Wärtsilä
Shaping the decarbonisation of marine and energy
Roadshow presentation
May 2026
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Wärtsilä - Shaping the decarbonisation of marine and energy
Wärtsilä Marine
Marine offers engines, propulsion systems, hybrid technologies and integrated power transmission systems and related services that support our customers in moving towards carbon neutrality.
Wärtsilä Energy
Energy offers flexible, efficient, and reliable power plants and services for balancing and baseload applications in the changing energy landscape - enabling 100% renewable energy systems.
Wärtsilä Energy Storage
Energy Storage offers hardware, software, and lifecycle solutions that unlock more efficient and optimised power systems.
Portfolio Business is reported as other business activities.
Net sales by business, 2025
10%
10%
50%
30%
Marine
Energy Storage
Energy
Portfolio Business
Committed to financial targets
Marine and Energy, combined financial targets
5% annual organic growth
14% operating margin
Energy Storage, financial targets
Low double-digit annual organic growth
3-5% operating margin
Group, financial targets
Gearing below 0.5
Distribute a dividend of at least 50% of earnings
MEUR %
9 000
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
2020 2021 2022 2023 2024 2025
Net salesOrder intake
Comparable operating result, % of net sales
14%
12%
10%
8%
6%
4%
2%
Strong track record in innovations - ~4% of net sales on R&D yearly
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Market fundamentals
Decarbonisation is shaping the marine industry
POLICIES AND REGULATIONS
The IMO1 ambition is to reach Net Zero greenhouse gas emissions from international shipping by or around 2050
Risk that the postponement of the global IMO framework for carbon pricing mechanisms leads to a fragmented regulatory landscape and increased complexity
Cost of carbon: EU ETS, FuelEU Maritime, and local green policies
Access to capital: EU taxonomy, Poseidon Principles, and ESG
TECHNOLOGY
Progressive transition to carbon-neutral and zero-carbon fuels
Next steps in abatement technologies, e.g., onboard carbon capture
Increase in battery systems, hybrid solutions, and energy-saving technologies
Fuel flexibility and upgradability to increase overall efficiency
CONNECTIVITY AND DATA
Optimisation solutions based on a holistic view of the entire transport system
Performance-based service agreements with a focus on uptime, reliability, and fuel efficiency
Vessels as data pools, becoming increasingly complex and interconnected
Cyber security growing in importance
International Maritime Organization
Energy is moving towards a 100% renewable energy future
POLICIES AND REGULATIONS
EU: Climate-neutral by 2050
US: solid economics shield growth of
renewables from policy turbulence
China: Carbon neutral by 2060
Countries with net zero targets cover 77% of global emissions
TECHNOLOGY
Renewables becoming the main source of electricity (Source: IEA Renewables 2025 report)
Intermittent renewable energy sources requiring balancing solutions
Sustainable fuels integrated into balancing power solutions
Optimising energy use and costs through digitalisation
Cyber security growing in importance
GROWING ENERGY DEMAND
The electrification of industry, transportation, heating and cooling, as well as the growing reliance on AI and the need for data centres is driving electricity demand
Electricity generation must nearly triple, and renewables must increase 7x to reach Net-Zero targets by 2050 (Source: IEA World Energy Outlook 2025)
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Our value creation potential is based on two strategic themes
Transform
Attractive growth opportunities in the decarbonisation transformation
Perform
Clear path for operational improvements and increased profitability
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Marine and Energy continue to execute earlier communicated strategies
with a clear path to reach the updated financial targets
Transform
Industry-leading technology portfolio
Market leader in:
4-stroke medium speed main engines
Engine power plants
Technology leader in green fuels
Pioneer in marine carbon capture & storage
>30% growth in service net sales since 2022
All-time high order book at the end of 2025
