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Vestas Wind (VWDRY)
:VWDRY
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Vestas Wind Systems AS
(OTC:VWDRY)
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Rating:69Neutral
Price Target:
$7.00
▲(4.95% Upside)
Vestas Wind Systems AS shows strong financial performance and cash flow management, which are the most significant factors driving the score. The technical analysis indicates a neutral market sentiment, while the valuation suggests moderate pricing. The earnings call highlights both growth potential and challenges, particularly in the U.S. market. The absence of notable corporate events means they do not impact the overall score.
Vestas Wind Systems AS (VWDRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.70B
Dividend Yield0.43%
Average Volume (3M)176.90K
Price to Earnings (P/E)23.9
Beta (1Y)0.72
Revenue Growth23.35%
EPS GrowthN/A
CountryUS
Employees35,927
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.01
Shares Outstanding3,029,632,000
10 Day Avg. Volume208,127
30 Day Avg. Volume176,898
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit7.00
Enterprise Value/Ebitda15.49
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Vestas Wind Systems AS Business Overview & Revenue Model
Company DescriptionVestas Wind Systems AS (VWDRY) is a leading global provider of wind energy solutions, headquartered in Denmark. The company specializes in the design, manufacture, installation, and servicing of wind turbines, playing a vital role in the renewable energy sector. Vestas operates in multiple segments, including onshore and offshore wind energy, and offers a range of products and services that promote sustainable energy production and reduce carbon emissions. With a strong emphasis on innovation and technology, Vestas aims to deliver efficient and reliable wind energy solutions to customers worldwide.
How the Company Makes MoneyVestas Wind Systems AS generates revenue primarily through the sale of wind turbines and related services. Key revenue streams include the manufacturing and installation of turbines, long-term service contracts, and maintenance services for existing wind farms. The company also benefits from performance-based services, where revenue is tied to the operational efficiency and uptime of the installed turbines. Significant partnerships with energy developers, utilities, and governments enhance Vestas's earnings potential, as they collaborate on large-scale wind projects. Additionally, Vestas capitalizes on growing demand for renewable energy solutions, supported by favorable regulatory environments and increasing investments in sustainable infrastructure.
Vestas Wind Systems AS Key Performance Indicators (KPIs)
Any
Operating Profit by Segment
Data provided by:
Main Street Data
Main Street DataVestas Wind Systems AS Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there was significant revenue growth and achievements in onshore projects, challenges were noted in order intake, primarily in the U.S., and offshore ramp-up costs. Service revenue faced a decline due to currency headwinds, and there was an increase in safety incidents. The positive outlook for the future and sustainability achievements provide a balanced view.Q2-2025 Updates
Positive Updates
Revenue Growth
The quarter ended with a revenue of EUR 3.7 billion, which is an increase of 14% year-on-year.
Onshore Project Performance
Improved onshore project performance and lower warranty costs contributed positively to the EBIT margin.
Return on Capital Employed
Return on capital employed improved to 11.5% in the last 12 months, the highest since 2020.
Service Order Backlog
Service order backlog increased to EUR 36 billion from EUR 35 billion a year ago, despite foreign currency translation impacts.
Sustainability Achievements
Turbines produced and shipped in the last 12 months are expected to avoid 480 million tonnes of greenhouse gas emissions over their lifetime.
Negative Updates
Order Intake Decline
Order intake ended at 2 gigawatts, down 44% compared to last year. This decline was mainly driven by a lack of orders in the Americas, especially in the U.S., as customers awaited policy clarity.
Offshore Ramp-Up Costs
Offshore ramp-up costs impacted profitability, with ongoing investment in ramping up facilities in Poland.
Service Revenue Decline
Service revenue declined 4% year-on-year, mainly due to a 3% currency headwind.
ASP Decline
The ASP declined to EUR 1.11 million per megawatt in Q2 compared to EUR 1.24 million per megawatt in the prior quarter.
Increased Safety Incidents
The number of recordable injuries per million working hours increased from 2.8 to 3.0 year-on-year.
