Vestas Expects Lower End of Profit Margin Target in 2024

Wind turbine maker Vestas expects to achieve the lower end of its target for profit margins in 2024 as it grapples with higher costs and supply chain disruptions.

The Danish company said on Tuesday it now expects an EBIT margin before special items of 5-7% in 2024, compared with a previous target of 7-9%.

Vestas, one of the world's largest wind turbine makers, has been hit by rising costs for raw materials and components, as well as disruptions to its supply chain caused by the COVID-19 pandemic.

The company said it expects the challenging market conditions to continue in 2023, with margins remaining under pressure.

However, Vestas said it is taking steps to mitigate the impact of these challenges, including cost-cutting measures and investments in new technologies.

The company said it is confident that it can achieve its long-term targets, including an EBIT margin of 10% by 2025.

Vestas' shares were down 3.5% in early trading on Tuesday.