Vestas Wind Systems (VWS) Q4 2024 earnings summary

Executive summary

• Achieved 2024 revenue of €17.3 billion, up 12% year-over-year, with EBIT margin before special items at 4.3%, both at the upper end of guidance.

• Q4 2024 was the strongest quarter since 2017, with revenue up 29% year-over-year and a 12.4% EBIT margin.

• Record order intake of 17 GW, valued at €19 billion, with strong momentum in both onshore and offshore segments.

• Service business faced rising costs but completed scrutiny and launched a recovery plan; Service EBIT was €448 million.

• Proposed dividend of DKK 0.55 per share and €100 million share buyback, reflecting confidence in future performance and improved financial strength.

Financial highlights

• Full-year EBIT before special items rose to €741 million, up over 200% year-over-year; net profit €494 million.

• Q4 revenue increased 29% year-over-year to €6.1 billion; Q4 EBIT margin reached 12.4%.

• Gross margin for 2024 was 11.9%, up 3.6 percentage points; Q4 gross margin improved to 18.1%.

• Adjusted free cash flow for 2024 was €1.1 billion, ending the year with a net positive cash position of over €800 million.

• Return on capital employed improved to 8%, up more than 5 percentage points from last year.

Outlook and guidance

• 2025 revenue expected between €18-20 billion; EBIT margin before special items guided at 4-7%.

• Service EBIT before special items expected around €700 million in 2025.

• Investment levels to remain around €1.2 billion, mainly for manufacturing ramp-up, especially offshore.

• Long-term ambition remains at 10% EBIT margin and 20% ROCE over the cycle.