Studsvik: F&MT headwind behind muted quarter - ABG

Production stop in F&MT affects Q1
Decommissioning a bright spot
Report in line with ABGSCe when adjusted for F&MT


Q1: Organic sales -3% y-o-y, EBIT margin 9.9% (7.0%)

Studsvik's Q1 report was fairly in line with ABGSCe. Sales were SEK 189m (+1% y-o-y, of which -3% organic) and EBIT was SEK 9.9m (7.0m) This was 1% and 32% below ABGSCe, respectively, when adjusted for a production stop in Fuel and Materials Technology (F&MT) that affected EBIT by SEK 5m. Adj. EBIT, meanwhile, was in line with expectations. In terms of divisions, a positive delta was seen in Decommissioning, whereas the other divisions were slightly below expectations. All in all, we think Q1 was a rather uneventful quarter without any major news. With that said, we are impressed by the cost control and strengthened EBIT margin y-o-y given the inflationary environment.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/studsvik/Equity-research/2023/4/studsvik---fmt-headwind-behind-muted-quarter/