Vestas turbines in Sweden. Courtesy of Vestas Wind Systems A/S.
Danish wind turbine manufacturer Vestas Wind Systems A/S (CPH:VWS) on Tuesday upgraded its 2016 financial results forecast again due to “improved delivery visibility for the remainder of the year”.
The company now expects full-year revenue to be between EUR 10 billion and EUR 10.5 billion compared to its previous guidance for at least EUR 9.5 billion. Earnings before interest and tax (EBIT) margin before special items is now seen at 13%-14%, up from the prior projection for at least 12.5%.
Vestas anticipates 2016 free cash flow to be at least EUR 1 billion rather than a minimum of EUR 800 million. The company also adjusted its full-year forecast on total investments, raising it to EUR 600 million from about EUR 500 million previously.
The wind turbine maker revised its full-year estimates as it reported its financial results for the third quarter. For July-September 2016 Vestas posted a 50% year-on-year jump in profit to EUR 309 million as Q3 revenue rose by 37% to EUR 2.9 billion. The improvement in earnings was mainly driven by high activity levels during the period and to a lesser extent higher average project margins, it said.
The table below gives more details about the company’s third-quarter and nine-month results.
Figures (in EUR)
EBITDA before special items
EBIT before special items
EBIT margin before special items
Profit before tax
Profit for the period
Free cash flow
While wind turbine order intake was “satisfactory” at 1,769 MW, up by 17%, the backlog decreased to EUR 7.2 billion from EUR 8.2 billion because of the higher activity levels. Still, the value of the combined backlog of wind turbine orders and service agreements as at the end of September increased to EUR 17.1 billion from EUR 16.4 billion.
Third-quarter wind turbine deliveries jumped by 44% on the year to 2,782 MW, driven by all regions.