Vestas: ‘We Returned to Profitability’

February 7, 2024, by Adrijana Buljan

Vestas has posted a revenue of EUR 15.4 billion and an increase in profit by 105 per cent for 2023 compared to the previous year, and says the company saw a record order intake of 18.4 GW last year “driven by strong growth in both Offshore and Onshore, especially in the USA.“

Henrik Andersen, Vestas Group President and CEO; Photo: Vestas

The Danish wind turbine OEM also reported an EBIT margin before special items (b.s.i.) of 1.5 per cent, which enabled the company to pay employee bonus for the first time in four years.

For 2022, Vestas reported revenue of EUR 14.486 billion, 6 per cent lower than in 2023, and an order intake of 11.2 GW, meaning the company saw a 64 per cent increase in orders last year.

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Vestas also reported a wind turbine order backlog of EUR 26 billion for 2023, 36 per cent higher than in 2022 (EUR 19.1 billion).

According to the company’s financial results, the 2023 increase in revenue was driven by higher pricing and continued growth in its Service business segment. The increase in order intake was driven by growth in both onshore and offshore markets, with “a record-setting fourth quarter” in 2023, according to Vestas’s CEO.

“Vestas’ performance improved throughout 2023, and we are pleased that Vestas returned to profitability and achieved the upper end of our guidance,” said Henrik Andersen, Vestas’s Group President & CEO. “We continued to progress on our strategic priorities and strengthen our commercial and operational discipline, which together with growth in our Service business helped us achieve a revenue of EUR 15.4bn.”

Andersen added that the improving business environment helped the company’s performance in 2023, but that continued geopolitical volatility, slow permitting and insufficient grid build-out across markets were expected to cause uncertainty in 2024.

For 2024, Vestas expected revenue to range between EUR 16 billion and EUR 18 billion, and the EBIT margin b.s.i. to range between 4 and 6 per cent. Strategy-wise, the company says it plans to sustain strong commercial discipline and a “value over volume” attitude to reach its long-term ambitions.

“Our strategic path towards our long-term ambitions is clear, and our focus remains to stay disciplined to continue building our momentum and execute as strongly as possible,” Henrik Andersen said.