Vestas profits in 2023
Danish wind turbine manufacturer Vestas Wind Systems A/S (CPH:VWS) successfully returned to profitability in 2023, surpassing revenue and EBIT margin expectations and achieving a record order intake of 18.4 GW.
Revenue rose to EUR 15.4 billion (USD 16.5bn) from EUR 14.5 billion in 2022, driven by higher pricing and sustained growth in the Service segment, which aligned with the projected range of EUR 14.5 billion to EUR 15.5 billion.
The company attained an EBIT margin before special items of 1.5%, a significant improvement from the negative 8% in 2022 and in line with the anticipated 0-2% outlook.
The unprecedented order intake, comprising 15.3 GW onshore and 3.1 GW offshore orders, “was propelled by an exceptional fourth quarter, highlighting our robust year-end momentum,” stated chief executive Henrik Andersen.
While the business environment exhibited improvement in 2023, Andersen cautioned that ongoing geopolitical volatility, sluggish permitting, and inadequate grid expansion across markets are contributing to uncertainty in 2024. The company is committed to maintaining discipline and sustaining its momentum to ultimately achieve double-digit profitability.
Vestas anticipates its 2024 revenue to range between EUR 16 billion and EUR 18 billion, inclusive of Service revenue, and aims to achieve an EBIT margin before special items of 4%-6%.
The following table presents select figures from Vesta’s 2023 report:
in EUR million 2023 2022
Revenue 15,382 14,486
Gross profit 1,283 118
Operating profit (loss)/EBIT 292 (1,596)
Pre-tax profit (loss) 102 (1,696)
Profit (loss) for the period 78 (1,572)
Free cash flow 245 (874)
In the fourth quarter of 2023, revenue remained relatively steady at EUR 4.8 billion, but the company transitioned to a net profit of EUR 149 million from a net loss of EUR 541 million in the same quarter of 2022. EBIT margin before special items improved to 4% from negative 10.7%. The order intake reached 8.2 GW, compared to 4.2 GW a year earlier.
Throughout 2022, orders totaled nearly 11.2 GW. Order intake in 2021, 2020, and 2019 was 13.9 GW, 17.2 GW, and 17.9 GW, respectively.
