<div id="readability-page-1"><div><p>Wärtsilä Oyj Abp (HLSE:WRT1V) opened 2026 with Q1 revenue of €1.6b and basic EPS of €0.25. This shows how its recent profit expansion is feeding through to both the top and bottom line. Over the past year, quarterly revenue has moved from €1.56b in Q1 2025 to a range of €1.63b to €2.00b, while quarterly EPS stepped from €0.21 in Q1 2025 to between roughly €0.23 and €0.32, with trailing twelve month EPS at about €1.10. With net income and margins having trended higher over the last year, this set of results keeps the focus squarely on how sustainably Wärtsilä can defend its profitability.</p> <p>See our full analysis for Wärtsilä Oyj Abp.</p><p>The next question is how these numbers line up against the widely followed stories around Wärtsilä's growth, quality of earnings, and margin resilience, and where those narratives might need updating.</p> <p>See what the community is saying about Wärtsilä Oyj Abp</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f07cdcd0-a82e-4c3a-a56d-92922eb5b694/chart/revenue-and-expenses-breakdown/query-ZGF0ZT0yMDI2LTA0LTI5?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f07cdcd0-a82e-4c3a-a56d-92922eb5b694/chart/revenue-and-expenses-breakdown/query-ZGF0ZT0yMDI2LTA0LTI5"/><figcaption>HLSE:WRT1V Revenue &amp; Expenses Breakdown as at Apr 2026</figcaption></figure> <h2>Margins Backed By 9.4% Net Profit Level</h2> <ul> <li>On a trailing twelve month basis, Wärtsilä earned €650 million of net income on €6.9b of revenue, which implies a 9.4% net margin compared with 8.1% a year earlier.</li> <li>Supporters of the bullish view argue that margin expansion can continue, and the latest numbers give them some backing, but also some checks:     <ul> <li>The move in trailing net income from €540 million to €650 million over the last year lines up with the reported 20.4% earnings growth, which fits the bullish idea that profits are scaling faster than sales.</li> <li>At the same time, the bullish narrative talks about margins reaching around 9.4% in a few years, while the trailing figure is already at 9.4%. Future progress would therefore need to come from holding or improving that level rather than catching up to it.</li> </ul> </li> </ul> <p>Strong recent margin levels and earnings growth are exactly what bullish investors point to when they say Wärtsilä could keep turning higher revenue into solid profits, but the data also shows how much is already achieved, which makes future execution important for that story to hold. <strong>🐂 Wärtsilä Oyj Abp Bull Case</strong></p> <h2>Premium P/E Of 32.5x Versus Peers</h2> <ul> <li>Wärtsilä currently trades on a trailing P/E of 32.5x, compared with about 20.3x for the wider European Machinery group and 20.5x for direct peers, while a DCF fair value of €30.38 sits below the current share price of €35.91.</li> <li>Bears highlight this valuation gap as their key concern, and the numbers illustrate why they focus on it:     <ul> <li>Earnings grew 20.4% over the last year, yet the P/E is roughly 12 points above peer and industry averages, so a lot of that growth is already reflected in the price investors are paying today.</li> <li>The difference between the share price of €35.91 and the DCF fair value of €30.38 suggests that any disappointment against the roughly 7.1% revenue and 8.3% earnings growth forecasts could matter quickly for a valuation that already sits above the 30.99 analyst target level.</li> </ul> </li> </ul> <p>The current valuation leaves little room for mistakes in the cautious view, which is why more bearish investors focus on the premium multiples and the gap between price, DCF fair value, and the 30.99 analyst target. <strong>🐻 Wärtsilä Oyj Abp Bear Case</strong></p> <h2>TTM EPS Tops €1.10 After Multi Year Expansion</h2> <ul> <li>Trailing twelve month basic EPS has reached about €1.10, up from €0.85 two years earlier, alongside five year earnings growth that averaged 44.3% per year and the most recent 12 month increase of 20.4%.</li> <li>Analysts with a balanced view see this EPS history as both a strength and a reference point for moderating growth expectations:     <ul> <li>The shift in trailing EPS from €0.85 to €1.10 and net income from €503 million to €650 million shows how quickly profitability has scaled, but consensus now looks for earnings growth of around 8.3% a year, which is well below the 44.3% five year pace.</li> <li>That contrast between past growth and more moderate forecasts helps explain why analysts collectively sit at a 30.99 target while the market price is €35.91. This suggests they see the recent strong EPS run as hard to repeat at the same rate.</li> </ul> </li> </ul> <h2>Next Steps</h2> <p>To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Wärtsilä Oyj Abp on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.</p> <p>With all this optimism and caution in the mix, it is worth seeing the numbers in context and deciding how they stack up for you. To round out your view on the upside case, take a moment to review the 2 key rewards.</p> <h2>See What Else Is Out There</h2> <p>Wärtsilä's premium 32.5x P/E multiple, DCF value of €30.38 and 30.99 analyst target all sit below the current €35.91 share price.</p> <p>If you are concerned about paying up for a stock already priced above fair value estimates, it makes sense to compare alternatives using the 234 high quality undervalued stocks.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if Wärtsilä Oyj Abp might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p><p>Access Free Analysis</p></div></div></div>

<p>Wärtsilä Oyj Abp (HLSE:WRT1V) reported Q1 2026 revenue of €1.6 billion and a basic EPS of €0.25, reflecting a net margin of 9.4%, up from 8.1% a year prior. The company has seen a 20.4% increase in earnings, but its P/E ratio of 32.5x is significantly higher than industry peers, raising concerns about valuation. Analysts predict a more moderate earnings growth of 8.3% moving forward, contrasting with past performance. The current share price of €35.91 exceeds the DCF fair value of €30.38, indicating potential risks for investors.</p>

Wärtsilä Oyj Abp (HLSE:WRT1V) Net Margin Reaches 9.4% Testing Bullish Narratives