Vestas Fair Value Estimate lowered to DKK 180 due to Q2 underperformance

From Morningstar: 2024-08-14 07:26:00

Vestas’ Fair Value Estimate lowered to DKK 180 due to significant revenue and EBIT miss in Q2. Morningstar Rating: ★★★★, Economic Moat: None, Uncertainty Rating: High.

Q2 underperformance blamed on €300m costs for existing wind turbines impacting revenue. EBIT margin fell, but expected to recover in second half of the year. Medium-term profitability assumptions for service business lowered.

Order intake grew by 54% to 3.6 GW, with revenue declining 4% in Q2. On track to reach €17 billion in revenues by 2024. Pricing for wind turbines remains strong, supporting the recovery in the Power Solutions segment.

Full-year EBIT guidance lowered by 0.5% due to impact on service business. Turnaround in Power Solutions business progressing ahead of expectations. Vestas remains optimistic about the future despite challenges in Q2.



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