A pre‑silent call for the first quarter of 2026 was held on 23 March with CFO Arjen Berends. In this blog post, we summarise the key messages, market themes and most relevant questions raised during the discussion.
The recording of the call is available here, and the presentation materials here.
Continued execution of the portfolio strategy
Arjen opened the call by reviewing the progress of Wärtsilä’s Portfolio Business divestments. All remaining units in the Portfolio Business are now agreed to be divested. Gas Solutions, announced in December 2025, is expected to close in Q2/2026, and Water & Waste, announced in February 2026, is estimated to close in Q3/2026. Combined annual revenue of these two units in 2025 was EUR ~440 million. As a result, no revenue from Portfolio Business is expected from Q4/2026 onwards.
Market sentiment supports Wärtsilä's outlook
The general market sentiment continues to support Wärtsilä’s outlook. In Marine, ordering moderated from the exceptional levels of 2024, yet remained healthy in core customer segments. Cruise and ferry activity continues to be strong, with good opportunities also in service. The decarbonisation transition is progressing despite delays in global regulatory decisions, and regional carbon pricing mechanisms continue to guide investment decisions.
In Energy, global electricity demand is rising as electrification accelerates and industries expand. Renewables remain the most cost‑competitive form of power generation, strengthening the need for flexible balancing power. Additionally, data centres are emerging as a structurally important baseload segment. Wärtsilä’s medium‑speed engine technology is well positioned for this shift, offering high efficiency, modularity and reliability.
Energy Storage: a challenging market
The Energy Storage market continues to face headwinds. US tariffs and FEOC‑related regulation have increased competition in other active markets, putting pressure on pricing. Order intake in 2025 was weak, and new orders are still needed for 2026 to cover the costs of the business. While focusing on profitable segments, the business is also looking at measures to improve competitiveness.
Order book dynamics and visibility
Wärtsilä’s order book for 2026 deliveries stands at EUR 4,991 million, which is slightly below the level seen a year earlier. This development is driven by several factors: the removal of EUR ~900 million from the order book following divestments completed in 2025; a longer delivery horizon reflecting market demand and project cycles; lower order intake in Energy Storage during 2025; and the shift from EPC to EEQ contracts, which influences both contract size and the timing of revenue recognition. Despite these elements, the order book remains strong and continues to provide solid operational visibility.
Investments in capacity and technology
Wärtsilä is investing EUR 140 million to expand technical production capacity at the Sustainable Technology Hub in Vaasa by 35%. An additional EUR 50 million is directed to expanding R&D testing and manufacturing. These investments support the growing demand for engines in both Marine and Energy and reinforce Wärtsilä’s long‑term commitment to decarbonisation technologies.
Q&A
What does the recent Brazilian power‑plant auction mean for Wärtsilä, and when could related orders materialise?
Wärtsilä views the outcome of the Brazilian auction positively. Timing depends on how quickly the individual project developers proceed with negotiations. Not all auctioned capacity will necessarily materialise due to equipment availability or developers’ procurement strategies.
How should we think about quarterly seasonality in Energy’s equipment backlog for 2026?
Wärtsilä does not guide quarterly phasing, as delivery timing can shift during project execution. While an initial delivery quarter is estimated at the time of booking, schedules often move due to customer‑driven factors such as construction readiness. Deliveries planned for the middle of a quarter typically stay within that quarter, while end‑of‑quarter deliveries may shift into the next one. As a result, quarter‑to‑quarter volatility is likely to remain a structural feature of the business.
Can you provide an update on cost inflation and the effectiveness of hedging and long‑term supply agreements?
Cost inflation was most visible in 2022 in EPC‑type and integration‑heavy businesses, whereas engine manufacturing was less affected. Today, cost management is stronger thanks to long‑term component agreements and tighter coordination between sourcing and tendering teams, enabling faster pricing adjustments if rising costs are anticipated. While the duration of supplier contracts varies, the overall risk profile is significantly improved compared to earlier inflation cycles.
How does Wärtsilä ensure reliability among key suppliers of energy‑intensive components such as castings?
Wärtsilä maintains close, partnership‑based relationships with critical suppliers, emphasising transparency on both opportunities and challenges. Since the supplier base for major engine components is limited, early visibility into potential issues is essential. These collaborative practices, enhanced since the disruptions seen in 2022, help safeguard continuity and reduce the risk of supply interruptions.
How far out are data‑centre customers discussing delivery slots, and has interest shifted toward later years?
Wärtsilä is currently in discussions for deliveries across 2027, 2028 and 2029. While some 2027 slots remain technically available, many are temporarily reserved through ongoing quotations, which hold capacity during their validity period. If a customer does not confirm the order and pay the down payment within that validity, the slot becomes available again. Overall, discussions now span multiple future years, reflecting the strong and growing demand for large‑scale power solutions in the data‑centre segment.
