Vestas cites supply chain and component shortage issues as one of the main reasons for its weakened profitability. If one assumes that this is, however, a temporary problem, then yesterday’s price reaction seemed quite drastic…?
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https://www.nasdaq.com/articles/vestas-q1-loss-widens-cuts-fy22-outlook-stock-down
More problems with profitability in the future, the outlook for the coming months is already negative operating profit. Can service operations lift Vestas to the surface?
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A “slightly” more recent report. The share of service operations is growing all the time, and that’s how profitability is generated for elevator and crane manufacturers as well.
2023 is still challenging, and 2024 is expected to be better—heard that one before…
OP has a buy recommendation on this, the market isn’t running away anytime soon, and the brand is strong.
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I have been a Vestas shareholder for years and I am worried that the “good years” have been wasted on profitability issues and now the “bad years” are starting, with interest rates high and investment decisions failing to materialize. For example, not a single wind turbine investment decision has been made this year—the reason being, of course, the government’s messing around with the investment environment, but also market saturation. Fortunately, many markets are doing well.
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Vestas delivered 83% fewer turbines to Finland in Q2/2023 than a year earlier. The next earnings report is on November 8th; it will be interesting to see if Gamesa’s problems are just Gamesa’s problems. The company in question posted a loss of a couple of billion in just one quarter.
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SalkunRakentaja has published an article on Morningstar’s five-star rated companies, which also included Vestas Wind Systems.
Vestas Wind Systems is a Danish multinational corporation specializing in the development and production of sustainable energy solutions. The company’s main business is the manufacturing, installation, and maintenance services of wind power plants.
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Vestas was the best stock performer in the Danish C25 index in 2025. Thanks for that post from a year ago @salkunrakentaja and @Sijoittaja-alokas, I got back into Vestas again then, and it’s been a pleasant year with it!
By the way, Jyske Bank has Vestas analysis on its website every few weeks; I sometimes read it in Danish, but most often using the Chrome browser’s translation feature Danish→English. https://www.jyskebank.dk/finansnyt/aktier/publikation
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Vestas was also mentioned today in Aamulehti’s one-page article about Nordic energy companies; Vestas indeed has a thick order book:
”At the same time, the Swedish company Vattenfall is advancing its total 1.6-gigawatt Nordlicht 1 & 2 wind power projects in the North Sea, in the German economic zone. The goal is to have the power plant operational by 2028. The completed wind farm complex is expected to produce 6 terawatt-hours of electricity per year. The wind turbines for Nordlicht 1 will be built by the Danish company Vestas, which, with an order backlog of approximately 70 billion euros, is the world’s leading manufacturer of wind power components.”
Aamulehti article link, but behind a paywall: Näillä kolmella jättimäisellä energiayhtiöllä on nyt kasvun mahdollisuus Pohjoismaissa
P.S. Over 20 years ago, I was even involved in performing maintenance on a Vestas wind turbine. And I have operated a power plant as well.
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Recommendation changes from research firms this week, picked from Nordnet news:
- Deutsche Bank raises 150 → 185 DKK, maintains a Hold recommendation.
- Goldman Sachs raises 200 → 203 DKK, maintains a Buy recommendation.
- Morgan Stanley 160 → 170 DKK, maintains an “Equal-weight” (balance/hold?) recommendation.
- Citigroup 190 → 240 DKK, maintains a Buy recommendation.
- Jefferies 184 → 200 DKK, maintains a Buy recommendation.
- Fearnley 205 DKK remains unchanged, but upgrades from Hold → Buy.
Jefferies excerpt: “In 2026, we see another year of growth and margin improvement, driven by lower setup costs (in offshore wind, ed.), operating leverage, and continued service improvement,” Jefferies writes in a note.
The financial firm expects Vestas to report an operating profit margin of 6–8 percent for 2026, measured as EBIT before special items.
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Press release yesterday: Vestas sets out plans to build nacelle factory in Scotland, UK
Vestas has announced plans to establish a nacelle and hub factory in Scotland, United Kingdom to meet growing demand for offshore wind in the UK and Europe. The factory, a capital investment in excess of €250m, would produce nacelles and hubs for Vestas’s flagship offshore wind turbine, the V236-15.0 MW. The investment would create up to 500 skilled direct jobs, support further indirect jobs in the wider economy and underpin a supply chain critical to meeting the UK’s clean power targets and energy security.
The announcement follows record-breaking AR7 auction results in January 2026, a growing offshore wind order book for Vestas in the UK, and strategic discussions between the UK Government, the Scottish Government and Vestas on the next steps to develop and co-invest in the facility.
The final investment decision is conditional on securing sufficient UK-based orders in AR7 and AR8. Subject to the timing of those results, and the planning process, the facility could start production by 2029/2030. The plan also includes identifying opportunities for co-locating sub-suppliers of other major components.
8-<
From Nordnet’s news feed today:
Britain halts Chinese wind turbine supplier for security reasons - FT
The UK considers Chinese wind turbine manufacturer Ming Yang a national security risk and therefore cannot support the company’s participation in offshore wind projects. The Financial Times reports this.
The announcement is expected to end the company’s plans to invest up to £1.5 billion in a Scottish factory. The facility was intended to supply components to the UK and European markets.
The decision is driven by concerns about China’s influence over private companies and risks to the competitiveness of European industry.
The message is relevant to Danish companies Vestas and Ørsted, among others.
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