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Vestas shares surge after Q2 profit and order update
Adjusted EBIT more than doubled to €446 million, and the company lifted its full-year EBIT margin outlook to 7.0% to 9.0%.
Vestas shares jumped about 19% to 20% after the Danish wind turbine maker reported a second quarter that beat expectations on both earnings and orders, according to Yahoo Finance.
Adjusted EBIT rose to €446 million, compared with analyst expectations of about €205 million and €57 million in the prior year period. Revenue came in at €4.72 billion, above consensus estimates of roughly €4.54 billion.
The Power Solutions division drove the outperformance, with adjusted EBIT of €397 million and a 10.4% margin, helped by stronger execution across onshore and offshore operations. Vestas also raised its full-year EBIT margin outlook to 7% to 9%, up from 6% to 8%, while keeping revenue guidance at €20 billion to €22 billion.
Vestas said it will run a €400 million share buyback through the end of the year, and reported a sharp improvement in demand, with second-quarter turbine orders rising to 3.35 gigawatts or €3.4 billion, and a total backlog of 32.5 gigawatts worth €36 billion. CEO Henrik Andersen said the buyback reflected confidence in the business and aimed to reward shareholders after difficult years.