Revenue and earnings decreased compared to last year’s second quarter while free cash flow improved. Highest ever quarterly order intake and combined order backlog at all-time high level. Guidance for 2019 narrowed.
In the second quarter of 2019, Vestas generated revenue of EUR 2,121m – a decrease of 6 percent compared to the year-earlier period. EBIT before special items decreased by EUR 131m to EUR 128m. The EBIT margin was 6.0 percent compared to 11.5 percent in the second quarter of 2018 and free cash flow* amounted to EUR (75)m compared to EUR (173)m in the second quarter of 2018.
The intake of firm and unconditional wind turbine orders amounted to 5,696 MW in the second quarter of 2019.
The value of the wind turbine order backlog amounted to EUR 15.9bn as at 30 June 2019. In addition to the wind turbine order backlog, Vestas had service agreements with expected contractual future revenue of EUR 15.6bn at the end of June 2019. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 31.5bn – an increase of EUR 8.5bn compared to the year-earlier period.
Vestas narrows the 2019 guidance on revenue to range between EUR 11.0bn and 12.25bn (compared to previously EUR 10.75bn-12.25bn), and on EBIT margin before special items to 8-9 percent (compared to previously 8-10 percent). Total investments* are expected to amount to approx. EUR 800m (compared to previously approx. EUR 700m). The adjustments are based on performance and improved visibility for the remainder of the year.
*) Excl. the acquisition of SOWITEC Group GmbH, any investments in marketable securities, and short-term financial investments.
