Wärtsilä (WRT1V) Q2 2024 earnings summary

Executive summary

• Net sales rose 7% year-over-year in Q2 2024, with order intake up 10% and a record order book of EUR 7.6 billion, reflecting strong demand in both Marine and Energy.

• Comparable operating result increased by 63% year-over-year in Q2 2024, reaching a double-digit margin.

• Cash flow from operating activities was EUR 216 million in Q2 2024 and EUR 475 million for H1 2024, continuing a positive trend.

• Service order intake rose 8% and service net sales increased 3% year-over-year.

• Order backlog increased 22% to EUR 7,607 million, with both services and equipment contributing to growth.

Financial highlights

• Q2 2024 net sales: EUR 1,556 million (+7% year-over-year); H1 2024 net sales: EUR 2,877 million (stable year-over-year).

• Q2 2024 order intake: EUR 1,854 million (+10% year-over-year); H1 2024: EUR 3,778 million (+10%).

• Comparable operating result: EUR 176 million in Q2 2024 (+63% year-over-year); H1 2024: EUR 308 million (+57%).

• EPS (basic and diluted): EUR 0.20 in Q2 2024, EUR 0.34 for H1 2024; return on investment at 19.1%, return on equity at 17.9%.

• Net interest-bearing debt at EUR -250 million; solvency ratio at 35.3%.

Outlook and guidance

• Demand environment for both Marine and Energy expected to be better over the next 12 months compared to the previous period.

• Second half EBIT margin percentage expected to be lower than the first half due to faster growth in lower-margin equipment business.

• Equipment deliveries in Energy expected to accelerate in H2 2024, with less pronounced seasonality in margins.

• No revision to long-term financial targets; confident in reaching EBIT margin goals.