Education
About Us
Working with TipRanks
Follow Us
Waertsilae Oyj Abp (WRTBY)
OTHER OTC:WRTBY
Top Page
Waertsilae Oyj Abp
(OTC:WRTBY)
Select Model
Select Model
Rating:76Outperform
Price Target:
$9.00
â–²(30.62% Upside)
Action:ReiteratedDate:02/06/26
The score is driven primarily by strengthening financial performance—especially strong cash generation, improved profitability, and a more conservative balance sheet—supported by constructive price trends and moderate momentum. The main offset is valuation (high P/E with a modest dividend yield), while the earnings call adds confidence via record results and backlog strength but flags meaningful Energy Storage weakness and uncertainty-related visibility risks.
Positive Factors
Strong cash generation
Consistently high operating cash flow and free cash flow in 2023–2025 (FY2025 €1.6bn; FCF ≈0.91x net income) strengthens funding for capex, dividends and deleveraging. Durable cash conversion reduces refinancing risk and supports reinvestment into services and decarbonization offerings.
Conservative, improving balance sheet
Marked decline in leverage from 2020 to 2025 and higher solvency (≈40.5%) provide financial resilience across cycles. Strong ROE (20–21% in 2024–2025) indicates efficient capital use, enabling strategic investments while keeping debt levels manageable over the medium term.
Robust backlog & recurring services
Sustained book-to-bill >1 for 19 quarters and an ~€8.2bn order book (post-adjustment) underpin forward revenue visibility. A large installed base and services book-to-bill near 1 provide recurring aftermarket revenue that smooths cyclical newbuild swings and supports margin durability.
Negative Factors
Energy Storage demand collapse
A severe drop in Energy Storage orders and backlog materially reduces a growth segment and weakens diversification. Lower volumes paired with ongoing R&D can depress absolute profitability and delay scale benefits, creating a medium-term headwind to group order momentum and margins.
Uneven revenue momentum / cyclicality
Top-line inconsistency — a small decline in 2025 after prior growth and a sharp 2022 trough — signals demand cyclicality. This uneven revenue trajectory complicates planning, makes margin progress reliant on execution, and limits predictability for investment and staffing decisions.
Capacity ramp timing & supply constraints
Planned capacity expansion is strategic but back-loaded (commissioning ~Q1 2028). Multi-year ramp and cited supply‑chain lead times mean revenue and margin benefits are delayed, leaving near-to-medium‑term growth dependent on existing capacity and supplier performance.
Waertsilae Oyj Abp (WRTBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.73B
Dividend Yield0.87%
Average Volume (3M)2.81K
Price to Earnings (P/E)36.3
Beta (1Y)0.94
Revenue Growth10.53%
EPS Growth39.90%
CountryUS
Employees18,490
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.07
Shares Outstanding2,958,617,000
10 Day Avg. Volume2,472
30 Day Avg. Volume2,814
Financial Highlights & Ratios
PEG Ratio1.55
Price to Book (P/B)6.47
Price to Sales (P/S)2.80
P/FCF Ratio13.38
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue2.89
Enterprise Value/Gross Profit18.96
Enterprise Value/Ebitda19.54
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Waertsilae Oyj Abp Business Overview & Revenue Model
Company DescriptionWärtsilä Oyj Abp provides technologies and lifecycle solutions for the marine and energy markets worldwide. The company's marine power portfolio includes engines, propulsion systems, hybrid technology, and integrated powertrain systems; marine systems comprising products and lifecycle services related to the gas value chain, exhaust treatment, shaft line, underwater repair, and electrical integrations; voyage solutions consists of bridge infrastructure, cloud data services, decision support systems, and smart port solutions to enable shore-to-shore visibility, as well as builds end-to-end connected digital ecosystem for shipping; and decarbonization energy services include future-fuel enabled balancing power plants, hybrid solutions, energy storage, and optimization technology, such as the GEMS energy management platform. It provides power and propulsion products, such as electrical and power systems, engines and generating sets, propulsors and gears, and shaft line solutions; gas, ballast water management, freshwater generation, waste and wastewater treatment, and exhaust treatment solutions; and voyage and fleet optimization services comprising autonomy, simulation and training, fleet optimization and safety, integrated vessel control systems, port and traffic management, and dynamic positioning services. The company also offers spare parts and field services, technical support, maintenance and repair services, lifecycle upgrades and solutions, and training services. In addition, it provides products and solutions for energy storage, and engine and hybrid power plants. The company serves merchant vessels, gas carriers, cruise and ferry, navy, and special vessels segments; offshore installations and related industry vessels and land-based gas installations; and ship owners, shipyards, and ship management companies. Wärtsilä Oyj Abp was founded in 1834 and is headquartered in Helsinki, Finland.
