Wärtsilä: Wärtsilä's Half-year Financial Report January-June 2025

Wärtsilä Corporation, Half-year Financial Report January-June 2025, 18 July 2025 at 8:30 (EEST)

Wärtsilä's Half-year Financial Report January-June 2025

This release is a summary of Wärtsilä's Half-year Financial Report January-June 2025. The complete report is attached to this release as a pdf file. It is also available on the company website at www.wartsila.com.

ORDER INTAKE, NET SALES, OPERATING RESULT AND CASH FLOW ALL INCREASED

Highlights from April-June 2025

• Order intake increased by 18% to EUR 2,190 million (1,854), while the organic growth, which excludes FX impact and the impact of acquisitions and divestments, was 20%
• Service order intake decreased by 6% to EUR 926 million (982)
• Net sales increased by 11% to EUR 1,719 million (1,556), while organic growth was 13%
• Book-to-bill amounted to 1.27 (1.19)
• The comparable operating result increased by 18% to EUR 207 million (176), which represents 12.0% of net sales (11.3)
• The operating result increased by 11% to EUR 186 million (168), which represents 10.8% of net sales (10.8)
• Earnings per share increased to 0.23 euro (0.20)
• Cash flow from operating activities increased to EUR 416 million (216)

Highlights from January-June 2025

• Order intake increased by 8% to EUR 4,092 million (3,778).
• Service order intake remained stable at EUR 1,918 million (1,931)
• The order book at the end of the period increased by 15% to EUR 8,764 million (7,607)
• Net sales increased by 14% to EUR 3,279 million (2,877)
• Book-to-bill amounted to 1.25 (1.31)
• The comparable operating result increased by 23% to EUR 378 million (308), which represents 11.5% of net sales (10.7)
• The operating result increased by 19% to EUR 352 million (295), which represents 10.7% of net sales (10.2)
• Earnings per share increased to 0.44 euro (0.34)
• Cash flow from operating activities was on a good level at EUR 606 million (475)

WÄRTSILÄ'S PROSPECTS

Marine

Wärtsilä expects the demand environment for the next 12 months (Q3/2025-Q2/2026) to be better than in the comparison period.

Energy

Wärtsilä expects the demand environment for the next 12 months (Q3/2025-Q2/2026) to be similar to that of the comparison period.

Energy Storage

Wärtsilä expects the demand environment for the next 12 months (Q3/2025-Q2/2026) to be better than in the comparison period. However, the current geopolitical uncertainty particularly impacts this business and may affect growth.

In general, Wärtsilä underlines that the current high external uncertainties make forward-looking statements challenging. Due to high geopolitical uncertainty, the changing landscape of global trade, and the lack of clarity related to tariffs, there are risks of postponements in investment decisions and of global economic activity slowing down.

HÅKAN AGNEVALL, PRESIDENT & CEO: Strong order intake and improved profitability

"The second quarter of 2025 was strong for Wärtsilä, with increases in order intake, net sales, operating result and cash flow. We ended the quarter with an all-time-high order book of EUR 8,764 million.

However, the global economic outlook remained uncertain due to increased trade barriers and policy uncertainty. This, combined with the risk of further protectionism, could add to inflationary pressures and dampen growth in global economic activity.?

In the energy market, the rising global electricity demand is driving the need for new power generation capacity. The ongoing global energy transition is expected to continue, with renewables meeting most of the upcoming capacity growth, as these are the most affordable way to generate electricity. This trend will continue to support the demand for Wärtsilä's balancing power offering, which includes both engine power plants and battery energy storage systems. However, the US market for battery energy storage is currently facing challenges due to increased tariffs, leading to heightened competition in other markets.

Baseload generation remains a consistent source of demand for engine power plants, particularly in remote areas and locations where grid power access is uncertain or time sensitive. For example, in the second quarter, we secured a large EPC order to supply 12 Wärtsilä 50 engines and auxiliaries for the Reko Diq copper-gold mining project in Pakistan. The solution will provide a critically needed reliable and economical power supply, enabling mining operations to function efficiently.?

Our medium-speed engines also provide an excellent baseload solution for data centres, a rapidly expanding market with unique power requirements. I am very pleased to highlight the fact that we secured our first data centre order from the US during the second quarter. We will supply a total of 15 Wärtsilä 50 engines ensuring high availability of power. The data centre segment continues to offer interesting business potential for Wärtsilä in both equipment and services.

In the marine market, the uncertain global economic outlook has dampened demand for new ship capacity in 2025. Slowing demand for tonnage, coupled with uncertainties in global trade policies and a strong supply of new ships, has led to mixed market conditions across many vessel segments. However, activity in Wärtsilä's key segments, such as cruise and ferry, remains supportive.

In April, the 83rd session of the Marine Environment Protection Committee of the International Maritime Organization proposed a set of measures to drive the decarbonisation of global shipping. Although these measures are still awaiting adoption in October 2025, they underscore the regulatory push to reduce emissions and encourage shipowners to continue their investments in decarbonisation. During the first half of 2025, 183 orders for new alternative fuel capable vessels were reported, accounting for 55% of the capacity of contracted vessels.

Wärtsilä continues to play an important role in the maritime industry's decarbonisation efforts, exemplified by the launch of our carbon capture solution during the second quarter. This innovative technology supports the ongoing efforts to significantly reduce vessel emissions and avoid stranded assets.

