Vestas Wind Systems reported a mixed second quarter, with a 44% plunge in new orders to just 2.0 GW overshadowing improved financials. While revenue rose 14% to €3.7 billion and operating profit swung to €57 million from a €185 million loss last year, political uncertainty—particularly in the U.S. under a wind-skeptic administration—has stalled investments. The CEO attributed the order slump to delayed decisions as clients await clearer energy policies. Europe showed resilience, but weak U.S. demand dragged average selling prices down to €1.11 million per MW.
Offshore Expansion Weighs on Margins
The company’s EBIT margin improved to 1.5% from -5.6%, but remains below its 4–7% annual target due to heavy offshore investments, including its new 15 MW turbine. Service operations provided stability, with €36 billion in backlog and a 17.2% margin. Despite a €227 million negative free cash flow, Vestas maintains full-year guidance of €18–20 billion revenue. Early Q3 orders, including U.S. deals, hint at recovery, but investor skepticism persists as shares dipped 1.5%.
