Wärtsilä's Q3 order intake was below expectations, mainly due to Energy, but profitability was better than forecast, also due to Energy. The company’s demand outlook remains strong.

Wärtsilä currently has a number of revenue and earnings drivers pointing in different directions, the impact of which we have now updated in our forecasts. The net effect is positive from 2025 onwards, but the changes are not large.

We reiterate our Reduce recommendation for Wärtsilä and raise our target price to EUR 17.00 (was EUR 16.50) after the good Q2 report, reflecting our positive forecast changes.