* Segment EBIT broadly in line with estimates * Margin-enhancing initiatives in Decommissioning paying off * We cut '26e-'28e EBIT by 8-4% on higher central costs
Q1 results
Q1 sales were SEK 226m (flat y-o-y, +2% vs. ABGSCe) alongside EBIT of SEK 12m (vs. ABGSCe). The deviation in EBIT was almost entirely driven by higher-than-expected corporate costs (SEK -12m vs. ABGSCe -8m). The company cites costs attributed to the Kärnfull Next acquisition, though the amount was not specified. Diving into the segments, we find it positive that BlackStarTech (acquired in Feb '25) is contributing positively to Scandpower sales. Moreover, the Decommissioning margin recovered to 4.4% (vs. 2.1% in Q1'25), supporting management's guided gradual margin recovery as the business exits lower-margin work and shifts resources to engineering and dismantling. FM&WM reported slightly lower-than-expected margins at 12.7% (vs. ABGSCe 15%), which management described as a low-margin quarter driven by project mix.
Estimate changes
We lower our '26e-'28e EBIT by 8-4%, mainly on raised corporate cost assumptions. On the earnings call, management indicated that group-function costs will remain slightly elevated through the year due to ongoing strategic initiatives. We partly offset this by raising Decommissioning margin estimates, reflecting recent margin-enhancing initiatives showing positive results.
Studsvik to benefit from SMR build-out
We continue to view Studsvik to be strategically well-positioned as more countries adopt nuclear as part of their sustainable energy mix. The Q1 strategic actions, the Kärnfull Next acquisition and the Rolls-Royce SMR and Novatron Fusion Group MoUs broaden Studsvik's offering beyond servicing existing nuclear into new-build SMRs and fusion, creating long-term optionality. Management expects 1-3 further SMR site applications in Sweden over the next 18-24 months. The stock is currently trading at '26e-'28e EV/EBIT of 34x-26x.