Vestas Q2 orders drop 44% on policy delays; revenue rises, profit turns positive

Investing.com -- Vestas Wind Systems A/S (CSE:VWS) on Wednesday said its second-quarter wind turbine order intake fell 44% year-on-year to 2,009 MW as some customers delayed commitments amid policy uncertainty, while revenue rose 13.6% to €3.75 billion and EBIT margin before special items turned positive at 1.5% from negative 5.6% a year earlier.

EBIT before special items was €57 million, supported by stronger onshore project performance and lower warranty costs, partly offset by offshore ramp-up expenses.

Adjusted free cash flow fell to negative €227 million from €524 million in the same period of 2024.

The wind turbine order backlog stood at €31.4 billion at June 30, while service agreements with expected future revenue totaled €35.9 billion, bringing the combined backlog to €67.3 billion, up €4.3 billion from a year earlier.

Full-year guidance was maintained, with revenue projected between €18 billion and €20 billion, EBIT margin before special items of 4% to 7%, and total investments of about €1.2 billion.

Return on capital employed for the last 12 months was 11.5%, the highest since 2020.