Vestas Wind Systems AS (VWDRY) AI Stock Analysis

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Vestas Wind Systems AS

(Other OTC:VWDRY)

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Rating:74Outperform

Price Target:$10.50▲(12.30% Upside)

Action:upgraded

Date:08/18/26

VWDRY scores well primarily on improving financial performance (profitability and cash flow rebound) and a strong, confidence-boosting earnings update (raised margin guidance plus a EUR 400m buyback). Technicals also support the score with clear upside trend and positive momentum, though signals are getting stretched (high Stoch/RSI). Valuation is the main drag, with a higher P/E and minimal dividend support.

Positive Factors

Large recurring service platformVestas combines project-based turbine sales with a substantial installed service base, creating recurring, higher-visibility revenue. The 166 GW under contract and sizeable backlog can support durable aftermarket activity, customer retention, and cash generation over multiple years.

Negative Factors

Offshore remains loss-makingThe offshore operation continues to dilute consolidated profitability and has lumpy order flow, leaving earnings exposed to execution and ramp-up risk. A projected return to profit is not yet achieved, so offshore may remain a structural drag during the next several quarters.

Vestas Wind Systems AS Key Performance Indicators (KPIs)

Revenue by SegmentShows income from different business areas, highlighting which segments drive growth and profitability for Vestas Wind Systems AS.

Chart Insights

Vestas Wind Systems' Services segment showed a volatile trend, with a significant dip in mid-2024 followed by a strong recovery, aligning with a reported increase in the service order backlog despite currency headwinds. The Power Solutions segment experienced robust growth, particularly in late 2024, reflecting improved onshore project execution. However, challenges remain with a notable decline in order intake due to U.S. policy uncertainties. The company's strategic focus on sustainability and manufacturing ramp-up efforts, especially offshore, are critical for future growth amidst these challenges.

Data provided by:

The Fly

Vestas Wind Systems AS (VWDRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $27.96B
Dividend Yield: 0.41%
Average Volume (3M): 177.64K
Price to Earnings (P/E): 23.4
Beta (1Y): 0.52
Revenue Growth: 17.56%
EPS Growth: 58.87%
Country: US
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...

How the Company Makes Money

Vestas makes money primarily through (1) selling wind turbine systems and (2) providing long-term service and support for installed turbines. 1) Turbine systems (project-based sales): A major revenue stream comes from contracts to supply wind turbine...

Vestas Wind Systems AS Earnings Call Summary

Earnings Call Date:Aug 11, 2026(Q2-2026)|% Change Since:3.20%|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 Financial Statement Overview

Summary

Overall fundamentals are improving, led by a clear profitability rebound and stronger cash generation. Income statement strength (78) reflects meaningful margin expansion and a return to solid profitability, while cash flow (72) shows positive and improving free cash flow. The main constraint is balance-sheet risk (66): leverage is moderate (debt/equity ~0.89) and results have been volatile recently (notably 2022–2023), which reduces confidence in through-cycle durability.

Income Statement

78Positive

Balance Sheet

66Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.38B	18.08B	17.30B	15.38B	14.49B	15.59B
Gross Profit	3.00B	2.50B	2.06B	1.28B	118.00M	1.56B
EBITDA	2.91B	2.24B	1.76B	1.13B	-545.00M	1.26B
Net Income	1.11B	778.00M	499.00M	77.00M	-1.57B	134.00M
Balance Sheet
Total Assets	26.70B	25.73B	24.64B	22.51B	20.09B	19.71B
Cash, Cash Equivalents and Short-Term Investments	3.63B	4.53B	3.94B	3.32B	2.35B	2.51B
Total Debt	3.53B	3.37B	3.27B	3.39B	2.43B	1.44B
Total Liabilities	22.74B	21.85B	21.10B	19.47B	17.03B	14.95B
Stockholders Equity	3.96B	3.87B	3.53B	3.03B	3.04B	4.75B
Cash Flow
Free Cash Flow	1.30B	1.01B	1.18B	135.00M	-1.01B	120.00M
Operating Cash Flow	2.25B	2.21B	2.33B	1.03B	-195.00M	996.00M
Investing Cash Flow	-1.13B	-1.14B	-1.34B	-782.00M	-679.00M	-939.00M
Financing Cash Flow	-777.21M	-522.53M	-478.00M	743.00M	846.00M	-715.00M

Vestas Wind Systems AS Technical Analysis

Technical Analysis SentimentNegative

Last Price9.35

Price Trends

50DMA10.13Negative

100DMA9.65Negative

200DMA9.46Negative

Market Momentum

MACD-0.17Negative

RSI44.00Neutral

STOCH75.83Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWDRY, the sentiment is Negative. The current price of 9.35 is below the 20-day moving average (MA) of 9.38, below the 50-day MA of 10.13, and below the 200-day MA of 9.46, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 75.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VWDRY.

Vestas Wind Systems AS Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

VWDRY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEV	76Outperform	$227.06B	22.31	85.62%	0.23%	16.82%	518.92%
VWDRY	74Outperform	$28.11B	23.45	29.01%	0.41%	17.56%	58.87%
CMI	72Outperform	$68.84B	25.45	21.89%	1.64%	2.93%	-8.06%
GNRC	71Outperform	$11.69B	38.58	10.76%	―	6.13%	-3.70%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
INIO	60Neutral	$12.22B	126.65	38.52%	―	―	―
BWEN	59Neutral	$68.84M	12.56	8.25%	―	-3.31%	―

* Industrials Sector Average

Performance Comparison

VWDRY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
VWDRY	Vestas Wind	9.35	2.55	37.48%
BWEN	Broadwind Energy	2.91	0.62	27.07%
CMI	Cummins Inc	500.09	68.69	15.92%
GNRC	Generac Holdings	197.93	34.18	20.87%
GEV	GE Vernova Inc.	857.87	278.02	47.95%
INIO	INNIO Holding GmbH	16.30	-17.00	-51.05%

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.

Date of analysis: Aug 18, 2026

Vestas Wind Systems AS AI Stock Analysis

Vestas Wind Systems AS (VWDRY) AI Stock Analysis

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