Wärtsilä (WRT1V) Strategy update summary

Strategy and targets

• Decarbonization in energy and marine is a multi-decade, accelerating transition; priorities include fuel flexibility, fuel efficiency, balancing power and services, which generate over 50% of revenue.

• Energy and marine targets remain 5% annual organic growth and 14% EBIT; storage targets low-double-digit annual organic growth and 3%-5% EBIT.

Marine

• MEPC 83 awaits formal decision in October; if adopted, it would introduce a global marine carbon fee, with HFO operating costs projected to double by 2035; EU measures had pointed to a doubling by 2030.

• Demand remains resilient in core cruise, ferry, specialty-vessel and offshore segments; Clarksons’ forecast for the next 2-3 years remains above its 10-year average despite tariff uncertainty.

• Service book-to-bill is developing positively; first ammonia-engine order is for Eidesvik’s PSV, expected to enter service in 2026.

• Carbon-capture retrofit solution launched commercially after a successful Solstad pilot; it captures 70% of carbon with a reasonable energy penalty.

• Most engines ordered today are dual-fuel; current engines can use biofuels, but availability is the key constraint; ammonia and other fuels are expected to gain traction over time.

Energy and data centers

• Renewable growth is increasing the need for balancing power; thermal demand is holding up for both baseload and balancing, including a strong U.S. market where tariffs are passed to customers.

• Data-center activity in the U.S. is strong, but contracting and project structures are still developing; technical capacity is 70%-75%, with current lead times of 12 months+.

• Engine advantages for data centers include 48%-50% efficiency versus 43%-44% for aeroderivative turbines, plus modularity that supports a competitive redundancy setup; target range is 50-400 MW.

• Data-center power is a significant opportunity, with hundreds-of-megawatts installations underway in Ireland; utility planning can take 5-10 years, and onsite generation may later also supply the grid.

• Thermal baseload opportunities include East and Southeast Asia and South America; the U.S. is a key balancing market, and Germany is also being pursued.