Good morning, and welcome to our Q1 for 2026 release. I think the key word for this first quarter, of course, for the world is hitting of energy crisis, another one after the last one in H1 2022.

It's also here very much appropriate to thank you for a good start of the year. That thanks goes especially to customers, to partners, colleagues, and other stakeholders.

Thank you for many, very many valuable conversations and commitments in what has been an increasingly volatile world throughout the first four months of the year. With that, let's go to the key highlights of Q1.

Key highlights for Q1: revenue of €4 billion, that's an increase of 14% year-on-year, driven by offshore, where we also see the manufacturing ramp-up is improving year-on-year; EBIT margin of 3.2%, it's better profitability in both onshore and offshore, leading to the best first-quarter EBIT margin since 2018; our Service EBIT margin of 16.3%, continued cost-out in the Service leads to lower revenue with profitability in line with the outlook, we'll come back to more details on that; and then, of course, order intake of 4.5 GW, strong offshore order intake in the UK mainly related to AR7 and a good onshore momentum leads to record-high backlog of now more than €36 billion. We are also returning cash to shareholders for the third quarter in a row.

A new share buyback of €100 million will be initiated and starting as of tomorrow morning. Then, last but not least, outlook for 2026, we maintain our guidance, and I'll give you more details of that when we get to the end of my presentation.

With that, I will go to orders and markets in general. I think here, wind energy, key to affordability, security, and sustainability.

We probably couldn't have chosen a better value proposition and probably a better narrative to talk to. The energy crisis only confirms both the need for energy security, not least energy affordability, and of course, as always, energy sustainability.

When we look at the global environment for us, I think so far in Q1, we have seen inflation, raw materials, and transport cost being reasonable stable, but of course, tariffs and blockages will over time increase cost, and some of the energy will also lead to inflationary pressures when we get quarters ahead from where we are today. On the ongoing geopolitical side, I think we can say there is trade volatility, there's also some movements in the geopolitical scenario, if not from day to day, then at least week for week or month for month.

Of course, the energy crisis only leading to further regionalization. I think we have seen this, we have also moved toward this, we also therefore have created a large part of our resilience being prepared for this.

I will say we in a good position also to deal with some of these variances. When we get to the market environment, I think, of course, in the longer term, the energy crisis here again gives us an opportunity to talk to not only customers, but also to governments around, not least in Europe, where the need for energy security and affordability is probably higher than it has ever been.

When we look at the grid investment, it is prioritized and getting prioritized in key markets, but the challenge is still here. Being a Danish national citizen, I will say we don't have the best example to share when we pause something of a grid for now 3 to 4 months in the middle of an energy crisis.

When we look at permitting, I think it's improving in certain selected markets, but overall, permitting still struggles with its red tape. Some of the auctions and market designs are still challenging, but I can also see governments are sharing with each other and therefore improving, terms are getting better.

I think here is the time and also the place to say a proper thank you and mentioning UK and Germany. UK, Germany shows examples of what I will call courageous political leadership, characterized by Katharina Reiche and Ed Miliband.

You're doing it, maybe it's not always as popular, but in years from now, we will all appreciate what you have done to increase capacity and get these permitting processes running so we can actually get capacity installed. When it comes to project level in this Q1, we have had a very good start of the year.

Thank you to the team, thank you to partners on it. We have had very small disruptions in it, and it's probably some of the best execution we have seen in the onshore, and now also in the offshore, where there is, at the same time on execution, also a very high focus on simplifying Vestas, from sourcing the components out to installing it at site.

Next one, time of the year where normally WoodMac and others releases their market data, we continue leading the industry. I will just say here highlights on installation in our addressable markets increased to 47 GW in '25 from 37 GW in '24, a growth there.

Vestas remains the market leader. When we look at the market and the development, again, an increase in the market size, but also installations often deviate of what WoodMac counts as installation compared to, for instance, the OEMs, and how well we install and finish the project with our customers.

The Vestas market share in key development markets was relatively stable in 2025, while the market share development in others was mainly driven by installation growth in emerging markets predominantly, such as India. When we look ahead, we see growth in our core markets.

We're really happy with that, and we will take advantage of it. At the same time, we will use time really well to increase our competitiveness in those markets that is really core to Vestas.

With that, I will go to the Power Solutions. The Power Solutions is a really positive story in Q1.

Because we're operating in a market where the need for electricity is underpinning the demand, and it's demand that needs to have a timely supply. When we look at it, order intake in the quarter was 4.5 GW in the quarter.

It's driven by strong offshore order intake in the UK mainly related to AR7 announcements, and then it's the onshore momentum across all regions. The ASP on new orders was €1.16 million per megawatt.

It's above the prior quarters, but also the ASP reflects a good mix of project scope, geography, and type. The overall pricing environment remains stable and therefore is also very supportive for the progress of the profitability of Vestas.

In Q1 2025, Vestas Development generated 230 MW of order intake from Brazil, with the Esquina do Vento project fully developed by Vestas, and therefore also exchanged with the partner, Equinor. I will also say here, for the ease of presentations in the quarters, we have decided to take the slide out on development, simply because we think there's happening too little on the slide quarter-on-quarter, therefore you will typically see it in a bullet format on the Power Solutions in the quarters to come.

When we then look at the Power Solutions order backlog, it's increased to a record high of 37 sorry, €36.3 billion at the end of the quarter. The progress that we have seen in the offshore ramp-up, including reduced takt time and improved efficiency, of course, required us unfortunately to adjust the number of colleagues and employees at the Lindø factory.

It was something we have spoken to some of you about in the last couple of quarters, because, of course, that is part of the evidence of that our offshore ramp is progressing as planned, and probably in this quarter progressed positively compared to where we expected to be. I will say, in combination with further progress on our operating model reset by simplifying and becoming more competitive towards our customers, this is a really positive sign coming out of Q1.

