Vestas Updates Financial Outlook Amid Wind Power Growth

Billund, Denmark – Vestas Wind Systems A/S reported that it is on track to achieve its expected full-year earnings based on the results from the first nine months of the year. The company announced its third-quarter outlook on November 5, narrowing its revenue and EBIT expectations.

Vestas anticipates revenue between EUR 18.5 billion and EUR 19.5 billion for 2025, with an EBIT margin before special items of 5 to 6 percent. The company’s expected total investments are approximately EUR 1.2 billion in 2025. The Service segment is projected to generate an EBIT before special items of around EUR 625 million.

The company acknowledged ongoing tariff uncertainties, especially in the USA, and warned that increased tariffs could lead to higher costs over time. However, they expect to counter these challenges with mitigating actions that may result in higher electricity prices in the USA.

Vestas highlighted that its projections assume the global geopolitical environment will not significantly alter business conditions in 2025, which includes factors such as energy supply chain stability and regulatory changes.

In recent years, wind power has surpassed fossil fuel alternatives as an energy source worldwide. The company forecasts a growth rate of 7 to 9 percent annually for global onshore wind power, excluding China, driven by heightened renewable energy ambitions.

For offshore wind, Vestas anticipates a yearly growth of 20 to 25 percent until 2030. As Vestas ramps up production of its new V236-15.0 MW platform, they expect offshore operations to impact their EBIT margin negatively in the short term.

According to Vestas, the global market for wind power service solutions is expected to grow by 8 to 10 percent annually. The company aims to lead in this market, although they project slower revenue growth and margins in the mid-term.

The company continues its ambition to adapt to structural changes in the industry, focusing on operational discipline and maintaining market leadership. Vestas is committed to a long-term EBIT margin of at least 10 percent.

In sustainability news, Vestas has made progress with its CETEC project, developing a new process for recycling epoxy-based turbine blades without altering their design. Partnering with Stena Recycling and Olin, the company plans to scale this solution for commercial use.