Wärre was trading at €20 last summer. Did you buy then? If not, it would be interesting to hear why. At what point does the change in the growth and margin profile justify a higher multiple?
3 Likes
Hi @Pauli_Lohi
A question/comment for you, as I haven’t had the time to follow every move of Wärtsilä with the meticulousness I would like.
Previously, Wärtsilä positioned itself only for mid-sized 50-200 MW data centers, or so I recall. This seems to have changed; at least based on the earnings material, the positioning is now directly alongside turbines and even towards gigawatt-scale data centers with a direct LCOE and water advantage. In your opinion, is this still a matter of a “speed to power” type interim solution, or could this be a silent signal of structural long-term growth/displacement of turbines?
4 Likes
Wärtsilä has stated that the sweet spot is in the 50-400MW scale for data centers. For projects larger than this, the surface area required by the power plant becomes significantly large. Of course, in some projects, a large surface area is not a problem, as seen in Q2 with a 790MW order.
12 Likes
This earnings season, along with future ones, will test the resilience of growth curves and outlooks for AI data centers. A significant portion of stocks in the AI sector have undergone a (first) more substantial correction, which is entirely expected. Since AI itself is not a bubble and the development cycle is historically strong, the ongoing month-long downtrend can be—and likely is—an interesting buying opportunity for many stocks linked to the AI development trajectory. Every investor is likely interested in assessing the length and development of AI investment cycles, and the current earnings season will provide a significant amount of answers regarding the overall state of the cycle and the outlook, especially concerning data center projects.
Below, I have compiled, with the help of AI, a list of companies related to Wärtsilä and, in particular, data center energy production, whose earnings reports will provide a sufficiently comprehensive picture of near-term development and the sustainability of investments. The duration and strength of the final investment cycle will, of course, be determined by the mega-cap hyperscalers, so monitoring them is self-evident, and the market impact of their results, and especially their outlooks, will be significant.
So far, ABB (record orders) and the Swedish firm Bravida (order intake +44%) have confirmed growth prospects regarding data center construction, just like Wärtsilä. The significant dips in many stock prices during the summer toward or even below their moving averages look more like normal cooling-off periods for a bull market and a mid-term election year, following a prolonged period of growth front-running and initial over-enthusiasm.
In the upcoming reports, I will be monitoring, among other things: the so-called turbine vs. recip delay (competitors’ gas turbine delivery queues have already stretched into the 2030s, which should continue to bring orders to Wärtsilä if megawatt supply remains tight), gas turbine market growth outlooks, significant step-ups in Grid and Gas Services capacity, data center and balancing power demand outlooks, potential lead times + capacity investments, order backlog/pipeline growth for various companies, load growth comments, capex guidance, grid constraints, and the transition to hybrid/on-site power.
Since I am currently in the wilderness, my ability to conduct a broader check on the release dates and other figures for the companies reporting is limited (so it may contain errors). Below is a list of companies whose outlooks and price movements I will be following closely during this earnings season:
23 Likes
Pia interviewed Wärtsilä CEO Håkan Agnevall regarding Q2 
8 Likes
Pauli has written a report on Wärtsilä following Q2.
Wärtsilä’s order book fill rate is quite high for the next 2-3 years, and growing volumes are helping the company further strengthen its profitability. We see good demand drivers for the company in the medium term, even if data center-driven demand were to ease somewhat. We are upgrading our recommendation to “accumulate” (previously “reduce”), as the valuation has become reasonably attractive due to the share price decline and order growth. Our target price is 33 euros (previously 32.5 €).
9 Likes
What caused that approximately -6% drop at 13:30? Has there been any large-scale selling? I couldn’t find any news about it at a quick glance. Well, it will probably become clear as the day progresses.
3 Likes
Odd, I didn’t find the answer, so I added a little bit. Thanks for the tip. 
3 Likes
I couldn’t figure out how to translate the message in a meaningful way, so I’m posting a copy from the “Stock Hype” (Kurssien hehkuttelu) thread here.
GE Vernova just released their results and is down 4.3% in premarket. GEV’s EPS missed, and Wärtsilä’s sell-off is almost certainly mechanical selling related to those results. Yesterday, I listed the stocks worth following this earnings season that are related to Wärtsilä.
EDIT1
Here is a short summary of GE Vernova’s results using AI:
GE Vernova Earnings
- Revenue: $11.1B (beat vs. $10.73B consensus), +22% YoY. Driven by Power and Electrification segments (strong organic growth).
- Adjusted EPS: $2.47 (miss vs. $3.04 consensus) → This was the main reason for the premarket crash (~8-9% dip mentioned in sources).
- Orders: +88% organically to $24.2B.
- Power: 20 GW of new gas plant capacity → backlog 116 GW, target at least 125 GW by year-end.
- Electrification: +66% organically to $6.3B, data center orders >$5B YTD (more than double vs. the whole of 2025).
- Guidance raised: FY2026 revenue $45.5–46.5B (previously $44.5–45.5B), FCF $11.5–12.5B (big raise), EBITDA margin unchanged at 12–14%.
- Other: FCF Q2 $5.1B (already more than the whole of 2025). Wind segment weak (volumes down, losses).
Summary of GEV: The earnings contain an EPS miss, but they are operationally strong (revenue beat, massive order momentum, data center drive, guidance raise). The market punished the EPS in the short term, but the backlog ($176B) and the AI data center trend support the long run. The CEO emphasized global demand and momentum.