You can see the underlying breakdown of the order intake to the right, and you can also see the last five quarters development in ASP. With that, I likes to go to Service.

We've had a good start of the year. The recovery is absolutely in full execution.

We've spent a lot of time on it, and I will say here a couple of testaments in the numbers, which both me and Jakob will spend some time in taking you through. The Service order backlog increased to €39.8 billion, that includes €1.1 billion uplift from indexations, and also €0.6 billion headwind from foreign exchange rate movements compared to a year ago.

The service reached 164 GW under active service, an increase of 3 GW compared to last quarter, as healthy additions and renewals in the quarter outweighed expiries and deselections. I will say, especially on the renewals, they are better than we expected a year ago and probably also better than we had exchanged of our internal discussions, so that just shows our value proposition of the Service business is really appreciated by our customers.

Service is a strategic priority for us in 2026, as we aim to recover profitability through operational excellence, commercial reset, and cost-out initiatives. We're still not there, but I think this quarter was a real testament of that the progress we are making, the cost-out initiatives are really proving its fact, which therefore also lower the top line, but stabilizes and also build the profitability for the future.

I'm happy with that, but I'm also happy to see that we are progressing in both parts, both the operational, cost-out excellence, and also the commercial reset. You will see the breakdown of Service here to the right.

We have €39.8 billion in the backlog, of which €33.9 billion is onshore. We have 164 GW under Service, of which 155 GW is onshore, and we have, as stated here, more than 11 years of average contract duration.

Again here, tough times in Service for many colleagues, but we are having the focus and we keep the focus, because it's actually now showing the real movement in the quarter, and that you should take away as a positive. Let me by that go to sustainability, Q1.

Sustainability in everything we do, and I think for those who follows also us on social media, you will see we also welcome really the progress we have seen, where blade recycling are now moving from what I will call an early prototype to also scalable. Thank you to Stena and our partner chosen there, and we look forward, in both the quarters and the years to come, to find and solve another part of our recyclability of the turbine.

Another thing here is one of the 10 energy companies that makes a difference that reached now the TIME's list. Thank you, TIME, for taking us into consideration of that, and we will prove you with some examples also in the future years to come.

Highlights else: turbines produced and shipped in the last 12 months are expected to avoid 468 million tonnes of greenhouse gas emissions over the course of their lifetime. The carbon emission from our own operations increased by 4% compared to last year, mainly due to vessel emissions from increased activity in offshore.

We've spoken about that, we've also spoken about this in the sense of that this is part of the negative development in carbon emission when you now install more projects offshore, and therefore have more of that emission coming. I just want to highlight here: we are measuring our own Scope 1 and 2 emissions in 112,000 tonnes, and then we are putting solutions in place that displaces 468 million tonnes over the time.

Anyone with that in mind probably say that's a trade worth doing. On the number of total recordable injuries per million working hours, TRIR remained stable at 2.8 compared to last year.

Safety remains absolutely one of our top priorities for us, and we tirelessly work to improve our safety performance across our value chain. This is an average across our more than 80 countries where we work in, and of course, there are places where we are above that average.

Right now, it is about getting everyone to work, at work, and home from work safely, and that is really ethos of what we strive for. With that, I'm pretty sure Jakob is excited to present some of the quarterly numbers, over to you, Jakob, for the Q1 '26.

Thank you, Henrik, and let me take us through some of the details of the financials of what is the highest first-quarter profitability since 2018. Revenue increased by 14% compared to Q1 last year.

The increase was driven by higher revenue in Power Solutions, offset by lower revenue in Service, which Henrik, you already spoke to. EBIT margin before special items was 3.2%, an increase of 2.8 percentage points year-on-year.

The development was primarily driven by improved profitability in the Power Solutions. In the quarter, we incurred €35 million of special items, mostly related to the operating model reset started in the fall of '25, which included both additional severance provisions and noncash write-down of inventory related to a few development projects.

Diving into the segments, starting with Power Solutions, where we see a solid start to the year. In Power Solutions, first-quarter revenue increased by 23% year-on-year, driven mainly by higher megawatt delivered in offshore, and to a lesser degree by higher higher average selling prices on the megawatt delivered.

EBIT margin for Power Solutions reached 2.7%, plus 2.7% in Q1, up 5 percentage points year-on-year, driven by improved profitability in both offshore as well as onshore, as well as for obvious reasons, when we increase the top line, benefits from operating leverage. Please note that the onshore revenue is expected to follow the usual back-end loaded profile during the year, while offshore revenue is more evenly spread across the quarters.

You see on the right both the onshore and the offshore revenue as well as the EBIT margin. Moving on to the Service segment, where we see the recovery plan improvements leading to cost-out.

Service revenue decreased by 9% year-on-year, impacted by 4% currency headwind and the decrease in contract revenue. A higher level of gigawatt under active service was more than offset by the continued cost-out.

Transactional sales were on par with last year. Service generated an EBIT of €136 million in the quarter, equivalent to an EBIT margin of 16.3%, so as expected.

We continue to execute on the recovery plan to achieve our long-term ambitions. Then moving on to a new slide, and moving on to the focus of the impacts of our operating model reset and our operating scale benefits.

The operating model reset is ongoing, as as and aims to improve our operational and commercial efficiency through removing bureaucracy and rightsizing the organization, together with strengthening our culture. The SG&A cost amounted to 7.4% of revenue on a last 12 months basis, an improvement of 0.1 percentage point compared to a year ago, as higher revenue more than offset the increased cost level.

As you can see, we have seen significant improvements since 2024. In terms of net working capital for the quarter, we see an increase in the quarter, which is reflecting normal seasonality.

Net working capital increased in Q1 to a negative €2.4 billion, driven by an increase in inventory levels and other receivables and liabilities. Net working capital reflects the typical seasonality of our business, as we build inventory for higher activity later in the year.