How the Company Makes MoneyWärtsilä generates revenue through several key streams. Primarily, the company earns money from the sale of its products, including marine engines, propulsion systems, and energy generation equipment. Additionally, Wärtsilä has a significant revenue stream from its services, which includes maintenance, repairs, and lifecycle support for its equipment. The company also profits from digital solutions that optimize operations and enhance performance for its clients. Strategic partnerships with shipping companies, energy producers, and technology providers further bolster its revenue, allowing Wärtsilä to innovate and expand its offerings. Factors such as the growing demand for sustainable energy solutions and advancements in digital technologies also contribute positively to its earnings.
Waertsilae Oyj Abp Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented a clear positive operational and financial momentum with multiple all-time highs (net sales, operating results, cash flow, EPS), strong margin improvement and robust performance in Marine and Energy equipment & services. Strategic wins (data center order, ammonia engine) and major capacity and supply-chain investments underpin confidence in continued growth. However, significant weakness in Energy Storage order intake and backlog, the impact of Portfolio Business divestments on comparables, and external uncertainties (geopolitics, tariffs) temper near-term visibility. On balance, the positive achievements and structural improvements outweigh the contained challenges, but storage and timing risks remain areas to monitor.Q4-2025 Updates
Positive Updates
Record Financial Performance and Margins
All-time highs in multiple metrics for FY2025: comparable operating results up 20% to EUR 829m (12.0% of net sales), operating result up 16% to EUR 833m (12.1% of net sales - milestone), net sales up 7% to EUR 6.9bn, and full-year operating cash flow all-time high at EUR 1.6bn. Q4 comparable operating result up 23% to EUR 256m (12.8% of net sales). 12-month rolling comparable operating margin improved to ~12% from 10.8%.
Strong Operating Cash Flow and Working Capital
Q4 operating cash flow EUR 652m (quarterly all-time high); full-year operating cash flow EUR 1.6bn. Working capital at an all-time low; working capital excluding advances improved to roughly EUR 80m (from ~EUR 600m two years earlier). ROCE nearly doubled year-over-year; solvency up to 40.5% from 37.4%.
Marine and Energy Combined: Robust Growth and Profitability
Marine & Energy combined FY order intake up 17% to EUR 6.9bn (organic +20%). Net sales up 12% to EUR 5.5bn (organic +15%). Equipment orders +43% to EUR 3.3bn; order book +18% to EUR 6.7bn. Comparable operating results up 21% to EUR 758m (13.7% of net sales) and book-to-bill at 1.24 — on track to reach 14% margin target.
Q4 Business Mix and Book-to-Bill Strength
Group book-to-bill remains >1 for the 19th consecutive quarter (group Q4 book-to-bill 1.11). Services 12-month rolling book-to-bill: Energy 1.1, Marine 1.01, supporting recurring revenue stability.
Strategic Orders and Technology Wins
Large data center equipment order: 507 MW power plant for a U.S. data center (27 x W50SG engines) booked in Q4, scheduled for 2027 delivery. Marine technology milestone: second ammonia engine newbuild order (W25 Ammonia) for a Norwegian cargo vessel. These wins validate technology leadership and market traction in decarbonization solutions.
Capacity and Supply-Chain Investments to Support Growth
Announced expansion of Vaasa STH technology center (technical capacity +35%) with ~EUR 140m investment (commissioning expected Q1 2028). Spare parts hub in Kampen expansion +40% (~EUR 14m, commissioned by 2027). Strategic supplier partnership with Siempelkamp foundry to secure critical cast components.
