Vestas Earnings Miss Expectations But Guidance Maintained After Service Business Growth

By Dominic Chopping

Vestas Wind Systems on Wednesday posted a larger-than-expected second-quarter net loss but maintained full-year guidance after seeing strong growth in its service business.

The Danish wind-turbine maker said its second-quarter net loss narrowed slightly to 115 million euros ($126 million) from a loss of EUR119 million a year earlier, as revenue rose 3.8% to EUR3.43 billion.

A FactSet consensus had expected a net loss of EUR73 million on revenue of EUR3.42 billion.

Order intake rose to EUR2.5 billion from EUR2.1 billion, while the turbine order backlog rose to EUR20.0 billion from EUR18.9 billion and the service order backlog rose to EUR31.6 billion from a downwardly adjusted EUR29.0 billion.

"Permitting and regulatory uncertainty remain a key challenge to speed up the energy transition, and although supply chain disruptions are easing off, we expect disruptions to continue throughout the second half of the year," Chief Executive Henrik Andersen said.

The company still sees full-year 2023 revenue at EUR14.0 billion-EUR15.5 billion, an earnings before interest and tax margin before special items of minus 2% to positive 3%, with total investments of around EUR1 billion.

Service revenue is now expected to grow around 10% from at least 5% previously, with a service EBIT margin of around 22%.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

August 09, 2023 02:47 ET (06:47 GMT)

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