Wärtsilä (WRT1V) Investor presentation summary

Strategic transformation and business structure

• Transitioned to two core segments: Marine and Energy, after divesting Portfolio Business and discontinuing Energy Storage as a separate segment in Q2 2026.

• Marine focuses on engines, propulsion, hybrid tech, and services for carbon neutrality; Energy delivers flexible, efficient power plants and services for renewable energy systems.

• Achieved all-time high order intake and order book, with strong growth in both Marine and Energy segments.

• Service business now accounts for over 60% of Marine net sales and 42% of Energy net sales in 2025.

• Financial targets include 5% annual organic growth and a 14% operating margin, with gearing below 0.5 and at least 50% of earnings distributed as dividends.

Market fundamentals and growth drivers

• Decarbonisation and regulatory changes are driving demand for alternative fuels and emissions reduction in marine and energy markets.

• Electrification, AI, and data centre growth are significantly increasing global electricity demand, requiring tripling of generation and a 7x increase in renewables by 2050.

• Marine market supported by resilient contracting in key segments and a progressive switch to sustainable fuels; nearly half of the shipbuilding orderbook is alternative fuel capable.

• Energy market sees strong demand for engine power plants, especially for data centres and balancing solutions as renewables become the main power source.

• Data centre segment is a major growth area, with over 2.4 GW of orders booked in the US and a growing pipeline globally.

Financial and operational performance

• Q2 2026 saw a 33% increase in order intake to 2,849 MEUR, with all-time high order books and improved operating results.

• Net sales remained stable at 1,559 MEUR; comparable operating result rose by 7% to 218 MEUR (14% of net sales).

• Cash flow from operating activities reached 497 MEUR, with return on capital employed at 73%.

• Organic net sales increased by 5%, with equipment net sales up 3% and Energy net sales up 10%.

• Service order books and book-to-bill ratios remain strong, supporting future growth.