The manufacturer also reported that its turbine order intake stood at 10,494MW at the end of last year, compared with 8,943MW in 2015.
The biggest growth was in the value of Vestas’ service orders, which rose from €1.8 billion in 2015 to €10.7 billion.
Revenue grew from €8.4 billion in 2015 to €10.2 billion, with Vestas expecting it to reach €9.25-10.7 billion in 2017.
The company's strong performance is reflected in a rise in dividends, with the Vestas board recommending a dividend of DKK9.71 (€1.26) per share, compared with last year’s DKK6.82.
"I am extremely pleased with Vestas’ 2016 performance," said CEO Anders Runevad.
"Deliveries are up more than 29% year-on-year, while costs remained tightly under control. All regions contributed to the strong results, demonstrating once again the power of Vestas’ global reach," he said.
Speaking to Windpower Monthly, Vestas group senior vice president of marketing communications and public affiars, Morten Dyrholm, said: "Vestas had an excellent 2016 delivering a record year across all parameters, which is the result of all regions chipping in.
"We expect 2017 to be a year with solid financial performance, reflecting the wind industry's shift from growth to stable high volumes," he said.
Dyrholm said 2017 is set to see a growing interest in grid stability and storage: "I think there's a lot to keep an eye on for 2017, but personally I'll be particularly interested in the growing discussions of how energy systems can handle the increasing penetration of wind and other renewables. How do we ensure stability and what role will hybrid solutions, storage and demand control play? This is something we increasingly need to address."