Vestas warns of 'further geopolitical uncertainty' amid return to small profit
Danish wind turbine manufacturer in Q1 2025 posts rising orders and higher selling price thanks to strong demand in offshore and Europe
Vestas returned to a small profit in the first quarter of 2025 amid rising orders for its wind turbines but CEO Henrik Andersen acknowledged that “new events contributed to further geopolitical uncertainty and regionalisation.”
Revenue increased by 29.4% to €3.47bn ($3.93bn) compared to the year-earlier period, driven by higher activity and higher average pricing in the power solutions segment.
The average selling price (ASP) rose to €1.24m per MW in the first quarter of 2025, from €0.97m/MW in the same period last year. At the same time, the wind turbine order intake jumped to 3.14GW in the quarter from 2.3GW a year earlier, “due to strong momentum in offshore and EMEA onshore, but specific markets were impacted by external factors.”
Andersen pointed to an earnings before interest and taxes (Ebit) margin before special items of 0.4% in the quarter, compared to a negative Ebit margin before special items of 2.5% in the year-earlier period, “despite the impact from seasonality and manufacturing ramp-up in both offshore and onshore.”
The Ebit margin is an indication of operational profitability.
The company had a net profit of €5m in the first quarter of 2025, compared to a net loss of €75m in the year-earlier period.
Vestas maintained its full-year guidance of an expected revenue of €18-20bn, including service revenue, and an Ebit margin before special items of 4-7%. Total investments are foreseen to reach about €1.2bn.
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