As a percentage of the last 12 months revenue, net working capital in the first quarter amounted to negative -12.3%, which is a minor improvement compared to Q1 last year. Then moving on to the cash flow statement.

Our operating cash flow was -€289 million in the quarter, a decline compared to Q1 in the prior year, mainly due to the changes I just mentioned in in net working capital. Total investments amounted to €198 million in Q1, a decrease compared to €307 million last year.

The decline reflects quarterly phasings of the investments. Our adjusted free cash flow in the quarter amounted to -€533 million, a decline compared to last year, driven by the reasons mentioned in above.

Nonetheless, this is on plan, and we ended the quarter with a net cash position of plus €435 million. In terms of our provisions, LPF reduced as planned.

The lost production factor improved in Q1, now that the repairs at the sites mentioned in the recent quarters have been completed. Please note that the LPF is measured over the last 12 months, and therefore, it will take some quarters before this effect of the specific sites are fully out.

Warranty costs amounted to €119 million in the quarter, corresponding to 3% of revenue. Warranty consumption in Q1 was €149 million, so that's in line with expectation, and also in line with what you see in the previous quarters on the right, where you see consumption is higher than our provisions.

Then on capital structure, we are announcing, as Henrik was mentioned, a share buyback in the third quarter for the third quarter in a row. Net EBITDA net debt-to-EBITDA ended the quarter at -0.2 times, stable compared to last year, and within our targeted range of -1 to +1.

We maintained a solid investment-grade rating from Moody's with a stable outlook. Given our solid start to the year and a healthy capital structure, the share buyback of €100 million is initiated, as Henrik mentioned, and it's in line with our intentions to return at least 40% of net profit to shareholders.

You will see that we have shaded it in the in the Q2, Q3, and Q4, and that is in line with our communication that we will communicate this on a quarterly basis. At the shareholders' Annual General Meeting in April, the proposal to cancel the 14.3 million shares was adopted.

This is a friendly reminder to everybody on the call that you remember also to change that in your in your model. With that, ending on my new favorite slide, focusing on shareholder value through performance.

Here, you see our most important financial metrics in the longer perspective. These metrics are central to how we measure our performance, and align nicely to shareholder value creation, and also to our equity story.

I encourage you to read further on that in the annual report. With that, Henrik, over to you for the outlook.

Thank you so much, Jakob. I think, sure, you've internalized that to your favorite new slide, and I think I can find a few other in that club, because this also shows our long-term trajectory is actually paying off, and I think this is a testament to many people working to generate the underlying progress in our financial matrixes here.

Of course, also is a testament of why we feel comfortable of doing the third share buyback third quarter in a row. With that, I will go to the outlook, and the outlook here for 2026: revenue €20 billion to €22 billion; the EBIT margin before special items is kept at 6% to 8%; Service is expected to generate EBIT margin before special items of 15.5% to 17.5%; and total investments sits around €1.2 billion overall for the year.

With that, I'll also sort of again thank everyone for being here, thank everyone for the conversations we have had, and we look forward to see many of you also in the coming days. I can see, as somebody that followed the presentation here, I can see my IR person has sort of lost almost as much hair as I have, because there were one or two slides that were probably in early draft versions or something, but that what happens, Frederik.

Let's go to the Q&A and pass back to the operator for opening the Q&A, and I hope people are okay with not raising questions to things that were in draft in here.

Yes. Hi.

Good morning. My first one is on offshore ramp-up.

You had very strong revenues, which indicate ramp-up is progressing well. Can you comment on installation activity and where do we currently stand on commissioning of the first two projects?

Also, if you can elaborate on how much of increase in contract assets in the quarter was driven by offshore, where you had strong revenues and I believe invoicing is generally slow in the start of the year? That's the first one.

Thank you, Akash. I will sort of say thank you for the offshore point here.

Installation is clearly as we would expect when you get through Q1, and you have better weather improving throughout Q1, that's picking up, and is definitely continued in also to Q2. We planned to have the started projects we started on last year finish here in, I will say, first half of this year, give and take, and we see ships are going out.

The more positive thing of it as well, Akash, is that what you've also seen from the factories, we are now ahead in some of those plans, which is really positive for our ramp, for also the future projects. Then we will find things when you establish offshore projects of that nature, lumpy parts both when it comes to grid connection.

We have turbines connected, and we're working to the commissioning of turbines as they go offshore and get commissioned. It is also clear that in Germany, we're working parallel, it works really well.

There are a couple of delays in when we look at other parts of Europe when it comes to the offshore grid. That might push some of it to the right in terms of timing.

At least we can now sit here and say it feels good in the sense of the progress we have made. Therefore, it was a testament when we also had to say goodbye to some colleagues in the factories, because that was part of our in the factories for the ramp-up.

Jakob, you take the next.

Akash. In terms of net contract asset, I can confirm that the increase we see in Q1 is driven by Power Solutions.

Thank you. My second one is on the US.

This Section 232 investigation that is currently ongoing, it started on 13th of August, and as per 270 days deadline, we are not far from when the administration might come out with an announcement. I'm wondering if you can tell anything you have heard on this regard from either administration or among the players, customers in the market, and also give us some indication of what could be pent-up demand when we get some sort of clarity on Section 232 tariffs, which might be sooner than later.

Thank you.

Thanks, Akash. Again, as said here, I don't think anyone is better than you to try to lump a few questions into two questions.

As always, here is the thing. I think the Section 232 is ongoing a review.

It can point a bit in different directions, and I don't think necessarily there is that much, and have been that much predictability around tariff and directional setting. I think, as we also seen, many tariffs are being up for discussion, and then you might have a complaint, and then they either disappear or they get in a different direction.

I think the underlying here is more important. The underlying is that most places around in the US need electrons and they need it fast.

