Investing.com -- Vestas Wind Systems A/S (ETR:VWSB), Europe’s largest wind turbine maker, has announced a share buyback of €100 million ($104 million) and reinstated dividends for investors, signaling a positive shift in the company’s financial status. This comes after years of concerted efforts to raise prices following significant losses due to escalating costs.
The company has also raised its earnings outlook for 2025, with an expected earnings margin before special items to fall between 4% and 7%, an increase from 4.3% recorded last year.
It’s worth noting that this uplift aligns closely with the company’s initial projections made at the start of 2024, prior to adjusting expectations due to various challenges, demonstrating the ongoing hurdles within the industry.
Vestas CEO, Henrik Andersen, noted in a statement that despite the year not unfolding as anticipated, Vestas achieved its outlook for 2024. He highlighted a record-high value in order intake, an all-time high order backlog, and an extraordinary turnaround in Power Solutions, leaving Vestas in a stronger position exiting 2024 than when it entered.
Vestas has proposed a dividend of 0.55 Danish kroner ($0.07667) per share, representing approximately 15% of the net profit for 2024. This marks the reinstatement of dividends after a suspension in 2023. The share buyback is the first for the company since 2019, as confirmed by a Vestas spokesperson.
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