Wärtsilä Oyj Abp

Strong Q3 momentum: orders + profitability + cash generation - Order intake: +33% YoY to EUR 2.4bn (+41% organic). Service: +11% to EUR 950m. Equipment: +53% to ~EUR 1.4bn. - Order book: ~EUR 9.9bn all-time high; rolling book-to-bill >1 (now 1.1). - Sales / margins: Net sales +7% to EUR 1.5bn. Comparable operating result +19% to EUR 212m (14.2% of net sales). Operating result EUR 222m (14.9%). - Cash flow: Operating cash flow EUR 583m (strong working-capital support). ROCE: 94%.

Full-year trajectory also solid (and targets were updated today) - FY order intake: +26% to EUR 7.3bn (from EUR 5.6bn). - Net sales: +2% YoY; +9% organically. - Comparable operating result: +12% to EUR 623m (13.9% of sales). - Financial targets / EPS margin framing: Company reaffirmed that the rolling profitability is improving; however, questions on new targets were deferred to Capital Markets Day next week.

Outlook stance: “same as last 12 months” demand environment; Energy remains key - Guidance principle change for next year (moving from the current format); this is the last time they provide outlook “in this format.” - For the next 12 months, management expects Marine and Energy demand broadly similar to the prior comparison period, with continued strong demand especially in Energy after the high order intake.