Vestas Jumps Most in Four Years on Higher Profit Guidance
(Bloomberg) -- Vestas Wind Systems A/S surged as much as 19%, the most since July 2022, after the company lifted its profit guidance for the year and announced a share buyback following a jump in turbine orders.
The upgrade is another step in Vestas’ turnaround after the company spent years struggling to improve profitability amid soaring costs and supply-chain disruptions in the wake of the coronavirus pandemic. Now, with demand for its equipment growing, Vestas has been able to increase prices and says it is well-positioned to deliver growth for years to come.
“It’s the start of something much bigger,” Vestas Chief Executive Officer Henrik Andersen said in an interview. “We’ve scaled for it and so we are ready to deliver.”
Vestas expects a profit margin of between 7% and 9% for the full year, up from 6% to 8% previously. The company will also return cash to shareholders through a €400 million ($461 million) buyback that will run until the end of the year.
Reformed permitting rules in Germany are leading to a surge in wind-farm installations in Europe’s biggest power market, while other countries are revising incentives to install more turbines at sea.
Even in the US, where President Donald Trump has sought to stymie the industry, soaring power consumption from AI data centers has bolstered demand for all generation technologies, including wind.
“The US is coming to a conclusion of ‘We need more of everything,’” Andersen said on a call with analysts.
Put together, efforts to decarbonize the power system, meet rising electricity needs and bolster domestic energy production are driving growth at Vestas, one of the world’s oldest and largest producers of the technology in the world.
Second quarter earnings before interest and taxes and before significant items came in at €446 million, more than double analysts’ estimates.
“Vestas reported a stellar second quarter performance,” JPMorgan Chase & Co analysts led by Akash Gupta wrote in a note. “Overall, this may be the best print the company has had in several years.”
While the company has increased prices in recent years, orders have continued to climb. Total turbine orders rose more than 50% in the first half from a year earlier, and the value of the delivery backlog reached €36 billion by the end of June. The wind-turbine business traditionally sees stronger activity in the second half, potentially setting Vestas up for a record year.
Shares have been highly volatile in recent years. After doubling in price in 2020, shares plunged by a third in 2021 as the company struggled with rapidly rising costs. Shares are up almost 20% so far this year after a 77% gain in 2025.
Outlook for revenue for the year was unchanged and is set to be in a range of €20 billion to €22 billion.
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