Wärtsilä shares fall 8% despite strong quarterly results

Wärtsilä’s orders and profits grew in the third quarter, but its shares fell about 8% on Tuesday as investors reacted to cautious growth targets, Yle reported.

The Finnish technology company said revenue rose 7% and comparable operating profit increased 19% from the same period last year. Orders in its marine and energy businesses grew 47% between July and September.

Growth is being driven largely by power plants, as data centres and wider electrification increase demand for energy. Wärtsilä CEO Håkan Agnevall told Yle that services account for half of the company’s business and that digital solutions are at least as important as its engines.

Wärtsilä has received orders for 13 gas engines for Australia and 15 for the United States. OP analyst Jussi Mikkonen told Yle he expects strong demand to continue for at least two years.

The company plans to increase production capacity by 65% by 2029. It has announced two capacity expansions this year, as demand for engines has lengthened delivery times.

Energy storage has been a weaker business. Wärtsilä separated it into a joint venture at the start of October, with Germany’s RCT Solutions taking a 50% stake. Agnevall said increased competition and US import tariffs had raised the price of Wärtsilä’s batteries in the United States.

Although Wärtsilä received more orders than analysts had expected, Mikkonen said investors may have been disappointed by the company’s cautious financial targets. The article did not specify the targets.