Vestas Annual Report 2023 – A return to profitability

 For the year 2023, Vestas achieved revenue of EUR 15,382m (outlook: EUR 14.5-15.5bn), with an EBIT margin before special items of 1.5 percent (outlook: 0-2 percent), and total investments1 of EUR 823m (outlook: approx. EUR 0.8bn). The value of the combined order backlog across Power Solutions and Service increased to EUR 60.1bn.

Our financial outlook for 2024 is as follows: Revenue is expected to range between EUR 16bn and 18bn, including Service revenue. Vestas expects to achieve an EBIT margin before special items of 4-6 percent, and total investments¹ are expected to amount to approx. EUR 1.2bn in 2024.

The Service segment is expected to generate EBIT before special items in 2024 in the range of EUR 800m to 880m.

The Board of Directors of Vestas Wind Systems A/S proposes to the Annual General Meeting that no dividend payment will be distributed to the shareholders in 2024.  

Henrik Andersen, Group President & CEO said: “Vestas’ performance improved throughout 2023, and we are pleased that Vestas returned to profitability and achieved the upper end of our guidance. Our order intake set a record of 18.4 GW for the full year, which was driven by a record-setting fourth quarter that underlines our strong momentum at the end of the year. We continued to progress on our strategic priorities and strengthen our commercial and operational discipline, which together with growth in our Service business helped us achieve a revenue of EUR 15.4bn. Our performance in 2023 was helped by the improving business environment, but continued geopolitical volatility as well as slow permitting and insufficient grid build-out across markets are expected to cause uncertainty in 2024. Our strategic path towards our long-term ambitions is clear, and our focus remains to stay disciplined to continue building our momentum and execute as strongly as possible. We want to thank our customers, partners and especially shareholders for their continued support, as well as everyone at Vestas for their great efforts in 2023 and continued contribution to Vestas and the energy transition.”

Key highlights

Vestas returned to profitability and achieved upper end of guidance
EBIT margin b.s.i. of 1.5 percent enables Vestas to pay employee bonus for the first time in four years.

Record order intake of 18.4 GW
Order intake driven by strong growth in both Offshore and Onshore, especially in the USA.

Revenue of EUR 15.4bn
The increase in revenue was driven by higher pricing, as well as continued growth in Service.

Low-emission steel towers announced in partnership with ArcelorMittal
New tower offering is a big step towards fully circular wind turbines and for customers and Vestas to achieve emission targets.

Strategic path unchanged
Vestas will sustain strong commercial discipline and ‘value over volume’ attitude to reach long-term ambitions.

Outlook for 2024
Revenue expected to range between EUR 16-18bn, EBIT margin b.s.i. expected to range between 4-6 percent.

Annual Report 2023