Vestas Catches a Tailwind: 19% Stock Surge and €400 Million Share Buyback

Vestas has delivered a strong quarterly performance, signaling a turnaround in the wind energy sector after years of cost and supply chain challenges. Shares surged 19-20%, marking their largest single-day move in years. Adjusted EBIT hit €446 million, doubling analyst estimates of €205 million and far exceeding last year's €57 million. Revenue reached €4.72 billion, above expectations of €4.54 billion. The Power Solutions division led the charge with €397 million EBIT and a 10.4% margin. Vestas raised its full-year EBIT margin outlook to 7-9% and kept revenue guidance at €20-22 billion. The company also announced a €400 million share buyback program. Turbine orders rose to 3.35 GW (€3.4 billion), up from last year's 2 GW (€2.2 billion), with a total backlog now standing at 32.5 GW (€36 billion).

This development marks a pivotal moment for the wind energy sector, demonstrating that profitability and demand are aligning after years of struggle. Vestas's success could pave the way for other turbine manufacturers to follow suit, reinforcing the sector's long-term viability and energy security potential.