Wärtsilä (WRT1V) Q3 2024 earnings summary

Executive summary

• Net sales increased by 18% year-over-year to €1,718 million in Q3 2024, with strong growth in both equipment and services and robust cash flow improvements.

• Comparable operating result rose by 41% to €177 million, reaching 10.3% of net sales; operating result margin at 11.2%.

• Order book reached €7,583 million, up 15% year-over-year, with book-to-bill ratio above one for 14 consecutive quarters.

• Service order intake and net sales grew by 4% and 6%, respectively, with continued expansion in service agreements.

• Strong cash flow from operating activities, close to EUR 300 million for the quarter.

Financial highlights

• Order intake for Q3 was €1,803 million, up 1% year-over-year; nine-month order intake up 7%.

• Equipment order intake decreased by 2% in Q3, mainly due to timing in Energy Storage & Optimisation.

• Equipment net sales increased by 32% year-over-year; service net sales up 6%.

• Comparable operating result increased from EUR 125 million to EUR 177 million.

• Cash flow from operating activities was €296 million in Q3, up from €213 million a year ago.

Outlook and guidance

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

• Second half EBIT margin expected to be lower than the first half (10.7%), with no typical Q4 margin spike.

• Equipment deliveries in Energy are weighted toward the second half of 2024.