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In 2018, wind energy manifested its position as the cheapest source of electricity in many parts of the world, creating a tremendous long-term growth outlook for the industry and a highly competitive environment short-term. As the industry continued to mature and became mainstream, Vestas met its 2018 guidance and clearly led the industry on all key parameters, including highest ever order intake of 14.2 GW across 43 countries, all-time high order backlog of more than EUR 26bn, and record-high service revenue and margins. Together with the continued underlying stabilisation in pricing and our strong focus on efficiency and cost management, we sustained and strengthened the foundation that enables us to execute a very busy 2019 as well as develop the sustainable energy solutions of the future.

Anders Runevad, Group President & CEO

Audiocast

The Group President & CEO's and Executive Vice President & CFO's presentation of the annual report: - audiocast
investor presentation (pdf)

Roadshow

The overview shows which cities Vestas will be visiting during the coming roadshow.

Summary

For full year 2018, revenue amounted to EUR 10.1bn, the EBIT margin before special items was 9.5 percent, total investments* were EUR 603m, and free cash flow* amounted to EUR 418m – in line with the expectations to revenue of EUR 10.0bn-10.5bn, an EBIT margin before special items of 9.5-10.5 percent, total investments* of approx. EUR 600m, and free cash flow* of approx. EUR 400m. Compared to 2017, earnings and free cash flow decreased in 2018, but remained at a healthy level, despite highly competitive markets. Order intake increased in 2018 compared to 2017, and the value of the combined order backlog continued to grow during the year. 

The wind turbine order intake increased from 11,176 MW in 2017 to 14,214 MW in 2018 and the value of the service order backlog increased by EUR 2.2bn to EUR 14.3bn.  

For 2019, Vestas expects revenue to range between EUR 10.75bn and 12.25bn, including service revenue, which is expected to grow by approx. 10 percent. Vestas expects to achieve an EBIT margin before special items of 8-10 percent, with a service EBIT margin approx. 24 percent. 

Total investments** are expected to amount to approx. EUR 700m in 2019. As a result of the performance during the year, the Board of Directors of Vestas Wind Systems A/S proposes to the Annual General Meeting that a dividend of DKK 7.44 per share, compared to DKK 9.23 last year, and equivalent to 30.0 percent of the net profit for the year, be distributed to the shareholders.


*) Excl. the acquisition of Utopus Insights, Inc., any investments in marketable securities, and short-term financial investments.
**) Excl. any investments in marketable securities and short-term financial investments.

Key highlights 



Financial and operational results 

  • Highest ever order intake of 14.2 GW across 43 countries; up 27 percent compared to 2017 
  • All-time high combined order backlog of more than EUR 26bn 
  • FY 2018 guidance met on all parameters; revenue of EUR 10.1bn, EBIT margin before special items of 9.5 percent, free cash flow* of EUR 418m, and total investments* of EUR 603m 
  • Organic growth of 13 percent in Service compared to 2017; EBIT margin of 25.2 percent 
  • MHI Vestas Offshore Wind breaking even on net profit 
  • 25 percent improvement on safety performance; total recordable injuries down to 4.0 
  • Recommended dividend payment of DKK 7.44 per share, equal to a payout ratio of 30.0 percent 

Profitable growth strategy firmly on track

  • Vestas strengthened its leadership position in a transitioning market  

*Excl. the acquisition of Utopus Insights, Inc., any investments in marketable securities, and short-term financial investments.