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1. Company Snapshot

1.a. Company Description

Wärtsilä Oyj Abp provides technologies and lifecycle solutions for the marine and energy markets worldwide.The company's marine power portfolio includes engines, propulsion systems, hybrid technology, and integrated powertrain systems; marine systems comprising products and lifecycle services related to the gas value chain, exhaust treatment, shaft line, underwater repair, and electrical integrations; voyage solutions consists of bridge infrastructure, cloud data services, decision support systems, and smart port solutions to enable shore-to-shore visibility, as well as builds end-to-end connected digital ecosystem for shipping; and decarbonization energy services include future-fuel enabled balancing power plants, hybrid solutions, energy storage, and optimization technology, such as the GEMS energy management platform.It provides power and propulsion products, such as electrical and power systems, engines and generating sets, propulsors and gears, and shaft line solutions; gas, ballast water management, freshwater generation, waste and wastewater treatment, and exhaust treatment solutions; and voyage and fleet optimization services comprising autonomy, simulation and training, fleet optimization and safety, integrated vessel control systems, port and traffic management, and dynamic positioning services.


The company also offers spare parts and field services, technical support, maintenance and repair services, lifecycle upgrades and solutions, and training services.In addition, it provides products and solutions for energy storage, and engine and hybrid power plants.The company serves merchant vessels, gas carriers, cruise and ferry, navy, and special vessels segments; offshore installations and related industry vessels and land-based gas installations; and ship owners, shipyards, and ship management companies.


Wärtsilä Oyj Abp was founded in 1834 and is headquartered in Helsinki, Finland.

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1.b. Last Insights on WRT1V

Wärtsilä Oyj Abp's recent performance was driven by record profits and strategic advancements. The company reported an all-time high operating profit and cash flow, despite navigating order intake challenges. A significant capacity expansion is planned to address growth. Additionally, Wärtsilä secured a 429MW engine order for a US power plant, with delivery scheduled for late 2028. Its maritime simulators market share stood at 5.82%, with opportunities in software development and emerging markets. A new energy storage project in Texas was also announced.

1.c. Company Highlights

2. Wärtsilä's Q4 2025 Earnings: A Strong Finish to a Record-Breaking Year

Wärtsilä's Q4 2025 financial performance was impressive, with net sales increasing by 8% to EUR 2 billion and comparable operating results up 23% to EUR 256 million, or 12.8% of net sales. Earnings per share (EPS) reached an all-time high of EUR 1.06 for the full year, with Q4 EPS coming in at EUR 0.3141, beating analyst estimates of EUR 0.2968. The company's operating cash flow was EUR 652 million for the quarter and EUR 1.6 billion for the full year, both all-time highs.

Publication Date: Feb -16

📋 Highlights
  • Q4 Operating Profit & Cash Flow Records:: Operating profit surged 23% to EUR 256 million (12.8% margin), while operating cash flow hit EUR 652 million, both all-time highs.
  • Marine & Energy Order Growth:: Marine orders rose 8% (organic +11%), Energy orders up 4% (organic +13%), with combined segment orders up 17% to EUR 6.9 billion.
  • Full-Year Financial Milestones:: Order intake, net sales, operating results, and cash flow all reached records, with net sales growing 7% to EUR 6.9 billion and operating margin at 12%.
  • Capacity Expansion & Strategic Moves:: 35% production boost in Vaasa, new spare parts center in Kampen, and a supply chain partnership with Siempelkamp to support growth.
  • Dividend & Profitability:: Proposed base (EUR 0.54) and extraordinary (EUR 0.52) dividends, with ROCE improvement and solvency rising to 40.5% in 2025.

Segment Performance

The Marine and Energy segments combined saw an order intake increase of 17% to EUR 6.9 billion, with organic growth at 20%. The Marine segment saw an 8% increase in order intake, with organic growth at 11%, while the Energy segment's order intake rose by 4% with organic growth at 13%. Equipment order intake surged 43% to EUR 3.3 billion, driven by strong demand in both Marine and Energy.

Capacity Expansion and Strategic Partnerships

Wärtsilä announced investments to expand production capacity in Vaasa, Finland, by 35%, and a new spare parts distribution center in Kampen, Netherlands. The company has also formed a strategic partnership with Siempelkamp foundry to secure its supply chain. These moves are expected to support the company's growth prospects and improve its operational efficiency.

Outlook and Guidance

Wärtsilä expects a similar demand environment in Marine for the next 12 months, while Energy demand is expected to be better than the comparison period. The company's guidance is subject to high external uncertainties, making forward-looking statements challenging. Analysts estimate next year's revenue growth at 8.4%, which is slightly above the company's historical growth rate.

Valuation

Wärtsilä's current valuation metrics are as follows: P/E Ratio of 32.75, P/B Ratio of 7.11, P/S Ratio of 2.96, EV/EBITDA of 17.58, Dividend Yield of 1.27%, and Free Cash Flow Yield of 7.08%. The company's ROE is 23.92%, and ROIC is 15.2%. These metrics indicate that Wärtsilä is trading at a premium, but its strong financial performance and growth prospects may justify this valuation.