The fairly significant dip in the GEV stock (now -8%) and the EPS miss were likely caused by Wind weakness and costs, not the data center/Power side. What’s amusing about these mechanical sell-offs is that Wärtsilä doesn’t even have a corresponding Wind exposure. I need to study the GEV result more carefully in time, but it seems there was no major dent in the data center growth thesis, so Wärtsilä’s sympathetic algo-dip is a bit pointless. #efficientmarkets
EDIT2
: CURRENT TOTAL ESTIMATED COST IMPACT FROM GLOBAL TARIFFS IS APPROXIMATELY $100M TO $200M IN 2026
As a side note, Wärtsilä mentioned in their webcast yesterday that tariffs have virtually no significance.
PS. The whole message could have been posted in the Wärtsilä thread from the start, as people there would likely be interested in this rather idiotic drop.
18 Likes
Sign me up
Wärtsilä CEO loaded up on company shares Wärtsilän toimitusjohtaja tankkasi yhtiön osakkeita | Kauppalehti
23 Likes
Miksu and Pauli discussed Wärtsilä inspired by the Q2 results.
Topics:
(00:00) Introduction
(00:16) Positive recommendation
(01:35) Smaller businesses divested
(02:29) Energy demand and profitability
(05:22) Marine outlook
(06:14) Situation in the Middle East has not hit Wärtsilä
(06:57) No signs of weakness in the market
(07:48) New financial targets?
(08:33) Attractive valuation
(10:30) Competitive landscape in data centers
(11:42) Valuation relative to peers
11 Likes
Ilkka Sinervä has been writing about Wärtsilä and has quoted Hannu Angervuo in his article
Asset management stock market veteran Hannu Angervuo emphasizes that purchasing power plants for data centers and forecasting stock price levels now require an unreasonably long time horizon from investors.
“The risks for investors arise from the fact that deliveries for the latest Wärtsilä orders are scheduled as far out as 2030–2031. It is therefore no wonder that Wärtsilä’s share price has fluctuated more than usual during the current year,” says Angervuo.
8 Likes
Here is a historical piece regarding Wärtsilä
Word spread about Wärtsilä’s new miracle engine, but at first, customers were skeptical.
“Many had experience with heavy fuel oil causing problems for engines, especially with exhaust valves. Those selling heavy oil engines at the time said that the engines always had to be started on diesel and switched to heavy oil only once the load reached 30 percent,” Vestergren explains.
People even came from as far as Asia to marvel at an engine that ran directly on heavy oil. Eventually, the Japanese shipbuilder Kawasaki Heavy Industries was convinced and ordered a Vasa 32 engine for a vessel it was building for the Norwegian shipping company Leif Höegh.
The first Vasa 32 engines were delivered for ships built by Kawasaki in 1978 and 1979. At that time, the first oil crisis had already ended and the second had begun: the need for engines running on heavy fuel oil was still enormous.
In 1980, the first Vasa 32 had been in operation for a year. Vestergren traveled with other experts to Singapore at that time to inspect its condition. The results were convincing: the engine was in good shape, and no signs of abnormal wear were detected.
“After this, we sold a great many more engines to different parts of the world,” says Vestergren.
18 Likes
Wärtsilä to supply power plants to Ukraine from Vaasa | Ostrobothnia | Yle
Financially, this isn’t exactly moving from land to sea, but I’ll post it here since it’s news directly concerning Wärtsilä.
17 Likes
That news article mentions €28.5 million in development cooperation funding. The total value of the project is stated as €46.5 million in the Ministry for Foreign Affairs press release:
In any case, it’s quite small (at least for now, perhaps there will be more to follow) on the scale of Wärtsilä. This is a good thing for Ukraine, and I have previously wondered myself whether Wärtsilä’s power plants could be used to secure energy supply reliability in Ukraine.
12 Likes
Technology group Wärtsilä will supply five Wärtsilä 32 engines for a captive power plant to be installed at the Diamba Sud Gold Project in Senegal. The 14 MW plant is required to ensure a reliable and efficient supply of electricity, which is essential for the mining project’s operations. Due to its remote location, the mine will depend solely on this plant for its power needs. The order was placed by Africa Power Services (APS), the France based main contractor for the engineering, procurement and construction of the power plant, on behalf of Fortuna Mining. It was booked as order intake by Wärtsilä in Q2 2026.
The Wärtsilä equipment is scheduled for delivery in March 2027, and the power plant is expected to be operational by the end of that year.
16 Likes
Technology group Wärtsilä has signed a Lifecycle Agreement with charity organisation Mercy Ships International. The contract covers a 5-year renewal of an existing service agreement for the world’s largest purpose-built civilian hospital ship, the Global Mercy™, and a 3-year service agreement for the organisation’s latest newbuild vessel, the Africa Mercy II. Both ships are fitted with Wärtsilä engines. The order was booked by Wärtsilä in Q3 2026.
14 Likes
Wärtsilä’s IR Director @Hanna was talking about her company as an investment target.
5 Likes
Technology group Wärtsilä and Tokyo Gas Engineering Solutions Co., Ltd. (TGES) have signed a Memorandum of Understanding (MoU) to jointly evaluate power supply solutions for data centres in Japan. The MoU was signed in Helsinki in August 2026
35 Likes
Here are Jorma Erkkilä’s comments on the aforementioned news:
23 Likes