Eolus Vind: Profitability facing headwinds - ABG

* Pome project schedule delayed* Lower-than-expected project margins in Pome and Pienava* We cut '25e EBIT by SEK 262mQ2 resultsEolus reported Q2 net sales of SEK 364m and EBIT of SEK -74m (vs. ABGSCe of 103m). The weaker EBIT comes from a lower than expected project margin in Pienava and a negative provision associated with Pome due to a delayed project schedule. Moreover, the total expected project margin for Pome has been lowered; management now expects it will be around USD 10m (we had estimated a margin of around USD 25m). As of Q2, 85% of this had been accounted for, and we expect a further ~SEK 15m in project margins in H2'25e. In addition, the company expects remaining cash payments of ~USD 10m to be recorded until the start of the commercial operation (expected in H2'25e).Estimate changes and outlookWe lower '25e EBIT by SEK 262m, mainly due to lower-than-expected project margins in Pienava and Pome. We have also lowered our '26e-'27e EBIT by SEK 103m, reflecting reduced project margin expectations in the company’s late-stage portfolio because of near-term margin pressure. Looking ahead, the company is progressing with the construction of its onshore wind projects Dållebo, Boarp, and Fågelås. We expect these projects will be divested in H2'25e, with an estimated combined '25e EBIT contribution of ~SEK 190m.Longer-than-usual sales cyclesThe share is trading at '25e-'27e P/Es of 9x-6x, with the low multiples partly explained by the company's volatile historic earnings trend and the perceived risk in future project sales. In its Q2 report, management highlighted a continued weak transaction market, which it expects to delay project sales and pressure expected margins. Despite the weaker market conditions, Eolus has completed two transactions in a short period, which we view as positive.