Q1 2025 Vestas Wind Systems A/S Earnings Call Transcript
Key Points
- Vestas Wind Systems AS (VWDRY) reported a 29% year-on-year increase in Q1 2025 revenue, reaching EUR 3.5 billion, driven by higher activity and pricing in Power Solutions.
- The company achieved a positive EBIT margin of 0.4% in Q1, despite typically low seasonal activity, indicating improved profitability.
- Order intake increased by 36% year-on-year to 3.1 gigawatts, with strong momentum in offshore and EMEA onshore markets.
- The service segment saw a backlog increase to nearly EUR 37 billion, up from EUR 34 billion a year ago, solidifying its position as the largest service business in the industry.
- Vestas Wind Systems AS (VWDRY) maintained a leading market share, increasing from 28% to 30% in global onshore and offshore installations, excluding China.
- Geopolitical and trade volatility, particularly in the US, adds uncertainty and could lead to increased costs due to potential tariffs.
- Permitting processes and market design remain challenging in some markets, impacting project execution timelines.
- The company faces regional supply chain disruptions, particularly in North America, which could affect project deliveries.
- The number of recordable injuries per million working hours increased from 2.9% to 3.2% year-on-year, highlighting ongoing safety challenges.
- The manufacturing ramp-up in both onshore and offshore segments is not yet complete, leading to continued ramp-up costs throughout the year.
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Good morning, and welcome to our presentation of our Q1 for 2025. And let me by here also extend a huge gratitude and thank you to our customers across the world and especially in the US for the very active discussions and also our colleagues for a very strong start of the year. With that, I would like to go to the key highlights.
So the key highlights, we ended Q1 with a revenue of EUR3.5 billion. That's an increase of 29% year-on-year, driven by our higher activity compared to Q1 last year and also the higher average pricing in Power Solutions.
The EBIT margin ended at positive 0.4%, positive operating profit in Q1 despite normally the seasonal low activity in Q1, driven again by revenue growth and also higher profitability. The order intake was 3.1 gigawatts. The order intake increased by 36% year-on-year, driven by strong momentum in offshore, particularly and also in EMEA onshore.
The manufacturing ramp up and the service recovery plan remain key,
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