Vestas Wind Systems (VWS) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of EUR 18.8 billion in 2025, up 9% year-over-year, driven by growth in both Power Solutions and Service segments, with EBIT margin before special items at 5.7% in the upper end of guidance.

• Service EBIT reached EUR 626 million, meeting revised guidance but below internal targets.

• Order intake totaled 16.3 GW, resulting in a record order backlog, with strong onshore activity offsetting lower offshore orders.

• Proposed dividend of EUR 100 million (DKK 0.74 per share) and share buyback of EUR 150 million, reflecting strong cash flow and capital allocation discipline.

• Manufacturing ramp-up led to extra costs and investments, but progress was made despite ongoing challenges.

Financial highlights

• Gross profit reached an all-time high of EUR 2.5 billion, with a gross margin of 13.3%, up 1.4 percentage points year-over-year.

• EPS rose 60% to EUR 0.8; net profit for 2025 was EUR 780 million, up 58% year-over-year; ROCE improved to 11.8%.

• Q4 revenue increased 2% year-over-year to EUR 6.27 billion; Q4 EBIT margin before special items was 9.3%, down due to ramp-up costs and lower Service revenue.

• Net cash position at year-end was EUR 1.2 billion, after dividends and two share buybacks; operating cash flow for Q4 was EUR 1.3 billion.

• Net working capital improved by EUR 830 million year-over-year, ending at negative EUR 3.1 billion.

Outlook and guidance

• 2026 revenue expected between EUR 20-22 billion; EBIT margin before special items forecast at 6%-8%.

• Service EBIT margin guidance for 2026 is 15.5%-17.5%.

• Total investments for 2026 projected at around EUR 1.2 billion.

• Long-term ambition remains a 10% EBIT margin, with a focus on ramping offshore, cost out, and service margin improvement.