Vestas Shares Sink as Service Margin Outlook Tempers Buyback News

The Aarhus-based wind giant posted an adjusted EBIT of 580 million euros for the final quarter, falling short of the 597 million euros projected by analysts. Revenue also lagged at 6.27 billion euros, compared to the 6.45 billion euros anticipated. According to Sydbank senior analyst Jacob Pedersen, the performance was hindered by a decline in onshore turbine deliveries, which offset a stronger showing in the offshore segment.

Despite the quarterly miss, Vestas projected revenue between 20 billion and 22 billion euros for the coming year. To bolster shareholder returns, the company declared a dividend of 0.74 Danish kroner and authorized a 150 million euro share buyback. This updated distribution policy reflects a level of management confidence in the company's cash flow trajectory not seen in recent years, Pedersen noted in a client briefing.

Pressure on Service Profitability

However, the outlook for the high-margin service division sparked caution among investors. RBC Capital Markets analyst Colin Moody highlighted that the 2026 service margin guidance of 15.5% to 17.5% suggests a possible year-on-year deterioration compared to the 16.6% margin reported for 2025. This forecast raises questions about the underlying profitability of the company’s long-term maintenance contracts even as it scales its offshore operations.