“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. This need was reflected in an order booked during the third quarter for Australia’s largest-ever reciprocating engine power plant. The 300 MW plant will use 13 Wärtsilä 46TS-SG engines to provide critical grid balancing and system security, enabling greater integration of renewable energy. The project will utilise our newest industry leading Wärtsilä 46TS platform, which combines high efficiency, flexibility and reliability, and further strengthens the competitiveness of our engine power plant offering.

Interest from the data centre segment also remained strong, with a dynamic pipeline of opportunities. During the third quarter, we secured an order to supply a 282 MW onsite power solution for a data centre project in the United States. The project will use 15 Wärtsilä 50SG engines. The order demonstrates the growing need for fast-deployable, reliable, and scalable power solutions as AI-driven electricity demand grows and grid connection timelines remain lengthy. 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.

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.

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.

We expect the demand environment over the next 12 months to remain at a similar level in both Energy and Marine to that of the past 12 months. The outlook reflects a continued strong demand environment, supported by structural shift especially in Energy.

In a sign of our progress developing the high-performing teams needed to deliver our strategy and support future growth, our internal MyVoice employee survey showed an increased favourable employee engagement rate of 84% and overall improvements compared to the previous survey done in 2024. Also during the quarter Forbes recognised Wärtsilä as one of the world's best employers for the second consecutive year.

With our global team of dedicated professionals, we remain focused on helping our customers to succeed as the marine and energy markets evolve. Our technology leadership, lifecycle offering, and strong market positions enable us to respond to changing customer needs and continue pursuing opportunities for long-term value creation.”