Vestas, the Danish wind turbine giant, has posted an operating profit in the third quarter of 2023, setting a course for a potential full-year surplus. The company reported earnings before interest and taxes (EBIT) before special items of €70 million, marking a significant shift from the €127 million loss recorded in the same quarter a year ago.
This positive financial performance can be attributed to a substantial increase in revenue, which reached €4.4 billion, up from €3.9 billion. Moreover, the EBIT margin before special items turned positive, standing at 1.6%, compared to the -3.2% margin reported in the previous year.
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Vestas cited several factors contributing to its profitability, including the strong performance of its power solutions unit and improved pricing. The company also noted a notable easing of supply chain disruptions, which had posed challenges in recent times. Additionally, increased activity within the servicing division played a role in the positive financial outcome.
Vestas' Chief Executive, Henrik Andersen, emphasized that the positive momentum observed in recent quarters has continued into 2023. He stated, “Based on our results for the first nine months, we remain on track to become profitable in 2023 and are narrowing our guidance for the full year.”
As part of this revised guidance, Vestas now anticipates a revenue range between €14.5 billion and €15.5 billion for the 12-month period, an increase from the previous lower-end estimate of €14 billion.
Andersen further noted, “Despite continued market design and permitting challenges, we saw strong commercial activity with underlying stable pricing and received 4.5 GW of orders, including 2.1 GW for our V236-15.0 MW offshore turbine.”
