Vestas Wind Systems has reported its 2025 annual results, delivering record revenue and improved profitability despite continued geopolitical and supply chain uncertainty. The wind turbine manufacturer also outlined a stronger financial outlook for 2026, backed by a record order backlog and continued growth across onshore, offshore and service businesses.
Vestas 2025 financial performance
Vestas generated revenue of EUR 18,822 million in 2025, reaching the upper end of its guidance range of EUR 18.5-19.5 billion. The company posted an EBIT margin before special items of 5.7 percent, also at the high end of its outlook of 5-6 percent.
Total investments reached EUR 1,251 million during the year, aligning with the expected level of approximately EUR 1.2 billion. The company ended 2025 with a combined order backlog across Power Solutions and Service of EUR 71.9 billion.
Q4 2025 results
Revenue in the fourth quarter of 2025 rose 2.1 percent to EUR 6,270 million, driven mainly by offshore projects in the Power Solutions segment.
However, service revenue declined 16.3 percent due to lower contract activity and transactional sales. EBIT before special items in the quarter fell to EUR 580 million, resulting in a margin of 9.3 percent compared with 12.4 percent in Q4 2024.
The decline was primarily due to offshore manufacturing ramp-up costs and higher depreciation and amortisation. Strong onshore project execution helped partially offset the impact.
CEO Henrik Andersen said the company delivered its highest ever revenue and profitability in a volatile global business environment. Growth across onshore, offshore and service segments helped drive strong performance, while improved execution in onshore operations supported margins.
Strong order intake and record backlog
Vestas recorded order intake of 16.3 GW during 2025, reflecting strong demand for renewable energy solutions. Higher onshore activity, particularly in EMEA, offset lower offshore orders during the year.
The company’s combined backlog reached an all-time high of EUR 71.9 billion, including EUR 33.2 billion in wind turbine orders and EUR 38.7 billion in future service revenue from long-term agreements.
This growing backlog provides strong visibility for future revenue and reinforces long-term demand for wind energy.
Service segment performance and investments
The Service business delivered EBIT of EUR 626 million during the year. While the result met revised guidance, it fell short of longer-term performance targets.
Vestas continued to invest in manufacturing ramp-up and offshore expansion, which led to additional costs in 2025. The company expects further operational improvements and cost efficiencies in 2026 as these investments begin to deliver returns.
Vestas outlook for 2026
Vestas expects continued growth in 2026 despite geopolitical and tariff-related risks. The company forecasts:
- Revenue between EUR 20 billion and EUR 22 billion
- EBIT margin before special items between 6 percent and 8 percent
- Total investments of approximately EUR 1.2 billion
The Service segment is expected to deliver an EBIT margin before special items of 15.5 percent to 17.5 percent.
Vestas expects revenue growth to be driven primarily by Power Solutions, improved manufacturing ramp-up, strong project execution and ongoing cost reduction initiatives across the organisation.
BABURAJAN KIZHAKEDATH
