Key Highlights
- Shares of Vestas climbed approximately 19% on Wednesday, marking the largest single-day gain since July 2022
- Second-quarter adjusted EBIT reached €446 million, obliterating the €205 million analyst consensus by 117%
- Company elevated full-year EBIT margin outlook to 7-9% from the prior 6-8% range
- Management unveiled a €400 million share repurchase program to accompany earnings release
- First-half turbine orders jumped over 50% year-over-year, with order backlog standing at €36 billion
Shares of Vestas Wind Systems (VWS) skyrocketed nearly 19% during Wednesday’s trading session, reaching their strongest level since December 2023, following the release of second-quarter financial results that significantly exceeded Wall Street expectations.
Vestas Wind Systems A/S, VWSYF
The Danish wind turbine manufacturer saw its shares gap higher at the opening bell after reporting adjusted EBIT of €446 million for the second quarter, substantially outpacing the €205 million consensus forecast. The result represents a remarkable beat of approximately 117%, surpassing even the most bullish analyst projections.
Quarterly revenue reached €4.72 billion, approximately 4% higher than the €4.54 billion consensus estimate. Gross profit totaled €801 million, exceeding the €664 million upper boundary of analyst expectations.
The Power Solutions division emerged as the star performer of the quarter. This segment generated adjusted EBIT of €397 million versus the €156 million consensus figure, achieving an EBIT margin of 10.4%. This represented an outperformance of roughly 600 basis points relative to analyst forecasts.
Jefferies, which maintains a buy recommendation on the shares with a DKK215 price target, attributed the Power Solutions margin expansion to “strong execution in both onshore and offshore” operations.
Company Elevates Full-Year Margin Outlook
Management raised the full-year EBIT margin guidance range to 7-9%, representing an increase from the previously stated 6-8% target. The company maintained its revenue guidance unchanged at €20 billion to €22 billion.
Jefferies noted that the midpoint of the revised margin guidance suggests approximately 9% in upward revisions to consensus earnings estimates.
Net income for the quarter totaled €285 million, significantly exceeding both the €144 million consensus and the €193 million upper range of forecasts. This marks a substantial improvement from the €34 million reported in the same period last year.
Free cash flow of €99 million fell modestly short of the €112 million consensus expectation, though management emphasized that results would be weighted toward the second half of the year.
€400 Million Buyback Program Launched
The board of directors authorized a new €400 million share repurchase initiative, scheduled to commence August 13 and continue through the end of the year. CEO Henrik Andersen characterized the decision as a demonstration of management’s confidence in future prospects.
“Demand for wind energy solutions remains strong due to the growing need for secure, affordable, and sustainable energy,” Andersen stated in the company’s announcement.
Wind turbine order intake for the second quarter totaled 3,349 megawatts, running 3% ahead of consensus forecasts. Deliveries reached 3,504 megawatts, also surpassing the 3,406-megawatt consensus projection, propelled by increased volumes across the EMEA region.
Cumulative turbine orders for the first six months increased more than 50% compared to the prior-year period. The firm’s delivery backlog stood at €36 billion as of June 30.
Average selling prices settled at €1.0 million per megawatt, declining from €1.11 million in the year-ago quarter, attributed to the absence of offshore orders during the current quarter and an elevated proportion of lower-scope U.S. contracts.
The service division generated revenue of €896 million, nearly matching the €900 million consensus, with adjusted EBIT of €149 million representing a 16.6% margin, generally aligned with analyst expectations.
VWS shares have now advanced more than 20% year to date, building on a 77% surge recorded in 2025.
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