Vestas Wind Systems A/S

Q2 revenue was EUR 4.7 billion, up 26% year on year. EBIT margin before special items was 9.4%, compared with an increase of almost 8 percentage points year on year, and EPS was EUR 1.1 per share, up 46% year on year. Power Solutions revenue rose 37% year on year and Service revenue fell 5% year on year; Power Solutions EBIT margin was 10.4% and Service EBIT margin was 16.6%. Order intake was 3.3 GW, up 67% year on year. Special items were EUR 27 million. For 2026, revenue guidance stayed at EUR 20 billion to EUR 22 billion, EBIT margin guidance was raised to 7% to 9%, Service EBIT margin guidance stayed at 15.5% to 17.5%, and total investment is expected around EUR 1.2 billion.

Henrik Andersen framed the quarter as exceptionally well executed and said the company is seeing strong underlying demand, especially in the U.S., where customers want more power and speed to energy. He stressed that the 10% EBIT margin target remains intact, even though the midpoint of current guidance is about 8%, and said the main levers are offshore ramp-up, service recovery, quality, and onshore execution. His tone was confident but cautious on quarterly timing, repeatedly noting that results are not linear and that H2 still carries execution and weather risk.

Jakob Wegge-Larsen highlighted the financial strength of the quarter, citing revenue of EUR 4.7 billion, 9.4% EBIT margin before special items, and EUR 27 million of special items tied mainly to the operating model reset. He said operating cash flow was EUR 419 million, adjusted free cash flow was EUR 94 million, net working capital was negative EUR 2.3 billion, and the quarter ended with EUR 92 million of net cash. He also noted warranty costs of EUR 141 million, equal to 3% of revenue, warranty consumption of EUR 218 million, net debt/EBITDA of 0x, and a new EUR 400 million buyback, consistent with returning at least 40% of net profit to shareholders.

Analysts pressed on whether U.S. demand had changed amid stronger power equipment demand and permitting/tariff uncertainty; management said the U.S. fundamentals remain strong and that customers still need more power, with no change in the dialogue. Several questions focused on how much of the margin beat came from exceptional project execution versus sustainable improvement, and management said Q2 benefited from a favorable project mix and very good execution, while warning not to assume linear quarterly progression. On Service, management said the recovery plan is on track, cost-out is continuing, and they will discuss the next phase after the remaining two quarters of the plan and into 2027.