Wärtsilä reports record Q4 and FY 2024 results

Wärtsilä, a technology and lifecycle solutions provider for the marine and energy market, saw its order intake increase 34% in Q4 2024 and 14% for the full year, compared to the same periods the prior year.

Source: Wärtsilä

Order intake for the period from October-December 2024 rose to EUR 2,491 million (1,856) and net sales increased by 13% to EUR 1,854 million (1,644). The operating result increased by 80% to EUR 229 million (128), which represents 12.4% of net sales (7.8).

From January-December 2024, order intake grew 14% to EUR 8,072 million (7,070) and net sales grew 7% to EUR 6,449 million (6,015). The operating result increased by 78% to EUR 716 million (402), which represents 11.1% of net sales (6.7). In addition, the order book at the end of the period increased by 25% to EUR 8,366 million (6,694), the company reported.

“In 2024, Wärtsilä took firm steps towards our targets, and we continued to develop positively in many ways,” said Håkan Agnevall, president and CEO, Wärtsilä. “We achieved all-time highs in order intake, absolute operating result and cash flow from operating activities. During 2024, we also significantly enhanced the profitability of all businesses. Furthermore, our order book is at an all-time high, positioning us well for future success as we move into 2025.”

While the market environment for the company’s businesses remained relatively stable throughout 2024, as the year progressed, geopolitical tensions increased, introducing uncertainty to the macroeconomic outlook, Agnevall noted. “Despite these challenges, our customers in the marine and energy industries remained increasingly focused on decarbonization.”

In the energy market, Agnevall said the transition towards renewables continued to advance, with wind and solar expected to post record installations in 2024 and 2025.

Wärtsilä’s Quantum3 intelligent battery energy storage system. (Photo: Wärtsilä)

“The demand for balancing technologies is closely linked to the increasing share of intermittent renewables in the energy system,” Agnevall commented. “Renewable-led power systems require flexibility in various forms. Balancing power plants, alongside battery energy storage, [is] critical to reaching global climate goals. In 2024, both thermal balancing and battery energy storage experienced their highest levels of market activity to date.”

In the marine market, the industry saw a significant boost in demand for ship capacity, which Agnevall attributed to the growth in global trade volumes combined with a shift in trade flows. “This, coupled with a growing pressure to decarbonize operations, supported the demand for both newbuilds and service,” he added.

The company saw a “healthy” increase in interest towards alternative fuels, which now account for 49% of the capacity of contracted vessels.

Wärtsilä's hydrogen-ready engine power plant. (Photo: Wärtsilä)

In both the marine and energy markets, Agnevall said Wärtsilä made significant progress in capturing the opportunities offered by the decarbonization transition. He cited the company’s launch of the “first ever large-scale, 100% hydrogen-ready engine power plant,” as well as an agreement to supply its engine technology for what he said will be the world’s first ammonia-fueled in-service supply vessel.

Wärtsilä expects the demand environment in both its Marine and Energy segments for the next 12 months (Q1/2025-Q4/2025) to be better than that of the previous year. However, it underlined the current high external uncertainties that could impact that outlook.

“While the outlook for both of our end markets remains positive going into 2025, the current geopolitical tensions and trade policy uncertainty may especially impact our Energy business, Agnevall acknowledged. “We expect the demand environment for the coming 12 months to be better than the comparison period in both Marine and Energy, but we also underline that the current high external uncertainties make forward looking statements more challenging.”