During the quarter we also announced that we will expand our state-of-the-art Sustainable Technology Hub in Vaasa, Finland, with a €50 million total investment. Expanding the R&D testing and manufacturing capacity will enhance Wärtsilä's ability to meet the growing demand for developing and delivering sustainable technologies in marine and energy.

Order intake in the second quarter increased organically by 20%. Equipment order intake increased as a result of strong equipment orders in Energy and Marine. Service order intake decreased mainly due to lower project-oriented activities in retrofits and upgrades. All other service disciplines continue to grow, with rolling 12-month book-to-bill ratios above 1. Net sales increased organically by 13%, with increases in both equipment and service net sales.

The comparable operating result increased by 18% to EUR 207 million, representing 12.0% of net sales. The result was supported by increases in Energy, Marine and Portfolio Business. Cash flow from operating activities almost doubled, following the improved result and a good level of received customer payments. The current negative working capital level is very favourable for our business, and we expect it to normalise going forward. We will continue our active efforts to manage working capital to maintain it clearly below the long-term historical average.

We expect the demand environment for the coming 12 months to be better than in the comparison period in Marine and Energy Storage, while the demand environment in Energy is expected to remain at a similar level. It is worth noting that order intake in Energy has been very strong over the past 12 months. However, as we have outlined, the current high external uncertainties make forward-looking statements challenging.

We are making continued progress towards our financial targets, driven by our focus on supporting our customers towards a marine and energy future that is both environmentally sustainable and financially viable. Our strong financial position, industry-leading offering and mindset of continuous improvement equip us to navigate future challenges and capture the many opportunities offered by the decarbonisation transformation."

KEY FIGURES
MEUR	4-6/2025	4-6/2024	Change	1-6/2025	1-6/2024	Change	2024
Order intake	2,190	1,854	18%	4,092	3,778	8%	8,072
of which services	926	982	-6%	1,918	1,931	-1%	3,812
of which equipment	1,264	872	45%	2,174	1,847	18%	4,260
Order book, end of period				8,764	7,607	15%	8,366
Net sales	1,719	1,556	11%	3,279	2,877	14%	6,449
of which services	907	834	9%	1,792	1,666	8%	3,422
of which equipment	812	722	12%	1,488	1,211	23%	3,027
Book-to-bill	1.27	1.19		1.25	1.31		1.25
EBITDA	251	205	23%	458	367	25%	847
% of net sales	14.6	13.2		14.0	12.8		13.1
Comparable operating result	207	176	18%	378	308	23%	694
% of net sales	12.0	11.3		11.5	10.7		10.8
Operating result	186	168	11%	352	295	19%	716
% of net sales	10.8	10.8		10.7	10.2		11.1
Result before taxes	186	160	16%	350	278	26%	687
Earnings per share (EPS), basic and diluted, EUR	0.23	0.20		0.44	0.34		0.85
Return on capital employed (ROCE)*, %				44.6	24.3		37.1
Cash flow from operating activities	416	216		606	475		1,208
Net interest-bearing debt, end of period				-1,123	-250		-777
Gearing				-0.45	-0.11		-0.31
Solvency, %				36.6	35.3		37.4
*Rolling 12 months.

Wärtsilä presents certain alternative performance measures in accordance with the guidance issued by the European Securities and Markets Authority (ESMA). The definitions of these alternative performance measures are presented in the Calculations of financial ratios section.

ANALYST AND PRESS CONFERENCE

A virtual analyst and press conference will be held as a webinar on the same day, today, Friday 18 July 2025, at 10.00 a.m. Finnish time (8.00 a.m. UK time).

Participating via the web

Register and login to the web interface via the web address below. When you register, you are prompted to participate as a listener or as an active Q&A participant. Once the event starts, the event page will switch to the presentation mode automatically.

wartsila.events.inderes.com/q2-2025

If you are participating via the web, you can enter the Q&A que by clicking the raise hand button on the bottom-right corner of the video/audio player. Once the event host announces your name, please open your microphone from the bottom-left corner of the video/audio player to be able to be heard.

Participating via the teleconference

Please use the teleconference dial-in option only if you experience issues with the web participation or your organisations firewalls set limitations for the web participation.

You can access the teleconference by registering on the link below. After the registration you will receive an email with the dial-in numbers and your personal PIN code to access the conference.

palvelu.flik.fi/teleconference/?id=50052210

If you are participating via the dial-in teleconference, you can enter the que by clicking *5 (star-five) in the telephone keypad, and if you want to withdraw your question, click *6 (star-six) respectively.

A recording of the webcast will be available on the company website as soon as possible after the event.

For further information, please contact:

Arjen Berends
Executive Vice President & CFO
Tel. [phone]
[e-mail]

Hanna-Maria Heikkinen
Vice President, Investor Relations
Tel. [phone]
[e-mail]

For press information, please contact:

Anne Alarotu
Head of External Communications
Tel. [phone]
[e-mail]

Wärtsilä in brief

Wärtsilä is a global leader in innovative technologies and lifecycle solutions for the marine and energy markets. We emphasise innovation in sustainable technology and services to help our customers continuously improve environmental and economic performance. Our dedicated and passionate team of 18,300 professionals in more than 230 locations in 77 countries shape the decarbonisation transformation of our industries across the globe. In 2024, Wärtsilä's net sales totalled EUR 6.4 billion. Wärtsilä is listed on Nasdaq Helsinki. www.wartsila.com