Company Reports

Vestas is a pure-play wind energy company that is positioned to benefit from the long-term trends of growing electricity demand and decarbonization. Wind is set to play a crucial role in the energy transition, even though its adoption is currently challenged by macroeconomic uncertainty, cost inflation, slow permitting processes, and underdeveloped grid infrastructure.

Vestas is a pure-play wind energy company that is positioned to benefit from the long-term trends of growing electricity demand and decarbonization. Wind is set to play a crucial role in the energy transition, even though its adoption is currently challenged by macroeconomic uncertainty, cost inflation, slow permitting processes, and underdeveloped grid infrastructure.

Vestas delivered a standout second quarter, with group EBIT surging to EUR 446 million and adjusted EBIT margin reaching 9.4%, up from 1.5% last year. The strong performance prompted a 100-basis-point upgrade to full-year group margin guidance to 7%-9%, sending shares up 20%.

Vestas reported first-quarter group EBIT of EUR 127 million, well ahead of company-compiled consensus. Power solutions was the main contributor, returning to profitability in a seasonally weaker quarter for the first time since 2018, as offshore wind ramped up. Full-year guidance was confirmed.

The UK government blocked Mingyang’s GBP 1.5 billion offshore wind turbine manufacturing plant in Scotland and signaled it would not support the use of its turbines in UK offshore projects on national security grounds. Vestas shares rose 6% on the news.

Vestas’ fourth-quarter results fell short of market expectations, weighed by ramp-up costs in offshore wind and lower service revenue. The outlook for 2026 calls for margin improvement, driven primarily by progress in the offshore ramp. Shares were down by 9% at the time of writing.

On Jan. 26, governments of Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, and the UK, alongside the wind industry and transmission system operators, signed the Joint Offshore Wind Investment Pact for the North Seas. Vestas shares jumped by 7% on the news.

Vestas is a pure-play wind energy company that is positioned to benefit from the long-term trends of growing electricity demand and decarbonization. Wind is set to play a crucial role in the energy transition, even though its adoption is currently challenged by macroeconomic uncertainty, cost inflation, slow permitting processes, and underdeveloped grid infrastructure.

Vestas reported third-quarter adjusted operating profit of EUR 416 million, up 77% year over year and ahead of the company-compiled consensus of EUR 305 million. Management narrowed its full-year EBIT margin guidance to 5%–6% from 4%–7% and announced a EUR 150 million share buyback.

Vestas is a pure-play wind energy company that is positioned to benefit from the long-term trends of growing electricity demand and decarbonization. Wind is set to play a crucial role in the energy transition, even though its adoption is currently challenged by macroeconomic uncertainty, cost inflation, slow permitting processes, and underdeveloped grid infrastructure.

Vestas announced that it will shelve investments in its announced offshore wind turbine manufacturing plant in Poland, which was expected to start production in 2026, amid soft offshore wind demand in Europe.

Mingyang, one of China’s leading wind turbine manufacturers, reportedly plans to invest GBP 1.5 billion to build an offshore wind turbine production facility in the UK. This could mark one of the first manufacturing investments by a Chinese OEM in Europe. Vestas’ shares were down 4% at market open.

Vestas’ share price dropped nearly 6% over Sept. 11-12, following comments from Chancellor Friedrich Merz indicating a potential slowdown in Germany's renewables rollout as a measure to reduce energy costs.

Vestas reported second-quarter adjusted operating profit of EUR 57 million, 36% below the company-compiled consensus of EUR 89 million, as offshore ramp-up costs led to a power solutions’ adjusted EBIT margin of negative 0.4%. Management reaffirmed its targets for the full year.

On July 1, 2025, the US Senate passed its version of the tax bill, with language tweaked to be more favorable toward renewable energy credits compared with the draft released over the previous weekend.

Vestas is a pure-play wind energy company, positioned to benefit from long-term trends of growing electricity demand and decarbonization. Wind is set to play a crucial role in the energy transition, despite its adoption being currently challenged by macroeconomic uncertainty, cost inflation, slow permitting processes, and underdeveloped grid infrastructures.

We are transferring coverage of Vestas, one of the leading companies in the manufacturing, sale, and servicing of wind turbines.

Vestas reported first-quarter 2025 results ahead of expectations, posting an operating profit before special items of EUR 14 million, well above the company-compiled consensus of negative EUR 29 million.

Vestas reported operating profit before special items of EUR 759 million at a 12.4% margin during the fourth quarter, comfortably surpassing company-compiled consensus of EUR 672 million and reaching its highest quarterly EBIT margin since 2017. Shares are trading 5% higher intraday.

Shares in no-moat Vestas were trading 10% lower Nov. 6 on the news that Donald Trump has won the US presidency. The US contributes 20% to Vestas's revenue and a Trump administration is seen as negative for the business, with the Republican having earlier in the year vowed to halt all offshore wind projects on his first day in office through an executive order. This adds to the pessimism surrounding the stock, following a series of earnings misses this year. However, the investment story for Vestas is a long-term theme (well beyond the next five years) and we believe the current drawdown presents a buying opportunity in Vestas, as we keep our recently revised DKK 164 fair value estimate unchanged.