Following the classification of Energy Storage as assets held for sale and discontinued operations in June 2026 and its discontinuation as a reportable segment, comparative financial information for 2025 and H1 2026 has been restated accordingly.
General/market environment
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. 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.
Capacity expansion and business segment streamlining
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.
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.
Order intake, net sales, operating result and cash flow
Following the classification of Energy Storage as assets held for sale and discontinued operations in June 2026 and its discontinuation as a reportable segment, comparative financial information for 2025 and H1 2026 has been restated accordingly.
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.
Organic service order intake remained stable. 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.
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.
Q&A
You expect the demand environment to be similar for the next 12 months (Q3-2026–Q2-2027) for Energy. What are the main drivers for this?
Following two consecutive record order intake quarters in Energy, the outlook reflects a continued strong demand environment. In the second quarter of 2026, 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.
The demand for electricity is continuously rising driven by electrification across industries and transport, the growing need for cooling, as well as the rapid expansion of data centres.
Renewable energy (wind and solar) is anticipated to be the most affordable way to generate electricity going forward. The growing share of renewable energy in the system requires balancing power to cover for intermittency.
Data centres offer an interesting baseload business opportunity driven by grid capacity limitations and long lead times to grid access. According to the International Energy Agency (IEA), data centre demand is a key driver for the recent increases in global electricity demand forecasts, and this has benefitted the engine power plant demand environment. The resulting growth in the installed base also supports significant lifecycle service potential in 2030 and beyond.
An increasing number of customers acknowledge the intrinsic benefits of engines compared to gas turbine technology: high energy efficiency, ultra-low water consumption, no thermal or altitude derating, modular solution with high flexibility.
The utilisation of our Energy installed base is stable, providing good service opportunities going forward and enabling us to continue moving up the service value ladder.
You expect the demand environment to be “similar” for the next 12 months (Q3-2026–Q2-2027) for Marine. What are the main drivers for this?
Following a record-high order intake in Marine in the second quarter of 2026, the outlook reflects a continued strong demand environment.
Clarksons forecasts that vessel contracting activity in the next 12 months will remain broadly similar to prior 12 months. Contracting activity in many of Wärtsilä’s key vessel segments has been strong in recent years and is anticipated to continue on a similar level, supporting Wärtsilä’s equipment order intake.
The regulations already in place today are incentivising ship owners to invest in decarbonisation. We offer a broad and flexible portfolio of technologies to support a wide range of decarbonisation strategies for our customers. We are helping our customers to navigate the transition by optimising fuel efficiency and de-risking the future through fuel flexibility, leveraging hybrid solutions, alternative fuels, and carbon capture.
While the industry is waiting for the vote of International Maritime Organization's (IMO) Net Zero Framework, there is a more fragmented landscape of carbon pricing mechanisms developing by individual regions and countries introducing their own mechanisms. Regulations for international shipping, including China’s new carbon-intensity reduction target, are driving the industry towards more efficient and fuel flexible vessels — areas where Wärtsilä is well positioned through its newbuild solutions and lifecycle services offering.
In service, we see good opportunities with our strategy of moving up the service value ladder and supporting our customers in improving their operational efficiency and environmental footprint. Customers are currently taking a more cautious approach to retrofit investments amid ongoing uncertainty around global carbon regulations.
You mentioned that the gross margin of the Energy equipment order book has improved by more than 500 basis points since the beginning of 2025. What could this mean for future Group EBIT-%?
The good development of the Energy order book gross margin has been a result of strong demand for our flexible and efficient medium-speed engines.
Following the strong Energy equipment order intake growth, equipment net sales mid- to long-term will grow faster than service sales. Considering the good development in order book gross margin in Energy and Wärtsilä's operating leverage, we expect the mid- to long-term net EBIT-% impact to be positive.
Current delivery times for new orders in Energy have clearly increased during the last 18 months. Current delivery times are mainly for 2029 and beyond. This means that the revenue and EBIT-% impact will come with some years' delay. Revenue and profit are typically recognised upon delivery.
You had a record-high order intake in Energy in Q2, how should we think about converting this into net sales and the following service potential?
Equipment delivery times have increased, impacting the timing of revenue recognition. Consequently, the existing order book will generate sales that are distributed further into the future. With the increased share of Engineering and Equipment supply (EEQ) projects, we typically recognise revenue upon delivery.
