Vestas Wind Systems AS (VWDRY) AI Stock Analysis

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Vestas Wind Systems AS

(OTC:VWDRY)

Rating:75Outperform

Price Target:

$8.00

▲(17.65% Upside)

Vestas Wind Systems AS scores well due to strong financial performance and technical analysis indicators showing bullish momentum. The valuation is moderate, with a relatively high P/E ratio and low dividend yield. The earnings call highlights both growth and challenges, with a positive future outlook but some operational risks.

Vestas Wind Systems AS (VWDRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$20.79B

Dividend Yield0.41%

Average Volume (3M)251.89K

Price to Earnings (P/E)25.0

Beta (1Y)0.80

Revenue Growth23.35%

EPS GrowthN/A

CountryUS

Employees35,927

SectorIndustrials

Sector Strength75

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.01

Shares Outstanding3,029,632,000

10 Day Avg. Volume352,038

30 Day Avg. Volume251,891

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 Cap0.73

Enterprise Value/Revenue0.84

Enterprise Value/Gross Profit7.00

Enterprise Value/Ebitda15.49

Forecast

1Y Price Target

$8.00

Price Target Upside17.65% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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

Chart InsightsVestas Wind Systems' Power Solutions segment shows a volatile recovery, with recent profitability driven by improved onshore project execution and reduced warranty costs. Despite a challenging order intake, especially in the U.S., the segment's positive trajectory aligns with strategic manufacturing ramp-up efforts. The Services segment faces currency headwinds, impacting revenue, yet maintains a strong order backlog. The company's focus on sustainability and operational efficiency underpins its long-term growth outlook, despite current offshore ramp-up costs and safety challenges.

Data provided by:

Main Street Data

Vestas 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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

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

Technical Analysis Sentiment

Positive

Last Price6.80

Price Trends

50DMA

5.93

Positive

100DMA

5.40

Positive

200DMA

5.05

Positive

Market Momentum

MACD

0.29

Negative

RSI

60.70

Neutral

STOCH

79.17

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 6.8 is above the 20-day moving average (MA) of 6.33, above the 50-day MA of 5.93, and above the 200-day MA of 5.05, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 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

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMI	77 Outperform	$54.90B	18.63	27.56%	1.87%	-1.30%	53.39%
ETN	76 Outperform	$134.60B	34.97	20.76%	1.15%	7.66%	9.19%
VWDRY	75 Outperform	$20.79B	25.01	24.19%	0.41%	23.35%	―
IR	67 Neutral	$32.25B	62.21	5.21%	0.10%	4.67%	-36.65%
Sector *	64 Neutral	$10.95B	16.10	8.81%	1.99%	2.59%	-16.41%
BWEN	48 Neutral	$50.92M	30.96	-3.73%	―	-18.38%	-128.11%
TPICQ	38 Underperform	$1.66M	―		―	4.77%	7.98%

* Industrials Sector Average

Performance Comparison

VWDRY

Vestas Wind Systems AS

6.80

-0.71

-9.45%

BWEN

Broadwind Energy

2.21

-0.04

-1.78%

CMI

Cummins

398.46

95.41

31.48%

ETN

Eaton

352.02

54.78

18.43%

TPICQ

TPI Composites

0.03

-4.22

-99.29%

Ingersoll Rand

81.13

-9.59

-10.57%

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.Date of analysis: Aug 20, 2025