In This Article:
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Revenue: EUR3.5 billion, a 29% increase year-on-year.
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EBIT Margin: Positive 0.4%, an improvement driven by revenue growth and higher profitability.
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Order Intake: 3.1 gigawatts, a 36% increase year-on-year.
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Gross Profit: EUR359 million, a 47% increase, with a gross margin increase of 1.3 percentage points year-on-year.
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Power Solutions Revenue: Increased by 43% year-on-year.
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Service EBIT: EUR166 million, with an EBIT margin of 18%.
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Operating Cash Flow: Positive EUR28 million, a major improvement from last year.
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Adjusted Free Cash Flow: Negative EUR325 million, an improvement of almost EUR100 million compared to Q1 last year.
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Cash Position: EUR366 million at the end of the quarter.
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Total Investments: EUR307 million in Q1.
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Warranty Costs: EUR118 million, an improvement on the full year percentage of 4.3% from last year.
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Net Debt to EBITDA: Minus 0.2%, a significant improvement from 1.1% a year ago.
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Earnings Per Share: Improved to EUR0.6 on a 12-month basis.
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Return on Capital Employed: Almost 9% on a 12-month rolling basis.
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Outlook for 2025: Revenue expected between EUR18 billion to EUR20 billion, EBIT margin before special items between 4% to 7%, and total investments approximately EUR1.2 billion.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Vestas Wind Systems AS (VWDRY) reported a 29% year-on-year increase in Q1 2025 revenue, reaching EUR 3.5 billion, driven by higher activity and pricing in Power Solutions.
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The company achieved a positive EBIT margin of 0.4% in Q1, despite typically low seasonal activity, indicating improved profitability.
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Order intake increased by 36% year-on-year to 3.1 gigawatts, with strong momentum in offshore and EMEA onshore markets.
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The service segment saw a backlog increase to nearly EUR 37 billion, up from EUR 34 billion a year ago, solidifying its position as the largest service business in the industry.
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Vestas Wind Systems AS (VWDRY) maintained a leading market share, increasing from 28% to 30% in global onshore and offshore installations, excluding China.
Negative Points
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Geopolitical and trade volatility, particularly in the US, adds uncertainty and could lead to increased costs due to potential tariffs.
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Permitting processes and market design remain challenging in some markets, impacting project execution timelines.
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The company faces regional supply chain disruptions, particularly in North America, which could affect project deliveries.
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The number of recordable injuries per million working hours increased from 2.9% to 3.2% year-on-year, highlighting ongoing safety challenges.
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The manufacturing ramp-up in both onshore and offshore segments is not yet complete, leading to continued ramp-up costs throughout the year.