Wärtsilä announces the closure of the strategic review of Energy Storage and Optimisation (ES&O) that was started on 31 October 2023.

The Energy business is separated into two independent segments

The strategic review has concluded that the reporting segment Energy will be separated into two independent reporting segments: Energy, focusing on the power plants business and related lifecycle business and Energy Storage, focusing on the battery storage business and related lifecycle business. Energy Storage operates in a market with distinct dynamics compared to Energy, and the two businesses have limited operational synergies. Separating Energy Storage into an independent reporting segment will drive further focus on this business in a rapidly evolving industry. Wärtsilä remains fully committed to developing Energy Storage that will continue to focus on profitable growth, leveraging its project delivery and execution excellence, and growing its recurring revenue.

In conjunction with this change, Tamara de Gruyter will relocate to the USA and assume the leadership of Energy Storage as President of Energy Storage and EVP as of 1 April 2025. She will continue as a member of Wärtsilä’s Board of Management and will report to Wärtsilä’s President & CEO, Håkan Agnevall. Following this, Tamara de Gruyter will leave her current role as President of Portfolio Business and EVP. Bernd Bertram, currently leading the business unit Propulsion in Wärtsilä Marine, will take on the leadership of Portfolio Business as of 1 April 2025 in parallel with his current business unit leadership role. In his role as Head of Portfolio Business, Bernd Bertram will report to Wärtsilä’s President & CEO, Håkan Agnevall but will not be part of Wärtsilä’s Board of Management. Anders Lindberg will continue in his role as President of Energy and EVP.

Effective from 1 April 2025, Wärtsilä will have three reporting segments: Wärtsilä Marine, Wärtsilä Energy, and Wärtsilä Energy Storage. Portfolio Business continues to be reported as other business activities. The change in the reporting structure will be reflected in Wärtsilä’s financial reporting starting from the second quarter of 2025. The restated financial information for 2024 and Q1/2025 will be published during the second quarter of 2025.

Wärtsilä introduces new financial targets

Marine and Energy continue to have similar growth and profitability trajectories and strong operational synergies. Both businesses will continue executing their respective strategies as earlier communicated.

As a result of solid profitability improvement in Marine and Energy and to better reflect the new organisational structure, Wärtsilä’s Board of Directors has approved the company’s new combined financial targets for Marine and Energy, and separate new financial targets for the Energy Storage businesses.

Marine and Energy, combined financial targets

• 5% annual organic growth
• 14% operating margin

Energy Storage, financial targets

• Low double-digit annual organic growth
• 3-5% operating margin

Group, financial targets

• Gearing below 0.5
• Distribute a dividend of at least 50% of earnings

Operating margin targets are long term targets. In the short term, selective entry to new markets and related investments are expected to burden Energy Storage profitability.

Previously, Wärtsilä’ financial targets were set for the whole group and included 5% annual organic growth, 12% operating margin, gearing below 0.5 and a dividend distribution of at least 50% of earnings.

Wärtsilä Board of Management

Following the above-mentioned changes, the members of the Board of Management as of 1 April 2025 are:

Håkan Agnevall, President & CEO

Arjen Berends, Executive Vice President and Chief Financial Officer

Tamara de Gruyter, President, Wärtsilä Energy Storage and Executive Vice President

Kari Hietanen, Executive Vice President, Public Affairs and Sustainability

Roger Holm, President, Wärtsilä Marine and Executive Vice President

Anders Lindberg, President, Wärtsilä Energy and Executive Vice President

Teija Sarajärvi, Executive Vice President, Human Resources

Anu Sirkiä, Executive Vice President, Marketing and Communications and

Nora Steiner-Forsberg, Executive Vice President, Legal and Compliance

Theme call

Wärtsilä will arrange a theme call where the President & CEO Håkan Agnevall and CFO Arjen Berends will discuss the outcome of the strategic review and new financial targets on 2 April 2025 at 14:00 EEST.