Vestas Wind Systems AS (VWDRY) AI Stock Analysis

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Vestas Wind Systems AS

(OTC:VWDRY)

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Outperform 77 (OpenAI - 5.2)

Rating:77Outperform

Price Target:

$11.00

▲(18.41% Upside)

The score is driven primarily by improved financial fundamentals (stronger profitability, cash flow, and a much cleaner leverage position) alongside a clearly positive technical trend. The latest earnings call supports the recovery story with better margins, solid orders, and a buyback, but Service and cost/operational headwinds temper optimism. Valuation is the main constraint, with a higher P/E and low dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective execution, supporting long-term business expansion and stability.

Cash Flow Management

Robust cash flow generation enhances financial flexibility, allowing for strategic investments and resilience against market fluctuations.

Zero Debt Position

A zero debt position reduces financial risk, providing Vestas with greater leverage to invest in growth opportunities and weather economic downturns.

Negative Factors

Service Segment Challenges

Challenges in the Service segment can impact long-term profitability and customer satisfaction, necessitating strategic adjustments.

Safety Concerns

Rising safety incidents can lead to increased costs and regulatory scrutiny, affecting operational efficiency and reputation.

ASP Decline in Power Solutions

A decline in average selling price may pressure margins and profitability, requiring strategic pricing and cost management adjustments.

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

Market Cap

$28.93B

Dividend Yield0.31%

Average Volume (3M)107.89K

Price to Earnings (P/E)27.8

Beta (1Y)0.57

Revenue Growth19.75%

EPS Growth1784.07%

CountryUS

Employees35,927

SectorIndustrials

Sector Strength72

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.12

Shares Outstanding3,029,632,000

10 Day Avg. Volume128,653

30 Day Avg. Volume107,893

Financial Highlights & Ratios

PEG Ratio0.05

Price to Book (P/B)3.75

Price to Sales (P/S)0.77

P/FCF Ratio11.25

Enterprise Value/Market Cap0.44

Enterprise Value/Revenue0.68

Enterprise Value/Gross Profit4.79

Enterprise Value/Ebitda9.08

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

EPS Forecast (FY)0.42

Revenue Forecast (FY)$24.51B

Vestas Wind Systems AS Business Overview & Revenue Model

Company DescriptionVestas 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, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.

How the Company Makes MoneyVestas generates revenue primarily through the sale of wind turbines and associated services. This includes the manufacturing and installation of turbine systems, which account for a significant portion of its income. Additionally, Vestas offers long-term service agreements (LTSA) that provide ongoing maintenance and support for the wind farms, contributing to a steady revenue stream. The company also benefits from strategic partnerships with energy developers and utility companies, which enhance its market reach and project pipeline. Furthermore, Vestas capitalizes on government incentives and renewable energy policies that promote the adoption of wind energy, allowing it to secure contracts in various regions worldwide.

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:

The Fly

Vestas Wind Systems AS Earnings Call Summary

Earnings Call Date:Nov 05, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Feb 05, 2026

Earnings Call Sentiment Neutral

The earnings call reflected a balanced view with significant achievements in revenue growth, order intake, and gross profit, countered by challenges in the Service segment, safety metrics, and ASP decline. The sentiment remains cautiously optimistic as Vestas navigates both opportunities and operational challenges.

Q3-2025 Updates

Positive Updates

Revenue Growth

Vestas reported Q3 revenue of EUR 5.3 billion, a 3% increase year-on-year driven by higher deliveries despite negative foreign exchange impacts.

EBIT Margin Improvement

EBIT margin stood at 7.8%, achieved through improved Onshore project execution and lower warranty costs, despite manufacturing ramp-up costs.

Order Intake Increase

Order intake reached 4.6 gigawatts, up 4% year-on-year, with significant contributions from the U.S. and Germany; Onshore orders increased more than 60% quarter-on-quarter compared to last year.

Share Buyback Initiation

Vestas announced a share buyback of EUR 150 million, reflecting a solid liquidity position and capital structure strategy.

Record-Breaking Gross Profit

Gross profit reached a record EUR 772 million in Q3, the highest ever for the third quarter, driven by improved profitability in Onshore and lower warranty costs.

Net Working Capital Improvement

Net working capital decreased significantly by EUR 1.4 billion compared to Q3 last year, due to high project deliveries and a focus on working capital management.

Negative Updates

Service Segment Challenges

Service revenue declined by 3% year-on-year due to lower transactional sales and a negative 3% currency headwind. Additional costs in Q4 are expected related to specific Offshore sites.

