Waertsilae Oyj Abp (WRTBY) AI Stock Analysis

Waertsilae Oyj Abp

(Other OTC:WRTBY)

Select Model

Rating:74Outperform

Price Target:$6.50▲(12.85% Upside)

Action:reiterated

Date:10/29/26

The score is driven primarily by strong financial performance (notably robust cash flow and low leverage) and a constructive earnings-call backdrop (record order book and improving profitability). These positives are partially offset by weak technicals (price below key moving averages with negative momentum signals) and a valuation that looks only moderately attractive due to a relatively high P/E despite a solid dividend yield.

Positive Factors

Record order book and strong order growthRecord order intake and a near-EUR 9.9 billion backlog provide substantial forward revenue visibility across Marine and Energy. The 1.59 book-to-bill ratio indicates demand is replenishing delivered work, supporting utilization, planning confidence, and earnings potential over coming quarters.

Negative Factors

Revenue contraction and earnings cyclicalityThe recent revenue contraction shows that strong orders are not converting uniformly into reported sales, while volatile margins indicate sensitivity to project mix, contract timing, and industrial cycles. This can make near-term earnings less predictable despite improved profitability levels.

Waertsilae Oyj Abp (WRTBY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $83.56B
Dividend Yield: 4.20%
Average Volume (3M): 73.36K
Price to Earnings (P/E): 24.9
Beta (1Y): 0.91
Revenue Growth: 2.75%
EPS Growth: 5.05%
Country: US
Employees: 17,879
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Waertsilae Oyj Abp Business Overview & Revenue Model

Company Description

Wärtsilä Oyj Abp offers technologies and lifecycle solutions for the marine and energy markets worldwide. It offers energy storage; engine and hybrid power plants; and data centre power solutions, as well as lifecycle solutions, lifecycle upgrades, s...

How the Company Makes Money

Wärtsilä primarily makes money through two broad sources: (1) selling equipment and complete solutions (project and product deliveries) and (2) recurring lifecycle services tied to its installed base. 1) Equipment, systems, and project deliveries (...

Waertsilae Oyj Abp Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q3-2026)|% Change Since:-10.42%|Next Earnings Date:Feb 04, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Wärtsilä reported substantial order growth, a record order book, improving profitability, record Q3 operating cash flow, strong ROCE, and particularly robust Energy and data center demand. The main challenges were Marine service timing and order phasing, long Energy lead times and capacity constraints, some quarterly volatility in retrofit orders, and a limited number of explicit financial and operational headwinds.

Positive Updates

Strong Q3 Order Intake and Record Order Book

Q3 order intake increased 33% to EUR 2.4 billion, or 41% organically. The order book reached an all-time high of close to EUR 9.9 billion, while rolling book-to-bill improved from 1.27 to 1.59.

Negative Updates

Marine Service Revenue and Spending Timing Pressure

Marine service order intake was affected by higher fuel prices, which reduced short-term service spending in some segments, and higher shipping rates, which led to postponements of some service activities. Service net sales were down 2% in the quarter, from EUR 850 million to EUR 802 million, although management characterized this as broadly flat.

Company Guidance

For the coming 12 months, Wärtsilä regards demand in both Marine and Energy as “similar to that of their comparison period,” while the outlook reflects a “continued strong demand environment, especially on the Energy side”; the company will discontinue the demand-environment outlook as it starts guiding for revenue, expects the first energy lifecycle service orders “still within this year,” and estimates the next quarter’s result impact from the joint venture moving from discontinued operation to share of result in associated companies and joint ventures at “EUR 10 million-EUR 20 million negative.” New capacity steps are planned for “beginning of 2028” and “beginning of 2029,” new customers are being offered delivery in “the 2030s,” the new targets are “loosely defined” as “somewhere between three to five years,” and the Energy profitability target cited was “18%.”

Waertsilae Oyj Abp Financial Statement Overview

Summary

Strong current cash generation (robust operating cash flow and free cash flow with good conversion vs. net income) and a conservative, improving balance sheet (low debt-to-equity and strong ROE). Offsetting factors include TTM revenue contraction and historically volatile margins/cash flows, indicating some cyclicality and timing sensitivity.

Income Statement

78Positive

Balance Sheet

84Very Positive

Cash Flow

89Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.59B	6.64B	6.45B	6.02B	5.84B	4.78B
Gross Profit	1.05B	1.37B	2.98B	2.60B	2.17B	2.09B
EBITDA	1.09B	1.02B	800.11M	554.00M	247.00M	471.00M
Net Income	577.71M	601.29M	503.00M	258.00M	-64.00M	194.00M
Balance Sheet
Total Assets	8.77B	8.47B	7.69B	6.80B	6.61B	6.52B
Cash, Cash Equivalents and Short-Term Investments	2.47B	2.59B	1.55B	819.00M	461.00M	964.00M
Total Debt	548.00M	769.67M	766.00M	859.00M	949.00M	972.00M
Total Liabilities	6.10B	5.59B	5.16B	4.57B	4.46B	4.20B
Stockholders Equity	2.65B	2.88B	2.52B	2.23B	2.13B	2.31B
Cash Flow
Free Cash Flow	1.55B	1.39B	1.04B	674.00M	-218.00M	589.00M
Operating Cash Flow	1.72B	1.53B	1.21B	822.00M	-62.00M	731.00M
Investing Cash Flow	-337.83M	-48.99M	-149.00M	-138.00M	-151.00M	-128.00M
Financing Cash Flow	-702.16M	-474.50M	-323.00M	-308.00M	-289.00M	-580.00M

Waertsilae Oyj Abp Technical Analysis

Technical Analysis SentimentNegative

Last Price5.76

Price Trends

50DMA6.53Negative

100DMA6.80Negative

200DMA7.43Negative

Market Momentum

MACD-0.19Positive

RSI36.51Neutral

STOCH5.20Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRTBY, the sentiment is Negative. The current price of 5.76 is below the 20-day moving average (MA) of 6.37, below the 50-day MA of 6.53, and below the 200-day MA of 7.43, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 36.51 is Neutral, neither overbought nor oversold. The STOCH value of 5.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRTBY.

Waertsilae Oyj Abp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

WRTBY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMR	76Outperform	$92.00B	35.91	12.69%	1.35%	4.82%	-1.66%
GEV	76Outperform	$227.06B	22.31	85.62%	0.23%	16.82%	518.92%
WRTBY	74Outperform	$16.90B	24.89	23.00%	4.20%	2.75%	5.05%
GNRC	71Outperform	$11.69B	38.58	10.76%	―	6.13%	-3.70%
CMI	67Neutral	$68.84B	25.45	21.89%	1.64%	2.93%	-8.06%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
INIO	60Neutral	$12.22B	126.65	38.52%	―	―	―

* Industrials Sector Average

Performance Comparison

WRTBY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
WRTBY	Waertsilae Oyj Abp Unsponsored ADR	5.72	-0.56	-8.97%
CMI	Cummins Inc	500.09	77.53	18.35%
EMR	Emerson Electric	164.94	29.33	21.63%
GNRC	Generac Holdings	197.93	41.34	26.40%
GEV	GE Vernova Inc.	857.87	311.24	56.94%
INIO	INNIO Holding GmbH	16.30	-17.00	-51.05%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Waertsilae Oyj Abp AI Stock Analysis