(~€6.7bn)
Perform
Services >60% of net sales in 2025, moving up the service value ladder with book-to-bill ratio well above one
Strong focus on quality of revenues
Improving newbuild order margins
Energy's focus on equipment deliveries
instead of EPC
Improving capacity utilisation
Addressing footprint and cost structure wherever and whenever needed
Limited additional capex needed to facilitate profitable growth
Focus on continuous improvement
5%
Annual organic growth
14%
Operating margin
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Energy Storage continues to focus on selective profitable growth
Transform
Selective commercial approach focusing
on our strengths:
Excellence in project execution
Industry-leading solution performance and thermal safety
GEMS1 for optimised energy management of a single installation, fleets and microgrids
Multisourcing implemented for key components, ability to provide a product not made in China
Growth in recurring revenue through longterm service agreements, enabled by GEMS1
Continuous improvement of modularised hardware & software to create customer value
Perform
Strong focus on quality of revenues
Industry-leading project delivery & execution capabilities
Strong risk management, focus on
equipment delivery
Selective market expansion to new geographies (related investments
expected to burden short-term profitability)
Diversified supplier base
Addressing cost structure wherever and whenever needed
Capital-light business with positive cash flow
Project business with volatility in revenues
and operating margin
Low double-digitAnnual organic growth
3-5%
Operating margin
1) GEMS software platform
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Strong market fundamentals and the decarbonisation transformation will support
profitable growth in Marine business
Annual equipment contracting of 4-stroke medium speed main engine-powered units (GW)1), CAGR
+5%
5,0
4,2
Contracting in Wärtsilä's key segments is expected to remain resilient, with latest forecast indicating contracting to remain clearly above the 10-year average level up to 2030
Growth phase in cruise is expected to continue, while activity in
ferries, offshore and LNG carriers remains supportive
The IMO target of reaching net-zero GHG emissions by 2050 remains intact, despite the decision to delay the vote on adoption of the Net-Zero Framework by one year
The decarbonisation of shipping continues to progress, driven by local regulations e.g. in the EU and a wide range of customers' decarbonisation strategies
In the EU, regulatory landscape will double fuel costs up to 20302)
Switch to carbon neutral and zero carbon fuels will be progressive,
2025 2030
reaching net-zero emissions will require a fundamental shift towards sustainable fuels and abatement solutions
Source: Clarksons Research March 2026 forecast "Protectionist Policy" scenario, Low-case forecast for offshore , excludes navy; 2) assuming 100% of fuel consumption subject to Fit for 55 regulations and VSLFO price at 550 EUR/ton, EU allowances price from EUR 65/ton in 2024 to EUR 129/ton in 2030
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Energy market: Increased demand drives energy transition investments
Electricity demand growth and future projections have increased substantially, creating market opportunities for equipment providers
Two key themes have stood out in recent energy-related macroeconomic development: load growth and increased tariff-related uncertainty.
In engine power plants, market demand for equipment and services has been strong. The baseload segment remains a consistent source of demand for thermal power with further growth opportunities in data centres. The drivers for engine balancing power plants continue to develop favourably.
In battery energy storage, the demand is closely linked to the increasing share of intermittent renewables in the energy system, which continues to progress strongly. The US market is facing headwinds from tariffs and regulatory changes, though several drivers remain solid, with data centres as a potential new opportunity.
After significant growth driven by solar up to mid-2020s, renewable capacity additions are expected to decrease slightly in 2026. Growth prospects toward the end of the decade remain solid.
