Wärtsilä Reports Second Quarter Financial Results

Wärtsilä has announced record financial performance for the second quarter of 2026, achieving its highest-ever order intake alongside improved operating results, as robust demand across the marine and energy segments continued to drive growth and support further capacity expansion.

ALL-TIME HIGH ORDER INTAKE AND IMPROVED OPERATING RESULT

After energy storage was classified as assets held for sale and discontinued operations in June 2026 and was no longer a reportable segment, the comparative financial information for 2025 and H1 2026 was restated accordingly. Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year.

April–June 2026 highlights

Total order intake increased by 33% to EUR 2,849 million (2,140), while the organic growth, which excludes FX impact and the impact of acquisitions and divestments, was 43%
Order intake for Marine and Energy combined increased by 45% to EUR 2,813 million (1,944), while organic growth was 47%
Service order intake decreased by 4% to EUR 882 million (920) due to portfolio business divestments and a negative FX impact. The organic service order intake growth was +1%
Total net sales remained stable at EUR 1,559 million (1,594), while organic growth was 5%
Net sales for Marine and Energy combined increased by 5% to EUR 1,461 million (1,391), while the organic growth was 6%
Book-to-bill amounted to 1.83 (1.34)
The comparable operating result increased by 7% to EUR 218 million (203), which represents 14.0% of net sales (12.7)
The operating result increased by 14% to EUR 209 million (183), which represents 13.4% of net sales (11.5)
Earnings per share increased to EUR 0.25 (0.23)
Cash flow from operating activities increased to EUR 497 million (416)

January–June 2026 highlights

Total order intake increased by 23% to EUR 4,934 million (4,012), while the organic growth, which excludes FX impact and the impact of acquisitions and divestments, was 36%
Order intake for Marine and Energy combined increased by 37% to EUR 4,810 million (3,506), while organic growth was 41%
Service order intake decreased by 3% to EUR 1,849 million (1,911), due to Portfolio Business divestments and a negative FX impact. The organic service order intake growth was +4%
The order book at the end of the period increased by 13% to EUR 8,976 million (7,963)
Total net sales remained stable at EUR 3,004 million (3,027), while organic growth was 5%
Net sales for Marine and Energy combined increased by 4% to EUR 2,746 million (2,633), while the organic growth was 6%
Book-to-bill amounted to 1.64 (1.33)
The comparable operating result increased by 8% to EUR 411 million (379), which represents 13.7% of net sales (12.5)
The operating result increased by 13% to EUR 399 million (354), which represents 13.3% of net sales (11.7)
Earnings per share increased to EUR 0.50 (0.44)
Cash flow from operating activities decreased to EUR 504 million (606)

Wärtsilä’s outlook

Marine

Wärtsilä expects the demand environment for the next 12 months (Q3/2026-Q2/2027) to be similar to that of the comparison period.

Energy

Wärtsilä expects the demand environment for the next 12 months (Q3/2026-Q2/2027) to be similar to that of the comparison period.

Following two consecutive record order intake quarters in energy and a record-high order intake in marine in the second quarter, the outlook reflects a continued strong demand environment, especially in energy. The strong demand environment is clearly underscored by Wärtsilä’s decision in the second quarter to further expand capacity.

Håkan Agnevall, President & CEO: Record-high orders drive a strong quarter

“The second quarter of 2026 was strong for Wärtsilä. We achieved an all-time high order intake, while further improving profitability. Elevated geopolitical tensions continued to influence the operating environment. In particular, the conflict in the Middle East increased volatility in the energy and commodity markets, adding complexity to market conditions and contributing to a more uncertain global economic outlook.

In the energy market, electricity demand continued to grow, supported by electrification, rising cooling needs, and the rapid build-out of data centres. The recent heat wave in Europe, together with rising temperatures globally, has highlighted the growing pressure on power systems. This reinforces the need for reliable and flexible power-generating capacity to ensure a robust supply during peak demand periods. Wärtsilä’s flexible engine technology is well positioned to meet these requirements, offering fast-ramping and highly efficient capacity that complements renewable generation and supports grid stability.

The interest from the data centre segment remained strong, with a dynamic pipeline of opportunities. The market is increasingly driven by the need for efficient, reliable, and scalable power solutions to support critical operations. A recent BloombergNEF analysis highlights the competitiveness of reciprocating engines in this market, identifying engines as the most cost-competitive technology option for AI data centres. In addition to attractive lifecycle economics, engines offer a low heat rate, low site-level emissions, and negligible water consumption. These qualities are highly relevant in a fast-developing market where long-term performance and resource use are becoming increasingly important. The resulting growth in the installed base also supports significant lifecycle service potential in 2030 and beyond.

