Wärtsilä (WRT1V) Pre-silent call summary

Executive summary

• Announced closing of the global Energy Storage joint venture with RCT Solutions, each holding 50%, with closing date moved to 1 October 2026 for more precise financial impact estimation.

• Joint venture impacts operating results in Q4 and Q4 2026, with future results moving to investing activities under IFRS 18 from 2027.

• Order book for energy equipment is nearly full through 2029, with new customers likely pushed to 2030.

• Diversification across geographies and customer segments is emphasized, with strong demand in data centers and balancing power.

Trading performance and revenue trends

• Business development in Q3 is described as positive, with major announcements in Australia and Japan.

• Marine newbuild market is exceptionally busy, with order books at 22% of fleet capacity and strong forecasts.

• Order intake is robust, with early bookings required due to high demand and limited capacity.

• Energy Storage discontinued as a separate reporting segment in Q2 2026, with results presented as a single line in discontinued operations prior to closing.

Profitability and margins

• Margins are rising across all segments due to increased demand and pricing power.

• Marine pricing is improving but remains more challenging than energy due to different customer dynamics.

• Over 500 basis point improvement in order book pricing is expected to be visible next year.

• Initial estimate for 2026 operating result impact was EUR -40 to -50 million, mainly due to low order intake and R&D write-down, but actual write-down in Q3 reduced estimated impact to EUR -10 to -15 million for 2026.

• Impact will not be classified as items affecting comparability.