Portfolio Simplification and Divestments Progress
Continued divestment of Portfolio Business (ANCS divested July 1; MES divested Oct 31; Gas Solutions signed for sale expected to complete Q2). Adjusted group order book by ~EUR 900m due to divestments, with ANCS (2025 revenue ~EUR 127m) and MES (~EUR 92m) removed and Gas Solutions (~EUR 394m) expected to leave.
Shareholder Returns and EPS
Earnings per share at an all-time high EUR 1.06. Board proposes base dividend EUR 0.54 (two installments) plus extraordinary dividend EUR 0.52, totaling EUR 1.06 per share.
Negative Updates
Energy Storage: Significant Order Intake Decline
Energy Storage FY order intake down 60% to EUR 455m; order book down 36% to EUR 719m. Q4 storage order intake also weak, contributing to group order intake being down. Storage book-to-bill 0.66 and net sales down 13% to EUR 694m; comparable operating result deteriorated to EUR 24m (3.4% of net sales).
Group Order Intake Decline Driven by Storage and Divestments
Group total order intake down 11% in Q4 to EUR 2.2bn (organic order intake down 4%). The decline was driven by a weak Energy Storage market versus an exceptionally strong comparison period and the removal of ~EUR 900m of order backlog following Portfolio Business divestments.
Market and Visibility Risks: Geopolitical and Tariff Uncertainty
Management highlighted high external uncertainties (geopolitical risk and tariff-related uncertainty) that may lead to postponement of investment decisions, particularly impacting Energy Storage demand and complicating forward-looking visibility.
Timing and Periodization in Order Intake
Several executives noted periodization of large projects (e.g., big orders closing late or early in adjacent quarters) causing lumpiness in reported quarterly order intake, which reduces near-term visibility for analysts and investors despite positive pipeline commentary.
Capacity Ramp Timing and Supply-Chain Constraints
Planned technical capacity increase (+35%) will only be commissioned in Q1 2028. Management cited supply-chain lead times and installation/testing facility constraints as reasons for multi-year ramp, implying revenue benefit is medium-term and dependent on supplier delivery.
Storage Profitability Impacted by Lower Volumes and R&D
Storage profitability weakened due to lower volumes and continued R&D investments. Although margins remain inside the guidance range (3–5%), decreased absolute profitability in storage is a material drag on group order intake and sales momentum.
Company Guidance
Guidance concentrated on three industry outlooks for the coming 12 months: Marine — demand expected to be similar to the very strong prior 12 months (Q4: Marine order intake +8%, organic +11%; Marine full‑year net sales +10%); Energy — demand expected to be better than the comparison period, driven by data centers, balancing power and baseload (Q4: Energy order intake +4%, organic +13%; Energy full‑year net sales +29%); Energy Storage — expected to improve from a very low base but remains exposed to geopolitical and tariff uncertainty that may cause postponements (2025: Storage order intake down ~60% to EUR 455m, order book EUR 719m, net sales down 13% to EUR 694m, book‑to‑bill 0.66). Management reiterated the group’s strong backlog and book‑to‑bill (group Q4 book‑to‑bill 1.11; 12‑month rolling >1 for 19 consecutive quarters; group order book ~EUR 8.2bn after ~EUR 900m divestment adjustment), warned that high external uncertainties make forward‑looking statements challenging, and confirmed capacity expansion plans (technical capacity currently run at ~75% in 2025; planned technical capacity +35% via ~EUR 140m STH investment in Vaasa, to be commissioned in Q1 2028) to meet the stronger Energy and Marine demand.Waertsilae Oyj Abp Financial Statement Overview
Summary
