By Jesus Calero<\/p>\n
May 6 (Reuters) – Danish wind turbine maker Vestas reported an unexpectedly large first-quarter profit rise on Wednesday as it ramped up production for the \u200coffshore sector, but warned of geopolitical and tariff-related risks.<\/p>\n
“Last year in Q1 we \u200chadn’t put a single one of our new offshore turbines up,” Vestas Chief Financial Officer Jakob Wegge Larsen \u200btold Reuters in an interview.<\/p>\n
“What we really see in Q1, in the revenue increase, is that the offshore ramp-up is progressing positively. We are now installing and manufacturing offshore turbines at a significantly higher level compared to last year,” he added.<\/p>\n
Shares in Vestas were 1.5% higher at \u200c0849 GMT, helping their year-to-date gain \u2060to 13.4%.<\/p>\n
Vestas has been aiming to sell more to offshore power developers, but high costs have held back manufacturing. After struggling with supply \u2060chain disruptions, high offshore ramp-up costs and other cost inflation, it is now seeking to boost margins despite U.S. wind policy and tariff uncertainty.<\/p>\n
The Danish company repeated guidance from February for a full-year \u200boperating \u200bmargin before special items of 6% to 8% \u200bon sales of between 20 billion \u200cand 22 billion euros. In 2025, the margin was 5.7% on sales of 18.8 billion euros.<\/p>\n
Vestas said the outlook forecast was based on the assumption that the geopolitical environment does not significantly change business conditions.<\/p>\n
“We achieved the highest first-quarter profitability since 2018,” said Vestas CEO Henrik Andersen in a statement, adding that geopolitical uncertainty and the energy crisis “underline the need for \u200caffordable, secure, and sustainable energy”.<\/p>\n
Vestas reported an increase \u200bin order intake, to 4.50 gigawatts (GW) from 3.14 GW, \u200balthough this was slightly less than analysts \u200bhad expected.<\/p>\n
In the first quarter, operating profit before special items was \u200c127 million euros ($149 million) against a year-earlier \u200b14 million and a \u200bmean forecast of 71 million in an analyst poll shared by Vestas. The margin widened to 3.2%.<\/p>\n
Turnover in the quarter, the sector’s seasonally slowest, increased 14% to 3.97 \u200bbillion euros, slightly above expectations, \u200cas sales of offshore turbines picked up.<\/p>\n
Vestas also announced a new 100 million \u200beuro share buyback programme.<\/p>\n
($1 = 0.8524 euros)<\/p>\n
(Reporting by Jesus Calero, writing by Jesus \u200bCalero and Anna Ringstrom, editing by Alexander Smith)<\/p>\n","protected":false},"excerpt":{"rendered":"By Jesus Calero May 6 (Reuters) – Danish wind turbine maker Vestas reported an unexpectedly large first-quarter profit…\n","protected":false},"author":2,"featured_media":113605,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[281],"tags":[56894,56893,56892,2332,283,284],"class_list":["post-113604","post","type-post","status-publish","format-standard","has-post-thumbnail","category-vestas-wind-systems","tag-geopolitical-environment","tag-jakob-wegge-larsen","tag-offshore-sector","tag-vestas","tag-vestas-wind-systems","tag-vwdry"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@dk\/116792749378866785","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/113604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/comments?post=113604"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/113604\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media\/113605"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media?parent=113604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/categories?post=113604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/tags?post=113604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}