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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:79Outperform
Price Target:
$6.50
▲(7.26% Upside)
Wärtsilä Oyj Abp's strong financial performance and positive earnings call results are the primary drivers of its stock score. The company shows robust revenue growth, profitability, and cash flow management. Technical analysis supports a positive trend, though the stock is nearing overbought levels. The high P/E ratio suggests overvaluation, which slightly offsets the positive outlook. Overall, the company is well-positioned for future growth, but investors should be cautious of valuation and geopolitical risks.
Waertsilae Oyj Abp (WRTBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.34B
Dividend Yield1.36%
Average Volume (3M)263.00
Price to Earnings (P/E)30.0
Beta (1Y)1.11
Revenue Growth15.49%
EPS Growth50.22%
CountryUS
Employees18,490
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.05
Shares Outstanding2,958,615,000
10 Day Avg. Volume0
30 Day Avg. Volume263
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue1.84
Enterprise Value/Gross Profit2.17
Enterprise Value/Ebitda13.31
Forecast
1Y Price Target
$6.50Price Target Upside7.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 Oyj Abp generates revenue through multiple streams, primarily from the sale of marine and energy solutions. The marine segment focuses on providing engines, propulsion systems, and integrated solutions for various types of vessels, including cargo ships, passenger ferries, and offshore platforms. The energy segment offers power plant solutions, including engines and energy storage systems, for utilities and industrial customers. In addition to product sales, Wärtsilä earns significant income from long-term service agreements and lifecycle services, which include maintenance, upgrades, and performance optimization for their installed base. The company also engages in strategic partnerships and joint ventures to expand its technological capabilities and market reach, further contributing to its revenue.
Waertsilae Oyj Abp Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Wärtsilä's Q2 fiscal results were strong, with significant increases in order intake, net sales, and operating results. New ventures in data centers and successful launches in carbon capture indicate positive future prospects. However, challenges remain in the Energy Storage segment due to U.S. tariffs and increased competition, along with broader geopolitical uncertainties.Q2-2025 Updates
Positive Updates
Record Order Intake and High Order Book
Order intake increased by 18% to EUR 2.2 billion, leading to an all-time high order book of EUR 8.8 billion.
Strong Financial Performance
Net sales increased by 11% to EUR 1.7 billion. Comparable operating results increased by 18% to EUR 207 million, with a 12% margin of net sales.
Positive Developments in Marine and Energy Segments
Marine order intake was up 14%, and Energy order intake increased by 93%, achieving an all-time high. Net sales in Marine and Energy grew by 14% and 31% respectively.
First Engine Power Plant for U.S. Data Centers
Wärtsilä secured a 282 MW flexible engine power plant order for a data center project in Ohio, marking its entry into the U.S. data center market.
Launch of Carbon Capture Solution
Wärtsilä launched a commercially viable carbon capture solution for the shipping market, capable of reducing CO2 emissions by up to 70%.
Strong Cash Flow and Financial Metrics
Cash flow doubled from Q1 to EUR 460 million. Working capital improved by EUR 154 million, and net debt and gearing showed positive trends.
Negative Updates
Challenges in Energy Storage
Order intake for Energy Storage decreased by 79% due to U.S. tariffs and increased competition in other markets. Net sales in this segment fell by 42%.
Service Order Intake Decline
Service order intake decreased by 6%, primarily due to a drop in project-oriented retrofit business, although this is seen as cyclical.
Geopolitical and Economic Uncertainties
High geopolitical uncertainties, changing global trade landscapes, and tariff-related issues pose risks to investment decisions and economic activity.