That normally in the US, and you will appreciate that, capital moves where there is both a need and a return. Right now, with the underlying energy and electricity and the price of electrons are going up in many places.

It is a little counterintuitive. I think the conditions for establishing projects in the US of the nature of renewables, solar and wind, has probably never been better.

There, we have to go through a couple of bumps on the road. Far, we're dealing with it.

Our customers are keen to deal with it, but you can also see many of our customers are not that particularly interested in pointing to locations or projects or customers for that matter, because there's no need to be taken in that. Progress on order intake, progress on establishment of projects, and so far, it seems that we are having an okay balance with the current interpretation.

Thank you, Henrik.

Next one. Operator, you can take the next question.

Seem fairly pleased and confident with the development we are seeing. I'm not completely sure the stock market share your confidence here, as we look at the margin on slide 13.

It seems that there's been this downward trend for the past year or so. Can you maybe help us understand why we shouldn't be concerned around this downward pressure on the Service margin?

I'm five quarters through now in the recovery, and I think here we we do all the right things for the business. We share with you on the both the renewal and this time, when you see a drop in the in the top line here, as as Jakob rightly took us through, some of it relates to pure and simple FX on the on the business and and where it comes from, and the rest of it is a dedicated executed cost-out, which I'm really pleased with.

As Jakob also said on the net contract assets, it's in it's in it's in well control on the the Service side. I don't know, Kristian, you you know me well enough, I I I don't necessarily speculate in a couple of hours on a on a share price development.

We're doing all the right thing for the business, and that's what really matters. On the on the renewal, we are surprised positively over we are able to do the both the terms and also the renewable pricing on on some of the service part that's happening with good partnership with customers, because it makes and creates value for them on the solution.

I don't know, and and the honest is, I don't know, and I don't know if that's is the is the is the reason or the link to a share price development since 9:00 this morning. In reality, Kristian, it doesn't matter to me, because we're doing exactly the right thing for the business, and it is well progressed since last quarter, and it is enormously progressed since we started the journey five quarters ago.

I'm I'm not sharing the same frustration. I just thanked most of the colleagues doing it, and some of it is tough job, fully appreciate that, when you take cost out of that nature, but there are plenty of spaces where we can take further cost out, and that's what we have also spent the start of Q2 doing.

I I I I don't know, Kristian, is the honest answer. I I I at least on the short-term share price, I I've given up, that that I don't want to comment on.

That's fair enough. Thank you.

Then my second question on Power Solutions. Obviously, quite a remarkable improvement in the margin year-on-year.

Are there any drivers where we should be a bit careful not to just assume that you can continue to deliver sort of the same underlying performance when we look into the next couple of quarters?

Thanks, Kristian. I love the question here.

I could hear there was sort of a just around the neck with 500 basis point over for the following three quarters as well. I would sort of say here, and don't forget, when you compare four quarters back, you compare about something where ramp-up costs in offshore was very high, to something where we in reality have improved ramp-up cost of offshore continuously now for those four quarters.

Of course, it is significant improvement. That's also why you can hear on both the voice and the tone and a bit of the confidence on it.

We are in a good place now on the offshore ramp, and that of course is reflected also in a bit of what we are looking into. That you can read back into sort of taking a share buyback program, because that's how confident we are in where we are with the ramp.

Of course, 500 basis points is not to be neglected in Power Solutions. It is a really, really good underlying.

A material part of that comes from the offshore ramp-up coming out. Significantly also in there is still an improvement in onshore, both onshore execution, but also onshore deliveries, because we now see when you are establishing that many turbines, for instance, in a key market like Germany, you get synergies in terms of people, you get synergies in terms of installation time, that of course also underlying supports our synergies and therefore profitability on establishing that capacity.

Thank you very much, and congrats on the strong improvement here in Q1. I'm sorry, but I'm going to dwell a little bit more into the Service division.

I think that is getting a lot of attention from the stock market these days, and I was hoping maybe you could comment a little bit as to what degree that the Service margin is currently being burdened by fixed cost. Because as you're taking out cost and thereby driving down revenue, I assume that there is a worsened absorption of the fixed cost base within Service.

Can you give any kind of commentary as to what the impact is here? Secondly, in Service, if you could comment on to what degree the Service margin is currently burdened by any kind of penalties from customers on the turbines, and what improvement we could see from that side in the future?

Thank you.

Thanks, Casper. I think, first of all, it's two good questions and it's a yes to both of them.

Because, of course, you can always say when you have a successful cost-out, if you only do that in direct cost, then of course, it will hurt the business over time, because the way the accounting of the Service business is that when you see the top line going down, that's actually a very strong signal of the cost is coming off quickly, and that is happening. We have managed also here to take part of the FCC and therefore, the white collars out as well.

It's not only at site and frontline, it's also throughout simplifying the Service business. Which is why, when you come in now with something that is still in the mid-16s, it's actually pretty positive and pretty satisfying in a quarter like this.

Right now, we are not so much fixed on or focused on driving a top-line growth on the Service business. We've got to have every site in control of their cost allocation directly.

That's a positive with it. As I said here, outlook for the year is exactly in that range.

I think here, we're happy with the first quarter. If we can continue some of that, then it's a positive also for the full year, but not least, also the years to come.

On the LD side, as Jakob went through, when we are hovering around 3% in LPF, that is still I wouldn't say it's a percent too high, but let's just say at least it has to start with a 2, and it's not 2.9. It has to come towards 2.5%, 2% before we are pleased with, and before we see some of those performance LDs actually coming out of the P&L.

That's not insignificant to the Service business as well. Therefore, that's another dimension where we see a family play right now, where we've got to get the warranties and we've got to get the repairs done.

I think here, you can see that commitment in another number we're sharing with you. We are spending more than we are providing quarter-on-quarter, meaning that we don't see new components failing of material degree, but we are spending quite a lot on repairing some of the older ones.

