Wärtsilä Oyj Abp (WRTBF) Q4 2024 Earnings Call Transcript

2025-02-08 11:42:44 ET

Wärtsilä Oyj Abp (WRTBF)

Q4 2024 Earnings Conference Call

February 05, 2025, 03:00 AM ET

Company Participants

Hanna-Maria Heikkinen - Investor Relations

Håkan Agnevall - Chief Executive Officer

Arjen Berends - Chief Financial Officer

Conference Call Participants

Akash Gupta - JPMorgan

Antti Kansanen - SEB

Sean McLoughlin - HSBC

Panu Laitinmaki - Danske Bank

Tomi Railo - DNB

Mikael Doepel - Nordea

Presentation

Hanna-Maria Heikkinen

Good morning, and welcome to this News Conference for Wärtsilä Q4 '24. My name is Hanna-Maria Heikkinen and I'm in charge of Investor Relations. Today our CEO, Håkan Agnevall, will go through group highlights, business performance, and then after that, our CFO, Arjen Berends, will continue with the financials. After the presentation, there is a possibility to ask questions. I kindly ask every analyst to ask first one question for that -- to make sure that everybody has a possibility to ask questions.

Håkan, please, time to start.

Håkan Agnevall

Yes. Thank you, Hanna-Maria, and warm welcome to everybody joining us, which has been a great fourth quarter and a great year.

If we start on the fourth quarter, we had a very strong order intake, net sales and profitability, all three dimensions. So, all-time high order book at EUR8.3 billion. Order intake increased by 34%. Net sales increased by 13%, and that translated into comparable operating results that increased with 18%. And our good journey on services continues. So, order intake up 15%. The net sales up with 12%. And I will smile later. The strong cash flow continues. I mean very strong cash flow from operating activities EUR437 million. So, really great Q4.

If we look then at the full year, it has been a year of all-time highs. So, order intake, absolute operating results and cash flow all all-time highs. And we talked earlier about the order intake you can see here, if we start on Q4, I will talk more on the full year, but if we start on Q4, up 34% from EUR1.8 billion to EUR2.5-almost-billion, and we continue to grow services up 15% from EUR900 million to EUR1 billion. And then very strong order intake growth in the equipment side 51% up from EUR1 billion to almost EUR1.5 billion. The order book, as we talked about, is all-time high EUR8.3 billion. So, very positive development.

Net sales for the quarter up 13%, and we see it's up both in services and equipment. Services up 12%, equipment 13%. Book to bill 1.3%. It's the 15th consecutive quarter with a positive -- I mean positive, but book to bill above 1. The comparable operating results up 18% to EUR209 million. And we continued our improvement of profitability. So, up in the quarter to 11.3%. And also the operating results now going from 7.8% to 12.4%....

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