Eolus (EOLU) Q1 2025 earnings summary

Executive summary

• Achieved record net sales of 1,975 MSEK and operating profit of 164 MSEK in Q1 2025, driven by the sale of the 100 MW Pome/POEM BESS project in California and the handover of the 260 MW Stor-Skälsjön/Storsjön wind project in Sweden.

• Recognized 75% of Pome/POEM project profits in Q1; remaining 25% to be recognized in Q2, with an additional payment of $25–30.5 million expected upon commercial operation.

• Asset management portfolio now exceeds 1,180 MW, reflecting growth in managed renewable assets.

• Strategic review concluded little commercial viability for offshore wind in Sweden and Finland, leading to reduced staffing, minimized development spend, and downsizing of offshore wind operations.

• Project portfolio stands at 25,523 MW, diversified across markets and technologies, with 35 years of execution.

Financial highlights

• Net sales for Q1 reached 1,975 MSEK, with operating profit of 164 MSEK and EPS of 3.60 SEK, up from -1.30 SEK year-over-year.

• Equity-to-asset ratio increased to 61%, up from 54% year-over-year.

• Net debt decreased by SEK 1.4 billion, with a net cash position of 354 MSEK at quarter-end, mainly due to the Pome/POEM transaction.

• Order backlog at quarter-end was 750 MSEK, primarily from the Pome/POEM project.

• Cash flow from operating activities reached 1,411 MSEK, reflecting project sales and investments.

Outlook and guidance

• Focus on advancing sales and PPAs for Fågelås, Dållebo, Boarp, Pienava, and Fageråsen projects.

• Final Pome/POEM milestone payment expected in Q2; continued optimization of financing structure, including potential green bond issue.

• Nearly 1.5 GW of mature projects targeted for realization over the next three years.

• Board proposes splitting 2024 dividend into two installments to maintain financial flexibility amid macro uncertainty.

• Operating profit target of at least 1,400 MSEK for 2025–2027; average ROE to exceed 15% per year.