Vestas enjoys higher Q3 profit, trims service segment 2024 guidance

Image by Vestas on Linkedin.

Vestas Wind Systems A/S (CPH:VWS) on Tuesday reported a third-quarter net profit of EUR 127 million (USD 138.3m), almost quadrupling from a year back, and kept its full-year guidance for all metrics, apart from earnings in the Service segment.

The Danish wind turbine manufacturer confirmed its full-year forecast for renewables of between EUR 16.5 billion and EUR 17.5 billion and EBIT margin before special items of 4%-5%, which is rather seen to be in the lower end of the given range. Total investments are now expected to come at around EUR 1 billion, instead of EUR 1.2 billion previously. The manufacturer lowered its projections for EBIT before special items in the Service segment to EUR 450 million from EUR 500 million.

The wind turbine maker’s revenue in June-September rose by 18.9% in annual terms to EUR 5.18 billion, fuelled by higher volumes and higher pricing on deliveries. Thanks to the higher activity, earnings before interest and tax (EBIT) before special items more than tripled, coming at EUR 235 million, causing the respective margin to rise to 4.5% from 1.6% a year before.

“Higher activity and higher pricing on deliveries continue to drive significant progress in our underlying business and especially Power Solutions, but the quarter was negatively impacted by a slightly slower-than-expected margin improvement in Service and elevated warranty provisions in the quarter,” said Group President & CEO Henrik Andersen.

Amounts in EUR	Q3 2024	Q3 2023
Revenue	5.18bn	4.35bn
Operating profit (loss) / EBIT before special items	235m	70m
-- in Power Solutions	177m	(38m)
-- in Service	148m	197m
Operating profit (loss) / EBIT	231m	69m
Profit (loss) before tax	184m	28m
Profit (loss) for the period	127m	28m

During the reporting period, the value of Vestas’ combined backlog of wind turbine orders and service agreements stood at EUR 63.4 billion, rising by EUR 9.4 billion from a year earlier. The total includes EUR 28 billion from wind turbine orders. At 4,432 MW, the quarterly intake of firm and unconditional wind turbine orders slipped by 2% year-on-year.

Vestas delivered 4,162 MW of turbines to customers in the three months, against 3,641 MW in the year-ago period. The 14.3% improvement was driven by higher onshore deliveries in the Americas and EMEA.

(EUR 1.0 = USD 1.089)

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