Revenue: EUR3.7 billion, an increase of 14% year-on-year.<\/p>\n
EBIT Margin: 1.5% for the quarter.<\/p>\n
Order Intake: 2 gigawatts, down 44% compared to last year.<\/p>\n
Return on Capital Employed (ROCE): 11.5%, highest since 2020.<\/p>\n
Service Order Backlog: Increased to EUR36 billion from EUR35 billion a year ago.<\/p>\n
Service Revenue: Declined 4% year-on-year, excluding planned cost adjustments.<\/p>\n
Service EBIT Margin: 17.2%.<\/p>\n
Net Working Capital: Decreased due to increased customer down and milestone payments.<\/p>\n
Operating Cash Flow: EUR120 million, a decline compared to last year.<\/p>\n
Adjusted Free Cash Flow: Minus EUR227 million.<\/p>\n
Net Debt Position: EUR7 million.<\/p>\n
Investments: EUR288 million in Q2, primarily for offshore ramp-up.<\/p>\n
Warranty Costs: EUR115 million, 3.1% of revenue, improved from 4.3% last year.<\/p>\n
Earnings Per Share: EUR0.8 on a 12-month rolling basis.<\/p>\n
2025 Outlook: Revenue EUR18-20 billion, EBIT margin 4-7%, Service EBIT around EUR700 million, Total investments approximately EUR1.2 billion.<\/p>\n
Release Date: August 13, 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 14% year-on-year increase in revenue, reaching EUR3.7 billion for the quarter.<\/p>\n The company achieved an EBIT margin of 1.5%, with improved onshore project performance and lower warranty costs.<\/p>\n Return on capital employed improved to 11.5%, marking the highest return since 2020.<\/p>\n The Service order backlog increased to EUR36 billion, indicating strong demand and growth potential.<\/p>\n Vestas maintained its 2025 outlook guidance, reflecting confidence in its strategic direction and market position.<\/p>\n Order intake was down 44% year-on-year, primarily due to a lack of orders in the Americas, especially the US, as customers awaited policy clarity.<\/p>\n The ASP (average selling price) declined to EUR1.11 million per megawatt, driven by a change in order mix.<\/p>\n Offshore ramp-up costs negatively impacted profitability, with significant expenses related to the new nacelle facility in Poland.<\/p>\n The number of recordable injuries per million working hours increased from 2.8 to 3.0 year-on-year, highlighting safety challenges.<\/p>\n The Service segment experienced a 4% year-on-year revenue decline, mainly due to a 3% currency headwind.<\/p>\n Q: Can you provide more clarity on the potential near-term order rally in the US and whether it will be short-lived or extend over a longer period? A: Henrik Andersen, CEO: The US market is expected to see significant activity due to policy clarity, with substantial demand extending towards the end of the decade. The recent policy changes have created a structured program for energy asset build-out, particularly in wind, which is expected to drive robust demand.<\/p>\n Q: What are the priorities for the incoming CTO, given the recent change in leadership? A: Henrik Andersen, CEO: The new CTO, Felix, brings extensive experience, particularly in gearboxes, but the focus remains on continuity and building on the existing strategy. The transition is smooth, with no pause in operations, and Felix’s background will enhance our capabilities.<\/p>\n Q: Where should we expect order intake for the rest of the year, particularly in Europe and offshore? A: Henrik Andersen, CEO: In Europe, Germany remains a key focus due to its efficient permitting and auction processes. Other EU countries are learning from Germany’s success. Offshore order intake depends on project-specific factors, but the overall market remains strong.<\/p>\n Q: How do you view capital allocation given the current cash flow and net debt position? A: Jakob Wegge-Larsen, CFO: Our priority is to invest in the business, followed by dividends and share buybacks as we generate free cash flow. We remain committed to this strategy, and our depreciation and amortization guidance remains on track.<\/p>\n Q: What is the status of the onshore business, and what challenges remain for achieving a 10% EBIT margin? A: Henrik Andersen, CEO: The onshore business is performing well, with improved deliveries and execution. Challenges remain in the US, but progress is being made. The focus is on maintaining profitability and leveraging operational efficiencies.<\/p>\n Q: Can you provide insights into the offshore ramp-up and its impact on financials? A: Henrik Andersen, CEO: The offshore ramp-up is on plan, with costs expected to peak by year-end. The focus is on achieving volume production and reducing ramp-up costs, which should improve financial performance in the coming years.<\/p>\n Q: How are you addressing the impact of US tariffs on your business? A: Henrik Andersen, CEO: We are working with customers to mitigate tariff impacts, and most of the tariff effects for 2025 are covered. The tariffs are a moving target, but we are managing them through strategic planning and customer collaboration.<\/p>\n Q: What progress has been made in the Service division’s commercial reset, and how is it impacting financials? A: Henrik Andersen, CEO: The commercial reset is ongoing, with a focus on contract renewals and pricing adjustments. While there are no immediate financial upsides, the process is integrated into the run rate, ensuring long-term improvements.<\/p>\n For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>.<\/p>\n