Orsted Slides to $265M Loss on US Offshore Wind Woes
Danish wind giant hit by DKK 1.8 billion in impairments from US tariffs and project delays, yet maintains its full-year guidance amid sector turmoil.
Danish renewable energy giant Orsted A/S swung to a significant third-quarter net loss, battered by costly impairments in its troubled US offshore wind portfolio. The company posted a net loss of DKK 1.70 billion ($265.5 million), a stark reversal from the DKK 5.17 billion profit reported in the same period last year, as it grapples with escalating costs and project disruptions in the American market.
Shares in Orsted slipped 1.82% in Copenhagen following the announcement, deepening a prolonged downturn for the world's largest offshore wind developer. The company's stock has fallen more than 41% over the past year and has erased 85% of its value since its peak in 2021, reflecting persistent investor anxiety over the offshore wind industry's challenging economics.
The disappointing results were driven by DKK 1.8 billion in impairment losses recorded during the quarter. Orsted attributed these charges primarily to new 50% US tariffs on steel and aluminum and a temporary, but costly, stop-work order on its Revolution Wind project off the coast of Rhode Island. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter plummeted 68% year-over-year to DKK 3.06 billion, falling well short of analyst expectations.
The setbacks in the US have become a recurring theme for Orsted and the broader industry, which is struggling to deliver on ambitious projects amid soaring inflation, high interest rates, and snarled supply chains. CEO Mads Nipper has previously characterized the American offshore market as nascent and expressed frustration with the financial headwinds impacting its portfolio, including the Sunrise Wind project which faces commissioning delays into late 2027.
"The offshore wind industry, particularly in the U.S., continues to face a difficult environment," noted an analyst at Morgan Stanley in a report following the earnings release. "While Orsted is taking steps to de-risk its portfolio, the combination of tariffs and project execution challenges remains a significant overhang."
Revolution Wind, a key project for Orsted's US ambitions, was halted on August 22, 2025, by a stop-work order from the U.S. Bureau of Ocean Energy Management (BOEM). Although the project was already 80% complete, the interruption triggered significant cost overruns. In a more positive recent development, a federal judge has since overturned the order, clearing the path for construction to resume, with Orsted now aiming for commercial operation in the second half of 2026.
Despite the heavy quarterly loss and the ongoing US challenges, Orsted surprised some market participants by maintaining its full-year EBITDA guidance for 2025 in the range of DKK 24-27 billion, excluding new partnership agreements. The company has been actively working to shore up its balance sheet and restore investor confidence. As reported by Reuters, Orsted has undertaken significant capital-raising measures, including a DKK 60 billion rights issue and the strategic divestment of a 50% stake in its Hornsea 3 project in the UK.
The company's ability to hold its guidance suggests that core operations, particularly in Europe, remain resilient. However, the third-quarter results underscore the immense pressure on the capital-intensive offshore wind sector to prove its financial viability as governments push for an accelerated energy transition. For Orsted, navigating the turbulent waters of the American market will be critical to regaining its footing and powering a recovery for its battered shares.