Wärtsilä’s Financial Statements Bulletin January–December 2025

Wärtsilä Corporation, Stock exchange release 4 February 2026 at 08:30 UTC+2

Wärtsilä's Financial Statements Bulletin January-December 2025

This release is a summary of Wärtsilä's Financial Statements Bulletin January-December 2025. The complete report is attached to this release as a pdf file. It is also available on the company website at www.wartsila.com.

ALL-TIME HIGH OPERATING RESULT AND CASH FLOW IN 2025

October-December 2025 highlights

• Order intake in Marine and Energy combined increased by 6% to EUR 1,746 million (1,645), while the organic growth, which excludes FX impact and the impact of acquisitions and divestments, was 11%
• Total order intake decreased by 11% to EUR 2,220 million (2,491), while the organic growth was -4%
• Service order intake decreased by 5% to EUR 959 million (1,007)
• Net sales in Marine and Energy combined increased by 18% to EUR 1,657 million (1,406), while the organic growth was 23%
• Total net sales increased by 8% to EUR 2,002 million (1,854), while organic growth was 16%
• Book-to-bill amounted to 1.11 (1.34)
• The comparable operating result increased by 23% to EUR 256 million (209), which represents 12.8% of net sales (11.3)
• The operating result increased by 10% to EUR 251 million (229), which represents 12.5% of net sales (12.4)
• Earnings per share increased to EUR 0.32 (0.27)
• Cash flow from operating activities increased to EUR 652 million (437)

January-December 2025 highlights

• Order intake in Marine and Energy combined increased by 17% to EUR 6,866 million (5,875), while the organic growth, which excludes FX impact and the impact of acquisitions and divestments, was 20%
• Total order intake remained stable at EUR 8,102 million (8,072), while organic growth was 6%
• Service order intake remained stable at EUR 3,740 million (3,812)
• The order book at the end of the period remained stable at EUR 8,248 million (8,366) after elimination of approximately EUR 900 million related to the divestments in Portfolio Business
• Net sales in Marine and Energy combined increased by 12% to EUR 5,542 million (4,949), while the organic growth was 15%
• Total net sales increased by 7% to EUR 6,914 million (6,449), while organic growth was 11%
• Book-to-bill amounted to 1.17 (1.25)
• The comparable operating result increased by 20% to EUR 829 million (694), which represents 12.0% of net sales (10.8)
• The operating result increased by 16% to EUR 833 million (716), which represents 12.1% of net sales (11.1)
• Earnings per share increased to EUR 1.06 (0.85)
• Cash flow from operating activities increased to EUR 1,598 million (1,208)
• Dividend proposal: EUR 0.54 base dividend per share (0.44) and EUR 0.52 extraordinary dividend per share, totalling EUR 1.06 per share

Wärtsilä's outlook

Marine

Wärtsilä expects the demand environment for the next 12 months (Q1/2026-Q4/2026) to be similar to that of the comparison period.

Energy

Wärtsilä expects the demand environment for the next 12 months (Q1/2026-Q4/2026) to be better than in the comparison period.

Energy Storage

Wärtsilä expects the demand environment for the next 12 months (Q1/2026-Q4/2026) to be better than in the comparison period. However, the current geopolitical uncertainty particularly impacts this business and may affect growth.

In general, Wärtsilä underlines that the current high external uncertainties make forward-looking statements challenging. Due to high geopolitical uncertainty, the changing landscape of global trade, and the lack of clarity related to tariffs, there are risks of postponements in investment decisions and of global economic activity slowing down.

Håkan Agnevall, President & CEO: Order intake increased in Marine and Energy, all-time high operating result and cash flow in 2025

"2025 was a strong year for Wärtsilä. Despite increased uncertainty, the global economy showed greater resilience than anticipated. We continued steady progress in both the marine and energy markets. Order intake for Marine and Energy increased, and we delivered all-time high order intake, net sales, operating profit and cash flow for the year.

In the energy market, global power consumption continued to grow as electrification accelerates, industries expand, and the need for data centre capacity rises. The transition towards renewables continued to advance, and investments in renewables are expected to have posted another record high year in 2025, supported by favourable economics. This trend continues to drive demand for Wärtsilä's balancing solutions, both for engine power plants and battery energy storage systems.

In 2025, Wärtsilä continued its growth in the data centre segment. These applications require highly reliable and efficient power solutions to support their critical operations, and our medium-speed engine technology is well suited to meet these demands. During the year, we secured our first two projects in the US, which together included delivering 789 MWs of power from Wärtsilä engines. We continue to see interesting opportunities in this market going forward.

