Finnish engineering group Wärtsilä reported a sharp increase in third-quarter orders as data centers and other large electricity users drove demand for new power-generation capacity.
Total orders increased 33% to €2.368 billion, while organic order growth reached 41%. Combined orders across the company’s Marine and Energy businesses increased 47%.
Net sales increased 7% to €1.493 billion, while comparable operating profit climbed 19% to €212 million.
The company’s comparable operating margin improved to 14.2% from 12.8% a year earlier.
AI infrastructure is becoming an increasingly important part of the company’s energy business.
Wärtsilä secured an order during the quarter for a 282-megawatt on-site power system for a U.S. data-center project, using 15 of the company’s gas engines.
The project reflects a growing problem facing AI infrastructure developers: enormous electricity requirements combined with lengthy waits for conventional grid connections.
That is encouraging data-center operators to consider dedicated generation capable of being deployed faster than large transmission and utility projects.
Wärtsilä said interest from data-center customers remains strong and described its opportunity pipeline as dynamic.
The company also reported strong demand for flexible power generation needed to balance electricity grids containing increasing amounts of renewable energy.
Wärtsilä expects the Energy and Marine demand environments during the next 12 months to remain broadly similar to the previous 12 months, with Energy continuing to benefit from strong structural demand.
The next test is execution. Strong orders are extending equipment lead times, meaning investors will be watching how quickly Wärtsilä can convert its growing backlog into revenue, operating profit and cash flow.
