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Investing.com -- Wartsila Corporation on Tuesday reported its third-quarter results on Tuesday with mixed performance across its business segments.
The Finnish technology company posted a book-to-bill ratio of 1.10x for the group, exceeding consensus expectations of 1.06x. Adjusted operating profit increased 10% year-over-year, reaching a margin of 11.9%, above consensus estimates of 11.4% and higher than the 10.3% recorded in Q3 2024.
Orders, sales, comparable EBIT, reported operating profit, and EPS showed varying performance against analyst consensus, with misses of 4% on orders, 7% on sales, and 2% on comparable EBIT. However, the company beat expectations by 11% on reported operating profit and 21% on EPS.
The Marine segment delivered slightly better-than-expected orders and a 5% sales beat, achieving a margin of 12.4%, which was 30 basis points above consensus. Meanwhile, the Energy segment saw orders miss expectations by 8%, though they were still up 29% year-over-year.
Energy sales missed by 30% due to original equipment delivery timing issues, but margins were particularly strong at 16%.
Energy Storage recorded virtually no orders in Q3, which the company attributed to ongoing Federal Energy Regulatory Commission concerns in North America and other market uncertainty.
Wartsila’s reported operating profit significantly exceeded expectations, helped by a one-off disposal in its Portfolio Companies division.
The company maintained its overall guidance, reiterating its outlook for Marine of a "better demand environment for the next 12 months." For the thermal power segment of Energy, Wartsila expects flat demand in the next 12 months, while forecasting "better demand" for Energy Storage.
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