Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wartsila Corp B Shs — Q1 2025 Earnings Presentation

31 slides from Wartsila Oyj Abp's earnings presentation, Apr 25, 2025

  1. Slide 1: Result presentation Q1 2025

    Wärtsilä Corporation Result presentation Q1 2025 Håkan Agnevall, President & CEO Arjen Berends, CFO 25 April 2025 1 ©

  2. Slide 2: Improved operating result and strong growth in net sales

    Improved operating result and strong growth in net sales ▪ All-time high order book of 8,533 MEUR ▪ Net sales increased by 18% to 1,560 MEUR ▪ Operating result increased by 30% to 165 MEUR ▪ 10.6% of net sales ▪ Comparable operating result increased by 29% to 171 MEUR ▪ 11.0% of net sales ▪ Good pro

  3. Slide 3: Good development in key figures

    Good development in key figures MEUR 1-3/2025 1-3/2024 CHANGE Order intake 1,902 1,924 -1% of which services 992 949 5% of which equipment 910 975 -7% Order book 8,533 7,294 17% of which current year deliveries 4,172 3,864 Net sales 1,560 1,321 18% of which services 884 833 6% of which equipment 676

  4. Slide 4: Marine: A more mixed market sentiment

    Marine: A more mixed market sentiment ​ Demand for new ships negatively affected by growing uncertainty​ ▪ The number of vessels ordered in the review period decreased Vessel contracting trend to 235 (368 in the corresponding period in 2024, excluding late Number of vessels (total) reporting of cont

  5. Slide 5: Energy: strong long-term prospects but elevated uncertainty in the short term

    Energy: strong long-term prospects but elevated uncertainty in the short term High load growth continues to drive new power capacity ▪ Wind and solar are expected to post all-time high Development on installed wind and solar capacity additions in capacity in 2025. The main driver for capacity GW add

  6. Slide 6: Organic order intake decreased by 2% burdened by Energy Storage & Optimisation

    Organic order intake decreased by 2% burdened by Energy Storage & Optimisation Equipment Services Order intake remained MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling stable, with a decrease by 1% 1,600 4,500 1,600 4,500 Equipment order intake 1,400 4,000 1,400 4,000 decreased by 7% primarily 3,500 3

  7. Slide 7: All-time high order book, rolling book-to-bill continues well above 1

    All-time high order book, rolling book-to-bill continues well above 1 Order book by business Order book delivery schedule MEUR MEUR 9,000 1.8 4,500 8,000 1.6 4,000 7,000 1.4 3,500 6,000 1.2 3,000 5,000 1.0 2,500 4,000 0.8 2,000 3,000 0.6 1,500 2,000 0.4 1,000 1,000 0.2 500 0 0.0 0 31.3.2023 30.9.202

  8. Slide 8: Organic net sales increased by 18% supported by growth in Marine and Energy

    Organic net sales increased by 18% supported by growth in Marine and Energy Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Net sales increased 1,200 3,500 1,200 3,500 by 18% 1,100 1,100 1,000 3,000 1,000 3,000 Equipment net sales 884 900 2,500 900 833 2,500 increased by 38% 800 729

  9. Slide 9: Profitability continued to improve

    Profitability continued to improve Net sales Comparable operating result MEUR MEUR, 12m rolling MEUR %, 12m rolling Net sales increased by 2,400 8,000 250 12.0% 18% 2,100 7,000 200 10.0% Comparable operating 1,800 6,000 1,465 1,560 171 8.0% result increased by 29% 1,500 1,321 5,000 150 132 1,200 4,0

  10. Slide 10: Technology and partnership highlights

    Technology and partnership highlights Enabling industry decarbonisation Wärtsilä Lifecycle Agreement to ensure operational reliability for 14 vessels in CMA Ships fleet ▪ Wärtsilä has signed a Lifecycle Agreement with CMA Ships, a subsidiary of leading French shipping company CMA CGM. ▪ The agreemen

  11. Slide 11: Marine

    co WARTSILA Marine " © WARTSILA,

  12. Slide 12: Marine: Continued growth and improved profitability

    Marine: Continued growth and improved profitability Service net sales increased by 6% supported by the merchant, navy and ferry segments Order intake +2% Comparable operating result Comparable operating result 12m rolling MEUR MEUR 3,658 MEUR MEUR 12m rolling 11.9% 1,000 916 937 4,000 120 14.0% 744

  13. Slide 13: Good development in Marine service

    Good development in Marine service Book-to-bill above 1 in all service revenue streams Marine service, Net sales Marine service, Book-to-bill MEUR 12m rolling book-to-bill 700 2,800 1.75 +11% CAGR 600 2,400 1.50 500 2,000 400 1,600 1.25 300 1,200 200 800 1.00 100 400 0 0 0.75 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

