Wärtsilä has closed the strategic review of Energy Storage and Optimisation that was started on 31 October 2023 and is separating its Wärtsilä Energy segment into two, Wärtsilä Energy and Wärtsilä Energy Storage, alongside new financial targets.
The strategic review has concluded that the reporting segment Wärtsilä Energy will be separated into two independent reporting segments: Wärtsilä Energy, focusing on the power plants business and related lifecycle business, and Wärtsilä 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 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.
Effective from April 1 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 2Q25. The restated information for 2024 and 1Q25 will be published during 2Q25.
Marine and Energy continue to have similar growth and profitability trajectories and strong operational synergies. Both businesses will continue executing their respective strategies.
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.
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.
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