Vestas Earnings: Blockbuster Finish to 2023 Will Provide Positive Momentum in Fiscal 2024

Vestas delivered a blockbuster fourth-quarter 2023, which included a record order intake and strong sequential improvement in its profitability, sending shares 6% higher. The impact of higher selling prices for its wind turbines has seen the group return to profitability during the last two quarters, leading to full-year operating profit of EUR 231 million (a 1.5% EBIT margin) compared with a EUR 1.2 billion loss in the previous year. Guidance of revenue between EUR 16 billion and 18 billion at a 5% EBIT margin at the midpoint, falls broadly in line with our expectations and is a clear indication that Vestas’ positive momentum will continue into fiscal 2024. We maintain our DKK 197 fair value estimate and view shares as fairly valued.