That's the drive we have right now. We've spoken to that, and of course, that has one purpose only, which is, of course, getting first of all, the LPF towards 2.5%, and therefore also getting LDs lower in the Service business, and that will also have a material contribution to get Service back to 25%.

Thank you.

Morning. Thanks for taking my questions.

If I can start back on the US, there've been press reports recently that the Department of Defense is holding up permits on around 30 GW of onshore projects. Could you comment on whether that's impacting any projects where you've already had orders, and it could face delays, and perhaps more importantly, is it holding back any customers from placing orders on new projects despite, clearly as you mentioned, the underlying need for electrons are only increasing?

Then secondly, just on raw material inflation, given the Middle East situation, could you comment a little bit on what you're seeing so far and the supply chain situation, and whether you expect any impact on profitability later in the year or into '27 if the situation remains as it is today? Thank you.

Thanks, Alex. I will say on the US, I think here it's a little bit of an interesting one, because, of course, yes, that is a thing that has come in and is being used as part of the defense or blocking that in a sense, or at least not progressing the sort of the applications that are at a certain point in time, I'm pretty sure the industry will be after that attitude, and therefore, we will see that probably people will be told nicely that that has to start working again.

There's nothing in the backlog that is hurt by it, because it's not like I've never seen customers in the US doing closure or, for that matter, firm order intake or building projects or starting on them without having their full permits. That has always been the environment in the US with the legal framework on projects of any energy nature, that if you don't have the permits or you don't have it.

Therefore, a lot of those that are in there, and you're talking about potentially 30 gig being hold up by not having permits. Then I could give you a similar impressive number that is already in there that can actually pursue already now project start.

It's not like it's holding up wind if somebody sat with that thing, and you can see that in order intake in Q1. You will also see it in the coming quarters that there will be order intake, because, rightly so, it is so attractive.

It's not only financially attractive, but it is physically attractive to get the electrons out to either the factories or the data centers, and that is key critical for any US states, for any US company. I see that there's a hold-up, but I'm also fully aware of that sometimes some of these hold-up are being used in a either in a negotiation on what is permitting legislation or whatever in a wider scheme of the US.

I will allow somebody else to comment on that, but there's clearly something in this that is going on in a wider space. When it comes to the raw materials on the Middle East, we're not immune, but on the other hand, we have built an enormous resilience.

I think sometimes when you sit and see effect on businesses, of course, you see effect on businesses because, yeah, oil has gone up to $120 and other stuff. In the short term, in our supply chain, we are very little hit by that.

When we look towards 2027, it is not like we saw in '20 and '21, where, first of all, physically, exchange were very difficult and very complicated because societies was closed down. On the other hand, our binding period with customers is down to something which is a month, month and a half or two, and that means our indexations and other stuff covers some of this.

I haven't seen it yet, and we have many partners that have helped us mitigate throughout the first four months of the year. I'm not so worried so far.

Of course, if we get longer into the year and it still has this open and close literally daily throughout the week, of course, that's upsetting to the logistics. Let's not forget, Alex, that it's only a few quarters ago where we also saw a similar thing on Suez, where we found ways of rerouting components and materials.

The world has become better in rerouting. I fully understand the frustration or the worry if you are using jet fuel every day or something like that, because, of course, that has to come through Hormuz at some point in time, and that I fully see.

Not so much a risk for us, but that's probably more a macro benefit. Thanks.

We're in good shape, and that's just what we come out of Q1 and confirming.

Thank you.

Hi, good morning. I'm wondering if you could help us think through perhaps the pipeline for offshore for the rest of year.

What other regions should we be focused on versus a very strong Q1 intake? I also wanted to follow up with any color you can give us just on profitability in that near-term pipeline in the backlog.

How should we think about price cost given your earlier comments on logistics and direct energy costs for the year, specifically offshore, please?

Yeah. You hear on the tone of voice, I'm pretty sure, a pretty good momentum.

We're coming out of something where we are 500 basis points better in Power Solutions. John, I'm on the last part there, pretty well suited, and that sits in line with also what we comment on.

We have a really healthy backlog. We are building to that healthy backlog, not by compensating things in there that is not healthy.

We are just in full execution mode on something where we can see profitability is really underpinning and underlying the foundation of building towards not only the guidance we have, but also to the longer-term aspiration we have of 10% EBIT. When we look at pipeline rest of the year, I always say, guys, we got to put a line in the sand every quarter end, and then if it drops into that quarter, we sit here and we say it's a really good quarter.

Significant on offshore this quarter. We will see what else we get near in offshore, but they will always be lumpy, where the onshore is more running, but still some of the part and part of the world is lumpy in onshore as well.

If you're in US, if you are in Australia, you saw it also here in LatAm, then it suddenly becomes lumpy, and if it drops into that quarter. We still see good order intake remainder part of the year.

We see an opportunity to accelerate a certain places, and we will try to do that. Now I've given you a couple of places.

If there's one place I would have expected more by overriding and taking the interest of society and energy supply into consideration, it would be Europe. It seems like the only two places in Europe where they really get the acts together is Germany and UK.

The rest of it is still sitting and discussing throughout bureaucracy, and probably hiding in their own bureaucracy instead of just getting capacity permitted. I'm positive on pipeline, and I do somehow in here hold a belief that Europe will pick up throughout this year.

Okay. Thanks so much.

Thank you. Good morning.

First question is about the lost production factor. You've talked about the importance of this to fall.

Given this is a 12-month trailing indicator, maybe could you share the direction of the latest readings just to gauge a level of confidence of how quickly that LPF might move down, and understand what still is the most critical element that needs to be addressed to get that LPF down? Thank you.

It is correct, it's a 12-month rolling, and we will continue to show it like that. We do see the warranty sort of picture of that, or financial picture of that is what we provision on a quarterly basis.

There, you see that we peaked at some years back, and Q1 here, albeit, of course, being only one quarter, is also down compared to last year. It's a good indication.

