General/market environment
The third quarter of 2026 was another solid quarter for Wärtsilä, characterised by continued strong momentum in order intake. Global economic growth moderated but remained resilient, despite the conflict in the Middle East. However, higher energy prices, changing trade policies, and persistent geopolitical uncertainty continued to weigh on the global economic outlook.
In the energy market, electricity demand continued to grow, supported by the electrification of industry and transport, rising cooling needs, and data centre investments. The International Energy Agency expects electricity demand to grow at least 2.5 times faster than overall energy demand between 2026 and 2030, driving demand for new power-generating capacity. The favourable economics of wind and solar continued to advance the global energy transition, increasing the need for flexible balancing capacity to ensure reliable and stable power systems. Interest from the data centre segment also remained strong, with a dynamic pipeline of opportunities. We continue to see strong momentum in balancing and data centres for the years to come.
The marine market remained strong despite the weaker near-term economic outlook and continued uncertainty. Geopolitical disruptions, particularly in the Middle East and around the Strait of Hormuz, continued to contribute to longer voyage distances and trade rerouting, generally supporting tonne-mile demand, vessel utilisation, and freight rates. Supported by positive market sentiment and an ageing global fleet, newbuild investment was very strong during the first nine months of 2026. According to Clarksons Research, a total of 2,552 newbuild contracts were reported, compared with 1,200 in the corresponding period of 2025, excluding late reporting.
Improving fuel efficiency and operational performance remains a key priority for the shipping industry, supported by fleet renewal and energy-saving technologies. Shipowners also continue to place a strong emphasis on fuel flexibility as they prepare for evolving market and regulatory requirements. Wärtsilä is well positioned to support customers through its newbuild solutions and lifecycle services.
Order intake, net sales, operating result and cash flow
In the third quarter of 2026, Wärtsilä's order intake increased organically by 41%. Order intake increased in Energy, and remained stable in Marine, driven by the lumpy nature of new equipment business. Order intake in Marine and Energy combined increased organically by 45%. Considering the strong Energy order intake, lead times for our engines continue to increase.
Organic service order intake increased by 13%, supported by several exceptionally large retrofit orders during the quarter in Energy, as well as high activity in spare parts. 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 16% 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. Importantly, equipment deliveries also expand our installed base and create opportunities for future service business. The earlier announced capacity expansions in both manufacturing and services strengthen our ability to meet growing customer demand in Energy and Marine.
The comparable operating result increased by 19% to EUR 212 million, representing 14.2% of net sales. Cash flow from operating activities amounted to EUR 583 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.
Energy Storage business into a joint venture
After the reporting period, on 1 October, Wärtsilä closed the transaction to establish a 50/50 joint venture with German engineering company RCT Solutions GmbH for its global Energy Storage business. The joint venture, named Valo, combines Wärtsilä’s global energy storage capabilities with RCT Solutions’ engineering expertise, and provides a strong platform for long-term growth in the rapidly evolving energy storage market.
Outlook
Marine
Wärtsilä expects the demand environment for the next 12 months (Q4/2026-Q3/2027) to be similar to that of the comparison period.
Energy
Wärtsilä expects the demand environment for the next 12 months (Q4/2026-Q3/2027) to be similar to that of the comparison period.
Following high order intake quarters, the outlook reflects a continued strong demand environment, especially in Energy.
Q&A
You expect the demand environment to be similar for the next 12 months (Q4/2026–Q3/2027) for Energy. What are the main drivers for this?
Following three consecutive quarters that rank among the highest in Energy's history and supported by structural shifts in demand, the outlook reflects a continued strong demand environment.
The average size of individual orders has grown significantly in the past. Individual deals can have a considerable impact on quarterly and annual volumes.
The demand for electricity is continuously rising driven by electrification across industries, 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 opportunities over time.
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, and the 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 (Q4/2026–Q3/2027) for Marine. What are the main drivers for this?
Following the strong order intake during last 12 months, the outlook reflects a continued strong demand environment.
Clarksons updated forecast implies vessel contracting in 2027 will moderate to 2,790 ships, down from 3,470 orders expected in 2026. However, activity across our key segments remains supportive.
Additionally, the continued uncertainty related to the conflict in the Middle East may impact ship operations, utilisation and demand.
The regulations already in place today are incentivising ship owners to invest in decarbonisation. We have a strong market position, offering 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 on 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.
Your service order intake increased, what were the drivers behind?
Group service order intake increased by 11%. The organic service order intake growth was 13%, supported by strong development in Energy and broadly stable development in Marine.
In Energy, service order intake increased by 39%, which was supported by several exceptionally large retrofit orders during the quarter, as well as high activity in spare parts.
In Marine, service order intake remained stable, with higher spare parts orders, but a lower agreement order intake due to periodisation. The service market remained active, and overall vessel utilisation stayed at a good level. Increased fuel prices reduced short-term service spending in some segments, while higher shipping rates led to the postponement of some service activities.
The rolling 12-month service book-to-bill ratio remains above 1, reflecting our continued progress in moving up the service value ladder.
Your operating result in Energy increased significantly in Q3 despite the negative mix. What were the drivers, was there something extraordinary?
In Q3, the operating result was supported by better operating leverage, higher equipment sales and solid project execution.
Why did earnings per share (EPS) decrease despite the improved operating profit?
EPS decreased mainly due to the negative result (EUR -41 million) in the reporting period from the discontinued operations. During the third quarter of 2026, Wärtsilä recognised a write-down of capitalised R&D related to the Energy Storage business. Additionally, the operative result for the Energy Storage business was negative. However, these results were anticipated and are in line with our expectations.
On 15 June, Wärtsilä announced that it will establish a joint venture for its Energy Storage business. Until closing of the transaction on 1 October 2026, the Energy Storage business has been reported as Discontinued Operations.
For continuing operations, EPS was relatively stable at EUR 0.28 (0.29) despite Portfolio Business divestments and higher taxes.
The closing of Energy Storage JV was postponed to Q4, and your expectations on the financial impact also changed. What was changed and what should we expect during the rest of the year?
The closing date of the joint venture was moved from Q3/2026 to 1 of October, enabling a more precise estimation of the financial reporting impact.
In addition, the write-down of capitalised R&D, which was previously expected to affect the joint venture result, was recognised in Q3 as impairments need to be recognised when concluded according to IFRS.
All Energy Storage results between Q1–Q3/2026 have been classified as Discontinued Operations. Also the final transaction result to be booked in Q4 will be classified as Discontinued Operations. The sum of these is estimated to be -10 to -20 million euros, and is not part of Wärtsilä's operating result.
For Q4, the joint venture result from operation will be classified as share of result in associates and joint ventures. It is estimated to be -10 to -15 million euros, corresponding to 50% of the result equal to our ownership in the joint venture, and is part of Wärtsilä's operating result.
From 2027 onwards, under IFRS 18, joint venture earnings will no longer be included in the operating result but in result from investing activities.
You announced new mid-term financial targets and a new guidance practice starting in 2027. Can you elaborate more?
These 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