  14. Slide 14: Energy

    Cc WARTSILA Energy 14 © WARTSILA,

  15. Slide 15: Energy: Comparable operating result increased

    Energy: Comparable operating result increased Equipment order intake in Engine Power Plants increased by 35% but decreased in Energy Storage & Optimisation Order intake -15% MEUR 12m rolling Comparable operating result Comparable operating result MEUR 3,248 MEUR MEUR 12m 12mrolling 11.1% rolling 1,5

  16. Slide 16: Energy Storage & Optimisation: Comparable operating result decreased

    Energy Storage & Optimisation: Comparable operating result (12m rolling) decreased due to lower project margin mix and cost of selective entries to new markets Quarterly development Rolling 12 months development MEUR MEUR % of net sales 700 1,600 4.5 608 1,400 4.0 600 3.5 1,200 1,128 500 1,056 1,034

  17. Slide 17: Good development in Energy service

    Good development in Energy service Book-to-bill above 1 in all service revenue streams Energy service, Net sales Energy service, Book-to-bill MEUR 12m rolling book-to-bill 450 1,800 1.75 400 1,600 +9% CAGR 350 1,400 1.50 300 1,200 250 1,000 1.25 200 800 150 600 1.00 100 400 50 200 0 0 0.75 Q1 Q2 Q3

  18. Slide 18: Comparable operating result improved – growth in all businesses

    Comparable operating result improved – growth in all businesses MEUR % of net sales 200 6.9% 180 (0.6) 11.0% Comparable operating 10.8% 12.0% (11.1) 12 result increased by 29% 160 (11.4) 8 140 10.0% 19 120 100 171 80 132 60 40 20 0 Comparable Marine Energy Portfolio Comparable operating result Busin

  19. Slide 19: Separating Energy into two independent segments and introducing new financial targets

    Separating Energy into two independent segments and introducing new financial targets ▪ From April 1, Wärtsilä has three reporting segments: Wärtsilä Marine, Wärtsilä Energy, and Wärtsilä Energy Marine and Energy combined Storage. Portfolio Business continues to be reported as other business activit

  20. Slide 20: Other key financials

    OD) WARTSILA Other key financials © WARTSILA,

  21. Slide 21: Other key financials: Solid cash flow from operating activities

    Other key financials: Solid cash flow from operating activities MEUR 1-3/2025 1-3/2024 Cash flow from operating activities 190 258 Working capital -770 -329 Net interest-bearing debt -817 -79 EBITDA 207 162 Return on capital employed (ROCE), %* 40.6 19.3 Gearing -0.34 -0.04 Solvency, % 35.2 34.8 Ear

  22. Slide 22: Solid cash flow from operating activities

    Solid cash flow from operating activities Cash flow from operating activities Working capital to net sales ratio MEUR MEUR, 12m rolling MEUR 500 2,000 400 4% 450 1,800 200 105 2% 400 1,600 0 0% 350 1,400 -200 -2% 300 1,200 258 -400 -4% -329 250 1,000 190 -600 -6% 200 800 145 -800 -8% 150 600 -770 10

  23. Slide 23: Prospects

    Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q2/2025–Q1/2026) to be better than in the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q2/2025–Q1/2026) to be better than in the comparison period. However, Wärtsilä unde

  24. Slide 24: WARTSILA

    Oo WARTSILA

  25. Slide 25: Appendix

    Appendix 25 ©

  26. Slide 26: Order intake

    Order intake First quarter development 16% (12) 49% Marine Services Order intake (48) 48% Order intake by business Energy (51) by business type 52% Equipment 34% (49) Portfolio Business (40) 26 ©

  27. Slide 27: Net sales

    Net sales First quarter development 12% (12) Marine 43% Services Net sales 53% Net sales Energy (37) Equipment by business (54) by business type Portfolio Business 57% 35% (63) (34) 27 ©

  28. Slide 28: First quarter development by business type

    First quarter development by business type Order intake Net sales 29% Spare parts 30% Spare parts (27) (35) Field service Field service 36% 37% Marine Service agreements (38) Marine (30) Service agreements EUR 827 million EUR 937 million Retrofits and upgrades (708) (916) Retrofits and upgrades Equi

  29. Slide 29: January–March order intake by customer segment

    January–March order intake by customer segment Marine Gas carriers Cruise & ferry Offshore Navy Special vessels Merchant Other Equipment 6% (4) 9% (17) 5% (1) 8% (5) 6% (23) 62% (40) 5% (10) Services 12% (15) 22% (23) 15% (14) 8% (10) 12% (12) 31% (24) 1% (1) Total 10% (11) 17% (21) 11% (9) 8% (8) 1

  30. Slide 30: Orders received for Energy equipment globally

    Orders received for Energy equipment globally Europe 5 (157) Americas Asia 297 (279) 26 (19) Utilities IPP’s (Independent Africa and Power Producers) Middle East Industrials 0 (0) Others Equipment order intake 1-3/2025: MEUR 328 (455) 30 ©

  31. Slide 31: WARTSILA

    re, WARTSILA

Wartsila Corp B Shs — Q1 2025 Earnings Presentation on 6ix