Vestas Wind Systems Reports Strong Third-Quarter Results
Vestas Wind Systems has posted strong third-quarter results, driven by its service business and higher sales prices. The company's financial performance exceeded expectations, with significant growth in net profit and revenue. Wind turbine orders als...
Troy D. Hanson
November 08, 2023
Vestas Wind Systems, a leading Danish wind-turbine maker, has reported a larger-than-expected net profit for the third quarter of this year. The company's strong growth in its service business and higher sales prices have contributed to this positive result.
Vestas saw a significant improvement in project profitability during this period. The company achieved a higher value for turbine deliveries and experienced stable volumes. Additionally, supply chain disruptions eased, and there was increased activity in the service business.
The net profit for the third quarter amounted to 29 million euros ($31 million), compared to a loss of 147 million euros in the same period last year. Revenue also showed a remarkable growth of 11%, reaching 4.35 billion euros.
These numbers exceeded the expectations of a company-compiled consensus, which predicted a net profit of 7 million euros on revenue of 4.09 billion euros.
Strong Wind Turbine Orders
Vestas witnessed a significant increase in wind turbine orders, more than doubling from the previous year. The growth was driven by offshore projects and higher activity levels in both North America and Europe.
The order intake rose to 4.9 billion euros from 2.0 billion euros, indicating strong demand. Additionally, the turbine order backlog rose to 21.6 billion euros from 18.1 billion euros, highlighting the company's robust pipeline. The service order backlog also showed growth, reaching 32.4 billion euros from 29.9 billion euros.
Despite market design and permitting challenges, Vestas remains optimistic about its future. Chief Executive Henrik Andersen expressed satisfaction with the strong commercial activity.
For the full year, Vestas now expects revenue to range between 14.5 billion euros and 15.5 billion euros, compared to the previous guidance of 14.0 billion euros to 15.5 billion euros. The company also anticipates a pre-items earnings before interest and tax margin of 0% to 2%, as opposed to the previous range of minus 2% to 3%.
Overall, Vestas Wind Systems has experienced a positive third quarter, driven by its service business and higher sales prices. The company's strong financial performance and promising outlook indicate a bright future in the wind energy industry.