The marine market remained strong despite the continued uncertainty. Geopolitical disruptions, particularly in the Middle East and around the Strait of Hormuz, have led to longer voyage distances, trade rerouting, and strategic stockpiling of commodities, which together generally support vessel utilisation and freight rates. Decarbonisation also remains an integral part of the operating environment. Regulations for international shipping, including China’s new carbon-intensity reduction target, are supporting the industry’s focus on more efficient and future-ready vessels — areas where Wärtsilä is well positioned through its newbuild solutions and lifecycle services offering.

In the second quarter of 2026, Wärtsilä’s order intake increased organically by 43% to a new all-time high, supported by record quarterly orders in both Energy and Marine. In energy, order intake surpassed the previous all-time high set in the first quarter of 2026 by more than 70%, largely as a result of 1.2 GW of firm data centre-related orders across two projects and more than 0.5 GW in balancing orders.

Robust demand in energy has contributed to more than doubling the energy order book since the start of 2025. Over the same period, the gross margin of the energy equipment order book has improved by more than 500 basis points.

During the quarter, we announced a further expansion of production capacity at our Sustainable Technology Hub (STH), strengthening our ability to meet growing global demand. Once fully commissioned in the first quarter of 2029, the expansion will increase output to approximately 2.2 times the 2025 operational level.

Organic service order intake remained stable. The marine and energy combined service order book increased by 11%, ending up at an all-time high. The rolling 12-month service book-to-bill ratio remains above 1, reflecting our continued progress in moving up the service value ladder.

Net sales increased organically by 5%, driven by growth in equipment deliveries. Equipment delivery times continued to increase, impacting the timing of revenue recognition. Consequently, the existing order book will generate sales that are distributed further into the future.

The comparable operating result increased by 7% to EUR 218 million, representing 14.0% of net sales. Cash flow from operating activities amounted to EUR 497 million, following a good level of received customer payments. We expect to sustain a negative working capital position over the coming years and will continue our active efforts to maintain working capital well below our long-term historical average.

During the quarter, we continued to actively streamline our portfolio. On 1 June 2026, we completed the divestment of Water & Waste to Solix Group AB and Gas Solutions to Mutares SE & Co. KGaA. With these transactions, all businesses previously reported under Portfolio Business have now been divested, marking an important milestone for Wärtsilä.

On 15 June 2026, Wärtsilä agreed to establish a 50/50 joint venture with German company RCT Solutions GmbH for its global Energy Storage business. Closing is expected in the third quarter of 2026. The transaction offers the Energy Storage business an opportunity to strengthen its long-term competitiveness.

We expect the demand environment over the next 12 months to remain at a similar level in both Energy and Marine as in the past 12 months. Following two consecutive record order intake quarters in Energy and a record-high order intake in Marine in the second quarter, the outlook reflects a continued strong demand environment, especially in Energy. The strong demand environment is clearly underscored by our decision in the second quarter to further expand capacity.

With our global team of dedicated professionals, we are executing our strategy with discipline and consistency. Following the streamlining of our business portfolio, we are now a more focused and profitable company. We are well placed to further build on our strong market position and continue to capture opportunities for profitable organic growth.”

Key figures

MEUR	4–6/2026	4–6/2025	Change	1–6/2026	1–6/2025	Change	2025
Order intake	2,849	2,140	33%	4,934	4,012	23%	7,647
of which services	882	920	-4%	1,849	1,911	-3%	3,712
of which equipment	1,967	1,220	61%	3,085	2,101	47%	3,935
Order book, end of period				8,976	7,963	13%	7,530
Net sales	1,559	1,594	-2%	3,004	3,027	-1%	6,219
of which services	845	900	-6%	1,642	1,780	-8%	3,553
of which equipment	714	694	3%	1,362	1,247	9%	2,667
Book-to-bill	1.83	1.34		1.64	1.33		1.23
EBITDA	245	244	0%	471	453	4%	1,004
% of net sales	15.7	15.3		15.7	15.0		16.1
Comparable operating result	218	203	7%	411	379	8%	805
% of net sales	14.0	12.7		13.7	12.5		12.9
Operating result	209	183	14%	399	354	13%	810
% of net sales	13.4	11.5		13.3	11.7		13.0
Result before taxes	200	184	9%	388	352	10%	805
Earnings per share (EPS), basic and diluted, EUR	0.25	0.23		0.50	0.44		1.06
Return on capital employed (ROCE)*, %				72.7	44.6		65.4
Cash flow from operating activities	497	416		504	606		1,598
Net interest-bearing debt, end of period				-1,719	-1,123		-2,006
Gearing				-0.68	-0.45		-0.70
Solvency, %				38.2	36.6		40.5
*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.