WASHINGTON (dpa-AFX) - Vestas Wind Systems A/S (VWDRY.PK) reported Wednesday significantly higher profit in its third quarter as revenues were benefited by higher deliveries. Order intake was also higher than last year.
Looking ahead, the Danish maker of wind turbines narrowed its fiscal 2025 outlook, reflecting lower Service EBIT and stronger Onshore execution.
Further, the Board has decided to initiate a share buy-back of 150 million euros, in line with the firm's general capital structure strategy.
In Copenhagen, Vestas shares were gaining around 14.04 percent to trade at 149.05 Danish kroner.
For fiscal 2025, the company now expects adjusted EBIT margin of 5 percent to 6 percent, compared to previously expected margin of 45 to 7 percent.
Revenues are now expected between 18.5 billion euros and 19.5 billion euros, compared to previous estimate of 18 billion euros to 20 billion euros.
Group President & CEO Henrik Andersen said, 'The results are driven by higher deliveries and continued improvement in Onshore project execution, and underline that the year is back-end loaded. .... The world remains impacted by geopolitical uncertainty, which is creating unprecedented challenges, but also showcasing why wind energy remains key to building affordable, secure and sustainable energy systems.'
In the third quarter, profit surged to 304 million euros or 0.9 euro per share from last year's 127 million euros or breakeven per share.
EBIT before special items amounted to 416 million euros, higher than 235 million euros a year ago. Adjusted EBIT margin was 7.8 percent, compared to 4.5 percent in 2024.
Adjusted EBITDA climbed to 673 million euros from 444 million euros last year. Adjusted EBITDA margin improved to 12.6 percent from 8.6 percent a year ago.
In the third quarter, Vestas generated revenue of 5.34 billion euros, an increase of 3.1 percent from prior year's 5.18 billion euros.
Deliveries grew to 4,441 MW from 4,162 MW a year ago.
Order intake in the quarter increased 4 percent to 4,606 MW from 4,432 MW last year driven by the USA and Germany. Meanwhile, order intake in euro terms fell to 4.6 billion euros from 4.9 billion euros last year.
The value of the wind turbine order backlog was 31.6 billion euros as at September 30.
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