Release Date: July 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Wartsila Corp (WRTBF, Financial) reported a strong quarter with an 18% increase in order intake, reaching EUR 2.2 billion, leading to an all-time high order book of EUR 8.8 billion.
- Net sales increased by 11% to EUR 1.7 billion, with a notable 12% growth in equipment sales and 9% growth in service sales.
- The company achieved an 18% increase in comparable operating results, reaching EUR 207 million, which corresponds to a 12% margin of net sales.
- Wartsila Corp (WRTBF) launched a breakthrough carbon capture solution for the marine industry, capable of reducing CO2 emissions by up to 70%.
- The energy segment saw a record high order intake, up by 93%, driven by large orders and a strong demand for baseload engine power plants.
Negative Points
- Service order intake decreased by 6%, primarily due to the cyclical nature of the project-oriented retrofit business.
- The US market for battery energy storage is facing significant headwinds due to tariff uncertainties, leading to a 79% decrease in order intake.
- Despite strong performance, the marine segment saw a decrease in the number of vessels ordered, from 926 to 647, due to economic uncertainties and global trade policies.
- The energy storage segment experienced a 42% decline in net sales, impacted by lower equipment volumes and increased competition outside the US.
- The geopolitical uncertainty and changing global trade landscape pose risks of investment decision postponements and potential slowdowns in global economic activity.
Q & A Highlights
Q: Can you provide more details on the Energy guidance and expectations for data center orders?
A: The guidance is for a 12-month period, not three months, as this is a project business and tends to be lumpy. We have ongoing discussions for potential new orders, but these projects take time. The guidance considers a strong order intake in the last 12 months and an all-time high Q2. – Hakan Agnevall, CEO
Q: How does the pricing on the recent data center order compare to typical power plant orders?
A: Data center orders have good price realization and are competitive, but they do not drag down our overall margins. – Hakan Agnevall, CEO
Q: Could you elaborate on the Marine outlook, given the contracting trends shown in your presentation?
A: We see continued positive development in our core segments like Cruise and Ferries. The Clarksons forecast shows our key segments are above the 10-year average, supporting our positive outlook. – Hakan Agnevall, CEO
Q: What is the outlook for the Energy Storage segment, considering recent US tariffs?
A: The outlook is mixed. We are coming from a low level, but we see growth in markets outside the US, such as Australia and Europe. The US situation remains uncertain due to tariffs. – Hakan Agnevall, CEO
Q: Can you discuss the service order intake and the impact of service agreements on field service and spare parts?
A: There is some shift from field service to agreements, but it's not major. The running hours of our fleet are stable, supporting transactional service business. We aim to keep the book-to-bill ratio above one for growth. – Arjen Berends, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