There, what we see let's say in our maybe shorter rolling, not 12-month rolling, is good indications that we over the year should see further improvements as we have seen the last 12 months. I think that's the closest where I can get to that.

Very very clear. Can I touch also on UK and offshore?

Obviously, you have the let's say the conditional factory announcement that you said clearly is predicated on more order intake. Can I understand maybe what your expectations are on maybe cadence of order intake and what you'd actually need in order to trigger that investment?

No, as said, what is out there is we have a partnership. We will joint build with UK and for that matter, Scottish government.

Therefore, it's between us to make that decision. There's an outcome from AR7.

We walk into the next planning of AR8. I think UK is doing all the right things.

Again, one of the credit, I will say, countries get credit, but behind countries sits key politicians, and in this case, it's Ed Miliband that drives that. When we feel we have the right demand in that as partners, we also will build the factory in Leith, that will then be an XL factory.

We're confident that will happen. I don't want to set an opening year on it.

It typically takes us 18 months to scale and ramp some of that. Therefore, Sean, we're getting closer, and I will be, in all honesty, personally, I'll be disappointed if it hasn't happened within this decade.

We have a 3.5-years timeline, it has to happen now, and then we will see when is the time where we have enough demand that really triggers that, but we are not long from it.

Thank you.

Good morning, and thank you for taking the questions. Two please.

Firstly, on Power Solutions profitability, when we look at the operational leverage on a top-line basis, it's close to 25% in terms of incremental revenue versus the change in profit, but there's a shift in the mix between onshore and offshore. Can you throw any more color around how the delta in profitability was driven?

I'm guessing most of it is, or nearly all of it, is offshore, but perhaps you could throw some color on that, the direction of change. Then specifically, to what extent offshore still has further upside relative to your longer-term ambitions in terms of profitability of the offshore segment?

Thanks, William. I will just sort of say positively here.

It just shows probably what we have been speaking about for now 6 to 8 quarters of we have invested high high numbers of getting it mobilized, we have we have get invested high high numbers in also getting the ramp right. Looking back, absolutely the right thing to do.

We are now seeing the benefit of it. We still have also some substantial still to take out.

It also shows that when you now have a business that is also running potentially close to a a billion euro a a quarter, then suddenly you have one you have an a leverage in the business, but at the same time, when you then get your takt time and your efficiencies out on on the manufacturing, then suddenly there is a rather large leverage faster approaching what we also said, getting back to a black number and also a a margin that can actually be positive to be seen. It hasn't taken away there is still quite a lot more to be done.

Hint here is still that even after first quarter, offshore still sits with a red number. When we get towards the year-end, the full-year number will be red, but we will we will do whatever we can to fast approach a a black number, when we look into '27 with part of what we can do now in ramp and what we can see ahead of us, we strongly believe that that '27 will be with that black number on offshore.

Of course, that gives us the leverage what we have been talking to. I think we lack to be able to demonstrate it, but you're right here.

If you if you assume there was only offshore, that'll be a little that'll be one-dimensional from your side. I will say onshore is is proving, too, with the mixed the countries we're delivering in, it is actually proving also contributing to that 500 basis points.

Materially, of the 500 basis comes basis points comes from your offshore, that you are right in.

Thank you very much. The second is to delve back into Service.

After your five consecutive quarters of developing your turnaround plan, can you throw perhaps some more light on the evolution of the KPIs in terms of the backlog of outstanding work to perform or the scale of the fleet that still requires rectification work? Perhaps specifically on the numbers, a sense of what the drop in costs was that you called out quarter-on-quarter within Service?

Thank you.

William, that was almost in Akash category of getting a number of questions into one. Let me just put it like this.

When you are able across things like this on a comparison to take something like a 10% cost-out out in a quarter, that means also now we are getting to the meat of what the recovery is about. It's getting to the optimization not only by site, but also what is the variable and potentially mobile work parts of technicians.

We're getting much better in that. Part of that is better to organize, getting into the sites, get better in a lot of way in also sourcing the parts and others.

Then I will say we've got some stickiness. We now know exactly what parts of the world are we still what I will call at high alert.

We operate with something called Hypermcare sites now, where we have a little less that 100 sites globally, but they sit in less than a handful of real countries where we then operate Hypermcare, because Hypermcare comes from the name which is here is an imbalanced cost allocation or there is an imbalance of liquidated damages of availability and other stuff. That, William, has now also narrowed our way of running some of this.

In reality, some of it is really, as you can almost hear, homing in on certain sites in the portfolio. I will say here the other thing that really thrills me is that we now have enterprise processes for cost and how you equip yourself across the operations.

Then on the commercial reset, many a similar likes of what we did in Power Solutions back in, yeah, '21, '22, and therefore, that I hold a lot regards. It is yeah.

I got to be surprised. Maybe we should have addressed the commercial reset earlier, but now we are doing it, and it's catching momentum because we got enough competences and experience from the Power Solution of how to get it done.

Thank you very much.

Morning, and thank you for the presentation. I have two.

Just on the working capital movements over this quarter, is any of that to maybe de-risk and buy ahead of hand for any critical components that may become constrained as a function of the conflict? Is there a de-risking element in this cash flow number, and how far would that be out, just to give us a sense if possible?

Then secondly, on ramp-up cost offshore, how much of a drag was it on offshore margins over the first half? I'm just thinking relative to the second half, how much of an uptick that might present?

There's clearly going to be a lot of moving parts this year. Thank you.

Thank you. Let me take that.

The first one on working capital, as Henrik is talking to, our supply chain team has learned a lot from last time, and are working with the various tools and mechanisms that you can do to deal with that. Overall, explaining the net working capital, that is nothing to do about bringing things forward on inventory.

The net working capital you see is the normal seasonality of a year. Yes, we have done that in a small here and there where possible, but you will not see it in that number.

