Vestas Wind Systems (VWS) Q1 2026 earnings summary

Executive summary

• Q1 revenue rose 14.4% year-over-year to €3,966m, driven by strong offshore performance and manufacturing ramp-up.

• EBIT margin before special items reached 3.2%, the highest Q1 margin since 2018, with profitability improvements in both onshore and offshore.

• Net income was €70m, up from €5m year-over-year, reflecting improved execution.

• Order intake surged 44% to 4,504 MW, with a record backlog exceeding €36bn, led by robust offshore orders in the UK and strong onshore momentum.

• A €100m share buyback was announced, marking the third consecutive quarter of capital return to shareholders.

Financial highlights

• Revenue reached €3,966m, up 14% year-over-year, with Power Solutions revenue up 23% and service revenue down 9% due to currency headwinds and contract revenue decrease.

• EBIT before special items was €127m (3.2% margin), up from €14m (0.4%) last year.

• Net profit was €70m, and gross margin improved to 11.9% from 10.4% year-over-year.

• Adjusted free cash flow was -€533m, reflecting typical Q1 working capital build-up.

• Net cash position at quarter-end was €435m.

Outlook and guidance

• 2026 revenue guidance maintained at €20–22bn.

• EBIT margin before special items expected at 6–8%.

• Service EBIT margin guidance set at 15.5–17.5%.

• Total investments for the year projected at around €1.2bn.

• Guidance assumes no significant changes in geopolitical or supply chain conditions.