Vestas Stock And 2 European Reshoring Plays Investors Should Watch

European supply chains are being reshaped as the China EU trade surplus climbs 24% year on year in 2024 and Brussels pushes for “tangible results” by October. For investors, that tension can create both risks and openings, especially where reshoring, nearshoring, and diversification themes intersect with listed stocks. This article focuses on three European companies from manufacturing, logistics, and technology that are exposed to the latest China EU trade headlines, and that could stand to benefit if more production and sourcing move closer to home. Read on to see which three stocks from the screener make the cut.

Vestas Wind Systems (CPSE:VWS)

Overview: Vestas Wind Systems is a Denmark based company that designs, manufactures, installs, and services onshore and offshore wind turbines for power producers around the world, with its business split between building wind power plants and running long term service contracts. Its Service segment supports turbines in operation through maintenance, spare parts, and performance related services that keep projects running efficiently over time.

Operations: Vestas Wind Systems generates about €15.6b from its Power Solutions segment and €3.7b from its higher margin Service segment.

Market Cap: DKK170.5b

Vestas Wind Systems sits at the intersection of Europe’s push for energy security and supply chain reshoring. It has a large onshore and offshore wind order book and a growing high margin Service business that supports more predictable earnings. Policy support for renewables and grid upgrades is helping underpin demand, while recent orders across Germany, the US, the UK and Australia highlight how geographically broad its project pipeline is. At the same time, investors need to weigh meaningful execution risks, including higher offshore ramp up costs, intense price competition from Chinese turbine manufacturers and sensitivity to trade tensions and tariffs. To really understand what markets may be missing about Vestas, you need to look at how these growth drivers and risks compare with its valuation and earnings trajectory.

Vestas Wind Systems’ growing Service arm and global order book look powerful, but the real story sits in how markets are pricing those earnings against execution and tariff risks, so review the analysis report for Vestas Wind Systems

Nordex (XTRA:NDX1)

Overview: Nordex is a Hamburg based wind power company that develops, manufactures, and sells multi megawatt onshore wind turbines, while also providing project development, maintenance, spare parts, monitoring, and upgrades across Europe, the Americas, and other international markets.

Market Cap: €9.47b

Nordex is attracting attention because it sits at the heart of Europe’s push for secure, domestically anchored clean energy supply chains, at a time when China EU trade tensions are rising. The company is tightly linked to European auctions and policy, has a growing high margin Service business, and continues to win sizeable orders across Germany, North America, Eastern Europe, and Türkiye. This supports its large backlog and recurring revenue base. At the same time, heavy exposure to Europe, reliance on external borrowing, and intense competition from Chinese turbine suppliers leave little room for execution missteps. The gap between Nordex’s improving profitability profile and these policy and supply chain risks is a key feature of the investment case.

Nordex’s rising backlog and higher margin Service business suggest the story may be stronger than headlines about trade friction imply. Weigh that against the analyst forecasts for Nordex to see what the market could be missing.

Thales (ENXTPA:HO)

Overview: Thales is a French industrial group that supplies defence, aerospace, space and digital security systems, from air defence radars and naval combat systems to avionics, cybersecurity and digital identity solutions for governments and companies worldwide.

Operations: Thales generates the bulk of its revenue from its Defence business at about €13.3b, followed by Aerospace at around €6.1b and Cyber & Digital at roughly €3.9b, with smaller contributions and adjustments grouped in Other.

Market Cap: €48.6b

Thales provides direct exposure to European defence and cybersecurity spending, with earnings forecast to grow faster than the French market and supported by a broad portfolio across radars, avionics and digital security. Recent developments such as the Romania GM200 radar contract, the planned Exail acquisition in underwater warfare technology, and reduced net debt indicate a business investing in future growth while improving its balance sheet. However, one-off losses, high reliance on government budgets and funding risk from external borrowing underline that execution and political decisions remain important. The key question is whether current expectations fully reflect this combination of defence and cyber resilience, potential supply chain reshoring effects, and these material risk factors.

Thales looks like a defence and cyber heavyweight whose broad portfolio and cleaner balance sheet could be masking a sharper earnings story, so walk through the analysis report for Thales to see what might change if one key assumption breaks.

The three stocks in this article are just a starting point, and the full European Supply Chain Reshoring and Diversification Stocks screener uncovers 17 more European companies whose reshoring and diversification stories could be just as compelling. Use Simply Wall St to identify, analyze and filter for the exact catalysts, balance sheet traits and supply chain narratives that matter most, so you can focus on your highest conviction ideas.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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