Centennial lifts earnings and liquidity - Q3 initial take

Centennial drove a strong Q3 recovery, with group net sales of SEK393m (Q3 2025: SEK200m) and EBIT of SEK112m (-87m). Operating cash flow was SEK290m (-265m), strengthening an already solid balance sheet. Project impairments of cSEK90m partly offset the earnings contribution. Strong liquidity and continued cost reductions provide resilience, but future earnings remain dependent on transaction timing, in our view.

Centennial monetised; impairments weigh. All expected, Eolus received Centennial payments in Q3, contributing SEK360m to sales and cSEK252m to earnings. Another US solar and battery project sale also contributed positively. Impairments included SEK48m for Västvind and cSEK40m on US projects following changed market conditions. Asset Management remained stable at SEK10m of sales and SEK4m of EBIT, while the cost-savings programme continued to reduce operating costs.

Execution progressing; portfolio refined. All turbines at Pienava have been installed and trial generation has started. Valpene (190MW) is approaching commercialisation, with potential battery storage additions, while work continues at Ölme, Siggebohyttan and Marbäck. The portfolio declined to 13.2GW following project disposals and closures, including Västvind’s removal. Meanwhile, new and expanded storage projects added 592MW. The focus remains on project quality and commercial optimisation, in our view.

Outlook. Cash reached SEK1,000m, net cash increased to SEK530m, from SEK227m in Q2, and the equity ratio was 63%. This provides substantial flexibility to fund selected development opportunities, in our view. With all expected Centennial proceeds received, attention shifts to monetising the mature pipeline. The SEK70m order backlog underscores the importance of new transactions, while project economics, permitting and buyer timing are the principal uncertainties, in our view. Conference call at 10:00 CET: https://portals.qbrick.com/eolus-q3-2026.