improved operating margins (11.8% and 11.2% respectively).

• Energy Storage & Optimisation business turned profitable and is under strategic review for accelerated growth.