Vestas posts lower-than-expected prelim revenue for 2022

Vestas Wind Systems A/S (CPH:VWS) announced on Friday that the additional challenges it faced throughout 2022 affected its fourth-quarter performance and thus prevented the wind turbine maker from achieving its full-year outlook.

The company posted a preliminary total revenue of EUR 14.486 billion (USD 15.78bn) for 2022, which is just below the lower-end of its EUR 14.5 billion-15.5 billion forecast despite a higher-than-expected rise in Service business revenue of 27% as delays in execution impacted the performance of Power Solutions.

The table below includes more information about the company’s preliminary results and guidance for 2023.

Vestas noted that a “confined number” of project delays, an impairment on its V174-9.5 MW turbine, and higher warranty provisions had negatively impacted its fourth-quarter results amid a tough environment characterised by unexpected geopolitical uncertainty, an accelerating energy crisis, and high inflation. While the company expects high inflation levels to continue to affect the supply chain this year, it hopes to achieve improved 2023 financial results after strengthening its operations and substantially raising prices in 2022.

“Activity levels in 2023 are expected to be lower than in 2022 followed by a step up in 2024 where installations in key markets are projected to increase,” it said.

(EUR 1 = USD 1.090)

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