“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.”