Revenue on par with last year’s second quarter while earnings and free cash flow decreased. Solid order intake and combined order backlog at high level. Guidance for 2018 narrowed.
In the second quarter of 2018, Vestas generated revenue of EUR 2,260m – an increase of 2 percent compared to the year-earlier period. EBIT decreased by EUR 20m to EUR 259m. The EBIT margin was 11.5 percent compared to 12.6 percent in the second quarter of 2017 and free cash flow* amounted to EUR (173)m compared to EUR (158)m in the second quarter of 2017.
The intake of firm and unconditional wind turbine orders amounted to 3,807 MW in the second quarter of 2018. The value of the wind turbine order backlog amounted to EUR 10.2bn as at 30 June 2018. In addition to the wind turbine order backlog, Vestas had service agreements with expected contractual future revenue of EUR 12.8bn at the end of June 2018. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 23.0bn – an increase of EUR 2.8bn compared to the year-earlier period.
Vestas narrows the 2018 guidance on revenue to range between EUR 10.0bn and EUR 10.5bn (compared to previously EUR 10.0bn-11.0bn), and on EBIT margin to 9.5-10.5 percent (compared to previously 9-11 percent). Total investments* are still expected to amount to approx. EUR 500m, and free cash flow* is expected to be minimum EUR 400m in 2018. The adjustments are based on improved visibility for the remainder of the year.
*) Excl. the acquisition of Utopus Insights, Inc., any investments in marketable securities, and short-term financial investments.