Vestas Wind Systems A/S, Aarhus, 2 May 2024
Company Announcement no. 07/2024

Summary: Quarterly revenue of EUR 2.7bn with an EBIT margin before special items of (2.5) percent. Order intake of 2.3 GW and record-high combined order backlog of EUR 61.0bn. Full-year guidance maintained.

In the first quarter of 2024, Vestas generated revenue of EUR 2,681m - a decrease of 5.2 percent compared to the year-earlier period. EBIT before special items amounted to EUR (68)m, resulting in an EBIT margin before special items of (2.5) percent. The underlying EBIT margin increased with 1.5 percentage points compared to the first quarter of 2023, when disregarding the effects of the sale of the converters and controls business in the comparison quarter.

Adjusted free cash flow amounted to EUR (997)m compared to EUR (1,280)m in the first quarter of 2023.

The quarterly intake of firm and unconditional wind turbine orders amounted to 2,300 MW, a 30 percent decrease from first quarter 2023. The value of the wind turbine order backlog was EUR 26.6bn as at 31 March 2024.

In addition to the wind turbine order backlog, at the end of the quarter, Vestas had service agreements with expected contractual future revenue of EUR 34.4bn. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 61.0bn - an increase of EUR 10.3bn compared to the year-earlier period.

The full-year guidance is maintained: Revenue is expected to range between EUR 16bn and 18bn, including Service revenue. Vestas expects to achieve an EBIT margin before special items of 4-6 percent, and total investments[1) ]are expected to amount to approx. EUR 1.2bn in 2024.

Group President & CEO Henrik Andersen said: "Vestas' underlying performance continued to improve in the first quarter of 2024, and our financial results were in line with expectations. Our revenue was EUR 2.7bn with an EBIT margin of minus 2.5 percent, which represents a 30 percent increase in gross profit driven by higher project profitability and service growth, but lower project deliveries. Following a very strong finish to 2023, we secured 2.3 GW of orders, while maintaining a strong commercial discipline. As we ramp up to deliver on our growing backlog and deliver across both onshore and offshore, we continue to lead the industry and focus on achieving our financial goals. We maintain our guidance for 2024 and want to thank our customers, partners, and shareholders for their ongoing support, and our more than 30,000 colleagues for the dedication to both Vestas and the energy transition."

Key highlights
Revenue of EUR 2.7bn
Decline of 5 percent YoY driven by lower activity in Power Solutions, offset by 12 percent growth in Service.

EBIT margin of minus 2.5 percent
Disregarding the sale of technology, EBIT improved YoY due to higher project profitability.

Order intake of 2.3 GW
Order intake declined by 30 percent YoY due to strong finish to 2023.

Solid capital structure
Improved earnings are the main driver for a leverage of 1.1x net debt / EBITDA, compared to 5.8x a year ago.

Vestas continues to lead the industry
Through commercial discipline, Vestas maintains the leading position in the global market.

1) Net investments in intangible assets and property, plant and equipment
 

Conference call
On Thursday 2 May 2024 at 10 am CEST (9 am BST), Vestas will host a conference call with a presentation on the results. The presentation will be audiocast and can be viewed live or replayed via vestas.com.

The presentation will be held in English and will conclude with a Q&A.  Details on how to register for the Q&A are to be found at vestas.com/en/investor.

Contact details
Vestas Wind Systems A/S, Denmark

Investors/analysts:
Daniel Patterson, Vice President
Investor Relations
Tel: +45 2669 2725

Frederik Holm Jacobsen
Senior Specialist, Investor Relations
Tel: + 45 2835 3365
Media:
Anders Riis, Vice President
Communications
Tel: +45 4181 3922