Vestas Announce Interim Financial Report, Third Quarter 2022

In the third quarter of 2022, Vestas generated revenue of EUR 3,913m – a decrease of 29 percent compared to the year-earlier period. EBIT before special items amounted to EUR (127)m, resulting in an EBIT margin before special items of (3.2) percent, compared to 5.7 percent in the third quarter of 2021.

Free cash flow*) amounted to EUR (752)m compared to EUR 300m in the third quarter of 2021.

The quarterly intake of firm and unconditional wind turbine orders amounted to 1,895 MW, and the value of the wind turbine order backlog was EUR 18.1bn as at 30 September 2022.

In addition to the wind turbine order backlog, at the end of the quarter, Vestas had service agreements with expected contractual future revenue of EUR 32.8bn. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 50.9bn – an increase of EUR 3.6bn compared to the year-earlier period.

Vestas adjusts the full-year guidance on revenue to EUR 14.5bn-15.5bn (previously EUR 14.5bn-16.0bn), and on EBIT margin before special items to approx. (5) percent (previously (5)-0 percent). Revenue in Service specifically, on the other hand, is now expected to grow min. 20 percent (previously min. 10 percent). 

Total investments*) are now expected to amount to approx. EUR 850m in 2022 (previously approx. EUR 1,000m).

Key highlights

Average Selling Price continues upward trend
Increased prices secure continued high order backlog of EUR 18.1bn despite lower order intake of 1.9 GW.

Offshore momentum building
Preferred supplier agreements of 3.8 GW announced over the last quarter.

Revenue of EUR 3.9bn
Revenue decreased by 29 percent year-on-year driven by project delays.

Profitability negative but improving
EBIT margin of (3.2) percent driven by supply chain disruptions and cost inflation as well as project delays.

Strong performance in Service
Revenue increased 32 percent with a 24.5 percent EBIT margin.

Outlook for 2022 adjusted
Revenue and EBIT margin negatively impacted by project delays while Service momentum has accelerated.

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