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Third party research

Studsvik: FMWM shines, Decommissioning lags - ABG

Studsvik

This is a third party research report and does not necessarily reflect our views or values

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* Sales -4% & EBIT adj. SEK 5m below vs. ABGSCe
* Strong quarter for FM&WM, weaker for Decommissioning
* Expecting gradual improvement in Decommissioning margins in '26e


Q4 results

Sales fell 10% y-o-y and were 4% below our estimate. With an EBIT margin of 8.3%, 1.5pp below our estimate, EBIT was 18% below our estimate. Fuel, Materials and Waste Technology had a strong quarter, reporting sales of SEK 106m (vs. ABGSCe 95m). The company writes the higher sales comes from progress in customer projects, positive productivity development and favourable product mix. However, tough competition in Decommissioning weighed on Q4, with sales 17% below our estimate and EBIT SEK 9m under. Furthermore, Scandpower faced tough comps in the quarter, with sales coming in lower than expected (-13% vs. ABGSCe) due to seasonal variations in the business area.


Estimate changes

The Q4 numbers in isolation imply EBIT adj. comes down 7%. Although Decommissioning had a challenging quarter, the company believes that conditions are favourable for a gradual improvement in margins in '26e. The company states that it is witnessing growing demand and interest in advanced nuclear technologies, which it expects will create long-term opportunities for Studsvik.


Valuation

Prior to today's report, the share had returned +21% L3M, compared to the +8% of the OMX Stockholm Allshare. The share is currently trading at 50x-45x '26e-'27e P/E.
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