Download PDF

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.

Show Full description

1.b. Last Insights on WRT1V

Wärtsilä Oyj Abp's recent performance has been influenced by analysts' upward revisions to projected revenue growth and an improved earnings outlook. The company's consensus analyst price target has risen slightly from €21.06 to €21.44. A new offshore engine project has garnered attention, contributing to bullish sentiment. Additionally, the company's strong growth expectations have fueled optimism. Wärtsilä's adjusted forecasts have also been a factor in the recent developments.

1.c. Company Highlights

2. Wärtsilä's Q3 2025 Earnings: Strong Cash Flow and Improving Profitability

Wärtsilä reported a mixed bag in its Q3 2025 earnings, with net sales decreasing by 5% to EUR 1.6 billion, mainly due to the timing of deliveries in the Energy segment. However, the company's comparable operating results increased by 10%, with operating results up 20% to EUR 230 million, driven by profitability and working capital. Earnings per share (EPS) came in at EUR 0.31, beating analyst estimates of EUR 0.2979. The company's cash flow was EUR 340 million, the highest in 50 years, driven by profitability and working capital.

Publication Date: Nov -02

📋 Highlights
  • Record Cash Flow:: Cash flow reached EUR 340 million, the highest in 50 years, driven by profitability and working capital improvements.
  • Strong Order Book:: Marine & Energy combined order book totaled EUR 8.6 billion, with Energy at EUR 5.3 billion (up 29% intake) and Marine at EUR 3.3 billion (up 8% intake).
  • ROCE Exceeds Target:: Return on capital employed improved to 51.1%, surpassing the 50% target, reflecting operational efficiency.
  • Organic Growth Outperforms:: Marine & Energy combined organic growth hit 13%, well above the 5% target, despite Energy net sales declining 30% due to delivery prioritization.
  • Energy Storage Challenges:: Battery business saw zero Q3 order intake, and storage demand faces regulatory uncertainty and competition, though Energy storage projects remain profitable.

Segment Performance

The Marine & Energy segment showed strong growth, with Marine net sales up 18% and a robust order book of EUR 3.3 billion. Energy net sales were down 30% due to the prioritization of deliveries. The order intake was stable at EUR 1.8 billion, with organic growth up 6%. The Energy storage business faced challenges, with zero order intake in Q3, but the company is generating good profitability from executing projects. As Håkan Agnevall mentioned, "the company expects better order intake in the fourth quarter, particularly in the energy storage business."

Financial Highlights

Wärtsilä's return on capital employed (ROCE) improved to 51.1%, exceeding the 50% target. Net interest-bearing debt was EUR 1.4 billion, negative and lower than financial targets. The company's cash flow yield is attractive at 7.05%, indicating a strong ability to generate cash.

Valuation

Using the current P/E ratio of 29.79, it appears that the market is pricing in a certain level of growth and profitability. With an estimated revenue growth rate of 6.9% for next year, the P/S ratio of 2.44 seems reasonable. The EV/EBITDA ratio of 16.45 is also in line with industry averages. The company's ROE of 22.91% and ROIC of 16.21% indicate a strong ability to generate returns on equity and invested capital.

Outlook

Wärtsilä expects Marine demand to be better than in the comparison period and Energy demand to be similar. The Storage demand environment is expected to be challenging due to regulatory uncertainty and competition. The company's guidance on order intake and deliveries will be crucial in determining the stock's performance in the coming quarters.

3. NewsRoom

Card image cap

How can we decarbonise shipping without damaging the global economy?

Dec -01

Source:

Card image cap

Is Vestas Wind Systems (VWDRY) Stock Outpacing Its Industrial Products Peers This Year?

Nov -21

Source:

Card image cap

Assessing Wärtsilä (HLSE:WRT1V) Shares: Is the Recent Rally Already Reflected in the Valuation?

Nov -09

Source:

Card image cap

Japanese ferry operator partners with Wärtsilä on lifecycle vessel management

Nov -05

Source:

Card image cap

Wärtsilä to provide DC-coupled energy storage system in Australia

Oct -28

Source:

Card image cap

Wartsila Supporting Major Australian Energy Storage System

Oct -27

Source:

Card image cap

How Recent Developments Are Rewriting the Story for Wärtsilä

Oct -24

Source:

Card image cap

Wartsila Signs O&M Pact For Three Gas-Fired Plants in Brazil

Oct -23

Source:

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: 6.2/10

Value: 4.3

Growth: 7.8

Quality: 7.4

Yield: 5.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Weir

A-Score: 5.7/10

Value: 2.7

Growth: 6.1

Quality: 6.1

Yield: 2.5

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Wärtsilä

A-Score: 5.5/10

Value: 2.9

Growth: 6.3

Quality: 7.6

Yield: 3.8

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Rotork

A-Score: 5.5/10

Value: 2.0

Growth: 4.4

Quality: 8.0

Yield: 3.8

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Georg Fischer

A-Score: 5.3/10

Value: 3.3

Growth: 3.9

Quality: 4.8

Yield: 6.9

Momentum: 5.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Pentair

A-Score: 4.9/10

Value: 1.8

Growth: 4.8

Quality: 7.2

Yield: 1.9

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.7$

Current Price

29.7$

Potential

-0.00%

Expected Cash-Flows