Fundamentals are solid and improving: strong profitability and post-2022 recovery, conservative and improving leverage, and standout cash generation with robust free cash flow relative to net income. The main financial risk is uneven revenue momentum, including a slight decline in 2025 and prior-cycle volatility.Income Statement
Profitability has improved meaningfully since the 2022 loss year, with 2025 showing solid operating and net margins (about 12.8% EBIT margin and 9.1% net margin) and net income rising versus 2023–2024. Revenue growth is the main soft spot: after steady growth in 2023–2024, 2025 revenue was slightly down (about -1.8%), suggesting a near-term demand/volume pause. Overall, earnings quality looks healthy, but the top-line trajectory is less consistent.74
Positive
Balance Sheet
Leverage looks conservative and improving, with debt-to-equity declining from roughly 0.61 (2020) to ~0.27 (2025), alongside growing equity and assets. Returns on equity are strong in 2024–2025 (about 20–21%), indicating efficient capital use after the 2022 setback. The key weakness is the historical volatility (notably 2022), but the balance sheet today appears resilient with manageable debt levels.78
Positive
Cash Flow
Cash generation is a standout: operating cash flow and free cash flow are strongly positive in 2023–2025, with 2025 free cash flow up ~13.8% and free cash flow running close to net income (about 0.91x), supporting high earnings quality. The main caution is the sharp 2022 deterioration (negative operating and free cash flow), highlighting potential cyclicality; however, the rebound and consistency since then are very strong.85
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.64B | 6.45B | 6.02B | 5.84B | 4.78B |
| Gross Profit | 1.37B | 2.98B | 2.60B | 2.17B | 2.09B |
| EBITDA | 1.02B | 749.00M | 484.00M | 181.00M | 459.00M |
| Net Income | 601.29M | 503.00M | 258.00M | -64.00M | 194.00M |
Balance Sheet | |||||
| Total Assets | 8.47B | 7.69B | 6.80B | 6.61B | 6.52B |
| Cash, Cash Equivalents and Short-Term Investments | 2.59B | 1.55B | 819.00M | 461.00M | 964.00M |
| Total Debt | 769.67M | 766.00M | 859.00M | 949.00M | 972.00M |
| Total Liabilities | 5.59B | 5.16B | 4.57B | 4.46B | 4.20B |
| Stockholders Equity | 2.88B | 2.52B | 2.23B | 2.13B | 2.31B |
Cash Flow | |||||
| Free Cash Flow | 1.39B | 1.04B | 674.00M | -218.00M | 589.00M |
| Operating Cash Flow | 1.53B | 1.21B | 822.00M | -62.00M | 731.00M |
| Investing Cash Flow | -48.99M | -149.00M | -138.00M | -151.00M | -128.00M |
| Financing Cash Flow | -474.50M | -323.00M | -308.00M | -289.00M | -580.00M |
Waertsilae Oyj Abp Technical Analysis
Positive
6.89
Price Trends
7.79
Positive
7.05
Positive
6.08
Positive
Market Momentum
0.29
Negative
63.71
Neutral
91.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRTBY, the sentiment is Positive. The current price of 6.89 is below the 20-day moving average (MA) of 8.36, below the 50-day MA of 7.79, and above the 200-day MA of 6.08, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 63.71 is Neutral, neither overbought nor oversold. The STOCH value of 91.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRTBY.
Waertsilae Oyj Abp Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $15.53B | 30.46 | 19.92% | 1.32% | 2.85% | 3.09% | |
78 Outperform | $17.42B | 33.14 | 17.85% | 0.79% | 8.01% | 2.67% | |
77 Outperform | $15.57B | 32.64 | 12.35% | 1.56% | 7.09% | -2.29% | |
76 Outperform | $16.37B | 31.72 | 17.47% | 1.64% | 3.78% | 4.85% | |
76 Outperform | $25.73B | 36.31 | 22.99% | 0.87% | 10.53% | 39.90% | |
68 Neutral | $16.19B | 25.11 | 17.48% | 0.96% | 0.83% | -1.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
WRTBY
Waertsilae Oyj Abp
8.71
4.94
130.71%
GGG
Graco
93.92
8.00
9.32%
IEX
IDEX
209.47
18.13
9.47%
ITT
ITT
202.41
62.41
44.58%
NDSN
Nordson
293.44
86.19
41.59%
PNR
Pentair
99.19
5.95
6.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.