Wärtsilä Corporation, Stock exchange release, 27 October 2026 at 08:35 EET
Inside information: Wärtsilä sets new mid-term financial targets to accelerate value creation and moves to a new guidance practice in 2027
Wärtsilä Board of Directors has approved new financial targets reflecting the company's strengthened financial performance, attractive structural growth opportunities and ambition to accelerate value creation.
New financial targets
Wärtsilä's new mid-term financial targets are:
Marine
- Annual organic net sales growth: mid-single-digit %
- Operating result: 14%
Energy
- Annual organic net sales growth: high-teens %
- Operating result: 18%
Group
- Annual organic net sales growth: low-double-digit %
- Operating result: 16%
- Net profit to free cash flow conversion: >90%
- Dividend: at least 50% of earnings per share
The introduction of separate targets for Marine and Energy better reflects the different growth and profitability trajectories of the two businesses. In addition, the new group-level net profit to free cash flow conversion target places stronger emphasis on translating profitable growth into cash generation and shareholder value.
The new targets also reflect the estimated negative impact of IFRS 18 on Wärtsilä's operating result, with joint venture results excluded and certain hedging costs included. IFRS 18 will apply from 2027 onwards, and restated 2026 financial information reflecting IFRS 18 will be published in March 2027.
Previous financial targets
Wärtsilä's previous financial targets were:
- Marine and Energy combined: annual organic growth of 5%
- Marine and Energy combined: operating margin of 14%
- Group gearing: below 0.5
- Dividend: at least 50% of earnings per share
Accelerating value creation
"Wärtsilä has transformed significantly over the past years and has reached its previous financial targets. Today, we are a more focused and more profitable company, operating in markets where the structural demand drivers create attractive opportunities for profitable growth. Our new financial targets reflect both the progress we have already made and the significant potential we see ahead of us.
With our current strategy, The Wärtsilä Way, we are entering the next phase of Wärtsilä's development with a clear ambition to accelerate value creation. As Marine and Energy face distinct market dynamics, we are introducing separate upgraded mid-term financial targets for both businesses. In Energy, the rapid growth in electricity demand and the increasing need for flexible power generation create significant opportunities, while Marine provides a strong platform for continued profitable growth in Wärtsilä's core segments. In parallel, the growing installed base and our focus on moving up the service value ladder provide attractive lifecycle opportunities well into the next decade.
Importantly, our ambition is not only to grow earnings but to convert profitable growth efficiently into cash. Strong cash generation, disciplined investments in organic growth and a balanced approach to shareholder distributions and selective bolt-on M&A form the foundation of sustainable value creation", states Håkan Agnevall, President & CEO of Wärtsilä.
New guidance practice from 2027
In addition to the new financial targets, Wärtsilä will introduce a new guidance practice from the beginning of 2027. According to the new practice, Wärtsilä will provide separate guidance for Marine and Energy net sales for the next 12 months, providing better transparency and visibility for future growth and profitability development. According to the previous guidance practice, Wärtsilä has guided the demand environment separately for Marine and Energy for the next 12 months.
Capital Markets Day
The new targets and the path to reach them will be presented at Wärtsilä's Capital Markets Day on 3 November 2026. Registration to follow the event is still open. Read more: www.wartsila.com/investors/IR-calendar/capital-markets-day-2026
For further information, please contact:
Hanna-Maria Heikkinen
Vice President, Investor Relations
Tel: +358 10 709 1461
hanna-maria.heikkinen@wartsila.com
For press information, please contact:
Anne Alarotu
Head of External Communications
Tel. +358 50 487 1308
anne.alarotu@wartsila.com
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 17,900 professionals in 199 locations in 78 countries shape the decarbonisation transformation of our industries across the globe. In 2025, Wärtsilä's net sales totalled EUR 6.2 billion. Wärtsilä is listed on Nasdaq Helsinki. www.wartsila.com
