Eolus Vind (EOLU) Q4 2024 earnings summary

Executive summary

• Achieved second-best quarter and year in company history, with FY 2024 net sales of SEK 851 million and net profit of SEK 155 million, driven by a SEK 705 million milestone payment for the Centennial Flats project in Arizona.

• Maintained a diversified project portfolio of 25,880 MW across six markets and four technologies, with Sweden and the US as key markets.

• Board proposes an unchanged dividend of SEK 2.25 per share for 2024, with an equity/assets ratio of 38%.

• Strategic focus shifts from MW growth to value growth, with new financial targets for 2025–2027 and a strong pipeline of sales-ready projects.

• Major project milestones include the Pome BESS sale in San Diego expected to close in Q1 2025 and ongoing construction of several onshore wind projects in Sweden.

Financial highlights

• Q4 2024 net sales reached SEK 729 million, up from SEK 155 million in Q4 2023; operating profit was SEK 437 million (99 million), and net profit was SEK 315 million (71 million).

• FY 2024 net sales were SEK 851 million (down from SEK 2,301 million in 2023); operating profit was SEK 288 million (764 million), and EPS was 6.22 SEK (23.00 SEK).

• Cash and cash equivalents at year-end were SEK 356 million, down from SEK 575 million the previous year.

• Net cash flow from operating activities for FY 2024 was -SEK 1,796 million, reflecting project timing and working capital changes.

• Interest-bearing liabilities increased to nearly SEK 2.4 billion from SEK 692 million, mainly to finance construction.

Outlook and guidance

• New financial targets for 2025–2027: total operating profit of at least SEK 1.4 billion, average ROE above 15%, and equity/assets ratio above 30%.

• Pome battery storage sale expected to close in Q1 2025, with an enterprise value of $230–$235.5 million, significantly reducing the balance sheet.

• Ongoing sales processes for Swedish wind projects (Fågelås, Boarp, Dållebo), Latvian Pienava, and Roccasecca battery project in the U.S.

• Final revenue recognition for Stor-Skälsjön and sales/FIDs for several onshore wind and storage projects are upcoming milestones.

• Focus on value growth and quality in project development, with a strong pipeline of sales-ready projects for 2025.