Vestas Earnings: Higher Turbine Prices to Restore Full-Year Profitability; Raises Full-Year Guidance

No-moat Vestas’s third-quarter results comfortably beat company-compiled consensus after it benefited from the delivery of higher-priced turbines, which resulted in the group returning to profitability for the first time in 2023. Third-quarter operating profit of EUR 70 million was considerably higher than consensus estimates of EUR 31 million and a considerable improvement from its EUR 127 million loss in 2022. The group is on track to return to profitability for the full year after it raised operating profit margin guidance to between 0% and 2% for the full year, from negative 3%-positive 2%. Shares are up 8%, but remain slightly undervalued compared with our DKK 197 fair value estimate, which we maintain.