Vestas swings to EUR 75m net loss in Q1, keeps guidance

In the first quarter of 2024, Vestas Wind Systems A/S (CPH:VWS) of Denmark reported a net loss of EUR 75 million (USD 80.3m), compared to a profit of EUR 16 million in the previous year.

Despite this, the company stated that it is sticking to its full-year guidance.

The revenue for January-March decreased by 5.2% from the previous year to EUR 2.68 billion, mainly due to reduced activity in Power Solutions, although this was partially offset by a 12% growth in Service.

“Vestas’ underlying performance continued to improve in the first quarter of 2024, and our financial results were in line with expectations.

Our revenue was EUR 2.7 billion with an EBIT margin of minus 2.5%, which represents a 30% increase in gross profit driven by higher project profitability and service growth, but lower project deliveries,” said Group President & CEO Henrik Andersen.

Excluding the impact of the sale of the converters and controls business in the same quarter last year, Vestas’ underlying EBIT margin increased by 1.5 percentage points compared to the first quarter of 2023.

During this period, Vestas’ combined backlog reached a record-high of EUR 61 billion, comprising EUR 26.6 billion from wind turbine orders and EUR 34.4 billion from service agreements.

The quarterly intake of firm and unconditional wind turbine orders increased by 30% to 2,300 MW.

For the full year 2024, Vestas maintains its forecast for a revenue range, including Service revenue, of EUR 16 billion-18 billion and an EBIT margin before special items of 4-6%.

Total investments are expected to be around EUR 1.2 billion.
(EUR 1.0 = USD 1.072)

Source Vestas

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