It's driven by the seasonality that we build and install a lot end of the year or the next part of the year. Your second question around ramp-up, remember the first, I think we were celebrating it when we had the first turbine standing midyear last year.

Of course, that tells you that throughout last year, we had a lot of ramp-up in the first half, and basically nothing installed or very limited. We had, of course, manufacturing going on, but that was ramping up throughout the year.

There's definitely a year-on-year development that you will see there.

You see that if you look at Q4 and Q1, the last two quarters, you see the level of what we can do in our manufacturing sites, and that's a good reflection of what you should expect. You're correct in your analysis.

Thank you.

Thank you. I had a follow-up question on the US, and then one on offshore wind.

Starting with offshore wind, obviously, the UK is a great market, AR8 should also put you in a strong position. I was just wondering, are you able to comment on any other markets other than the UK where in the next couple of years you may see more orders: Denmark, Netherlands, Belgium, Taiwan, South Korea, any of these markets?

That was my first question. Second one, just a clarification on the US, a follow-up to the previous questions.

You're saying that the main hang-up for you is not the 30 GW stuck in DoD permitting, and I think previously you have mentioned Section 232. Is it fair to say that once you have clarity on Section 232, the taps should flow a bit more openly on US orders, or is there something else?

That was it. Thank you.

I don't know what you mean by which we start in the reverse order here. I think sort of US orders are coming.

Orders are coming in, they're not coming in as usually informative as they normally would with location and who and others, because people have become sensible of announcing that, Deepa. I will say here, main uncertainties in the US for us, I will say the ones where you will see we are progressing is the ones where it's either conditional upon final offtake or something like that.

The offtake market, as you can see in Q1, it's gone up again, despite what maybe a few people are claiming on energy prices, they're actually increasing across both molecules and electrons in the US. For us, the thing you are focusing on is the argument of what potentially will in '29, '30 or '31 will slow down.

I think there, we have plenty of time to deal with that, because that I don't think will in the current environment on the price of energy will survive that sort of we won't do that or we won't give you the permits. There are plenty of gigawatts already now ready to be executed, fully permitted inside states, inside the federal permits as well.

That one, I'm not so nervous of. This is more about getting the finance, getting yourself organized, just like you would normally assume.

We don't see that stop in the US, and as I said, I'm that much in the US right now, and that's not what I hear from customers either. You don't want to end in a one-to-one fight with one person that potentially doesn't like wind in the US.

On the offshore, appreciate your comment, and I will keep it from a market point rather than, because you probably also appreciate, we're confident, we see the offshore upside. We can also probably see that in number of the main markets, we are one and two, and therefore, when we talk about markets here, I think what I really welcome, it seems like European Energy Ministers have stopped competing with each other to have a free auction, because everyone have now experienced a failed auction.

Most recently in the WindEurope conference in Madrid, I think everyone are now fully onboarded in that offshore works with some kind of a CFD across all of Europe. Holland has done it, Denmark is doing it, but that means they're reissuing their auction design in Europe.

Offshore Europe, very positive on, whether it's Ireland or it's Holland or it's Belgium or one day France will also adjust to it, but we'll see maybe they will be the last in the row. Then when we look outside Europe, yes, you're in Asia, you are back in Korea.

Japan has something to prove for themselves if they want to recover from the failed round one. Of course, that we will try to help those countries if they want our input, because we know the markets there really well.

If I look at it, we are fulfilling the offshore project we have in the US, but then I will say US goes silent, which not surprisingly, but Europe will be plenty of things to do in the coming decade.

Thanks.

Thank you. Also a few questions from my side.

The first question goes to the Service division, and congratulations with the efforts you have made so far. Given those initiatives implemented, shouldn't we expect a better profitability the rest of the year?

That will be the first one.

We keep the guidance, Claus. This is a much matter of done some turnarounds in Service business.

We have a strong hold of the business right now. We're not letting any of that go.

Therefore, cost-out is still the name of the game and getting in control. When I now share with you that we have Hypermcare of a certain number of sites until we are in full control over that, Claus, I don't think you should start modeling anything else of that nature, not quarterly.

That's why we are repeating the year-end and full-year guidance for the Service business. Of course, it progresses well, and we are happy with that.

That is also why we are internally giving us some momentum, but also some further commitments of getting this done within the coming three quarters. There, I'm not so focused right now on one quarter's EBIT or top line.

We want the business to run as a proper business where they are in control of their KPIs and the operational measurements. That's the focus area right now.

You, yeah, you know me by now, that's what really is on the agenda.

Sure. I was not trying to get a guidance upgrade during this conference call, Henrik.

It was more with all things you're doing, everything equal underlying, things should be improving in the coming quarters. That was more what I was trying to hint at.

I've had that. As I said here, the commercial reset, as you will appreciate, of course, that is going to increase the profitability at a certain point in time.

Sure, it is. We have a higher renewal rate than we ever expected four or five quarters ago, because the internal feedback was we would hardly have any renewals when we start having a conversation around renewals on different terms.

Let us take the multibrand, something we can honestly say we should probably not have engaged in, but now we're having it, and most of the multibrands are transferring into something as cost-plus or even just a spare part arrangement together with our partners.

Good. My second question, and I just want to repeat, I'm not hinting for a guidance upgrade on this call, but looking at the group level, you showed in a slide that the 12-month rolling EBIT margin is 6.1%.

With improvement in offshore, onshore is doing pretty well, and the Service, what should drive full-year margin in the lower end of the range? Oh,

I think if we were only sitting here in a little bubble and talking Vestas alone, then I'm pretty sure we could quickly fix something that would look slightly better. We also have a world around us, and I think the world around us are probably giving us something that still could hit various parts of that guiding range, which is why we keep the guidance, Claus.

