Key Highlights
- VWS shares rocketed nearly 19% higher Wednesday, marking the largest single-day gain since July 2022
- Second-quarter adjusted EBIT of €446 million demolished the €205 million analyst consensus, representing a 117% upside surprise
- Company upgraded full-year EBIT margin forecast to 7-9% range from prior 6-8% guidance
- Board authorized a €400 million share repurchase program to run through December
- First-half turbine orders climbed more than 50% year-over-year, with order backlog reaching €36 billion
Shares of Vestas Wind Systems (VWS) exploded nearly 19% higher during Wednesday’s trading session, climbing to levels not seen since December 2023, following the Danish renewable energy company’s release of second-quarter results that far exceeded Wall Street’s projections.
Vestas Wind Systems A/S, VWSYF
The dramatic share price rally began immediately after market open when Vestas disclosed adjusted EBIT of €446 million for the second quarter, dwarfing the consensus analyst estimate of €205 million. The result represented an upside surprise of approximately 117% and exceeded even the most bullish projections in the analyst survey.
Quarterly revenue reached €4.72 billion, landing approximately 4% above the €4.54 billion consensus figure. The company’s gross profit of €801 million similarly outperformed, surpassing the €664 million upper boundary of analyst projections.
The Power Solutions division emerged as the star performer during the quarter. The segment generated adjusted EBIT of €397 million versus consensus expectations of €156 million, achieving an EBIT margin of 10.4%. This margin performance came in roughly 600 basis points higher than analysts had anticipated.
Jefferies, which maintains a buy recommendation on VWS with a DKK215 price target, attributed the Power Solutions margin outperformance to “strong execution in both onshore and offshore.”
Full-Year Margin Forecast Upgraded
Management raised its full-year EBIT margin guidance range to 7-9%, representing a one percentage point increase from the prior 6-8% outlook. The company maintained its revenue guidance band at €20 billion to €22 billion.
Jefferies noted that the midpoint of the revised margin guidance suggests approximately 9% upward revisions to consensus earnings estimates.
Net income for the three-month period totaled €285 million, substantially exceeding both the €144 million consensus and the €193 million high-end estimate. This represents a significant improvement from the €34 million reported in the same quarter last year.
The company generated free cash flow of €99 million, modestly trailing the €112 million consensus estimate. Management indicated that cash flow generation would be weighted toward the second half of the fiscal year.
€400 Million Buyback Program Initiated
Vestas’ board of directors authorized a new €400 million share repurchase program scheduled to commence August 13 and continue through the end of 2025. Chief Executive Henrik Andersen characterized the decision as a demonstration of management’s conviction in the company’s future prospects.
“Demand for wind energy solutions remains strong due to the growing need for secure, affordable, and sustainable energy,” Andersen stated in the company’s release.
The company secured wind turbine orders totaling 3,349 megawatts during the second quarter, exceeding consensus expectations by 3%. Turbine deliveries reached 3,504 megawatts, also surpassing the 3,406-megawatt analyst forecast, with the EMEA region driving higher volumes.
Aggregate turbine orders for the first six months increased more than 50% compared to the prior-year period. The company’s delivery backlog stood at €36 billion as of June 30.
Average selling prices settled at €1.0 million per megawatt, down from €1.11 million in the year-ago quarter. The decline reflects the absence of offshore orders during the current quarter and an increased proportion of lower-scope projects in the United States.
The service division generated revenue of €896 million, essentially in line with the €900 million consensus. The segment posted adjusted EBIT of €149 million with a 16.6% margin, meeting analyst expectations.
VWS shares have now advanced more than 20% year-to-date, building on a remarkable 77% gain recorded in 2025.
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