Vestas, the global wind turbine manufacturer, saw a significant increase in profitability during the fourth quarter of 2024, driven by a 29% rise in revenue compared to the same period in 2023. The company posted an EBIT before special items of €759 million, a sharp increase from €191 million in Q4 2023.
Revenue for the quarter reached €6.1 billion, while wind turbine orders totaled 6,516 MW, marking a decrease from the record-high order intake in Q4 2023. Despite the drop in order volume, Vestas' order backlog remained strong, valued at €31.6 billion as of December 31, 2024.
The total value of Vestas' combined backlog of wind turbine orders and service agreements reached €68.4 billion, up by €8.3 billion from the previous year. Service agreements accounted for €36.8 billion of the total backlog, contributing to the company's positive outlook.
Henrik Andersen, Vestas Group President & CEO, reflected on the company's performance, saying, “Vestas continued its positive trajectory in 2024 and achieved its outlook for the year with €17.3bn in revenue and an EBIT margin of 4.3% for the full year, an improvement of 2.8 percentage points.”
While Vestas' service business faced challenges due to rising costs in 2024, Andersen emphasized that the segment remains a key contributor to the company's long-term goals. He also noted that the company anticipates continued profitability growth in 2025, citing stable raw material and transport costs along with the completion of low-margin legacy projects.
“The year didn't evolve as expected, but with a record-high value of the order intake, an all-time high order backlog and an extraordinary turnaround in Power Solutions, Vestas leaves 2024 stronger than we entered it,” Andersen added.
Vestas reiterated its commitment to expanding manufacturing capacity and delivering on its substantial order backlog to help meet the growing global demand for renewable energy.
