Vestas Wind Systems AS (VWSA) AI Stock Analysis

Vestas Wind Systems AS

(Frankfurt:VWSA)

Rating:―N/A

Action:N/A

Date:―

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Positive Factors

Backlog and recurring service baseThe substantial project backlog provides multi-period revenue visibility, while 166 GW under service supports a durable recurring-revenue base. Together, these assets can reduce dependence on individual order cycles and provide opportunities for long-term customer retention and aftermarket growth.

Negative Factors

Offshore remains loss-makingContinued offshore losses weigh on consolidated profitability and show that the segment has not yet achieved dependable economics. The 2027 profitability target leaves a meaningful period for execution risk, while uneven orders may make capacity utilization and earnings contribution less predictable.

Vestas Wind Systems AS (VWSA) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 28.35B
Dividend Yield: 0.38%
Average Volume (3M): 176
Price to Earnings (P/E): 23.8
Beta (1Y): 0.53
Revenue Growth: 9.54%
EPS Growth: 46.55%
Country: Germany
Employees: 36,973
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Vestas Wind Systems AS Business Overview & Revenue Model

Company Description

Vestas Wind Systems A/S is a prominent global company that handles the entire lifecycle of wind turbines, from their conceptualization and manufacturing to their installation and continuous servicing worldwide. The organization's activities are divid...

Vestas Wind Systems AS Earnings Call Summary

Earnings Call Date:Aug 11, 2026(Q2-2026)|% Change Since:7.74%|Next Earnings Date:Nov 10, 2026

Earnings Call SentimentPositive

The call presents a strongly positive operational and financial quarter with substantial YoY growth in revenue (26%), EPS (46%), and order intake (67%), an upgraded EBIT margin outlook (7%–9%), meaningful cash generation and a EUR 400m buyback. Key execution achievements include strong Power Solutions performance, tangible Service recovery progress and offshore ramp-up momentum (improving takt times and installation efficiency). Offsetting risks include a still loss-making offshore business to be remedied over time, a Q2 decline in Service revenue, warranty and quality-related costs, higher operational emissions and a recent offshore blade incident. Management acknowledges permitting, trade and project timing risks for H2 but raised guidance and buyback reflect confidence in near‑term visibility.

Positive Updates

Strong Revenue Growth

Revenue of EUR 4.7 billion in Q2 2026, up 26% year‑on‑year, driven primarily by Power Solutions (+37% YoY).

Negative Updates

Service Revenue Decline

Service revenue decreased by 5% YoY in Q2 (including ~1% currency headwind); transactional sales slightly lower, reflecting commercial reset dynamics even as margins improve.

Company Guidance

Vestas raised its 2026 profit guidance, keeping revenue at EUR 20–22bn but lifting the EBIT margin range to 7.0–9.0% (from 6.0–8.0%), while reiterating Service EBIT margin guidance of 15.5–17.5% and total investments around EUR 1.2bn. The upgrade follows a strong Q2 (revenue EUR 4.7bn, +26% YoY; EBIT margin 9.4%; EPS EUR 1.10, +46% YoY; order intake 3.3 GW, +67% YoY) and substantial backlogs (Power Solutions EUR 36bn; Service backlog EUR 40.9bn; 166 GW under service). Balance‑sheet and cash metrics cited include net cash EUR 92m, net debt/EBITDA 0x (target range -1 to +1), operating cash flow EUR 419m, adjusted free cash flow EUR 94m in Q2 and Q2 investments EUR 278m; management also announced a EUR 400m share buyback starting 13 August (running into year‑end / intended to 16 Dec) and reiterated a commitment to return at least 40% of net profit to shareholders.

Vestas Wind Systems AS Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:VWSA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEV	76Outperform	$227.06B	22.43	85.62%	0.23%	16.82%	518.92%
GNRC	71Outperform	$11.69B	39.38	10.76%	―	6.13%	-3.70%
CMI	67Neutral	$68.84B	25.48	21.89%	1.64%	2.93%	-8.06%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BWEN	61Neutral	$68.84M	12.13	8.25%	―	-3.31%	―
INIO	60Neutral	$12.22B	127.50	38.52%	―	―	―

* Industrials Sector Average

Performance Comparison

DE:VWSA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:VWSA	Vestas Wind	8.35	2.61	45.52%
BWEN	Broadwind Energy	2.81	0.70	33.18%
CMI	Cummins Inc	500.60	78.04	18.47%
GNRC	Generac Holdings	202.04	45.45	29.02%
GEV	GE Vernova Inc.	862.25	315.62	57.74%
INIO	INNIO Holding GmbH	16.41	-16.89	-50.72%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Vestas Wind Systems AS AI Stock Analysis