Vestas turns to profit but US chaos pushes down orders
CEO Andersen points to better onshore project performance and lower warranty costs but acknowledges high ramp-up costs of 15MW offshore turbine
Danish wind turbine manufacturer Vestas has turned to a small net profit in the second quarter of 2025 amid better onshore project performance and lower warranty costs, but orders fell as clients were unsettled by the hostility of US President Donald Trump towards wind power.
Revenue rose by 13.6% to €3.75bn ($4.38bn) in the quarter from a year earlier as a higher turbine volume in megawatts was delivered, and service income rose. Warranty costs fell to €115m from €141m in the year-earlier period.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose to €315m in the second quarter of this year from €40m in the same quarter a year earlier, while the Danish OEM’s earnings before interest and taxes (Ebit) margin reached 1.5%, compared to a negative 5.6% a year earlier. The Ebit margin is a common measure of profitability.
Vestas turned to a net profit of €34m, from a net loss of €156m in the second quarter of 2024.
“The results were driven by improved onshore project performance and lower warranty costs but offset by investments in offshore ramp-up to deliver the first V236-15.0 MW projects and build the foundation for Vestas’ long-term success in offshore,” CEO Henrik Andersen said.
“Our service business delivered solid results in the quarter, and we made progress on the recovery plan.
“In the quarter, we had good order momentum in EMEA, but political uncertainty impacted key markets.”
Announced orders fell by 44% to 2GW in the second quarter of this year, with the decrease mainly driven by a lack of orders in some core markets, such as the US, “as customers have been awaiting policy clarity”, Vestas said in its earnings report.
While second-quarter orders from the US were abysmal, Vestas on Tuesday announced orders for 950MW in the US for undisclosed projects, which, however, count towards the third quarter order intake.
The average selling price (ASP) per megawatt decreased to €1.11m in the second quarter of 2025, from €1.21m/MW in the year-earlier period, as last year’s second quarter included a higher scope EPC project in the Asia Pacific region and a European offshore project.
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