Q1 2025 Wartsila Oyj Abp Earnings Call Transcript
Key Points
- Wartsila Corp (WRTBF) reported a strong first quarter with net sales increasing by 18% to approximately EUR1.6 billion.
- Operating results improved by 30% to EUR165 million, representing 10.6% of net sales.
- The company achieved an all-time high order book of about EUR8.5 billion, indicating strong future demand.
- Service order intake increased by 5%, and service net sales grew by 6%, reflecting robust performance in the services segment.
- Wartsila Corp (WRTBF) introduced the next-generation 46 TS engine, designed to balance renewable energy and improve power plant performance, with the first order already placed by Kazakhstan's Caspian offshore industries.
- Overall order intake decreased by 1% to around EUR1.9 billion, with equipment order intake down 7%, primarily due to lower orders in energy storage.
- The energy storage segment faced challenges, with a slow order intake in Q1 and a concrete impact from US tariffs, leading to a market standstill in the US.
- The marine market experienced a mixed outlook, with a decrease in the number of vessels ordered due to growing uncertainty and geopolitical tensions.
- The company faced increased R&D costs in both the energy and storage segments, impacting profitability.
- National strikes in Finland negatively impacted results in the first quarter, adding to operational challenges.
Good morning, and welcome to this news conference for Wartsila Q1 '25 results. My name is Hanna-Maria Heikkinen, and I'm in charge of Investor Relations. Today, our CEO, Hakan Agnevall, will start with the group highlights, then he will continue with that business performance. And after that, our CFO, Arjen Berends, will continue with the key financials. After the presentation, we will continue with a Q&A session.
Hakan, it's time to start.
Yeah. Time to get rolling. First quarter, it was a strong quarter. We improved our operating results, and we continue to grow strong on net sales. We have an all-time high order book of about EUR8.5 billion.
Net sales increased by 18% to about EUR1.6 billion. Operating results increased by 30% to EUR165 million, which corresponds to 10.6% of net sales. Comparable operating results increased by 29% to EUR171
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