In 2025, Energy equipment net sales were tilted towards Q4, but we expect deliveries to be more evenly spread during 2026.
Wärtsilä only books firm orders upon signing a contract and the receipt of an advance payment, which is non-refundable.
Service potential for equipment order intake is very good. Wärtsilä equipment is typically used for long-term power generation, also for our data centre customers, which means solid opportunities for service business. Our agreement attachment rate (i.e. for how much of the new equipment sales we also sell an agreement) is clearly higher than agreement coverage for installed base, which we have earlier communicated to be over 35%.
The resulting growth in the installed base supports significant lifecycle service potential in 2030 and beyond.
How did the recent changes in your reporting (selling of Portfolio Business units and discontinuing Energy Storage as reporting segment) impact your Q2 results?
On 15 June 2026, Wärtsilä agreed to establish a joint venture with German company RCT Solutions GmbH for its global Energy Storage business. The ownership structure of the joint venture will be 50% RCT Solutions and 50% Wärtsilä. Closing of the transaction is expected in the third quarter of 2026 subject to regulatory and other customary conditions and approvals, as well as the arrangement of a financing package.
In Q2-2026, Energy Storage was classified as an asset held for sale and Discontinued Operations. Following this and its discontinuation as a reportable segment, Wärtsilä's comparative financial information for 2025 and H1 2026 has been restated accordingly.
In the second quarter of 2026, the order intake for Discontinued Operations (former Energy Storage) amounted to EUR 24 million (50), the order book at the end of the period was EUR 545 million (800), and the result for the period was EUR -7 million (1).
Portfolio Business figures have not been restated, aligning with the practices applied in connection with divestments of other Portfolio Business units. The divested units, Gas Solutions and Water & Waste contribute to Q2-2026 figures until 1 June. With these final two divestments completed, our Portfolio Business has no remaining business activities and this marks the completion of our Portfolio Business strategy, making Wärtsilä a more focused and profitable company.
What kind of impacts should we expect in the reporting after Q2 following the establishment of Energy Storage joint venture?
Energy Storage's operating result before the closing of the transaction is reported under Discontinued Operations.
From the closing date onwards, Wärtsilä will report the joint venture under Other Business Activities as share of result in associated companies, and it will contribute to Wärtsilä's operating result according to its 50% ownership. The joint venture is expected to be loss-making in 2026, driven by recent low order intake, and costs related to transformation actions.
Depending on the timing of closing, the negative impact on Wärtsilä’s full-year 2026 operating result is expected to be EUR -40 to -50 million. Of this figure, approximately half is related to items affecting comparability.
In 2027, following the planned implementation of IFRS 18, the joint venture will no longer be included in operating result.
How do you comment on the progress of service order intake?
Service order intake decreased by 4% due to Portfolio Business divestments and a negative FX impact, mainly related to weaker USD. The organic service order intake growth was +1% with stable development in Marine and positive development in Energy.
Marine and Energy combined service order book increased by 11%, ending up with an all-time high of EUR 2,602 million. The Energy service order book increased 16% year on year while the Marine service order book increased 8%. The rolling 12-month service book-to-bill ratio remains above 1, reflecting our continued progress in moving up the service value ladder.
The stable organic Marine service order intake was primarily a result of a high comparison period of Q2-2025 for agreement order intake. We also see, that increased fuel prices and shipping rates are leading to some postponement of service activities.
You announced additional capacity in Q2, and now you say that the expansion will increase output to approximately 2.2 times the 2025 operational level. How does this relate to your previously announced expansions, and what is your current capacity utilisation rate?
In May 2026, Wärtsilä announced a EUR 90 million investment to expand technical production capacity by a further 30% at its Sustainable Technology Hub (STH) in Vaasa and across its global supply chain. Combined with the 35% technical capacity expansion announced in February 2026, this brings the total planned increase in technical capacity to 65% versus 2025 levels.
As STH operated at approximately 75% of its technical capacity in 2025, the combined expansions will increase output capacity to approximately 2.2x the 2025 operational level once fully commissioned in Q1-2029.
We see, that demand in the energy and marine markets continues to develop positively, driven by rising electricity consumption and rapid data-centre growth in energy, and by the decarbonisation regulation and the need for fuel flexible and efficient solutions in marine. This investment strengthens our ability to respond to the increasing demand, support our customers’ requirements and reinforce Wärtsilä’s long-term market position, while enhancing our global supply chain.
We currently operate STH at full capacity.
