Vestas Wind Systems (VWS) Stock Soars 19% on Stellar Q2 Earnings and Raised Guidance

Key Highlights

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Vestas shares skyrocketed approximately 19% on Wednesday, marking the largest single-day gain since July 2022
Second-quarter adjusted EBIT reached €446 million, crushing the €205 million analyst consensus by 117%
Management upgraded full-year EBIT margin outlook to 7-9% from previous 6-8% range
Company unveiled €400 million share repurchase program to run through December
First-half turbine orders jumped over 50% year-over-year, with order backlog reaching €36 billion

Shares of Vestas Wind Systems (VWS) rocketed nearly 19% higher on Wednesday, reaching their strongest level since December 2023, following the Danish wind turbine manufacturer’s release of second-quarter earnings that significantly exceeded Wall Street expectations.

Vestas Wind Systems A/S, VWSYF

The stock gapped up at the opening bell after Vestas unveiled adjusted EBIT of €446 million for the second quarter, substantially outpacing the €205 million analyst consensus. The figure represents a massive 117% beat and even surpassed the most bullish analyst projections.

Quarterly revenue reached €4.72 billion, approximately 4% higher than the €4.54 billion consensus figure. Gross profit of €801 million similarly exceeded the €664 million upper boundary of analyst estimates.

The Power Solutions division emerged as the clear winner. The segment delivered adjusted EBIT of €397 million versus consensus expectations of €156 million, achieving an EBIT margin of 10.4%. This performance was approximately 600 basis points superior to analyst forecasts.

Jefferies, maintaining a buy recommendation on the stock with a DKK215 price target, attributed the Power Solutions margin expansion to “strong execution in both onshore and offshore.”

Company Raises Margin Outlook

Vestas increased its full-year EBIT margin guidance to a range of 7-9%, representing an upgrade from the prior 6-8% range. The company maintained its revenue guidance at €20 billion to €22 billion.

Jefferies noted that the midpoint of the updated margin guidance suggests approximately 9% upward revisions to consensus earnings estimates.

Net income for the quarter totaled €285 million, significantly exceeding both the €144 million consensus and the €193 million upper end of analyst projections. This marks a substantial improvement from the €34 million reported in the same period last year.

Free cash flow of €99 million fell modestly short of the €112 million consensus estimate, though management emphasized that results are weighted toward the second half of the year.

€400 Million Buyback Program Launched

The company’s board authorized a new €400 million share repurchase program, scheduled to commence August 13 and continue through year-end. CEO Henrik Andersen characterized the initiative as demonstrating confidence in the company’s trajectory.

“Demand for wind energy solutions remains strong due to the growing need for secure, affordable, and sustainable energy,” Andersen stated in the company’s release.

Wind turbine orders in the second quarter totaled 3,349 megawatts, running 3% ahead of consensus. Deliveries reached 3,504 megawatts, also surpassing the 3,406-megawatt consensus projection, boosted by increased volumes in the EMEA region.

Overall turbine orders increased more than 50% during the first six months of 2025 compared to the prior-year period. The company’s delivery backlog stood at €36 billion at quarter-end.

Average selling prices fell to €1.0 million per megawatt from €1.11 million in the year-ago quarter, reflecting the absence of offshore orders during the period and a greater proportion of lower-scope U.S. projects.

The service division generated revenue of €896 million, nearly matching the €900 million consensus, with adjusted EBIT of €149 million and a 16.6% margin, largely aligned with analyst expectations.

VWS stock has now climbed more than 20% year to date, building on a 77% advance in 2025.

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