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Waertsilae Oyj Abp (WRTBY)
OTHER OTC:WRTBY
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Waertsilae Oyj Abp
(OTC:WRTBY)
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Rating:76Outperform
Price Target:
$8.00
â–²(16.11% 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
Cash generation
Consistent, high operating and free cash flow (2023–2025) and FCF near net income provide durable internal funding for capex, dividends, debt reduction and working capital. Strong cash conversion reduces reliance on external finance and cushions cyclical equipment revenue swings.
Margin & profitability improvement
Sustained margin expansion to ~12% EBIT and record operating results reflect structural operational leverage and pricing power across Marine and Energy. Higher ROCE and improved comparable margins indicate durable efficiency gains that support resilient earnings and reinvestment capacity.
Backlog / book-to-bill & tech wins
A multi‑quarter book‑to‑bill >1 and a large order book provide medium‑term revenue visibility. Large strategic orders (data center power plant, ammonia engine) validate technology leadership in decarbonization and underpin future aftermarket services and recurring revenues.
Negative Factors
Energy Storage weakness
A severe drop in storage orders and a materially smaller book reduce portfolio diversification and remove an intended growth engine. Lower volumes plus ongoing R&D compress absolute profitability in storage and create a persistent headwind until demand and policy clarity recover.
Revenue unevenness / cyclicality
Top‑line inconsistency and prior loss year reflect sensitivity to project timing, cycle swings and divestment comparables. Lumpy order flows make revenue and utilization outcomes less predictable, complicating capacity planning and multi‑quarter earnings visibility for investors.
Capacity ramp timing & supply chain
Planned capacity expansion is multi‑year and benefits are back‑ended to 2028. Supply‑chain lead times and installation constraints delay revenue and margin upside, exposing the company to execution risk and to demand shifts before incremental capacity contributes materially.
Waertsilae Oyj Abp (WRTBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.89B
Dividend Yield0.87%
Average Volume (3M)2.81K
Price to Earnings (P/E)31.0
Beta (1Y)1.01
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 Cap0.78
Enterprise Value/Revenue2.47
Enterprise Value/Gross Profit16.22
Enterprise Value/Ebitda16.72
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 makes money primarily by selling equipment and complete systems to customers in two main markets—marine and energy—and by providing long-term services that support those installations over their operating lives. Key revenue streams include: (1) Product and system deliveries: sales of marine solutions (such as propulsion and ship power-related systems) and energy solutions (such as power plant/engine-based generation systems), typically recognized as projects are delivered/accepted under customer contracts. (2) Services (lifecycle and aftermarket): recurring revenue from maintenance agreements, spare parts, repairs, upgrades/retrofits, and technical services for Wärtsilä-installed equipment as well as, in some cases, third-party equipment; this stream is supported by the large installed base and tends to be more recurring than new equipment sales. (3) Modernization and decarbonization-related upgrades: revenue from conversions, efficiency improvements, and emissions-reduction retrofits for ships and power plants, which can be driven by fuel economics and regulatory requirements. (4) Digital and optimization offerings: revenue from software, monitoring, remote support, and performance/energy management services that help customers optimize fuel use, uptime, and operations. Overall earnings are influenced by the level of newbuild and retrofit activity in marine markets, investment cycles in power generation, and the scale and utilization of the installed base that underpins services demand. Specific partnership structures and contract-by-contract commercial terms are not available in this response and are therefore null.
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
Neutral
6.89
Price Trends
7.92
Negative
7.29
Positive
6.35
Positive
Market Momentum
-0.19
Positive
42.85
Neutral
20.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRTBY, the sentiment is Neutral. The current price of 6.89 is below the 20-day moving average (MA) of 7.84, below the 50-day MA of 7.92, and above the 200-day MA of 6.35, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 42.85 is Neutral, neither overbought nor oversold. The STOCH value of 20.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $14.09B | 26.59 | 20.38% | 1.32% | 2.85% | 3.09% | |
78 Outperform | $16.18B | 28.23 | 16.15% | 0.79% | 8.01% | 2.67% | |
77 Outperform | $14.02B | 27.73 | 12.11% | 1.56% | 7.09% | -2.29% | |
76 Outperform | $21.89B | 30.96 | 23.92% | 0.87% | 10.53% | 39.90% | |
74 Outperform | $14.98B | 28.71 | 17.30% | 1.64% | 3.78% | 4.85% | |
68 Neutral | $14.44B | 26.14 | 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
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85.34%
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IEX
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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.