Vestas Wind Systems Reports Strong Performance, Expects Higher Revenue

Vestas Wind Systems, the Danish wind-turbine maker, exceeded market expectations by posting a full-year pretax profit and predicting increased revenue for 2024. In the fourth quarter of last year, the company swung to a pretax profit of €173 million ($186.1 million) from a loss of €480 million in the same period the previous year, surpassing the consensus estimate of €138 million. Although revenue dipped slightly to €4.77 billion from €4.78 billion in the quarter, it still beat the expected €4.58 billion.

For the entire year, Vestas successfully achieved its revenue target, reporting €15.38 billion in bookings compared to the projected range of €14.5 billion to €15.5 billion. This accomplishment was largely driven by the company's growth in its service sector.

Vestas set a new record with an order intake of 18.4 gigawatts for the full year, experiencing substantial growth in both offshore and onshore projects, particularly in the United States.

While Vestas's performance benefited from an improving business environment, the company's Chief Executive Officer Henrik Andersen cautioned that geopolitical volatility, slow permitting processes, and insufficient grid infrastructure development across markets may bring uncertainty in 2024.

Looking ahead, Vestas aims to achieve higher revenue in 2024 with a target range of €16 billion to €18 billion. The company also expects an adjusted EBIT (earnings before interest and taxes) margin between 4% and 6% and plans total investments of approximately €1.2 billion.