A decrease in revenues led to Vestas reporting an EBIT loss before special items of €185m in Q2 2024.
This resulted in a negative EBIT margin before special items of 5.6%, as adjustments to planned costs impact current profitability in Vestas’ Service segment.
The loss compares to a deficit of €70m in the year-ago period.
In the second quarter of 2024, Vestas generated revenue of €3.3bn – a decrease of 3.9% compared to the year-earlier period.
However, during the period, the turbine manufacturer achieved a quarterly intake of firm and unconditional wind turbine orders of 3,596MW, a 54% increase from second quarter 2023.
The value of the wind turbine order backlog was €28.1bn as at 30 June 2024.
In addition to the wind turbine order backlog, at the end of the quarter, Vestas had service agreements with expected contractual future revenue of €34.9bn.
Group President & chief executive Henrik Andersen (pictured) said: “In the second quarter of 2024, Vestas’ underlying earnings improved according to plan, driven by significant progress within Power Solutions of 8 percentage points year-on-year.
“Our revenue was €3.3bn and Group EBIT margin for the quarter was minus 5.6%, which was caused by an adjustment to planned costs in Service.
“Our Service business remains a strong business area, but in the second quarter of 2024, the increase in our planned costs means Service delivered an EBIT of minus €107m.
“Our order intake had an average selling price of €1.21m/MW and grew more than 50% year-on-year, which together with an adjusted free cash flow of more than €0.5bn highlight the positive trajectory in Power Solutions and our continued strong commercial discipline.
“Based on our second quarter results, we have narrowed our 2024 guidance on revenue and EBIT margin, and lowered the expectation to Service EBIT, as announced earlier this week.
“We continue to execute on our strategy to build further momentum and sustain our industry leadership, and we want to thank our customers, employees, and shareholders for their unwavering support and passion to drive Vestas and the energy transition forward.”