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Studsvik - Getting back on track

13 februari 2025

<a id="bm-comp-009e7b0b-6508-410d-b7cf-e97783a8a1c9" name="bm-comp-009e7b0b-6508-410d-b7cf-e97783a8a1c9" class="BMCustomAnchor"></a><table><tr><td bm-component-id="009e7b0b-6508-410d-b7cf-e97783a8a1c9" style="vertical-align: top; width:100.000000%;"><ul><li>F&amp;MT recovers from Q3 challenges</li><li>Scandpower ends the year in style</li><li>Decommissioning behind 5% cut to '25e EBIT</li></ul></td></tr></table><a id="bm-comp-a5bcf0a5-8ec2-46dd-a660-ad0b2735b696" name="bm-comp-a5bcf0a5-8ec2-46dd-a660-ad0b2735b696" class="BMCustomAnchor"></a><table><tr><td bm-component-id="a5bcf0a5-8ec2-46dd-a660-ad0b2735b696" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q4: Sales +8% y-o-y, adj. EBIT margin 8.3% (12.5%)</h3><p>Studsvik reported Q4 sales of SEK 247m (228m) with assumed organic growth of +4% y-o-y. Adj. EBIT was SEK 20.6m (28.5m), as Fuel and Material Technologies (F&amp;MT) still operates below historical profitability levels after the production challenges seen during Q3. It improved significantly q-o-q, though, and management seems to be optimistic about the business area returning to similar profitability as in the past. Decommissioning saw solid sales growth, albeit with muted profitability, as Q4 had a negative calendar effect. Scandpower saw both strong growth and profitability and almost managed to offset weaknesses in the other business areas with adj. EBIT 4% below ABGSCe. Sales was 7% above ABGSCe.</p><h3 class="bm-h3">Merges F&amp;MT with Waste Management</h3><p>The company has decided to stop disclosing the Waste Management numbers as a standalone business area. Instead, it will be part of the larger F&amp;MT business area, which will be renamed Fuel, Waste and Materials Technology (FWMT). We think this makes sense given the low share of revenues from Waste Management. We are encouraged by the development in Scandpower in '25e, but it is offset by lower assumed profitability in Decommissioning, lowering EBIT by 5%.</p><h3 class="bm-h3">Continues its M&amp;A journey under new leadership</h3><p>Along with the report, Studsvik announced the acquisition of BlackStarTech, which offers products that control emergency lightning and back-up energy solutions that can be remotely controlled. The products have a software component developed by Scanpdower, and management sees an opportunity to scale the business in both existing and new nuclear power plants as well as mines, etc. The move increases Studsvik's exposure to earlier points in the life cycle, which is beneficial given the positive market outlook, but it will take time to scale.</p></td></tr></table>

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