Studsvik (SVIK) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales rose to SEK 235.5 million, up 10% year-over-year, with operating profit at SEK 13.7 million and margin of 5.8%.

• Strategic partnerships and acquisitions, including Extrem Borr och Sågteknik SP AB and Uniper, are expected to enhance service offerings and earnings.

• Studsvik is actively participating in national and international nuclear forums, supporting its positioning as a research hub and center of excellence.

• Increased global and national attention on nuclear energy's role in the energy transition, with strong political and industry support for expansion.

• Acquisition of Extrem Borr och Sågteknik SP AB effective July 1, 2024.

Financial highlights

• Q2 2024 net sales: SEK 235.5 million (Q2 2023: SEK 213.6 million); H1: SEK 444.9 million (H1 2023: SEK 402.4 million).

• Q2 operating profit: SEK 13.7 million (Q2 2023: SEK 12.0 million); H1: SEK 25.7 million (H1 2023: SEK 21.9 million), aided by SEK 2.3 million from a property sale.

• Q2 operating margin: 5.8% (Q2 2023: 5.6%); H1: 5.8% (H1 2023: 5.4%).

• Free cash flow for H1: SEK -40.9 million (H1 2023: SEK 35.4 million), mainly due to higher investments and increased capital tied up in projects.

• Net debt at period end: SEK 90.4 million (Q2 2023: net cash SEK 36.4 million); net debt/equity ratio: 22.4%.

Outlook and guidance

• Acquisition of Extrem Borr och Sågteknik SP AB expected to generate synergies and support growth in decommissioning, positively impacting 2024 earnings.

• inDRUM demonstration facility to begin operations in September 2024, with growing customer interest and scheduled projects.

• Positive impact from license sales in Scandpower software and a major US energy company anticipated later in the year.

• Ongoing pre-studies for new nuclear energy projects at the Studsvik site may lead to further expansion.