Vestas Q1 profits rise more than expected due to increased offshore wind turbine production

Vestas, the Danish wind turbine manufacturer, reported a higher-than-expected increase in its first-quarter profits as production ramped up for offshore sectors.

Vestas has warned that geopolitical developments, trade tariffs and other uncertainties are likely to continue. However, it reiterated the February guidance for an operating profit margin of 6-8 percent on sales between 20 billion and 22 billion euros. In 2025 the margin would be 5.7% for sales of 18.8 billion euro. The group has been struggling in recent years due to supply?chain disruptions and cost inflation, as well as offshore ramp-up expenses. It is now trying to convert a record backlog of orders into higher margins while dealing with uncertainty surrounding U.S. trade tariffs and wind policy.

Vestas shared an analyst poll that showed the average forecast was 71 million. The operating profit before special items grew to 127 millions euros in the first quarter from 14 million euros a year earlier.

Henrik Andersen, CEO of the company, said in a press release that "we achieved our highest first-quarter profitability ever since 2018". The current geopolitical unrest and energy crisis highlight the need for affordable, reliable, and sustainable energy.

Sales for the third quarter, which is usually the slowest in the industry, rose by 14%, to 3,97 billion euros. This was slightly higher than expected. Vestas reported that the increase was due to sales of offshore turbines, as production ramped up.

Orders increased by a little less than expected, from?3.14 GW to 4.50 GW. This was driven by strong offshore activity and onshore orders across all regions.

Vestas announced that it would purchase 100 million euros of shares.

(source: Reuters)