WRTBF - Wärtsilä Oyj Abp (WRTBF) Q1 2024 Earnings Call Transcript
2024-04-26 05:43:09 ET
Wärtsilä Oyj Abp (WRTBF)
Q1 2024 Earnings Conference Call
April 26, 2024 3:00 a.m. ET
Company Participants
Hanna-Maria Heikkinen - Investor Relations
Hakan Agnevall - Chief Executive Officer
Arjen Berends - Chief Financial Officer
Conference Call Participants
Sean McLoughlin - HSBC Bank plc
Vivek Midha - Citi
Sven Weier - UBS Securities
Max Yates - Morgan Stanley
Sebastian Kuenne - RBC Capital Markets
Vlad Sergievskii - Barclays
Chitrita Sinha - J.P. Morgan
John Kim - Deutsche Bank
Panu Laitinmäki - Danske Bank
Mikael Doepel - Nordea
Tomi Railo - DNB
Presentation
Operator
Good morning, everybody, and welcome to this news conference for Wärtsilä Q1 2024 Results. My name is Hanna-Maria Heikkinen, and I'm in charge of Investor Relations. [Technical difficulty] -- and he will also go through the business performance. And after, our CFO, Arjen Berends, will continue with the key financials. After the presentation, there is a possibility to ask questions.
Please, Hakan.
Hakan Agnevall
Thank you, Hanna-Maria, and a warm welcome. First, I'm going to go and get my clicker, I'll be back. Sorry, I forgot that one. So, welcome to a really good quarter, summing up a really good quarter. And we have made progress, and we continue to make progress in a very good way, evolving in the decarbonization transformation of our two industries, positioning ourselves, and also improving our financial results. So, if we look at Q1, we came out with double-digit comparable operating margin and continued strong order intake. So, order intake is up 11%, organically it's actually up 17%. And it's especially supported by good development in the Marine order intake, up 23%.
It leaves us with a order book at all-time high at €7.3 billion. And I think one of the highlights is that the comparable operating results increased by 50%, so we are now at 10% comparable operating margin and a continuous journey of improvement is evolving, so to say. Good progress in services also continued. And as you know, it's a very important part of Wärtsilä business. So, we saw order intake increase by 7%, and the net sales increased by 13%. Cash flow, also very strong, which is a very strong signal considering that Q4 also was exceptionally strong. So, strong cash flow from operating activities, €258 million.
And as a group, we are becoming a more focused and more profitable company. And we have now consolidated into two reporting segments, Marine and Energy. So, if we look at a little bit closer to the numbers, looking at the order intake, so €1.9 billion, up 11%, and if you look on the service side, €949 million, up 7%, and equipment, which equipment order intake continues to grow in a very good way in both of our businesses, so €975 million, up 15%. And that leaves us with a all-time high order backlog of €7.3 billion. Net sales is down 10%, so to €1.3 billion. And you can see net sales continue to grow on the services side, so €833 million. It's really the equipment that is coming down....
Wärtsilä Oyj Abp (WRTBF) Q1 2024 Earnings Call Transcript