Wärtsilä (WRT1V) Pre-silent call summary

Executive summary

• Positive momentum continues in key marine segments, with upward revisions for containers, cruise, ferry, LNG, and offshore, while tankers and bulkers are expected to decline in 2025.

• Service business utilization remains strong, supported by high fleet utilization and regulatory drivers like the European carbon tax.

• Energy market order intake is lumpy, with U.S. tariff uncertainty slowing decision-making, especially in energy storage, but long-term demand is robust due to electrification and renewables.

Trading performance and revenue trends

• Longer order book and earlier down payments are observed due to extended delivery times from yard capacity constraints.

• No cancellations in energy orders, but customer negotiations are slower as clients seek clarity on tariff impacts.

• Data center opportunities are growing, with contracts in Europe and pending first U.S. orders.

Profitability and margins

• Margin improvement is supported by higher service volumes, factory efficiency, and the closure of the Trieste plant.

• Spare parts and transactional business provide the highest margins, but mix effects are difficult to predict.

• Increased factory load and continuous improvement initiatives are expected to enhance efficiency.