VWSYF - Vestas Wind Systems A/S (VWDRY) Q4 2023 Earnings Call Transcript
2024-02-07 15:23:10 ET
Vestas Wind Systems A/S (VWDRY)
Q4 2023 Earnings Conference Call
February 07, 2024 04:00 AM ET
Company Participants
Henrik Andersen - Chief Executive Officer
Hans Martin Smith - Chief Financial Officer
Conference Call Participants
Kristian Tornøe - SEB
Martin Wilkie - Citi
Ajay Patel - Goldman Sachs
Deepa Venkateswaran - Bernstein
Akash Gupta - JPMorgan
Claus Almer - Nordea
Supriya Subramanian - UBS
Sean McLoughlin - HSBC
Dan Togo Jensen - Carnegie Investment Bank
Ben Heelan - Bank of America
Gael de-Bray - Deutsche Bank
Henry Tarr - Berenberg
Presentation
Henrik Andersen
Good morning and welcome to this presentation of Vestas' Full Year for 2023. And before I go into the details, let me by start saying a huge and a heartfelt thank you to all of our stakeholders out there, shareholders for your support and patience, customers for your partnerships throughout the last years, the supply chain for the continued working so committed with the Vestas and the Vestas team around, and last but not least, our passionate colleagues across the world. Without you, it would not have been possible to return back in black in this scope of 2023.
And with that let me go quickly to the highlights of our full year. So, we returned to profitability and achieved the upper end of our guidance after the Q3 and Q4. EBIT margin ended at 1.5% that enables Vestas to pay our employee bonus for the first time in the last four years and for sure deserved and long awaited.
We had a record order intake of 18.4 gigawatts for the year. The order intake driven by strong growth in both offshore and onshore and especially in the US. We ended revenue at €15.4 billion. The increase in revenue was driven by higher pricing as well as the continued growth in the service business and the performance across the businesses really well. We'll see later for the details.
We also introduced the low-emission steel towers. We announced the partnership with ArcelorMittal. We'll talk more about it. It's the new tower offering, is a big step towards fully circular wind turbines and for customers and Vestas to achieve our emission targets especially in the Scope 3.
We also see that the strategic path is unchanged. We remain and we sustain the strong commercial discipline and value over volume attitude to reach our long-term ambitions.
We also today initiated our outlook for 2024. Revenue is expected in the range of €16 billion to €18 billion and EBIT margin is expected to be in the range of 4% to 6%.
So, with that I will just go in. With also this, we will talk about the market the order sustainability first. Hence we'll take the financials. And then as normal practice on our full year, we will also give a strategy update of where we are, and of course, finishing with the full outlook in the end.
So, with that how does our current business environment look like? Clearly, we drive the industry maturity and we also define the three core circles of what you look here below, which also drive a strong from all three circles the energy transition forward.
If we start with the global environment first, I think we can say the global environment had improved and improved. So, Q4 was the best quarter for us to see across and also what we were asked to mitigate across the three circles....
Vestas Wind Systems A/S (VWDRY) Q4 2023 Earnings Call Transcript