Vestas Wind Systems A/S

Q2 revenue was EUR 4.7 billion, up 26% year over year. EBIT margin before special items was 9.4%, compared with a much lower level last year, and EPS was EUR 1.1 per share, up 46% year over year. Power Solutions revenue increased 37% year over year with a 10.4% EBIT margin; Service revenue declined 5% year over year with a 16.6% EBIT margin and EUR 149 million of EBIT. Order intake was 3.3 GW, up 67% year over year. Full-year 2026 guidance was raised: revenue stays at EUR 20 billion to EUR 22 billion, EBIT margin guidance moves to 7% to 9%, Service EBIT margin guidance remains 15.5% to 17.5%, and total investment is expected around EUR 1.2 billion.

Henrik Andersen struck an upbeat but disciplined tone, emphasizing that the quarter showed strong execution across the business, especially in Power Solutions and Service recovery. He said the company is still working toward its long-term 10% EBIT target and views the current 8% midpoint guidance as a stepping stone, not the destination. He also highlighted favorable demand fundamentals in the U.S., stronger offshore ramp-up progress, and supportive pricing/backlog quality.

Jakob Wegge-Larsen emphasized the financial leverage in the quarter: revenue up 26%, EBIT margin before special items at 9.4%, and EPS up 46% year over year. He noted EUR 27 million of special items, mainly tied to the operating model reset and severance provisions, and pointed to improved cash generation with operating cash flow of EUR 419 million, adjusted free cash flow of EUR 94 million, and net cash of EUR 92 million at quarter-end. He also cited net working capital at negative EUR 2.3 billion, warranty costs of EUR 141 million or 3% of revenue, warranty consumption of EUR 218 million, and a net debt-to-EBITDA ratio of 0x. On capital allocation, he said the EUR 400 million buyback is consistent with returning at least 40% of net profit to shareholders.

Analysts focused on why Q2 margins were so strong and whether that performance is sustainable into the second half, especially given the raised full-year guide only implies modest additional margin expansion. Management said Q2 benefited from exceptional project execution, favorable mix, and lower-than-expected project costs, but stressed the business is not linear quarter to quarter and remains back-end loaded. Questions also centered on offshore profitability, U.S. demand and permitting, contract assets, Service recovery timing, and the He Dreiht blade incident; management said offshore is improving but still loss-making this year, U.S. fundamentals remain strong, Service recovery is on track, and the blade incident caused no injuries and is under normal root-cause review.