In This Article:
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Order Book: All-time high at EUR8.3 billion.
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Order Intake: Increased by 34% in Q4; full year up 14%.
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Net Sales: Increased by 13% in Q4; full year growth of 7%.
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Comparable Operating Results: Increased by 18% in Q4; full year improvement from 8.3% to 10.8%.
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Operating Results Margin: Improved from 7.8% to 12.4% in Q4.
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Cash Flow from Operating Activities: EUR437 million in Q4; full year all-time high at EUR1.208 billion.
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Marine Order Intake: Increased by 9%; net sales up 12%.
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Energy Order Intake: Increased by 54%; net sales up 14%.
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Equipment Order Intake: Increased by 51% in Q4.
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Services Order Intake: Increased by 15% in Q4; net sales up 12%.
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Dividend Proposal: EUR0.44 per share, representing 52% of EPS.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Wartsila Corp (WRTBF) reported an all-time high order book of EUR 8.3 billion, with a 34% increase in order intake.
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Net sales increased by 13% in Q4, with services up by 12% and equipment by 13%.
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The company achieved a strong cash flow from operating activities, reaching EUR 437 million in Q4.
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Wartsila Corp (WRTBF) continues to see positive market sentiment in its core segments, with increased demand for new ships and alternative-fuel-capable vessels.
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The energy transition is advancing, with record installations expected for wind and solar, and strong growth in energy storage and thermal balancing markets.
Negative Points
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The geopolitical environment and potential tariffs create uncertainty, impacting decision-making and future orders.
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The Marine segment experienced a less favorable project mix, affecting profitability.
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There is a risk of overcapacity in certain vessel types, which could impact service demand.
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The energy storage market is experiencing price decreases, which could affect margins despite increased volume.
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The strategic review of the energy storage business is ongoing, creating uncertainty about future ownership and targets.
Q & A Highlights
Q: Could you provide more details on the orders in energy storage and the margin trajectory? A: We don't guide on margin specifics, but Q4 saw strong order intake, contrasting with a weaker Q3. The growth trend remains positive, driven by activities in the balancing and battery storage spaces. Our strategy focuses on selective geographical markets and customer segments, emphasizing delivery assurance and quality.
Q: What impact could potential tariffs have, especially on the Energy division? A: For Marine, the impact is limited due to most shipbuilding occurring in Asia. In Energy, tariffs could affect our business, but predicting the impact is challenging given current global dynamics.