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EOLUS AB INTERIM REPORT Q2 2026 4
INTRODUCTION NET SALES AND OPERATING PROFIT PROJECT DEVELOPMENT ASSET MANAGEMENT SUSTAINABILITY THEME FINANCIAL REPORTS
Capital allocation for greater value creation
During the second quarter, Eolus continued to
advance projects, reduce costs and adapt its
capital structure for efficient value creation.
With good progress in projects under
development and several additions to our
team, we are shaping a sharper organization
aligned with demand in our markets.
For the second quarter, Eolus’s net sales
amounted to SEK 12 (364) million with an
operating loss of SEK -64 (-74) million. Our
Asset Management operations contributed
positively to earnings.
Continued reduction of the cost base
Eolus mainly realizes value through the sale of
ready-to-build projects. Earnings in a given
period therefore depend on the timing of
individual transactions and progressive profit
recognition for projects under construction.
During the second quarter, we completed no
transactions and had no project under
construction qualifying for progressive revenue
recognition based on degree of completion.
The result for the period shows that we
continue to reduce costs in line with our cost-
saving program. We also have stable
contribution from our Asset Management
segment.
After the end of the period, we received
additional milestone payments for the
Centennial Flats project in Arizona. The
payments are expected to have a positive
impact of approximately USD 20 million on
earnings and cash flow in the third quarter.
The project is in Arizona, US, and was our
first sale of a hybrid project when it was
divested in 2022. Centennial Flats comprises
500 MW of solar power and 267 MW of battery
storage and has reached commercial operation
for two of three phases. We have increased our
forecast for the total purchase price to
approximately USD 146 million, of which Eolus
has received approximately USD 134 million to
date. We expect final milestone payments of
approximately USD 12 million before year-end,
in connection with commercial operation of the
project’s third phase.
Project progress and the Government’s
rejection of offshore wind power
At quarter close, the project portfolio amounted
to 14.8 GW. We continue to rebalance the
portfolio to optimize value rather than volume.
During the quarter, we held a well-attended
inauguration of the Fågelås wind park outside
Hjo, Sweden. The park has an unusually high
capacity factor of up to 43 percent, owing to its
favorable location and the height of the
turbines. With a total height of 250 metres, they
are the tallest in Sweden. At Fågelås, Boarp and
Dållebo, we have also begun developing co-
located battery storage systems on behalf of
the owner Mirova.
Our largest ongoing construction project,
the Pienava wind project (147 MW) in Latvia,
progressed according to schedule during the
period. The first of 21 wind turbines was
erected in July, and at the time of writing eight
turbines have been installed. We expect the
next milestone payment, a smaller amount, in
the fourth quarter and recognize revenues
based on achieved milestones until completion.
In our next Latvian project, Valpene (240
MW), we secured grid connection and permits
after the end of the quarter, advancing the
project into the late-stage development phase.
After the end of the period, on 16 July, the
Swedish Government announced that it had
rejected eleven applications for offshore wind
power, including Eolus’s two projects Västvind
(1,000 MW) outside Gothenburg and
Najaderna (1,700 MW) outside Gävle. We are
disappointed that the Government did not
consider the local support for Västvind and its
importance to western Sweden. At the end of
the period, capitalized costs on the balance
sheet amounted to approximately SEK 48
million for Västvind and zero for Najaderna.
We will continue to evaluate the decision
and analyze the prospects for Swedish offshore
wind power following the election and the
formation of a new government.
Strengthened commercial team and focus on
capital allocation
The more challenging investment climate
increases the importance of various forms of
revenue hedging, in both the US and Europe. A
power purchase agreement (PPA) is often a key
component in financing a ready-to-build project.
I’m therefore pleased to welcome Cecilia
Bergman (previously at Ørsted, Axpo and
others), our new Head of Power Markets & PPA,
Anna Schlasberg Wachtmeister (previously at
Vestas), our new Head of Commercial, and
Antti Laukkanen (previously at OX2, Fortum and
others), new Country Manager Finland, to Eolus.
Cecilia, Anna and Antti will help us tailor
projects for optimal value in a changing market.
Another trend affecting all our markets is
the growing queue for grid connections, for
both generation and consumption. Regulatory
changes are under way in several markets,
further increasing the value of local insight, a
system-wide perspective and project quality.
Grid analysis is a core competence at Eolus,
and our ability to identify the right location
unlocks significant value for investors and
consumers. Read more about our view of grid
connections in the interview with Anna
Bohman, Head of Grid, on page 15.
As a pure-play developer with a strong
financial position, Eolus is well equipped to
navigate a hesitant market. The Board and
management continue to prioritize capital
allocation. We will invest with discipline in our
most value-creating opportunities and, when
appropriate, return value to shareholders
through dividends or share repurchases. During
the quarter, we repurchased bonds with a value
of SEK 71 million to reduce interest expenses.
The external environment continues to be
marked by unrest in the Middle East and shifts
between ceasefires and renewed hostilities.
War and geopolitical uncertainty make it clear
that Sweden and Europe cannot rely on
imported fossil fuels, either for security of
supply or competitiveness. Renewable energy
has a key role to play in the necessary
transformation of our energy system. Thank
you for your continued confidence and support
for our vision of shaping a renewable future.
PER WITALISSON
CEO
Hässleholm, August 2026