3. NewsRoom

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Assessing Whether Wärtsilä Oyj Abp (HLSE:WRT1V) Is Overvalued After Its Strong Share Price Momentum

Feb -18

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Wartsila Secures 1.2 GW US Data Center Orders as Turbines Sell Out

Feb -17

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Wärtsilä begins construction of 50 MW energy storage system in Belgium

Feb -17

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Wartsila Building Energy Storage in Support of Belgian Grid

Feb -16

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Wartsila Corp (WRTBF) Full Year 2025 Earnings Call Highlights: Record Profits and Strategic ...

Feb -04

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Wärtsilä receives 429MW engine order for US power plant

Jan -30

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Is Wärtsilä (HLSE:WRT1V) Starting To Outrun Its Fundamentals After An 87% One-Year Rally?

Jan -25

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$3+ Bn Maritime Simulators Global Market Opportunities And Strategies To 2034: Wartsila Leads With a 5.82% Share, Followed by Kongsberg Maritime, CAE, L3Harris, Thales, General Dynamics, Rheinmetall

Jan -21

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.67%)

6. Segments

Energy

Expected Growth: 7.5%

Wärtsilä Oyj Abp's 7.5% energy segment growth is driven by increasing demand for efficient and flexible power generation, growing adoption of renewable energy sources, and rising need for energy storage solutions. Additionally, the company's focus on innovation, digitalization, and service-based business models also contribute to its growth.

Marine Power

Expected Growth: 7.8%

Wärtsilä Oyj Abp's Marine Power segment growth of 7.8% is driven by increasing demand for energy-efficient and environmentally friendly solutions, growth in the cruise and ferry markets, and rising adoption of hybrid and battery-powered propulsion systems. Additionally, Wärtsilä's strong market position, innovative product offerings, and expanding service network also contribute to the segment's growth.

Marine Systems

Expected Growth: 8.2%

Wärtsilä Oyj Abp's Marine Systems segment growth of 8.2% is driven by increasing demand for energy-efficient and environmentally friendly solutions, rising adoption of digitalization and electrification in the marine industry, and growing need for vessel upgrades and retrofits to comply with IMO 2020 regulations.

Portfolio Business

Expected Growth: 7.2%

Wärtsilä Oyj Abp's Portfolio Business growth of 7.2% is driven by increasing demand for sustainable energy solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on digitalization, service-based business models, and cost savings initiatives have contributed to the growth. Furthermore, the rising need for energy efficiency and reducing emissions in the marine and energy industries has also boosted demand for Wärtsilä's portfolio business.

7. Detailed Products

Wärtsilä 32 Engine

A four-stroke, turbocharged diesel engine designed for marine and power plant applications

Wärtsilä RT-flex Engine

A low-speed, two-stroke diesel engine designed for large container vessels and tankers

Wärtsilä Hybrid Solution

A hybrid power system that combines different power sources, such as diesel engines, batteries, and solar panels

Wärtsilä LNGPac

A liquefied natural gas (LNG) fuel system for marine vessels

Wärtsilä O&M Services

Operations and maintenance services for power plants and marine vessels

Wärtsilä Energy Storage System

A battery-based energy storage system for power plants and marine vessels

Wärtsilä Ship Design

Customized ship design services for newbuildings and conversions

Wärtsilä Propulsion Systems

Propulsion systems, including thrusters, propellers, and gearboxes, for marine vessels

8. Wärtsilä Oyj Abp's Porter Forces

Forces Ranking

Threat Of Substitutes

Wärtsilä Oyj Abp faces moderate threat from substitutes, as customers have limited alternatives for marine and energy solutions.

Bargaining Power Of Customers

Wärtsilä Oyj Abp's customers have limited bargaining power due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

Wärtsilä Oyj Abp's suppliers have moderate bargaining power, as the company relies on a few key suppliers for critical components.

Threat Of New Entrants

The threat of new entrants is low for Wärtsilä Oyj Abp, as the industry requires significant capital investment and technological expertise.

Intensity Of Rivalry

The marine and energy solutions industry is highly competitive, with several established players, leading to a high intensity of rivalry for Wärtsilä Oyj Abp.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.85%
Debt Cost 9.70%
Equity Weight 72.15%
Equity Cost 9.70%
WACC 9.70%
Leverage 38.61%

11. Quality Control: Wärtsilä Oyj Abp passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Burckhardt Compression

A-Score: 5.7/10

Value: 4.6

Growth: 7.8

Quality: 7.5

Yield: 5.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Wärtsilä

A-Score: 5.5/10

Value: 2.4

Growth: 6.4

Quality: 7.2

Yield: 3.8

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Weir

A-Score: 5.4/10

Value: 2.6

Growth: 6.1

Quality: 6.1

Yield: 1.9

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Rotork

A-Score: 5.3/10

Value: 2.0

Growth: 4.3

Quality: 8.1

Yield: 3.8

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Georg Fischer

A-Score: 4.7/10

Value: 3.8

Growth: 3.8

Quality: 4.8

Yield: 7.5

Momentum: 1.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Pentair

A-Score: 4.5/10

Value: 1.8

Growth: 4.9

Quality: 7.5

Yield: 1.9

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.75$

Current Price

36.75$

Potential

-0.00%

Expected Cash-Flows