* Sales SEK 226m (flat y-o-y, +2% vs. ABGSCe)
* EBIT SEK 12m, 23% below ABGSCe on higher corporate costs
* Segment EBIT broadly in line; acquisition costs cited (unspecified)
Q1 results
Studsvik reported Q1 sales of SEK 226m, flat y-o-y and 2% above our estimate. EBIT came in below expectations at SEK 12m (vs ABGSCe 16m). However, segment EBIT was broadly in line with our estimates in aggregate, but higher-than-expected corporate costs (EBIT for group functions was SEK -12m vs. ABGSCe -8m) dragged down the group result. Management attributes the lower profit partly to strategic initiatives and acquisition-related costs related to the Kärnfull Next acquisition, though these are not quantified.
Estimate changes and outlook
The Q1 numbers in isolation imply that EBIT comes down 5%. However, we note that the acquisition-related costs are one-off in nature, and since management has not quantified them, the underlying profitability of the quarter is difficult to assess. Management points to continued demand for Studsvik's products and services, a strong order backlog in FM&WM, increasing BlackStarTech sales in Scandpower, and an improving mix in D&RPS. Moreover, the strategic investments (Kärnfull Next, Rolls-Royce SMR and Novatron MoUs) are building optionality in SMRs and fusion for Studsvik.
Company valuation
Over the past three months, the share has returned -6%, compared to the +4% of the OMX Stockholm Allshare. The share is currently trading at 50x-40x '26e-'28e P/E. There is a conference call at 10:30 CET, link here.