Studsvik - Hot market, sharper profits - ABG
Tämä on kolmannen osapuolen analyysi, eikä välttämättä vastaa Inderesin näkemystä tai arvoja
Bright spot in FMWT
Q2 sales were SEK 228m, -3% y-o-y and flat y-o-y in local currencies, while EBIT adj. was SEK 16m (14m). The highlight of the report was FMWT, which performed strongly both in terms of sales and profitability. Sales grew +9% y-o-y, and the EBIT adj. margin improved to 16% (6% in '24). We expect the company's streamlining efforts, combined with increased demand, to lift EBIT margins to 16% for FY'25e in FMWT (vs. 13% and 1% in '23/'24). Scandpower sales were impacted by seasonal variations and were lower in Q2, but we expect licence sales to trickle in during H2’25e, contributing to >10% growth for FY’25e. Moreover, we remain cautious on the company's Decommissioning segment, which is facing tough competition and impacted margins negatively in Q2; we expect this pressure to continue in the coming quarters.
Estimate changes and outlook
We lower our '25e-'27e sales by 3% and EBIT adj. by 1%, primarily reflecting reduced expectations for Decommissioning given ongoing challenging market conditions. In contrast, we have raised our FMWT estimates, supported by strong momentum and increasing customer demand.
Increased nuclear investments driving demand
Management highlights a global wave of nuclear investment – Sweden enabling state aid for new reactors, the UK announcing GBP 14.2 bn to build new plants and support SMRs, and the US streamlining approvals – driving strong demand for Studsvik’s SMR-focused services and fuel optimisation software. The share has returned +59% L3M (vs. peers at +21%, OMXSALLS 10%) and is currently trading at 20x-17x '25e-'27e EV/EBIT.
Q2 sales were SEK 228m, -3% y-o-y and flat y-o-y in local currencies, while EBIT adj. was SEK 16m (14m). The highlight of the report was FMWT, which performed strongly both in terms of sales and profitability. Sales grew +9% y-o-y, and the EBIT adj. margin improved to 16% (6% in '24). We expect the company's streamlining efforts, combined with increased demand, to lift EBIT margins to 16% for FY'25e in FMWT (vs. 13% and 1% in '23/'24). Scandpower sales were impacted by seasonal variations and were lower in Q2, but we expect licence sales to trickle in during H2’25e, contributing to >10% growth for FY’25e. Moreover, we remain cautious on the company's Decommissioning segment, which is facing tough competition and impacted margins negatively in Q2; we expect this pressure to continue in the coming quarters.
Estimate changes and outlook
We lower our '25e-'27e sales by 3% and EBIT adj. by 1%, primarily reflecting reduced expectations for Decommissioning given ongoing challenging market conditions. In contrast, we have raised our FMWT estimates, supported by strong momentum and increasing customer demand.
Increased nuclear investments driving demand
Management highlights a global wave of nuclear investment – Sweden enabling state aid for new reactors, the UK announcing GBP 14.2 bn to build new plants and support SMRs, and the US streamlining approvals – driving strong demand for Studsvik’s SMR-focused services and fuel optimisation software. The share has returned +59% L3M (vs. peers at +21%, OMXSALLS 10%) and is currently trading at 20x-17x '25e-'27e EV/EBIT.