Vestas' execution turns the page on offshore – and cash comes back
Strong Q2, raised guidance, and a €400m buyback signal that the 10% margin bridge is getting real.
VWS.CO · Earnings Call · 2026-08-12
Vestas delivered a quarter that felt like a turning point. Revenue jumped 26% to €4.7bn, EBIT margin hit 9.4% (up nearly 8pp), and EPS rose 46%. The company raised its full-year EBIT margin guidance to 7–9% from 6–8%, and announced a fresh €400m buyback. For a company that has spent years rebuilding credibility – especially in offshore – this was the strongest validation yet that the 10% margin bridge is reachable.
A quarter of execution
The engine of the beat was Power Solutions, where revenue grew 37% and EBIT margin came in at 10.4%, up over 10pp. Management credited “positive benefits in both onshore and offshore from operating leverage, outstanding project executions and lower-than-expected project costs.” Indeed, CEO Henrik Andersen went out of his way to praise the organization: “Strong quarter, and let me also here immediately thank our customers, partners, the full supply chain and also colleagues for an exceptionally well-executed quarter.” He also made clear that the quarter’s success wasn’t a fluke of mix but a reflection of strong project execution across onshore and offshore. The black number – the term used internally for turning offshore profitable – remains the biggest lever to the 10% EBIT target. While offshore still posts losses this year, Andersen said the ramp-up is on plan and the company expects a positive contribution in 2027. He was careful not to quantify the outlook, but the confidence is audible: “this is now a business that are, from next, year starts contributing positively.” Improving takt time in the factories is the operational core of that story. “We can see that the takt time is improving and others, so that’s the main part we have seen,” Andersen explained, pointing to better installation time offshore as well.The offshore bridge
Offshore remains the single biggest lever to the 10% bridge, and the progress is tangible. In November 2025, Andersen was still defending the sector: “It seems like Offshore is getting an unreasonable bashing everywhere in the day-to-day press or among analysts. Yes, there have been headwinds and others. But from us, we don't see that.” Six months later, the tone is markedly different – the ramp is delivering, and the company is guiding to a “black number” in 2027. The improved execution extends beyond the factories. Installation times are coming down, and the full value chain is syncing better. Andersen acknowledged “we are fully focused on running 5 projects, various parts” and that the business is now “from next year starts contributing positively.” The offshore ramp is no longer a drag; it’s becoming a contributor.Service, capital returns, and the data center tailwind
The Service segment, which has been the other major turnaround story, is also delivering. Revenue declined 5% year-on-year (partly FX), but the cost-out plan and commercial reset are “working as planned,” according to CFO Jakob Wegge-Larsen. Service EBIT margin came in at 16.6%, in line with expectations, and the recovery plan – which runs through end of 2026 – continues to build confidence. The buyback program of €400m is a direct reflection of management’s confidence in the trajectory. “Given our performance and visibility at this point of time of the year, combined with a healthy capital structure, a new share buyback program… will be initiated,” Wegge-Larsen said. The market backdrop remains supportive, especially in the US where “demand and fundamentals are making its way into also how it’s being evaluated,” Andersen noted. He sees “a whole of U.S. society… need more power and more energy faster,” and wind is positioned as a low-cost, fast-to-deploy solution. In prior calls, he had already flagged data centers as a key demand driver. The data centers theme is embedded in the broader electrification story, and management expects it to persist. One incident – a blade failure at the He Dreiht offshore project in late July – was handled with transparency. Andersen confirmed no injuries, debris was contained, and the remaining turbine was completed. “We are going through the normal root cause analysis,” he said, and the partnership with EnBW was actually strengthened by the crisis response. Vestas is no longer asking for patience; it’s showing results. In the February 2026 call, Andersen was still cautious on Service, saying “we hold the business in very tight ropes right now.” Now the language is more confident. The comparison is stark. The question is whether the market will re-rate Vestas to reflect that the margin bridge is no longer a hope but a plan with visible progress.The bridge to 10% EBIT margin is now 200bp away from the guidance midpoint. The pieces – offshore scaling, Service recovering, onshore executing – are all moving in the right direction. With a fresh buyback, Vestas is signaling it’s not just about the future; it’s returning value today.Trust me, if we can get it out, we will get it out as quickly as we can. We just said to you, it's definitely not going to happen this year, but we are building that bridge. So it actually has a lasting bridge.