Vestas Wind Systems AS (VWDRY)
OTHER OTC:VWDRY
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Vestas Wind Systems AS
(OTC:VWDRY)
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Rating:66Neutral
Price Target:
$11.00
▲(7.53% Upside)
Action:DowngradedDate:02/08/26
The score is driven mainly by improved financial performance and a constructive earnings outlook with strong cash generation and capital returns. It is tempered by weak near-term technical momentum, a relatively high P/E with minimal yield support, and operational risks cited on the call (Service underperformance and Offshore ramp-up costs).
Positive Factors
Strong cash generation & net cash
Sustained operating and free cash flow, plus a year-end net cash position, give Vestas durable financial flexibility. This supports ongoing capex for product development, funds Offshore scale-up, enables the EUR 150m buyback and dividend policy, and reduces refinancing risk across project cycles.
Negative Factors
Service revenue decline
A 16% drop in Service revenue weakens the recurring, higher‑visibility portion of Vestas' cash flows and margin base. Management says Service recovery is only 'halfway' through; persistent unit cost pressures and operational inefficiencies could prolong margin recovery and reduce long-term cash conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & net cash
Sustained operating and free cash flow, plus a year-end net cash position, give Vestas durable financial flexibility. This supports ongoing capex for product development, funds Offshore scale-up, enables the EUR 150m buyback and dividend policy, and reduces refinancing risk across project cycles.
Read all positive factors
Vestas Wind Systems AS (VWDRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.27B
Dividend Yield0.31%
Average Volume (3M)251.20K
Price to Earnings (P/E)29.4
Beta (1Y)0.60
Revenue Growth19.75%
EPS Growth1784.07%
CountryUS
Employees35,927
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.17
Shares Outstanding3,029,632,000
10 Day Avg. Volume382,961
30 Day Avg. Volume251,199
Financial Highlights & Ratios
PEG Ratio0.55
Price to Book (P/B)5.91
Price to Sales (P/S)1.27
P/FCF Ratio22.69
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit10.08
Enterprise Value/Ebitda21.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.43
Revenue Forecast (FY)$24.47B
Vestas Wind Systems AS Business Overview & Revenue Model
Company Description
Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two segments, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites...
How the Company Makes Money
Vestas primarily makes money through (1) selling wind turbine systems and related project delivery services and (2) providing long-term service and support for wind turbines after installation. Turbine-related revenue comes from contracts with cus...
Vestas Wind Systems AS Key Performance Indicators (KPIs)
Any
Operating Profit by Segment
Data provided by:
The Fly
The FlyVestas Wind Systems AS Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: record revenue, higher EBIT margin, stronger ROCE and EPS, robust order backlogs, improved warranty performance, and strong cash generation and capital returns (dividend and EUR 150m buyback). However, meaningful challenges remain — notably a 16% decline in Service revenue, Service underperformance versus internal targets, Offshore ramp-up costs and associated margin drag, and one-off restructuring charges. Management provided a clear recovery plan for Service and signaled confidence in the Offshore ramp and long-term margins, while updating capital allocation to return more cash. On balance the positive achievements and financial strength outweigh the stated lowlights, but several operational risks persist into 2026.Positive Updates
Record Revenue and Improved Profitability
Full year 2025 revenue of EUR 18.8 billion (up 9% YoY) and gross profit at an all-time high of EUR 2.5 billion. EBIT margin before special items improved to 5.7% (up 1.4 percentage points YoY).
Negative Updates
Service Revenue Decline and Underperformance
Service revenue fell 16% YoY for 2025; Service delivered on revised EBIT guidance but outcome fell short of internal performance targets. Q4 Service EBIT impacted by extra costs at specific sites.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Improved Profitability
Full year 2025 revenue of EUR 18.8 billion (up 9% YoY) and gross profit at an all-time high of EUR 2.5 billion. EBIT margin before special items improved to 5.7% (up 1.4 percentage points YoY).
Read all positive updates
Company Guidance
Vestas guided 2026 revenue of EUR 20–22 billion with an EBIT margin before special items of 6–8% (Service EBIT margin 15.5–17.5%) and total investments around EUR 1.2 billion. The company reiterated a capital‑allocation framework targeting net interest‑bearing debt/EBITDA between -1x and +1x (year‑end 2025: net cash ~EUR 1.2 billion, -0.6x), a commitment to return at least 40% of net profit via dividend and buybacks (proposed dividend DKK 0.74 per share, ≈EUR 100 million, plus an immediate EUR 150 million share buyback). Management pointed to strong cash and working‑capital metrics supporting the outlook: Q4 operating cash flow EUR 1.3 billion, adjusted free cash flow EUR 872 million, net working capital -EUR 3.1 billion (improved EUR 830 million YoY); FY2025 context included revenue EUR 18.8 billion, EBIT margin 5.7%, ROCE 11.8%, order intake 16.3 GW and backlogs (Service EUR 38.7 billion; Power Solutions EUR 33.2 billion).Vestas Wind Systems AS Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.08B | 17.30B | 15.38B | 14.49B | 15.59B |
| Gross Profit | 2.50B | 2.06B | 1.28B | 118.00M | 1.56B |
| EBITDA | 2.24B | 1.76B | 1.13B | -545.00M | 1.26B |
| Net Income | 778.00M | 499.00M | 77.00M | -1.57B | 134.00M |
Balance Sheet | |||||
| Total Assets | 25.73B | 24.64B | 22.51B | 20.09B | 19.71B |
| Cash, Cash Equivalents and Short-Term Investments | 4.53B | 3.94B | 3.32B | 2.35B | 2.51B |
| Total Debt | 3.37B | 3.27B | 3.39B | 2.43B | 1.44B |
| Total Liabilities | 21.85B | 21.10B | 19.47B | 17.03B | 14.95B |
| Stockholders Equity | 3.87B | 3.53B | 3.03B | 3.04B | 4.75B |
Cash Flow | |||||
| Free Cash Flow | 1.01B | 1.18B | 135.00M | -1.01B | 120.00M |
| Operating Cash Flow | 2.21B | 2.33B | 1.03B | -195.00M | 996.00M |
| Investing Cash Flow | -1.14B | -1.34B | -782.00M | -679.00M | -939.00M |
| Financing Cash Flow | -522.53M | -478.00M | 743.00M | 846.00M | -715.00M |
Vestas Wind Systems AS Technical Analysis
Positive
10.23
Price Trends
8.72
Positive
8.77
Positive
7.56
Positive
Market Momentum
0.41
Negative
70.61
Negative
85.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWDRY, the sentiment is Positive. The current price of 10.23 is above the 20-day moving average (MA) of 8.87, above the 50-day MA of 8.72, and above the 200-day MA of 7.56, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 70.61 is Negative, neither overbought nor oversold. The STOCH value of 85.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VWDRY.
Vestas Wind Systems AS Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $33.44B | 54.24 | 5.70% | 0.10% | 4.20% | -34.47% | |
67 Neutral | $84.42B | 24.76 | 24.13% | 1.48% | -1.78% | 27.35% | |
66 Neutral | $31.27B | 29.40 | 22.56% | 0.31% | 19.75% | 1784.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $4.83B | 187.00 | 1.73% | ― | 7.81% | ― | |
60 Neutral | $12.17B | 50.02 | 6.19% | ― | 5.52% | 9.03% | |
47 Neutral | $9.95B | 219.88 | 1.26% | ― | 5.47% | -75.40% |
* Industrials Sector Average
VWDRY
Vestas Wind Systems AS
10.23
5.85
133.51%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.