ASP Decline in Power Solutions

Average selling price (ASP) in Power Solutions declined to EUR 1.01 million per megawatt in Q3 from EUR 1.11 million in the previous quarter, driven by a change in order mix.

Safety Concerns

The number of recordable injuries per million working hours increased from 2.8 to 3.3 year-on-year, highlighting ongoing safety challenges despite a focus on improvement.

Service Order Backlog Exchange Rate Headwind

Service order backlog increased to EUR 36.6 billion despite a EUR 1.5 billion headwind from foreign exchange rate movements year-to-date.

Company Guidance

In Vestas' Q3 2025 call, the company reported strong performance with a 3% year-on-year increase in revenue to EUR 5.3 billion, driven by higher deliveries despite negative foreign exchange impacts. The EBIT margin reached 7.8%, supported by improved Onshore project execution and lower warranty costs, although these were partly offset by manufacturing ramp-up costs. Vestas recorded an order intake of 4.6 gigawatts, a 4% increase year-on-year, with significant contributions from the U.S. and Germany. The company announced a share buyback of EUR 150 million, reflecting its solid liquidity position and commitment to returning value to shareholders. The Service segment's outlook was revised due to foreign exchange headwinds and specific Offshore site costs, with the Service order backlog increasing to EUR 36.6 billion. Vestas also highlighted its sustainability efforts, expecting its turbines to avoid 461 million tonnes of greenhouse gas emissions over their lifetime. The company narrowed its full-year revenue outlook to EUR 18.5-19.5 billion and adjusted its EBIT margin forecast to 5-6% due to stronger Onshore execution and lower Service EBIT.

Vestas Wind Systems AS Financial Statement Overview

Summary

Vestas Wind Systems AS demonstrates strong financial performance with significant revenue growth, improved profitability margins, and robust cash flow management. The balance sheet shows zero debt, enhancing financial flexibility, though the equity ratio remains relatively low. Overall, the company is on a solid growth trajectory with improving operational efficiencies.

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	18.69B	17.30B	15.38B	14.49B	15.59B	14.82B
Gross Profit	2.66B	2.06B	1.28B	118.00M	1.56B	1.54B
EBITDA	1.41B	1.76B	1.13B	-545.00M	1.26B	1.66B
Net Income	937.00M	499.00M	77.00M	-1.57B	134.00M	765.00M
Balance Sheet
Total Assets	25.92B	24.64B	22.51B	20.09B	19.71B	18.16B
Cash, Cash Equivalents and Short-Term Investments	3.71B	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	22.44B	21.10B	19.47B	17.03B	14.95B	13.46B
Stockholders Equity	3.47B	3.53B	3.03B	3.04B	4.75B	4.65B
Cash Flow
Free Cash Flow	1.88B	1.18B	135.00M	-1.01B	120.00M	55.00M
Operating Cash Flow	3.15B	2.33B	1.03B	-195.00M	996.00M	743.00M
Investing Cash Flow	-1.33B	-1.34B	-782.00M	-679.00M	-939.00M	-267.00M
Financing Cash Flow	-497.00M	-478.00M	743.00M	846.00M	-715.00M	-234.00M

Vestas Wind Systems AS Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.29

Price Trends

50DMA

8.59

Positive

100DMA

7.53

Positive

200DMA

6.45

Positive

Market Momentum

MACD

0.31

Positive

RSI

61.64

Neutral

STOCH

77.99

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 9.29 is above the 20-day moving average (MA) of 9.25, above the 50-day MA of 8.59, and above the 200-day MA of 6.45, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 61.64 is Neutral, neither overbought nor oversold. The STOCH value of 77.99 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VWDRY	77 Outperform	$28.93B	27.76	28.21%	0.31%	19.75%	1784.07%
CMI	72 Outperform	$79.91B	30.05	23.84%	1.48%	-1.78%	27.35%
IR	69 Neutral	$34.83B	65.40	5.35%	0.10%	4.20%	-34.47%
MIR	66 Neutral	$6.85B	228.61	1.58%	―	7.81%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GTLS	62 Neutral	$9.91B	250.19	2.25%	―	5.47%	-75.40%
GNRC	59 Neutral	$9.44B	30.61	12.38%	―	5.52%	9.03%

* Industrials Sector Average

Performance Comparison

VWDRY

Vestas Wind Systems AS

9.52

5.04

112.50%

GTLS

Chart Industries

207.41

-10.94

-5.01%

CMI

Cummins

578.94

218.97

60.83%

GNRC

Generac Holdings

160.85

-3.21

-1.96%

Ingersoll Rand

88.16

-5.83

-6.20%

MIR

Mirion Technologies

26.93

9.77

56.93%

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: Jan 13, 2026