Vestas Q4 Profits, EU Probes Goldwind Subsidies

Allen, Rosemary, and Yolanda, joined by Matthew Stead, discuss Vestas' Q4 earnings beating competitors but disappointing investors, and the latest on the Wind Energy O&M Australia 2026 conference in Melbourne. Plus the European Commission opens a subsidy investigation into Goldwind, Texas sues over 3,000 dumped wind turbine blades, and Muehlhan Wind Service acquires Canadian AC883. Sign up now for Uptime Tech News, our weekly newsletter on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard's StrikeTape Wind Turbine LPS retrofit. Follow the show on YouTube, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary's "Engineering with Rosie" YouTube channel here. Have a question we can answer on the show? Email us! The Uptime Wind Energy Podcast brought to you by StrikeTape, protecting thousands of wind turbines from lightning damage worldwide. Visit strike tape.com. And now your hosts.  Allen Hall: Welcome to the Uptime Wind Energy Podcast. I'm your host Alan Hall, and I'm here with Rosemary Barnes, Yolanda Padron. Matthew Stead down in Australia. So welcome Matthew.  Matthew Stead: Great to be here. Thank you, Alan.  Allen Hall: We have a number of articles and interesting topics this week. Top of the list is Vestus. Vestus announced their Q4 numbers, and although the the revenue is great, uh, they, they had a profit of about 580 million euros. It was below what analysts expected, so the shares dropped about 6% on the news. But the CEO of Vestus is saying, uh, full speed ahead. They're, they're willing to make some concessions. Vestus, as it sounds like, in terms [00:01:00] of thinning out the company a little bit, which I, that's been a, a, a complaint from investors for a little while. But in, in terms of, uh, going forward in renewable energy, Vestus is still going to pursue that. The offshore wind business looks like it's gonna be profitable in 2027. And as we all know, and we, we see wind turbine prices, uh, quite a bit in each of our positions. Vestas is the most expensive one on the block, but they're still winning a whole bunch of orders. And, and Matthew, uh, Vestas globally. I would say is the leader right now, if you look at Siemens GAA and GE Vestas is really winning a lot of the orders. Matthew Stead: Yeah, I think a very strong reputation for quality. Um, I have to say, I've got some Vestas turbines behind me, so, um, all paid for by myself. They've always been well regarded for their, um, you know, quality of [00:02:00] product. And when I first got into wind, um, you know, probably 15 years ago, you know, they were, they were the leaders at that point in time. And so, you know, quality. Reduces future o and m cost. I think  Rosemary Barnes: it's not just about like the simple o and m, either it's the risk that something really bad goes wrong and you're just stuck with, you know, like a, a whole a hundred turbines that can't be fixed or, you know, at least a large, a large chunk of them. The more that I work in, in o and m, the more you see, like on occasion when you do have those serial issues that mean, you know, like. Sometimes all the blades in the wind farm have to be replaced or sometimes all the generators or you know, even if it's not replaced, if you've gotta take them all out and do something and put 'em back in, it is just such a massive cost. And, um, reducing the chance that that's gonna happen is actually really valuable for insurance. And yeah, all sorts of other financial reasons.  Yolanda Padron: And even as an FSA customer, I feel like Vestus has a lot more transparency as to what actually is going on, [00:03:00] on site and more able to, to collaborate on, on like a site to site basis, which is very obviously helping them in getting a lot of return customers. Allen Hall: Yeah. One of the key revenues for Vestus has been the FSA, where almost every project I've seen over the last couple of years has had a 2030 year FSA attached to it. Rarely do you see. Order without that, and that's a long-term revenue stream. The, the thing about Vestus and the complaints that are happening, uh, around vestus are odd because if you look at Siemens Cab Mesa, they're really struggling to be profitable. And then GE Renova, which is really, really struggling to be profitable and they're losing several hundred millions of dollars a year. Vestas is bringing in a profit, and, and yet the investors are wanting even more. I, I guess, is, is this just a relationship to the. Where you can invest money today. The stock market going up so high, gold and silver prices are at record highs. Rosemary Barnes: Haven't they just [00:04:00] crushed?  Allen Hall: They have a little bit. They've, they've rescinded some, but they're still at really high numbers, right? So Gold Cross, what? $5,000 and ounce and then, uh, it was it 2000 a year ago? So the, the rise in the value of, of, uh, rear metals is crazy. Is there a plan you think Vestas is changing the way they're gonna operate? 