Revenue: EUR3.5 billion, a 29% increase year-on-year.<\/p>\n
EBIT Margin: Positive 0.4%, an improvement driven by revenue growth and higher profitability.<\/p>\n
Order Intake: 3.1 gigawatts, a 36% increase year-on-year.<\/p>\n
Gross Profit: EUR359 million, a 47% increase, with a gross margin increase of 1.3 percentage points year-on-year.<\/p>\n
Power Solutions Revenue: Increased by 43% year-on-year.<\/p>\n
Service EBIT: EUR166 million, with an EBIT margin of 18%.<\/p>\n
Operating Cash Flow: Positive EUR28 million, a major improvement from last year.<\/p>\n
Adjusted Free Cash Flow: Negative EUR325 million, an improvement of almost EUR100 million compared to Q1 last year.<\/p>\n
Cash Position: EUR366 million at the end of the quarter.<\/p>\n
Total Investments: EUR307 million in Q1.<\/p>\n
Warranty Costs: EUR118 million, an improvement on the full year percentage of 4.3% from last year.<\/p>\n
Net Debt to EBITDA: Minus 0.2%, a significant improvement from 1.1% a year ago.<\/p>\n
Earnings Per Share: Improved to EUR0.6 on a 12-month basis.<\/p>\n
Return on Capital Employed: Almost 9% on a 12-month rolling basis.<\/p>\n
Outlook for 2025: Revenue expected between EUR18 billion to EUR20 billion, EBIT margin before special items between 4% to 7%, and total investments approximately EUR1.2 billion.<\/p>\n
Release Date: May 06, 2025<\/p>\n
For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>.<\/p>\n Vestas Wind Systems AS (VWDRY<\/a>) reported a 29% year-on-year increase in Q1 2025 revenue, reaching EUR 3.5 billion, driven by higher activity and pricing in Power Solutions.<\/p>\n The company achieved a positive EBIT margin of 0.4% in Q1, despite typically low seasonal activity, indicating improved profitability.<\/p>\n Order intake increased by 36% year-on-year to 3.1 gigawatts, with strong momentum in offshore and EMEA onshore markets.<\/p>\n The service segment saw a backlog increase to nearly EUR 37 billion, up from EUR 34 billion a year ago, solidifying its position as the largest service business in the industry.<\/p>\n Vestas Wind Systems AS (VWDRY<\/a>) maintained a leading market share, increasing from 28% to 30% in global onshore and offshore installations, excluding China.<\/p>\n Geopolitical and trade volatility, particularly in the US, adds uncertainty and could lead to increased costs due to potential tariffs.<\/p>\n Permitting processes and market design remain challenging in some markets, impacting project execution timelines.<\/p>\n The company faces regional supply chain disruptions, particularly in North America, which could affect project deliveries.<\/p>\n The number of recordable injuries per million working hours increased from 2.9% to 3.2% year-on-year, highlighting ongoing safety challenges.<\/p>\n The manufacturing ramp-up in both onshore and offshore segments is not yet complete, leading to continued ramp-up costs throughout the year.<\/p>\n Story Continues <\/p>\n Q: How are tariffs impacting Vestas’ execution and cost expectations? A: Henrik Andersen, CEO, explained that tariffs create challenges in execution and add costs, but Vestas expects to be compensated through bilateral discussions with customers. The exact level of compensation is variable and depends on ongoing negotiations.<\/p>\n Q: Is the uncertainty around tariffs affecting Vestas’ order pipeline in the US? A: Andersen noted that while there is some delay in decision-making due to tariff and policy uncertainties, Vestas is well-positioned with a strong backlog for 2025 and 2026. The company is awaiting policy clarity before expecting a significant increase in orders.<\/p>\n Q: What is the status of the Empire Wind project, and what financial impact could it have if not executed as planned? A: Andersen stated that the Empire Wind project is unprecedented in its current state, with a stop work order. Vestas is in close discussions with its partner, Equinor, and contractual clauses will govern the situation. If the project is canceled, Vestas will attempt to reallocate the capacity to other projects.<\/p>\n Q: How is Vestas managing the manufacturing ramp-up, and when is it expected to be completed? A: Andersen explained that the ramp-up is ongoing and expected to diminish over the year. The company is working diligently to reach target production times, but the ramp-up will continue to impact costs throughout the year.<\/p>\n Q: Can you elaborate on the service recovery plan and how Vestas plans to update stakeholders on its progress? A: Andersen mentioned that the service recovery plan is progressing as expected, with a focus on margin improvement. Vestas will keep stakeholders updated on any significant changes to margins or contract renewals, emphasizing value over volume.<\/p>\n For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>.<\/p>\n