Earnings call transcript: Goldwind Q3 2025 sees record revenue, EPS beat

Goldwind Science and Technology Company reported a strong third quarter for 2025, surpassing earnings expectations with an EPS of $0.2544, significantly above the forecasted $0.1892, marking a 34.46% surprise. The company’s revenue reached a historical high of $48.1 billion, showing an increase of $10.3 billion year-over-year. Following the announcement, the stock price rose by 2.1% in after-hours trading.

Key Takeaways

• Goldwind reported record revenue of $48.1 billion, a $10.3 billion increase from the previous year.
• EPS exceeded expectations by 34.46%, reaching $0.2544.
• The company’s stock price increased by 2.1% in after-hours trading.
• The comprehensive profit margin decreased by 2.04%, now at 14.39%.
• Goldwind maintained its leadership in wind power technology, with significant international presence and a diverse product portfolio.

Company Performance

Goldwind’s performance in Q3 2025 demonstrated robust growth, with revenue reaching historic levels. The company’s net profit increased by $792 million, totaling $2.08 billion. Despite the decrease in comprehensive profit margin, Goldwind achieved a return on equity of 6.67%, up by 1.9 percentage points from the previous year. This performance underscores Goldwind’s competitive advantage in the wind power sector, particularly in large turbine manufacturing.

Financial Highlights

• Revenue: $48.1 billion, up $10.3 billion year-over-year
• Earnings per share: $0.2544, a 34.46% surprise over forecast
• Net profit: $2.08 billion, increased by $792 million
• Comprehensive profit margin: 14.39%, down 2.04%
• Return on equity: 6.67%, up 1.9 percentage points

Earnings vs. Forecast

Goldwind’s EPS of $0.2544 exceeded the forecast of $0.1892 by 34.46%, marking a significant earnings beat. This performance highlights the company’s ability to surpass market expectations consistently, reflecting strong operational execution and market demand for its products.

Market Reaction

Following the earnings announcement, Goldwind’s stock rose by 2.1% in after-hours trading, reflecting investor confidence in the company’s financial performance and future prospects. The stock’s movement is notable, given its position within its 52-week range, suggesting positive market sentiment.

Outlook & Guidance

Goldwind continues to focus on international expansion, with an overseas backlog of 7 gigawatts. The company is committed to supporting China’s climate goals, aiming for a significant reduction in greenhouse emissions and an increase in non-fossil fuel consumption. Future projections include expanding wind and solar capacity to six times the levels seen in 2020.

Executive Commentary

Wang Hou Yan, Vice President, highlighted Goldwind’s record revenue, stating, "As of September 30, the revenue was $48,100,000,000 which is historical high." He also emphasized the company’s efforts in enhancing profitability and improving cash flow.

Risks and Challenges

• Supply chain disruptions could impact production timelines and costs.
• Market saturation in key regions may limit growth opportunities.
• Fluctuations in global energy demand could affect revenue streams.
• Regulatory changes related to renewable energy policies may pose challenges.
• Currency fluctuations could impact international revenue and profitability.

Goldwind’s strong Q3 2025 performance, characterized by record revenue and an earnings beat, positions the company well for continued growth. With a focus on innovation and international expansion, Goldwind remains a leader in the renewable energy sector.

Full transcript - Xinjiang Goldwind Science & Technology Co Ltd Class A (002202) Q3 2025:

Moderator/Earnings Call Host: Good afternoon, dear investors. Welcome to the twenty twenty five Q3 earning call for Goldwyn Science and Technology Company. We’re happy to have the management with us, Chairman, mister Wu Gang, deputy chair and and also president and also miss Ma, board secretary, mister Wang Hou Yan, vice president and draft group general manager Chen. So we have two parts of this call. We have miss Ma to kick off the q three industry and development, and Mr.

Wang will take you through the financial results. And the second part, we’re going to move on to the Q and A. And I’m going to hand over to Ms. Ma. Okay.