Sources: IEA Global Energy Review 2025, Electricity 2025, Electricity 2026, and Renewables 2024 (IEA: International Energy Agency)
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Service has provided resilient sales and profits for Wärtsilä over decades
Service Net Sales, MEUR1)
4 000
702
3 500
3 000
2 500
2 000
1 500
1 000
500
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
0
Negative impact from COVID-19
3,575
>€3.5bnservice net sales in 2025 with good future growth potential
>30%of installed base covered
by service agreement at the end of 2025
>90%LTM renewal rate of existing
service contracts in 2025
Service net sales as reported in Annual Reports 2000-2024. 2000-2018 service was reported as its own division and from 2019 onwards as a part of the other reporting segments. Figures reflect the data as per the organisation structure at each point in time and is not adjusted for changes such as acquisitions
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We continue to execute our services strategy on all steps of the
service value ladder
Our installed base of medium speed engines is increasing
>30% of installed base2) is under service agreements with
further growth potential
Moving up the service value ladder - agreements and performance-based agreements have 2-5X spend ratio (EUR/kW) relative to transactional services
Total investments in Marine retrofits, including Carbon Capture and Storage solutions (CCS), are estimated to increase significantly over the next decade3)
Customer spend ratio EUR/kW 2) 4-stroke engine MW 3) Source: Clarksons
Source: CMD 2023
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Book-to-bill shows growth for service
12m rolling book-to-bill1)
1,75
1,50
1,25
1,00
0,75
0,50
Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126
Service Spare parts Field service Service agreements Retrofits and upgrades
2023 data restated to reflect the redefined organisational structure as of 1 Jan 2024. Figures prior to 2023 reflect the data as per the organisation structure at each point in time and is not adjusted for changes such as acquisitions.
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Rolling 12-month book-to-bill for service above 1 in both Marine and Energy
Marine, 12m rolling book-to-bill1) Energy, 12m rolling book-to-bill
1,75 1,75
1,50 1,50
1,25 1,25
1,00 1,00
0,75 0,75
0,50
Q2 Q3
Q4 Q1
Q2 Q3 Q4
Q1 Q2 Q3
Q4 Q1 Q2
Q3 Q4 Q1
0,50
Q2 Q3
Q4 Q1 Q2
Q3 Q4 Q1
Q2 Q3
Q4 Q1 Q2 Q3
Q4 Q1
2022202220222023202320232023202420242024202420252025202520252026
Marine, Total service Spare parts
Field service Service agreements
Retrofits and upgrades
2022202220222023202320232023202420242024202420252025202520252026
Energy, Total service Spare parts
Field service Service agreements
Retrofits and upgrades
2023 data restated to reflect the redefined organisational structure as of 1 Jan 2024. Figures prior to 2023 reflect the data as per the organisation structure at each point in time.
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All Portfolio Business unit divestments expected to be completed by Q3/2026
✓
Automation, Navigation & Control Systems
The transaction was completed on 1 July 2025.
✓
Marine Electrical Systems
The transaction was completed on 31 October 2025.
✓
Gas Solutions
Order book was adjusted approximately by EUR 900 million
Annual revenue in 2025 was EUR ~225 million
In December 2025, Wärtsilä announced that it had agreed to divest its Gas Solutions business to Mutares SE & Co. KGaA.
Annual revenue in 2025 was EUR ~390 million
✓
Subject to approvals, the transaction is expected to be completed in the second quarter of 2026.
Water & Waste
In February 2026, Wärtsilä announced that it had agreed to divest its Water & Waste business to the Swedish investment company Solix Group AB.
Annual revenue in 2025 was EUR ~50 million
Subject to approvals, the transaction is expected to be completed in the third quarter of 2026.
