WRT1V: Energy storage: Not really an exit, EUR40-50m write-downs and questions on future funding

Research evidence excerpt

WRT1V: Energy storage: Not really an exit, EUR40-50m write-downs and questions on future funding

e is hope for an improved

market positioning further down the line. On paper, the deal will already help this year: Losses from Discontinued Operations and

losses from JVs are booked well below the operating profit line. Had Wartsila kept the business, the impact would have consumed

some 5% of group operating profit this year, resulting in a stagnating operating profit of c. EUR836m for the group this year (2025:

EUR835m), based on our estimates. It will still hurt reported EPS, though. Moreover, it may impact cash flows if Wartsila had

to sweeten the deal with some funding guarantees.

We would have preferred a clean separation of the business, whereby Wartsila takes an earnings hit now, but fully divests the

Energy Storage business. Instead, the JV structure adds a layer of complexity that the business does not need right now, in our

view. At a time when right-sizing is on the agenda, we think a clear ownership structure would have been a better choice for

Energy Storage.

Wartsila is organising a call for today 12pm UK. Key questions for us:

• Why not a 100% divestment? Were their no takers?

• How much assets (cash) does Wartsila need to hand over to the JV to make this a viable business (i.e. making it interesting

for RCT)?

• What is the near-term earnings outlook for the JV and how will it impact Wartsila in the next 2-3 years?

• How long does Wartsila intend to keep a stake in the business, i.e. is the ultimate aim a complete exit from battery storage?

All values in EUR unless otherwise noted. Priced as of prior trading day's market close, EST (unless otherwise noted).

Disseminated: Jun 15, 2026 03:32EDT; Produced: Jun 15, 2026 03:32EDT

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