Vestas has turned the tide on its financial performance, reporting a €57 million EBIT before special items for the second quarter of 2025. This marks a significant improvement from the €185 million loss in the same period last year, driven by enhanced onshore project performance and reduced warranty costs. However, these gains were partially offset by investments in offshore manufacturing, a strategic move to secure the company’s long-term success in that sector.
The result translates to a 1.5% EBIT margin, a stark contrast to the negative 5.6% margin reported in the second quarter of 2024. Revenue rose by 13.6% year-on-year to €3.75 billion, indicating a robust recovery. Group president and CEO Henrik Andersen attributed the positive turnaround to the company’s strategic focus and execution. “Vestas increased its revenue 14% year-on-year to €3.7bn and achieved an EBIT margin of 1.5% in the second quarter of 2025, ensuring we remain on track for our 2025 outlook,” Andersen stated.
The service business delivered solid results, contributing to the overall performance. Andersen highlighted progress on the company’s recovery plan but noted that political uncertainty continues to affect key markets. “In the quarter, we had good order momentum in EMEA, but political uncertainty impacted key markets, and Vestas continues to work with customers, partners and governments to address market challenges and help build affordable, secure and sustainable energy systems,” he added.
Despite the positive outlook, firm and unconditional wind turbine orders totalled 2,009MW in the quarter, down 44% year-on-year. This decline was attributed to customers in some regions delaying commitments pending policy clarity, particularly in the US. The wind turbine order backlog stood at €31.4bn at 30 June, while service agreements were valued at €35.9bn, taking the combined backlog to €67.3bn – up €4.3bn on the year.
Vestas maintained its full-year guidance, forecasting revenue between €18bn and €20bn and an EBIT margin before special items of 4–7%. Total investments are expected to be about €1.2bn in 2025. The manufacturer noted that ramp-up in both onshore and offshore manufacturing was progressing, with the first V236 nacelle assembled at its Polish facility. Return on capital employed over the last 12 months reached 11.5%, the highest since 2020.
This financial turnaround and strategic investments in offshore manufacturing could shape the development of the wind energy sector. Vestas’ focus on long-term success in offshore wind, coupled with its recovery plan progress, may set a precedent for other manufacturers. The company’s ability to navigate political uncertainties and maintain a robust order backlog underscores the resilience of the wind energy market. As Vestas continues to invest in innovation and expansion, it could drive further growth and stability in the renewable energy sector.