Following this, Wärtsilä will have completed the divestment of all business units included in its Portfolio Business and there are no units left Q4/26 onwards
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Agreed to be divested, and divestment completed ✓ Agreed to be divested, divestment not yet completed
Solid progress towards financial targets in Marine and Energy combined
Marine and Energy combined
Net sales and operating margin %, last 12 months
Energy Storage
Net sales and operating margin %, last 12 months Marine and Energy
Group
Gearing
Organic growth +13%
13.9%
Group
Dividend distribution
Organic growth -20%
4.8%
combined financial targets
5% annual organic growth
14% operating margin
Energy Storage
financial targets
Low double-digit annual organic growth
3-5% operating margin
Group
financial targets
Gearing below 0.5
Distribute a dividend of at least 50% of earnings
Dividend per share, extraordinary, EUR
*In 2022, dividend was paid despite negative EPS
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Wärtsilä will further expand its industrial capacity in
Finland by 35% to meet a global increase in demand
Wärtsilä will invest approximately 140 MEUR to further expand its production capacity by 35% at Sustainable Technology Hub (STH) in Vaasa, Finland and the associated global supply chain
This expansion will increase Wärtsilä's industrial capacity and strengthen the capacity of the associated global supply chain, positioning Wärtsilä to meet growing market demand in energy and marine
The expanded capacity will enable Wärtsilä to deliver a higher volume of engines, and better support customer needs and continued business growth long-term
The new production capacity will be installed within the STH facility expansion announced in April 2025 and is expected to be commissioned in Q1/2028
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Profitability drivers
+ Supporting drivers
+ / -Uncertainties
- Negative factors
Continued decarbonisation in both the energy and marine markets
Renewables is the cheapest way to generate electricity
Growing service business
Strong and long order book both in new equipment and services
Improved operational leverage
Improved capacity utilisation
Continuous improvement
Geopolitical tensions
Tariffs and trade restrictions
Recession risk
Currency rates
Negative mix impact from increasing equipment deliveries
The low order intake continues to put significant pressure on Energy Storage profitability going forward. Unless short-term order intake improves significantly, the business starts incurring losses in the second half of the year
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Marine highlights17
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Leading the path towards decarbonisation by developing state-of-the-art tech and enabling adoption of clean fuelsOffering
Multi-fuel 4-stroke engines
Propulsion systems
Wärtsilä Marine -
Key figures 2025
Order intake
3,926 MEUR
Net sales
3,494 MEUR
Comparable operating result
443 MEUR
Share of total net sales 2025
49%
51%
Marine
Other businessesMarine net sales split 2025
36%
ServicesCatalyst systems
Fuel gas supply systems
Hybrid and electrification solutions
Voyage and fleet optimisation
Exhaust treatment
Shaft line solutions
Services
Spare parts and maintenance services
Performance based agreements
Retrofits and upgrades
Key customer segments
Cruise & ferry
12.7% of net sales
64%
EquipmentOffshore
Merchant
Other segments:
Special vessels
Gas carriers
Navy
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Decarbonisation can be reached through different pathways; net-zero targets will require a fundamental shift towards sustainable fuelsDecarbonisation pathways
Burn less fuel1)
Vessel efficiency Operational efficiency
Clean up emissions1)
Emission abatement
Use alternative energy sources
Sustainable fuels Electrification
Reduction of GHG
emissions and fuel cost
E.g., energy efficiency improvement of engine, propulsion, hull, other systems
Reduction of GHG
emissions and fuel cost
E.g., speed reduction, route optimisation, onboard energy management
Significant reduction of GHG emissions through onboard carbon capture, regardless of the fuel
CO2 offloading infrastructure, onboard storage and value chain needed
Significant / total reduction of GHG emissions
Technology available; infrastructure and supply under development
Zero GHG emissions through battery-electric propulsion
Viable on short ranges due to low energy density
Approximate greenhouse gas (GHG) emission reduction potential
25% 25% 70% 100% 100%
1) These pathways shall be combined with the utilisation of alternative fuels to support long term IMO targets
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A progressive switch to sustainable fuels is already under way
Sustainable fuel uptake scenario for net-zero in 20501)
Total energy consumption, EJ
Reduced energy demand
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Fossil fuels
(HFO, LSFO, MGO, MDO, LNG)2)
Carbon-neutral and zero-carbon fuels (methanol, ammonia, bio- / electro- fuels)
Electricity from grid
2025
2030
2035
2040
2045
2050
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Fuel transition is under way: ~50% of tonnage on orderbook is set to use alternative fuels; long-term fuel mix is dependent on supply of different fuelsLNG is still #1 alternative fuel. Methanol and ammonia will pick up in the longer run
Hybrids, batteries, ESTs3) are growing:
- ~211 hybrid / full-electric 2 000+ GT vessels were ordered in 2025, with ~65% growth in ordered capacity compared to 2024
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1) Source: DNV Maritime Forecast 2050; 2) HFO - Heavy Fuel Oil; LSFO - Low Sulphur Fuel Oil; MGO - Marine Gas Oil; MDO - Marine Diesel Oil; 3) Energy Saving Technology
Source: CMD 2023
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