Analyzing Wärtsilä Corporation’s Half-Year Financial Report

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Mfame Editor
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Wärtsilä Corporation has released its half-year financial report for January–June 2024, highlighting significant improvements in order intake, profitability, and cash flow. This summary outlines the key highlights from the report. The complete report is available on the Wärtsilä website.

Strong Financial Performance in Q2 2024

Wärtsilä’s financial performance in the second quarter of 2024 showed notable improvements:

  • Order Intake: Increased by 10% to EUR 1,854 million, with organic growth at 12%.
  • Net Sales: Rose by 7% to EUR 1,556 million, with organic growth at 9%.
  • Operating Results: Increased by 156% to EUR 168 million, representing 10.8% net sales.
  • Earnings Per Share: Increased to EUR 0.20 from EUR 0.05 in the previous year.
  • Cash Flow: Improved significantly to EUR 216 million from EUR 75 million.

Performance Highlights January–June 2024

For the first half of 2024, Wärtsilä’s performance was marked by strong growth in order intake and profitability:

  • Order Intake: Increased by 10% to EUR 3,778 million, with organic growth at 15%.
  • Order Book: Grew by 22% to EUR 7,607 million.
  • Comparable Operating Results: Increased by 57% to EUR 308 million, representing 10.7% net sales.
  • Cash Flow: Increased to EUR 475 million from EUR 219 million in the previous year.
  • Earnings Per Share: Increased to EUR 0.34 from EUR 0.14 in the previous year.

Positive Outlook and Strategic Initiatives

Wärtsilä’s outlook for the next 12 months remains positive for both the Marine and Energy sectors, with expectations of better demand than the comparison period. Key strategic initiatives include:

  • Energy Market: Collaboration with AVK for on-site power generation for data centres and the launch of a 100% hydrogen-ready engine power plant concept.
  • Marine Market: Addressing challenges in global trade and supporting decarbonisation efforts, such as the plug-in hybrid conversion of Scandline ferries.

President & CEO Håkan Agnevall highlighted the stable market environment and the company’s focus on innovation and sustainable technology to drive future growth and transformation towards carbon-neutral shipping and renewable energy solutions.

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Source: WARTSILA