Studsvik: Mixed end to 2023 - ABG

Scandpower excels through licence sales
Higher sick leave in Decommissioning
Minor revisions with '24e EBIT down 1%


Q4: Organic sales -2% y-o-y, EBIT margin 12.6% (14.7%)

Studsvik reported flat Q4 sales y-o-y, with organic sales down 2% y-o-y. EBIT was SEK 28.7m (33.5m) on mixed performance from the different business units. Waste Management was clearly below Q4'22 numbers, as it included a large licence sale, and Decommissioning struggled with higher-than-normal sick leave affecting both sales and profitability negatively. F&MT showed higher sales but lower profitability. The bright spot was Scandpower, which closed two larger licence deals in Q4, resulting in EBIT doubling y-o-y. Sales were more or less in line with our estimates, whereas EBIT was 49% above, as we did not expect licence sales in Scandpower to be as strong as they were on the two deals. On Scandpower, Studsvik finally settled on the final amount to acquire the minority shares (21% of Scandpower), meaning it had to pay around SEK 90m in total.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/studsvik/Equity-research/2024/2/studsvik---mixed-end-to-2023/