So 6% to 8% feels comfortable in the current surroundings. Of course, you can sort of say, if we were sitting in Q1, take away the following: we're not buying back shares if we were not feeling pretty confident of how we're executing right now.

As some of you also asked here, is the offshore and the feeling around offshore is therefore a much bigger relief. That, I think, we can send the signal back to you and saying that's partly why we're also now buying shares back for the third quarter.

If you do that calculation, I will go from the bottom line instead. If we have to distribute 40% of net profits to shareholders over this year, then we still have some shares to buy back outside also the 100 we announced today, and that's probably a focus area for us.

I know you will then see if it's 7% or is it midpoint, is it 7% or is it 7.2% or 6.8%, I can get to all of those numbers right now, but let's have that conversation a little later in the year. I will much rather sit here after Q1 and feel we have had a good start than feeling that I needed to catch up on something.

That is all fair. Thank you so much, Henrik, and Jacob.

Hi there, and thanks for taking my questions. I have two, if I may.

The first, just on the Power Solutions business. Do the offshore business effectively explain all of the improvement year-on-year?

Were onshore margins relatively similar year-on-year, or was there some potential improvement in onshore as well? Then the second question just on the buyback.

I guess so €100 million buyback, even despite the sort of weaker free cash flow, I guess we should expect that to continue as long as you sit with a net cash position. Is that what I'm sort of taking away from the slides?

Thank you.

Let me take those two. First, Power Solutions question.

I do believe it's a slight repeat of what we have said before also on this call. In general, the main driver is offshore.

That explains the main impact of it. In terms of share buyback, I think also we indirectly are hinting this, right?

Yes, and as I said, and I showed the slide, right, we have grayed out the Q2 to Q4, that we do it already in Q1 is a sign of strength and where we are confident, as Henrik is saying, with how the business have started. The business can carry this, despite of, as you say, despite of the cash flow in the first quarter, the business can carry this, and this is a good sign of also where we see the strength of the good start, and also how we look at the rest of the year.

With that, I think we take the last two questions.

Thank you, and good morning, everyone. My question was just on the market share you show at the start, the data from WoodMac.

Obviously, we're seeing most of the Western peers lose a bit of share, and then others kind of go from 11% to 25%. Can you talk a little bit around what is happening there?

You do talk about India and emerging markets, but I'm thinking about a country like Brazil, for example, where you're seeing maybe other players come in with. When you look at your overall footprint, what countries maybe outside Europe and the US that are relatively still strongholds for the Western OEM, do you see maybe that pressure coming from these smaller players?

Thank you.

No, as said here, that's always the thing when you have averages of that nature and you have individual countries of that nature. We generally work well with customers where we are in our main markets, where there are markets coming in like India, like, yeah, part of Egypt or Middle East and others.

We generally sort of say if somebody wants to pass that with pricing that not even covering direct cost, Lucas, then that's not the game we are in. If you want to do that, then we are fine.

Governments generally understand the criticality of the infrastructure, the grids, and others, which, of course, we have been guiding angels of for decades. We're fine with that.

Then as I said, we had orders in Brazil, we had development parts in Brazil related also to Brazil developing their data center legislation. Game on.

I'm fine with that. Therefore here, you should more, as I said, you can dwell on that slide and you could probably find one or two negative arguments, which some of you with share price outlook probably needs to find and others doesn't need to find.

What? If I look at our backlog right now, it's, yeah, it's €36 billion, and we are happy with that.

It's for me, and I joined in August '19 as a Chief Exec, it's the best backlog I've had. Therefore, I'm literally a bit relaxed on that market here, because there's just still some markets in there which doesn't make sense to sit and have a bad day over.

Perfect. Thank you.

That's last question then, Operator, thank you. Or last questions if

Thank you. Good morning.

It's Martin. Thanks for squeezing me in.

The question was just coming back to the US market. Obviously, the Big Beautiful Bill has its one-year anniversary in a couple of months from now, and I think we've talked in the past that the construction start deadline is not necessarily a sort of firm cliff, if you like, because customers can achieve it in different ways in ordering the turbine.

Any sort of updated commentary as to how we should think about how customers thinking about achieving construction start just so we can understand how that may or may not act as a catalyst? Then related to that, there has been noise, and actually a bill proposed by some Republicans just in the last few days, to try and reverse some of this, the expiration of these tax credits, effectively removing this cliff in 2029, 2030.

Now I know there's obviously lots of politics to happen later this year, but is that entering customer conversations, that it's possible that these tax credits may not actually expire in '29 and 2030?

I think here, if you take the constant stream of also things that are potentially not right, I think I always say, Martin, the best way of addressing a market like the US that has so strong fundamentals, this is about demand and supply of electrons, and the price, and the time of within you can deliver it. Then you have in the US right now a political arena and probably also an environment that includes emotions, and as I'm also typically using a bit, by repeating something that is not right doesn't make it right.

Therefore, we got to just plow through some of that. I think on the anniversary and other things, we know that if you're in construction, if you still have safe harbor, then of course you're also able to construct some of the things.

I will say, who the hell would stop something that is that attractive to supply your society with electrons that is in desperate need for new electrons? I don't know, but maybe that's why I'm business and not a political person.

I think there is a lot to be done. There is a midway election coming up in November.

I think both sides are start seeing the realities of slowing things down or creating or pushing to an energy crisis. That's why we keep doing what we do best: stay close with your customers and with your partners, and then I'm pretty sure we'll solve some of those obstacles that are thrown at us.

At the current pricing of PPAs and offtake, both 10, 15, 20 years, they're stop worrying about the tax credits and other stuff, because it is so attractive anyway. That's actually fundamentals of US right now.

Great. Thank you very much.

Okay. Thanks for joining this call.

Again here, thanks for all your attention and support as well. I'm sure we'll see many of you over the coming days.

Good start to the year, looking forward to the next three quarters together with you, and thanks for our Q1. Thank you.