TLDR
- Vestas stock surged nearly 19% on Wednesday, its biggest jump since July 2022
- Q2 adjusted EBIT of €446 million smashed the €205 million consensus by 117%
- Full-year EBIT margin guidance raised to 7-9%, up from 6-8%
- A new €400 million share buyback was announced alongside results
- Total turbine orders rose more than 50% in H1, with the delivery backlog at €36 billion
Vestas Wind Systems (VWS) stock surged nearly 19% on Wednesday, hitting its highest level since December 2023, after the Danish wind turbine maker delivered a second-quarter profit that crushed analyst expectations by a wide margin.
Vestas Wind Systems A/S, VWSYF
The stock opened sharply higher after Vestas reported adjusted EBIT of €446 million for Q2, compared to the €205 million consensus estimate. That is a beat of roughly 117%, and it cleared even the most optimistic end of the forecast range.
Revenue came in at €4.72 billion, around 4% above the €4.54 billion consensus. Gross profit of €801 million also topped the €664 million upper end of analyst forecasts.
The standout performer was the Power Solutions segment. It posted adjusted EBIT of €397 million against a €156 million consensus, with an EBIT margin of 10.4%. That was roughly 600 basis points ahead of expectations.
Jefferies, which carries a buy rating on the stock with a price target of DKK215, said the Power Solutions margin improvement came from “strong execution in both onshore and offshore.”
Margin Guidance Raised
Vestas lifted its full-year EBIT margin guidance to 7-9%, up from the previous range of 6-8%. Revenue guidance was left unchanged at €20 billion to €22 billion.
Jefferies said the midpoint of the new margin range implies roughly 9% in earnings upgrades to consensus.
Net profit for the quarter came in at €285 million, well above the €144 million consensus and the €193 million high end of the forecast range. That compares to just €34 million a year earlier.
Free cash flow of €99 million came in slightly below the €112 million consensus, with management noting results were second-half weighted.
Share Buyback Announced
The board announced a new €400 million share buyback, running from August 13 through year-end. CEO Henrik Andersen said the move reflects confidence in the company’s outlook.
“Demand for wind energy solutions remains strong due to the growing need for secure, affordable, and sustainable energy,” Andersen said in a statement.
Wind turbine order intake totalled 3,349 megawatts in Q2, 3% above consensus. Deliveries reached 3,504 megawatts, also above the 3,406-megawatt consensus estimate, driven by higher volumes in EMEA.
Total turbine orders rose more than 50% in the first half of the year compared to a year earlier. The delivery backlog stood at €36 billion at the end of June.
Average selling prices came in at €1.0 million per megawatt, down from €1.11 million a year earlier, reflecting no offshore orders this quarter and a higher share of lower-scope U.S. business.
The service segment posted revenue of €896 million, close to the €900 million consensus, with adjusted EBIT of €149 million at a 16.6% margin, broadly in line with expectations.
VWS stock is now up more than 20% year to date, following a 77% gain in 2025.
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