What Vestas Wind Systems (CPSE:VWS)'s Global Turbine Order Surge Means For Shareholders

• In recent days, Vestas Wind Systems has announced a string of new turbine orders, including an 828 MW contract in Brazil with Casa dos Ventos alongside additional projects in Finland, Germany, Poland, Italy and Australia, many supported by long-term service agreements extending up to 25 years.
• This wave of geographically diverse wins underscores Vestas’ ability to pair equipment sales with multi-decade service contracts, potentially deepening recurring revenue visibility across multiple regions and customer types.
• We’ll now explore how this major Brazil order and broader international backlog expansion could influence Vestas’ existing investment narrative and outlook.

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Vestas Wind Systems Investment Narrative Recap

To own Vestas today, you need to believe in long term global wind deployment and the company’s ability to convert orders into profitable onshore and service revenue, while managing offshore losses and pricing pressure. This recent cluster of onshore orders, including Brazil, slightly supports the near term catalyst of stabilising margins through higher utilisation and long dated service contracts, but it does not remove the key risks around policy uncertainty, offshore ramp up costs and competition from lower cost manufacturers.

Among the latest announcements, the 828 MW Dom Inocêncio order in Brazil with Casa dos Ventos looks most relevant. It pairs a large turbine supply with a 25 year Active Output Management 5000 service agreement, reinforcing Vestas’ push to deepen its installed base and service backlog. For investors watching order intake after earlier softness, this kind of multi year commitment can matter for confidence in future revenue and earnings visibility.

Yet against these contract wins, the pressure from rising Chinese competition in Europe and ongoing offshore losses is something investors should be aware of as they consider...

Read the full narrative on Vestas Wind Systems (it's free!)

Vestas Wind Systems' narrative projects €23.1 billion revenue and €1.3 billion earnings by 2028.

Uncover how Vestas Wind Systems' forecasts yield a DKK156.26 fair value, a 8% downside to its current price.

Exploring Other Perspectives

Thirteen Simply Wall St Community members currently see fair value for Vestas between DKK102.43 and DKK196.87, reflecting very different expectations. When you set these side by side with the recent order momentum and persistent offshore and pricing risks, it becomes clear that you should compare several viewpoints before forming a view on the company’s long term potential.

Explore 13 other fair value estimates on Vestas Wind Systems - why the stock might be worth as much as 15% more than the current price!

Build Your Own Vestas Wind Systems Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Vestas Wind Systems research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Vestas Wind Systems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Vestas Wind Systems' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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