Q4 2024 Vestas Wind Systems A/S Earnings Call Transcript
Key Points
- Vestas Wind Systems AS (VWDRY) achieved a record order intake of 17 gigawatts, valued at EUR19 billion, marking a high ASP and strong momentum in both onshore and offshore sectors.
- The company ended 2024 with a revenue of EUR17.3 billion and an EBIT margin of 4.3%, meeting its outlook for the year.
- Vestas proposed a dividend of EUR0.55 per share and announced a share buyback of EUR100 million, reflecting confidence in its financial position.
- The service order backlog grew to nearly EUR37 billion, solidifying Vestas' position as the largest service business in the industry.
- Vestas reported a strong Q4 with a 29% year-on-year revenue increase, driven by higher revenue in both Power Solutions and Service segments, and achieved a 12.4% EBIT margin in Q4.
- Rising costs posed challenges for the service segment in 2024, necessitating a recovery plan to address operational inefficiencies and quality-related effects.
- The offshore ramp-up is expected to be margin dilutive in 2025, with significant investments required for manufacturing and amortization.
- The geopolitical and trade volatility, along with ongoing inflation, presents uncertainties that could impact future operations and profitability.
- The company faced five fatalities in 2024, highlighting ongoing safety challenges that need to be addressed.
- Vestas' long-term ambition of achieving a 25% EBIT margin in the service segment remains unmet, with current margins at 18%.
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Good morning to everyone, and welcome to our presentation of full year 2024. And let me, before we go further, just extend a heartfelt thank you to our partners, our customers, the shareholders and not least, outstanding colleagues for a very strong end 2024 and a very strong execution also of a very successful Q4 in 2024.
It is remarkable just to put it in perspective that Q4, just on top of EUR6 billion is as big as Vestas as was back in 2013, and also Q4 is the best quarter we have had since 2017 as a single quarter. With that, let's go to the key highlights. So the key highlights for the full year 2024, we ended with a revenue of EUR17.3 billion and an EBIT margin of 4.3%.
Vestas achieved its outlook for the year and continued the positive trajectory in 2024. The service EBIT of -- and sorry, here, we just one slow in the slide. But the service EBIT of EUR448 million ended the year. Rising costs caused a challenging year for service, but the scrutiny is now
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