A pre‑silent call for the second quarter of 2026 was held on 23 June 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.
Strong market momentum in both Marine and Energy
Arjen opened the call by going through the quarter’s market momentum. Both the Energy and Marine segments are showing solid development, with good traction across the board and the pipeline remains strong.
Strategy execution continues with the completion of Portfolio Business divestments
Wärtsilä has completed its Portfolio Business divestments, marking a milestone in the company’s strategic focus. On 1 June 2026, Wärtsilä announced the completion of the final two divestments: Gas Solutions was transferred to Mutares SE & Co. KGaA, and the Water & Waste business to Solix Group AB, following agreements signed in December 2025 and February 2026. The businesses, including their personnel, were fully transferred to the new owners on the same date in June. In 2025, Gas Solutions generated approximately EUR 390 million in annual revenue, while Water & Waste contributed around EUR 50 million.
These final steps follow earlier divestments completed in 2025, including Automation, Navigation & Control Systems (ANCS) divestment in July and Marine Electrical Systems (MES) divestment in October, with a combined annual revenue of approximately EUR 225 million and an order book adjustment of around EUR 900 million.
With the completion of the latest transactions, Wärtsilä Portfolio Business no longer has any remaining business activities.
New joint venture and discontinued Energy Storage reporting segment
A major development during the quarter was the announcement, on June 15, to establish a joint venture, for Wärtsilä’s Energy Storage business with RCT Solutions in Germany. The partnership will be structured as a 50/50 joint venture, with plans to potentially bring in additional investors over time, which could reduce the ownership of the initial shareholders.
RCT Solutions’ CEO, Peter Pfaff, will lead the new entity, highlighting strong commitment from both parties. At closing, the transaction is not expected to have a material impact on profit and loss, and the transferred assets represent less than 5% of Wärtsilä’s total net assets.
The joint venture is expected to be loss-making in 2026 driven by recent low order intake as well as costs related to transformation actions, consisting mainly of write-down of capitalized R&D. The impact to Wärtsilä’s full year 2026 operating result is estimated to be EUR -40 to -50 million depending upon exact timing of closing. The joint venture is expected to generate positive results towards the end of 2027.
As a result of this agreement, the Energy Storage business will no longer be reported as a separate segment starting from Q2/2026. Financial targets and demand guidance for this business have also been discontinued.
Until the transaction closes (expected in Q3, subject to approvals and financing) the business will be reported as Discontinued Operations and Assets Held for Sale. Following closing, the joint venture will be reported under Other business activities as share of result in associated companies.
Energy Storage business has been a relatively small part of Wärtsilä’s overall portfolio. In 2025, it generated net sales of approximately EUR 700 million, with an operating profit of EUR 23 million, representing around 2.8% of Wärtsilä’s total result, and employed around 480 people globally.
Q&A
How has the Marine business been impacted by geopolitical disruptions in Q2 compared to Q1?
At this stage, the impact has been limited. There have been no immediate or direct disruptions affecting equipment deliveries or service operations. Wärtsilä has proactively increased inventory levels to support higher factory utilisation, which has helped mitigate potential supply chain risks.
Importantly, the company’s supply chain is not heavily exposed to regions such as the Strait of Hormuz, meaning that ongoing tensions in that area have not materially affected operations.
From a service perspective, while vessels continue to operate in affected regions, Wärtsilä’s exposure remains limited, as its core service focus differs from the dominant engine types used in those fleets.
Overall, there has been no significant change compared to Q1. However, prolonged geopolitical uncertainty may influence customer decision-making over time, particularly when it comes to fuel efficiency investments and retrofit decisions.
How is Wärtsilä positioned in the growing data centre power market and how does the pipeline look like?
The company continues to see a strong and active pipeline across all project stages, from early opportunities to final negotiations. Demand remains volatile, with projects progressing or disappearing quickly and new opportunities emerging continuously.
Wärtsilä’s solutions are particularly well-suited for projects in the 50–400 MW range. However, the company also participates in larger-scale opportunities depending on project requirements.
When are current delivery slots filling up?
Delivery slots for 2028 are already largely committed, either through firm orders or advanced customer negotiations. Capacity for 2029 is also increasingly being reserved.
This reflects strong demand globally, not just from one region, but across multiple markets. As a result, availability is becoming limited, reinforcing a “first come, first served” dynamic.
How does Wärtsilä manage advance payments and cash flow in projects?
Wärtsilä aims to maintain a cash-positive position throughout project execution. While payment structures vary, the goal is to have the majority of cash received at the delivery.
Overall, customer behaviour around advance payments has remained stable.
What is the approach to capital allocation going forward?
We have not communicated any changes in this regard. In 2025, we paid an extraordinary dividend which, together with the base dividend, amounted to 100% of EPS. However, there is no assurance that this will be repeated in the future.
Investment priorities currently include increased capital expenditure, as well as R&D spending remaining on a higher level, approximately 4% of net sales.
M&A remains focused on smaller, strategic bolt-on opportunities rather than large transactions. At the same time, maintaining a strong balance sheet is seen as important given the broader geopolitical environment.