In the marine market, the year was impacted by geopolitical tensions and shifting trade patterns. Ordering eased across most vessel segments compared to the extraordinary activity seen in 2024, but the market sentiment for Wärtsilä's key customer segments remained on a good level. The decarbonisation transition continues, despite the IMO's postponement in October of a decision regarding the adoption of global regulations on shipping emissions. This postponement opens the door to a more fragmented landscape of carbon pricing mechanisms introduced by individual regions and countries. However, we continue to support our customers on their decarbonisation journey, offering a wide range of solutions ranging from improving fuel efficiency to abatement technologies such as carbon capture, and to alternative fuel and hybrid technologies.

In 2025, Wärtsilä's order intake increased organically by 6%. Equipment order intake increased in both Marine and Energy. In Energy Storage, the order intake was below the levels seen in 2024, but revived during the last quarter of the year. The Energy Storage business continues to face headwinds from elevated US tariffs and regulatory changes particularly related to FEOC (Foreign Entity of Concern), as well as intensified competition in other markets. Service order intake remained stable, supported by good development in agreements, while retrofits and upgrades decreased. The rolling 12-month book-to-bill ratio in service remains well above 1, indicating future growth. Organic net sales increased, with growth both in equipment and services.

The comparable operating result increased by 20% to EUR 829 million, representing 12.0% of net sales in 2025. The result was supported by good development in Marine, Energy and Portfolio Business, while the result in Energy Storage decreased, mainly due to lower volumes.

Cash flow from operating activities was at an all-time high level, following the improved result and a good level of received customer payments. We expect the negative working capital level to be sustained over the next years, and will continue our active efforts to manage working capital to maintain it well below the long-term historical average.

We took several steps during the year to increase our delivery capacity, positioning Wärtsilä to meet growing market demand in energy and marine. In April, we announced the expansion of our R&D testing and manufacturing capacity at our state-of-the-art Sustainable Technology Hub (STH) in Vaasa, Finland. After the reporting period, we communicated a total expansion of our production capacity at STH by 35%. The expanded capacity will enable Wärtsilä to deliver a higher volume of engines, and better support both customer needs and continued long-term business growth. The new production capacity will be installed within the previously announced expansion of STH, and is expected to be commissioned in the first quarter of 2028. In November, we announced the expansion of our main spare parts distribution centre in Kampen, the Netherlands and in December, we reported a strategic partnership with Siempelkamp Giesserei, a key supplier of large engine blocks for Wärtsilä engines, to strenghten our supply chain.

In 2025, we also made great progress in streamlining our business portfolio in order to become a more focused and profitable company. We divested the Automation, Navigation and Control Systems (ANCS) business in July and Marine Electric Systems in October. Additionally, we announced the divestment of the Gas Solutions business in December 2025. Subject to approvals, this transaction is expected to be completed in the second quarter of 2026.

In March, we concluded the strategic review of Energy Storage and Optimisation business, and decided to separate it as an individual segment. Following the new reporting structure, we also set new financial targets. Marine and Energy combined has delivered good growth and reached an operating margin of 13.8% during 2025. The US tariffs were only introduced shortly after the conclusion of the strategic review, and the Energy Storage market environment was especially affected. In Energy Storage, the low order intake in 2025 puts significant pressure on profitability going forward. For 2026 we still need orders to cover the costs of the business. While we remain focused on profitable customer segments, we are also looking at measures that improve the competitiveness of the Energy Storage business.

We expect the demand environment for the coming 12 months to be better than in the comparison period in Energy and Energy Storage, while the demand environment in Marine is expected to remain at a similar level. We see that the growing demand for electricity, data centre power solutions and renewable energy will continue to drive the demand for both Energy and Energy Storage businesses. Despite a good level of order intake in Q4, it is worth noting that the order intake in the comparison period of last 12 months for Energy Storage was weak. The current high external uncertainties continue to make forward-looking statements challenging.

At Wärtsilä, we are in a unique position to contribute to the decarbonisation transformation of our two industries, while continuing to deliver profitable growth and sustainable long-term value to our shareholders. I would like to express my sincere thanks to our customers, partners, our engaged Wärtsilä team, and our shareholders for your trust and support. Wärtsilä can make a difference for the future and I am excited to have the opportunity to continue this journey together with you all."

