Vestas Wind Systems (VWS) Q2 2025 earnings summary

Executive summary

• Revenue grew 14% year-over-year to EUR 3.7 billion, driven by higher turbine deliveries and service revenue, with improved onshore project performance offset by offshore ramp-up costs.

• EBIT margin before special items was 1.5%, reflecting improved profitability, with most activity and earnings expected in the second half of the year.

• Order intake fell 44% year-over-year to 2.0 GW, mainly due to policy uncertainty in the USA and no offshore orders in the quarter.

• Service backlog increased to EUR 36bn, with 159 GW under service, as the service recovery plan continues.

• 2025 outlook guidance is maintained, with revenue expected at EUR 18-20bn and EBIT margin before special items at 4-7%.

Financial highlights

• Gross profit increased to EUR 417 million (11.1% margin), mainly from higher delivery volumes and improved onshore profitability.

• Net profit turned positive at EUR 34m, compared to a loss of EUR 156m in Q2 2024.

• Adjusted free cash flow was negative EUR 227m, reflecting increased investments and working capital needs.

• Net debt position at quarter-end was EUR 7m after dividend payouts and share buybacks.

• Warranty costs improved to 3.1% of revenue, down from 4.3% in Q2 last year.

Outlook and guidance

• 2025 revenue guidance remains EUR 18-20 billion, with EBIT margin before special items of 4%-7%.

• Service EBIT before special items expected around EUR 700 million; total investments forecast at EUR 1.2 billion.

• Guidance range remains wide due to ongoing market and policy uncertainties, especially in the U.S.