Wind turbine maker Vestas reported a fourth-quarter operating profit below expectations on Thursday but said it anticipated revenue growth and improved profitability for 2026 despite ongoing tariff and geopolitical risks.
Vestas' operating profit before special items in the fourth quarter fell to €580 million ($683.59 million) from €759 million a year earlier, against a mean forecast of €597 million in an analyst poll provided by Vestas.
The global wind industry faces challenges from trade policy concerns and permitting delays, particularly in the United States, where President Donald Trump has sought to shut down offshore projects already under construction and block new ones. The US accounted for Vestas' single-biggest market measured on deliveries last year.
The company's business spans both onshore wind turbines installed on land, which generate the bulk of its profits, and larger offshore turbines installed at sea. It has been investing heavily to scale up offshore operations, but the segment continues to drag on overall profitability as manufacturing ramps up.
The fourth-quarter profit decline was primarily driven by those offshore costs and higher depreciation charges, though this was partially offset by continued improvements in onshore project execution, it said.
"Profitability is expected to improve, driven by revenue growth, progress in the manufacturing ramp-up, continued good project execution, and cost-out initiatives," the company said in a statement.
It predicted a full-year 2026 operating profit margin before special items of six per cent to eight per cent and revenue of between €20 billion and €22 billion against an average forecast in the poll of €21 billion and the €18.8 billion achieved in 2025. However, the company acknowledged that, "ongoing geopolitical and tariff risks are likely to cause uncertainty."
(Reporting by Stine Jacobsen; Editing by Terje Solsvik and Joe Bavier)