KEY FIGURES

MEUR	10-12/2025	10-12/2024	Change	1-12/2025	1-12/2024	Change
Order intake	2,220	2,491	-11%	8,102	8,072	0%
of which services	959	1,007	-5%	3,740	3,812	-2%
of which equipment	1,262	1,484	-15%	4,362	4,260	2%
Order book, end of period				8,248	8,366	-1%
Net sales	2,002	1,854	8%	6,914	6,449	7%
of which services	963	948	2%	3,575	3,422	4%
of which equipment	1,039	905	15%	3,338	3,027	10%
Book-to-bill	1.11	1.34		1.17	1.25
EBITDA	314	250	25%	1,045	847	23%
% of net sales	15.7	13.5		15.1	13.1
Comparable operating result	256	209	23%	829	694	20%
% of net sales	12.8	11.3		12.0	10.8
Operating result	251	229	10%	833	716	16%
% of net sales	12.5	12.4		12.1	11.1
Result before taxes	251	219	15%	828	687	20%
Earnings per share (EPS), basic and diluted, EUR	0.32	0.27		1.06	0.85
Return on capital employed (ROCE)*, %				65.4	37.1
Cash flow from operating activities	652	437		1,598	1,208
Net interest-bearing debt, end of period				-2,006	-777
Gearing				-0.70	-0.31
Solvency, %				40.5	37.4
*Rolling 12 months.

Wärtsilä presents certain alternative performance measures in accordance with the guidance issued by the European Securities and Markets Authority (ESMA). The definitions of these alternative performance measures are presented in the Calculations of financial ratios section.

BOARD OF DIRECTORS' DIVIDEND PROPOSAL

The Board of Directors proposes to the Annual General Meeting that a base dividend of EUR 0.54 per share plus an extraordinary dividend of EUR 0.52 per share, totalling EUR 1.06 per share, shall be paid for the financial year 2025. The dividend shall be paid in two instalments.

The first instalment of the base dividend of EUR 0.27 per share plus an extraordinary dividend of EUR 0.52 per share, totalling EUR 0.79 per share, shall be paid to the shareholders who are registered in the list of shareholders maintained by Euroclear Finland Oy on the dividend record day of 16 March 2026. The payment day proposed by the Board for this instalment is 23 March 2026.

The second instalment of EUR 0.27 per share shall be paid in September 2026. The dividend record date of the second instalment shall be 16 September 2026, and the second instalment of the dividend shall be paid to shareholders who are registered in the list of shareholders maintained by Euroclear Finland Oy on such day. The Board proposes the second instalment is paid on 23 September 2026.

In accordance with the Company's dividend policy, the Company aims to pay a dividend of at least 50% of earnings. The amount of the base dividend of EUR 0.54 per share is the basis for future dividend distributions in accordance with the policy.

ANALYST AND PRESS CONFERENCE

A virtual analyst and press conference will be held as a webinar on the same day, today, Wednesday 4 February 2026, at 10.00 a.m. Finnish time (8.00 a.m. UK time).

Participating via the web

Register and login to the web interface via the web address below. When you register, you are prompted to participate as a listener or as an active Q&A participant. Once the event starts, the event page will switch to the presentation mode automatically.

wartsila.events.inderes.com/q4-2025

If you are participating via the web, you can enter the Q&A que by clicking the raise hand button on the bottom-right corner of the video/audio player. Once the event host announces your name, please open your microphone from the bottom-left corner of the video/audio player to be able to be heard.

Participating via the teleconference

Please use the teleconference dial-in option only if you experience issues with the web participation or your organisations firewalls set limitations for the web participation.

You can access the teleconference by registering on the link below. After the registration you will receive an email with the dial-in numbers and your personal PIN code to access the conference.

palvelu.flik.fi/teleconference/?id=50054170

If you are participating via the dial-in teleconference, you can enter the que by clicking *5 (star-five) in the telephone keypad, and if you want to withdraw your question, click *6 (star-six) respectively.

A recording of the webcast will be available on the company website as soon as possible after the event.

For further information, please contact:

Arjen Berends
Executive Vice President & CFO
Tel. +358 10 709 5444
[email protected]

Hanna-Maria Heikkinen
Vice President, Investor Relations
Tel. +358 10 709 1461
[email protected]

For press information, please contact:

Anne Alarotu
Head of External Communications
Tel. +358 50 487 1308
[email protected]

Wärtsilä in brief

Wärtsilä is a global leader in innovative technologies and lifecycle solutions for the marine and energy markets. We emphasise innovation in sustainable technology and services to help our customers continuously improve environmental and economic performance. Our dedicated and passionate team of 17,900 professionals in 199 locations in 78 countries shape the decarbonisation transformation of our industries across the globe. In 2025, Wärtsilä's net sales totalled EUR 6.9 billion. Wärtsilä is listed on Nasdaq Helsinki. www.wartsila.com

Wärtsilä Financial Statements Bulletin 2025