In the second quarter, Vestas generated revenue of EUR 2.206 billion, representing a decrease of 14% compared with the year-earlier period. In addition, earnings before interest and taxes (EBIT) fell to EUR 279 million, a decrease of EUR 120 million.
Vestas reports that the EBIT margin was 12.6% compared with 15.6% in the second quarter of 2016. Further, free cash flow amounted to EUR 158 million compared with EUR 330 million in the second quarter of 2016.
According to Vestas, its intake of firm and unconditional wind turbine orders amounted to 2.667 GW in the second quarter, and the value of the wind turbine order backlog amounted to EUR 9.1 billion on June 30. In addition to the wind turbine order backlog, Vestas had service agreements with an expected contractual future revenue of EUR 11.1 billion at the end of June. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 20.2 billion, representing an increase of EUR 2.1 billion compared with the year-earlier period.
Vestas maintains its 2017 guidance on revenue of EUR 9.25 billion-10.25 billion; EBIT margin before special items of 12%-14%; total investments of approximately EUR 350 million; and free cash flow of a minimum EUR 700 million.
Anders Runevad, president and CEO, says, “In a changing market, Vestas delivered another solid quarter with healthy earnings and maintained our leadership position. Our second-quarter results showed improved order intake across all regions, increased order backlog, strong performance in service and half-year revenue on par with 2016. Looking ahead, we need to continue to put all of our focus on effectively executing on our strategy.”