Revenue increased compared to same quarter 2019. Increased order intake and combined order backlog at all-time high level. Uncertainty around the full impact from COVID-19 prevails – suspension of full-year guidance maintained.
In the first quarter of 2020, Vestas generated revenue of EUR 2,235m – an increase of 29 percent compared to the year-earlier period. EBIT before special items decreased by EUR 97m to EUR (54)m. This resulted in an EBIT margin before special items of (2.4) percent, compared to 2.5 percent in the first quarter of 2019. Free cash flow* amounted to EUR (919)m compared to EUR (876)m in the first quarter of 2019.
The quarterly intake of firm and unconditional wind turbine orders amounted to 3,311 MW. The value of the wind turbine order backlog was EUR 15.9bn as at 31 March 2020. In addition to the wind turbine order backlog, at the end of March 2020, Vestas had service agreements with expected contractual future revenue of EUR 18.2bn. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 34.1bn – an increase of EUR 5.8bn compared to the year-earlier period.
The continuing uncertainty as regards the full impact of COVID-19 makes Vestas maintain the suspension of the 2020 guidance.
According to Vestas’ current judgement, however, meeting the initial guidance on revenue and EBIT margin before special items is still possible. Further, with the current visibility for the rest of the year, Vestas assesses revenue growth and EBIT margin before special items for full year in Service to be able to meet the initial expectations of approx. 7 percent and approx. 25 percent, respectively. Additionally, as the focus on cost savings continues, total investments*) are currently assessed to be below EUR 700m.
*) Excl. any investments in marketable securities, and short-term financial investments.