'cause uh, they're talking about thinning out the ranks and they do seem to be becoming more vertically integrated with the acquisition of the TPI factories down in Mexico. GPI in India  Rosemary Barnes: before we make it sound too much like a paid segment from investors, I have to say I disagree that they're like just crushing it with the, the FSAs. I think that the full service agreements are across the board. Perform badly in Australia, at least I think it's different elsewhere. Um, maybe it's a good segue into, uh, talk about our event that we've got coming up to talk [00:05:00] about, um, the difficult operating conditions in Australia. But I, I think that best as, like everybody else has been surprised at how many things can go wrong in an Australia and wind farm. And, um, I don't, I I would've put them up on a pedestal for. Particularly noteworthy, um, brilliant service with the FSAs. I think, yeah, across the board everyone's doing a little bit less than they should be, and I have no doubt that they're also making a whole lot less money on those agreements than what they spent or spending a lot more than what they're expecting. So I don't wanna be too harsh in my judgment.  Yolanda Padron: That's fair. The bar is very low.  Rosemary Barnes: But what I do notice when I go to international events, um, and I, you know, I talk to, I've got a lot of ex-colleagues that's still working in the industry and vest. Stands out as still investing a lot in r and d. And that doesn't mean like crushing out a new platform every single year or every two years. It's not that. But they are investing in a lot of new technologies that are more incremental. They're [00:06:00] looking at bigger technology leaps and um, you know, still investigating stuff like that. Like I think if I was to go back working for an OEM, that's the kind of work I'd like to do. And investors does seem like it's the main company that's still doing a whole lot of that. With the exception of, of the Chinese manufacturers, which are obviously doing like tons and tons of new development. But, um, I don't have the insight into them like I do with the European ones.  Allen Hall: As you're listening to this podcast, most of the people on this podcast are traveling to Melbourne, Australia for Woma 26. That's Wind Energy and M Australia. Big event. Matthew, the numbers are impressive. I'm getting a little bit scared. Run out of food and uh, seats because there is a massive influx in the last 24, 48 hours, which is great to see, but wind energy in Australia. Is huge, and the o and m aspect is one of those key pain points. Matthew Stead: Yeah. I think, uh, thanks to Rosie and Alan, your argument, [00:07:00] um, a little while ago, your argument, which spurred the whole, um, the reason for the conference. Um, you know, the, the lack of, uh, Australian content, the lack of, um, poor. Conferences in Australia. I think unless you'd have that argument, um, this event wouldn't, wouldn't be there. Allen Hall: Rosie did bring up that she had been to a number of conferences and so had I that were pretty much useless in terms of take home. What could we be able to use in the world and, and make the world just slightly better from our knowledge and. With all the policy talk and uh, discussion about sort of global warming things that it's not really useful necessarily in making your operations run more efficiently. And this was what Woma is all about is. Sharing information. Not everybody runs their operations the same. And you can learn from that of the way, uh, others do it. And at the same time, we're bringing in experts from around the world to talk about some of [00:08:00] those really critical issues. One of them being leading edge erosion. And Rosie's been doing a lot of work in Australia on leading edge erosion and the complexities around that. Rosie, the leading edge erosion discussion and the panel involved in the people are gonna be on the panel are impressive. What are you looking forward to?  Rosemary Barnes: I'm looking forward to, um, getting the international perspective because leading edge erosion, I mean, there's heaps of aspects of wind turbine operation that I think are just dramatically different in Australia, but I think leading edge erosion is the one that like really, really jumped out at me. When I was, um, when I moved back to Australia and started looking at inspection reports for wind farms that were like one or two years old, and you see 90, 99% of turbines that have significant erosion like within a couple of years. It's like, this is, this is not. Like, I've never, I've never seen this before. It's clear that no one is designing these products that are gonna peel off [00:09:00] within a couple of years. Um, and so that was what kind of got me thinking, you know what,...