Company Guidance
In the recent Vestas Q2 investor presentation, several key metrics and guidance were discussed. The company reported a revenue of EUR 3.7 billion for the quarter, marking a 14% increase year-on-year, with an EBIT margin of 1.5%. The order intake stood at 2 gigawatts, a decrease of 44% compared to the previous year, primarily due to policy uncertainties affecting U.S. customers. Vestas achieved a return on capital employed of 11.5% over the past 12 months, the highest since 2020. The company maintained its 2025 outlook, projecting revenue between EUR 18 billion and EUR 20 billion and an EBIT margin of 4% to 7%. The Service segment's order backlog increased to EUR 36 billion, although it experienced a decline compared to Q1 due to foreign currency translation effects. The company highlighted improvements in onshore project execution, lower warranty costs, and ongoing manufacturing ramp-up efforts, particularly in offshore operations. Additionally, Vestas emphasized its continued focus on sustainability, noting that turbines produced in the last 12 months are expected to avoid 480 million tonnes of greenhouse gas emissions over their lifetime.Vestas Wind Systems AS Financial Statement Overview
Summary
Vestas Wind Systems AS demonstrates strong financial performance with significant revenue growth, improved profitability, and robust cash flow management. The absence of debt and strong cash generation are key strengths, but the high reliance on liabilities and moderate profitability margins suggest room for improvement.Income Statement
Vestas Wind Systems AS shows a positive trajectory in its income statement, with a significant increase in total revenue from $15.38 billion in 2023 to $17.29 billion in 2024, reflecting a revenue growth rate of 12.92%. The gross profit margin improved to 11.89% in 2024 from 8.34% in 2023, indicating better cost management. The company's net profit margin increased to 2.88% in 2024 from 0.50% in 2023, demonstrating enhanced profitability. However, the EBIT and EBITDA margins, while improved, remain moderate at 4.59% and 10.20%, respectively, suggesting room for further operational efficiency gains.75
Positive
Balance Sheet
The balance sheet of Vestas Wind Systems AS indicates a stable financial position with zero total debt as of 2024, which is an improvement from $3.39 billion in 2023, enhancing its financial flexibility. The equity ratio stands at 14.32% in 2024, slightly increasing from 13.45% in 2023, showing a modest improvement in financial leverage. The return on equity improved to 14.15% in 2024 from 2.54% in 2023, reflecting a better utilization of equity to generate profits. Despite these strengths, the relatively low equity ratio indicates a high reliance on liabilities.68
Positive
Cash Flow
Vestas Wind Systems AS exhibits strong cash flow metrics with operating cash flow increasing to $2.33 billion in 2024 from $1.03 billion in 2023, indicating robust cash generation capabilities. The free cash flow also improved significantly to $1.18 billion in 2024 from $135 million in 2023, a growth rate of 774.07%, showcasing effective capital expenditure management. The operating cash flow to net income ratio of 4.67 in 2024 underlines strong cash earnings compared to accounting profits. The company demonstrates excellent liquidity and cash flow management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.08B | 17.30B | 15.38B | 14.49B | 15.59B | 14.82B |
| Gross Profit | 2.17B | 2.06B | 1.28B | 118.00M | 1.56B | 1.54B |
| EBITDA | 981.00M | 1.76B | 1.13B | -545.00M | 1.26B | 1.66B |
| Net Income | 572.00M | 499.00M | 77.00M | -1.57B | 134.00M | 765.00M |
Balance Sheet | ||||||
| Total Assets | 25.28B | 24.64B | 22.51B | 20.09B | 19.71B | 18.16B |
| Cash, Cash Equivalents and Short-Term Investments | 3.56B | 3.94B | 3.32B | 2.35B | 2.51B | 3.15B |
| Total Debt | 0.00 | 3.27B | 3.39B | 2.43B | 1.44B | 1.35B |
| Total Liabilities | 21.91B | 21.10B | 19.47B | 17.03B | 14.95B | 13.46B |
| Stockholders Equity | 3.35B | 3.53B | 3.03B | 3.04B | 4.75B | 4.65B |
Cash Flow | ||||||
| Free Cash Flow | 1.85B | 1.18B | 135.00M | -1.01B | 120.00M | 55.00M |
| Operating Cash Flow | 3.12B | 2.33B | 1.03B | -195.00M | 996.00M | 743.00M |
| Investing Cash Flow | -1.45B | -1.34B | -782.00M | -679.00M | -939.00M | -267.00M |
| Financing Cash Flow | -557.00M | -478.00M | 743.00M | 846.00M | -715.00M | -234.00M |
Vestas Wind Systems AS Technical Analysis
Positive
6.67
Price Trends
6.49
Negative
6.10
Positive
5.42
Positive
Market Momentum
<0.01
Positive
50.85
Neutral
26.92
Neutral
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 6.67 is above the 20-day moving average (MA) of 6.53, above the 50-day MA of 6.49, and above the 200-day MA of 5.42, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 26.92 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
| ― | $11.26B | 31.63 | 14.59% | ― | 9.69% | 54.29% | |
| ― | $8.97B | 36.98 | 9.09% | ― | 8.94% | 137.02% | |
| ― | $31.71B | 62.29 | 5.21% | 0.10% | 4.67% | -36.65% | |
| ― | $58.07B | 19.82 | 27.56% | 1.77% | -1.30% | 53.39% | |
| ― | $19.70B | 23.90 | 24.19% | 0.43% | 23.35% | ― | |
| ― | $6.30B | 609.34 | 0.67% | ― | 7.88% | ― | |
| ― | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
VWDRY
Vestas Wind Systems AS
6.48
0.37
6.06%
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Vestas Wind Systems AS Corporate Events
Vestas Wind Earnings Call: Growth Amid Challenges
Sep 1, 2025
The recent earnings call for Vestas Wind presented a mixed sentiment, reflecting both achievements and challenges. The company reported significant revenue growth and accomplishments in onshore projects, yet faced difficulties with order intake, particularly in the U.S., and incurred costs related to offshore ramp-up. Despite a decline in service revenue due to currency headwinds and an increase in safety incidents, the positive outlook for future growth and sustainability achievements provided a balanced perspective.
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.