Company Guidance
During the Q2 2025 news conference for Wärtsilä, CEO Hakan Agnevall highlighted the company's strong performance, with key metrics showing positive growth. Order intake increased by 18% to EUR 2.2 billion, leading to a record-high order book of approximately EUR 8.8 billion. Net sales grew by 11% to EUR 1.7 billion, while the operating margin improved, reaching 12% of net sales, with comparable operating results up 18% to EUR 207 million. The company's operating results also rose by 11% to EUR 186 million, representing 10.8% of net sales. Service agreement net sales increased by 9%, despite a slight decrease in service order intake. Wärtsilä reported a strong cash flow of EUR 460 million, significantly bolstered by improved profitability and efficient working capital management. The book-to-bill ratio remained robust at 1.27, with equipment order intake surging by 45%. The Marine segment saw continued support from strong orders in cruise, container ships, and LNG bunkering vessels, while the Energy segment benefited from new power capacity driven by renewables and a growing demand for balancing power and data centers. Additionally, Wärtsilä launched a carbon capture solution for the Marine industry, achieving up to 70% reduction in CO2 emissions during tests. The company also made strides in divesting non-core business units, recently completing the sale of ANCS. Overall, Wärtsilä demonstrated solid financial health, with positive trends in cash flow, net debt, and solvency, and remains confident in achieving its financial targets despite global economic uncertainties.Waertsilae Oyj Abp Financial Statement Overview
Summary
Waertsilae Oyj Abp demonstrates strong financial health across all verticals. The income statement reflects solid revenue growth and profitability, while the balance sheet shows a well-managed capital structure with low leverage. Cash flow metrics indicate strong cash generation and management. The company is well-positioned for future growth with a stable financial foundation.Income Statement
Waertsilae Oyj Abp shows strong revenue growth with a TTM increase of 2.44%, supported by a robust gross profit margin of 66.72%. The net profit margin has improved to 8.19%, indicating enhanced profitability. EBIT and EBITDA margins are healthy at 11.43% and 13.84%, respectively, reflecting efficient operations. The company has consistently improved its financial performance over the past few years.85
Very Positive
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio of 0.24, indicating prudent financial leverage. Return on equity is strong at 22.91%, showcasing effective use of shareholder funds. The equity ratio stands at 31.64%, suggesting a stable financial structure. Overall, the company maintains a healthy balance between debt and equity.78
Positive
Cash Flow
Cash flow performance is robust with a free cash flow growth rate of 20.45% in the TTM period. The operating cash flow to net income ratio is 2.39, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.88 reflects efficient cash management. The company has shown consistent improvement in cash flow metrics over recent periods.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.85B | 6.45B | 6.02B | 5.84B | 4.78B | 4.60B |
| Gross Profit | 5.83B | 2.98B | 2.60B | 2.17B | 2.09B | 1.97B |
| EBITDA | 948.00M | 749.00M | 561.00M | 143.00M | 471.00M | 387.00M |
| Net Income | 561.00M | 503.00M | 258.00M | -59.00M | 194.00M | 134.00M |
Balance Sheet | ||||||
| Total Assets | 7.89B | 7.69B | 6.80B | 6.61B | 6.52B | 6.23B |
| Cash, Cash Equivalents and Short-Term Investments | 1.70B | 1.55B | 819.00M | 461.00M | 964.00M | 919.00M |
| Total Debt | 602.00M | 766.00M | 859.00M | 949.00M | 972.00M | 1.33B |
| Total Liabilities | 5.39B | 5.16B | 4.57B | 4.46B | 4.20B | 4.04B |
| Stockholders Equity | 2.50B | 2.52B | 2.23B | 2.13B | 2.31B | 2.18B |
Cash Flow | ||||||
| Free Cash Flow | 1.18B | 1.04B | 674.00M | -218.00M | 589.00M | 566.00M |
| Operating Cash Flow | 1.34B | 1.21B | 822.00M | -62.00M | 731.00M | 681.00M |
| Investing Cash Flow | -147.00M | -149.00M | -138.00M | -151.00M | -128.00M | -55.00M |
| Financing Cash Flow | -453.00M | -323.00M | -308.00M | -289.00M | -580.00M | -44.00M |
Waertsilae Oyj Abp Technical Analysis
Positive
6.06
Price Trends
5.54
Positive
4.85
Positive
4.27
Positive
Market Momentum
0.17
Negative
62.69
Neutral
90.76
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 6.06 is above the 20-day moving average (MA) of 5.83, above the 50-day MA of 5.54, and above the 200-day MA of 4.27, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 62.69 is Neutral, neither overbought nor oversold. The STOCH value of 90.76 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $18.34B | 29.97 | 22.99% | 1.36% | 15.49% | 50.22% | |
79 Outperform | 14.05B | 28.30 | 20.24% | 0.76% | 6.69% | 21.44% | |
77 Outperform | 10.90B | 30.84 | 14.02% | ― | 9.69% | 54.29% | |
74 Outperform | 23.58B | 10.37 | 30.81% | 1.20% | -8.23% | 54.92% | |
71 Outperform | 12.13B | 26.01 | 11.70% | 1.74% | 4.73% | -19.15% | |
62 Neutral | 9.36B | 37.51 | 3.74% | 0.99% | -7.88% | 0.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
WRTBY
Waertsilae Oyj Abp
6.06
1.95
47.45%
GGG
Graco
84.75
1.93
2.33%
IEX
IDEX
163.84
-37.99
-18.82%
ITT
ITT
181.84
43.94
31.86%
NDSN
Nordson
226.13
-25.30
-10.06%
PNR
Pentair
111.01
18.05
19.42%
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.