Dear investors, good afternoon. Thank you so much for your interest to the company. So I’m going to take you through the industry and company performance, and CFO will talk about the financial highlights. So if you look at the industry review, now on this slide, we’re showing you the global wind power market. On the left, this represent 2024, the full year wind power installation.

I’m not gonna go into great details. In interim result, we have demonstrated this number. And on the right, this is really the pie chart for the 2024 global wind power generation. The 2024 global power generation improved by 4.4% with renewable energy improving by 9.6% to 9,868 terawatt hours coming from 31.6. And also, the global wind power generation increased by 8% to 2,511 terawatt hours, representing 8% of global power generation.

So China is by far their leader. The wind power reaching nine ninety seven terawatt hours, which is 40% of the total wind power and followed by U. S. And Germany, even though China is a guard leader by absolute amount by 40%. However, in terms of the penetration, we maintain it at about 50% of the share compared with Denmark, they are in over 50%.

In Europe, they are at 30%. So, in China specifically, now in terms of the grid connection gradually expand and rising power generation from January to September, the new connection was increased by 15.6%. The full year, you know, the accumulated wind power connection was five seventy two gigawatt hours, which is a total of 15.7% of total installation and thermal power reduced to 40%. And also, you could look at, again, from January to June, the total power consumption increased by 3.7% year on year in China. So and also in terms of the Chinese public tender, so we have seen incremental 102 giggle hours in the nine months of this year, representing 14% increase year on year by different markets.

Onshore tender was 97.1 and offshore five gigawatts. So you can see the wind power tender price, as you can see, a rising trend among stability. Now, in Q3, the government has launched many policies to promote renewable energy, wind power, low carbon and green transition, including July, the National Energy Administration released the 2024 China Electric Market Development Report in August. The central office of CDC Central Committee and State Council issued an immediate opinion promoting green and low carbon transformation. In September, NDRC and NDA issued notice on improving price mechanism to promote local consumption of new energy, as well as the guiding principle on promoting high quality development of energy equipment is all providing support to this sector.

Remarkly, on September 24, President Xi Jinping issued a video presentation on the UN climate summit, really announcing a new round of contribution target for the positive contribution to Paris Accord. The overall target, which means China’s greenhouse emission will drop again by seven to 10 percentage by 2030. For promoting the non fossil fuel consumption mix, we’re aiming at 30% non fossil fuel. Wind and solar in full capacity will be six times as high in that of 2020. And also the forestry stock volume will be 24 cubic meter 24,000,000,000 cubic meter.

So all this is effectively driving the global low carbon transition. So amid the macro background, the company’s performance, now first of all, if you look at the sales, from Q1 to Q3, we have made 18.4 terawatts increase by 90%. From the first March, we have exceeded the total sales of last year. As you can see, particularly, we are seeing like the four megawatt and below is only 0.12%. Our four to six megawatt was thirteen point eight percent and six megawatt and higher includes 86% to 15 terawatts.

In terms of backlog, end of Q3, the backlog was 52.5 gigawatts with external backlog 49.9. And also, we have a external order backlog total of 49.9, including 11 gigawatts of successful bids and 38.9 gigawatts of signed contracts. As you can see, external order mix, primarily 41 tp terawatt, with 83% coming from the unit above six megawatt. Now our international business has been going on well in forty one countries around the world where we have business presence. By the end of Q3, the accumulated ex China installation was 11 gigawatts.

In ex China in Asia ex China, it’s more than three gigawatts. In Latin America, Oceana, we have more than two gigawatts of installation. So right now, our overseas backlog was seven gigawatts. So for international delivery and sales, this is going to be a strong support with such a volume backlog. Now, from January to September, we added seven forty five megawatts of attributable grid connection wind power.

As of September, our attributable grid connected wind power project totaled nine gigawatts. And also, we are having a attributable under construction wind about their home abroad, so they’re four megawatts. So you look at the pie chart, you can see the height is Northwest, which is 67%, followed by North China 25, East China was 8%. So the four megawatts under construction, so most of it was the Northwest and North China. So September, the utilization rate hours, 1,700 hours.

