Senvion, a leading global manufacturer of wind turbines, is making substantial progress in meeting its financial targets for 2017. Senvion posted revenues of EUR 1,309 million in the first nine months of 2017, a decline of 10% in a challenging market environment. The adjusted EBITDA margin was 7.9%, in line with Senvion’s expectations. The company had EUR 44 million of free cash flow in Q3, mainly due to lower working capital levels.
The overall slowdown in established markets such as Germany, had an impact on the growth of Senvion’s order intake in the third quarter. Nevertheless, the company was still able to increase order intake by 51% in the first nine months compared with the same period in 2016. The key highlight in the third quarter 2017 was the conversion of the 299 MW Chile order to a firm order. Moreover, Senvion was able to secure two large conditional orders to the tune of 159 MW. All in all, Senvion’s order book remains stable at EUR 5.3 billion. The company’s service business continues to address current industry price pressures by offering more efficient service concepts. The success of this service strategy is reflected by the continuous growth of generating capacity under service and the lengthy average duration of service contracts of 11.1 years.
Senvion introduced four new products in 2017 that are part of the company’s modular product strategy, the aim of which is to deliver more efficient turbines and lower lifetime costs. While focusing on growth in selected key markets, Senvion concentrates on lower production costs through scale effects on a regional level, as well as on increasing sourcing from lower cost countries.