Q2 2025 Vestas Wind Systems A/S Earnings Call Transcript
Key Points
- Vestas Wind Systems AS (VWDRY) reported a 14% year-on-year increase in revenue, reaching EUR3.7 billion for the quarter.
- The company achieved an EBIT margin of 1.5%, with improved onshore project performance and lower warranty costs.
- Return on capital employed improved to 11.5%, marking the highest return since 2020.
- The Service order backlog increased to EUR36 billion, indicating strong demand and growth potential.
- Vestas maintained its 2025 outlook guidance, reflecting confidence in its strategic direction and market position.
- Order intake was down 44% year-on-year, primarily due to a lack of orders in the Americas, especially the US, as customers awaited policy clarity.
- The ASP (average selling price) declined to EUR1.11 million per megawatt, driven by a change in order mix.
- Offshore ramp-up costs negatively impacted profitability, with significant expenses related to the new nacelle facility in Poland.
- The number of recordable injuries per million working hours increased from 2.8 to 3.0 year-on-year, highlighting safety challenges.
- The Service segment experienced a 4% year-on-year revenue decline, mainly due to a 3% currency headwind.
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Good morning, and welcome to Vestas' Q2 investor presentation. And also here, let me start by extending a huge thank you to our customers, other stakeholders and, not least, colleagues around the globe. It has been busy and also a quarter with a certain degree of uncertainty in policy, not least for our more than 5,000 dear colleagues in the US.
It's also a warm welcome to Jakob, and you will have to bear a bit of patience until the financials before you listen to him. So welcome, Jakob.
And with that, let's go to the key highlights of the quarter. So the quarter ended with a revenue of EUR3.7 billion. That's an increase of 14% year-on-year. The EBIT margin ended at 1.5%. Onshore -- improved onshore project performance, lower warranty costs, offset by the offshore ramp-up cost, we'll speak more about that.
The order intake ended at 2 gigawatt, lower order intake year-on-year as customers have been awaiting policy clarity, particularly in the US. And
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