So that was the industry background. I’m going to hand over CFO for the financial results. You. Thank you. Good afternoon, everyone.

I’m Wanhong Yan from GoWin. Thank you so much for your interest in wind power, and thanks for joining this call. And I’d like to take you through the 2025 financial results in Q3. So there are four parts of my talk, like consolidated profitability, operating cash flow. So again, as a rule, the dark was the previous year.

Well, was this year and the gray bar was the previous year. So you can see from this chart, there are four metrics on the upper left, revenue. In 2024, compared with the three quarters in 2025, representing a gray bar and blue bar. As of September 30, the revenue was $48,100,000,000 which is historical high, increased by $10,300,000,000 As in Q1, Q2, Q3, we have seen increase year on year. The growth was mainly coming from the wind turbine manufacturing.

On the upper right, this is the comprehensive profit margin. As of September 30, the compared profit margin was 14.39%, down by 2.04%. It’s mainly because revenue mix changes. And the turbine manufacturing increased revenue as if in a manufacturing has a lower margin compared with the other three. So, comparison margin was slightly down as of September.

Our gross margin was up by $390,000,000 So higher margin dollar amount coming from the turbine manufacturing. And lower lab, this is attributable to net profit. Our net profit, 2,080,000,000.00 increased by $792,000,000 and it’s mainly because of the improvement of the profitability. On the lower right, this is the weighted average ROE as of September 30. The comprehensive ROE was 6.67%, increased by 1.9 percentage points.

Again, you can see Q1, Q2, Q3 ROE have all have been improving in a quarter to quarter basis. So as of September 30, the revenue, margin, attributable profit and weighted average ROE is really matching to our operational plan. And we have seen certain improvement of the profit structure. So now this is about the operating index on the left. This is the account receivables.

As of September 30, our AR has a total mix of assets 21%, 1% to the point higher, and the turnover days of one hundred and seventy five days, which is nine days shorter. This is thanks to the increase of revenue, and we’ll continue to collect in Q4 so that we can reduce the AR base to meet that target on the right. This is the inventory and contract assets as of September 30. It accounts for 13% of total assets, which is down by two percentage points. The average turnover days are under thirty days.

And inventory have been improving as efficiency. So as the inventory efficiency, we have seen improvement year on year. So and now on the fifteenth slide, this is the solvency metrics on the left. This is interest bearing debt. As of September 30, interest bearing debt accounts for 41% of total liability, which is down by seven percentage points.

As you can see, compared with last year, we have been lower. We’ve been lower by 5,300,000,000.0 So we optimize the interest bearing debt, improving the cost of fund using. On the right, this is the asset liability ratio. At the beginning of the year, it was 73.96%, which is fifteen fifty two billion dollars As of September 30, it was 71.11%. Total assets, 167,000,000,000 in total assets.

So asset liability ratio has been lower compared with historical number or compared with the peer. They have all shown the asset liability ratio has been well managed to achieve good results. Thanks to two measures. First of all, the equity asset improvement, which include the profit improvement and also the equity financing. And also, we have been managing the optimizing the current and non current assets.

So when we are controlling the financial risk, we will further enhance our equitable assets to make sure we maintain a reasonable and healthy asset liability ratio. The last slide is the cash flows and cash in stock. On the left, this is our cash and total assets as of September 30. It’s accounted for 5.65 of cash total assets. This is actually lower compared with the past.

On the right, we are seeing the net operating cash flow with two features. First of all, the cash flow is in line with the seasonality in the last few years. The trend of non operating cash flow has been consistent. And the second feature is clearly, you can see the net operating net cash outflow has been narrowed. As of September 30, it was a six thirty three net cash outflow.

So narrowed by $58,700,000,000 compared with last year. So it really help attributable to improving the management of collection and payment. So we are actually having results in enhancing profitability and also benefiting from better cash flow. So this is the Q3 twenty twenty five results. Thank you.

Thank you, management, for that presentation.

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