Studsvik (SVIK) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales grew 7.9% in local currency, reaching SEK 247.4 million, among the best quarters in over a decade, driven by strong software and decommissioning services performance.

• Full-year 2024 net sales rose to SEK 893.1 million, up 8.1% year-over-year, surpassing the 6% growth target.

• Adjusted Q4 operating profit was SEK 20.5 million, but reported profit was SEK 1.6 million due to SEK 18.9 million in restructuring and inventory write-downs.

• Board proposes a dividend of SEK 2.00 per share for the 2025 AGM.

• Acquisitions of BlackStarTech and EBS expanded software and decommissioning capabilities.

Financial highlights

• Q4 net sales: SEK 247.4 million (up from SEK 228.4 million); full year: SEK 893.1 million (up from SEK 826.0 million).

• Q4 net loss: SEK -1.3 million (vs. SEK 18.5 million profit last year); adjusted Q4 operating profit: SEK 20.5 million.

• Adjusted EBIT margin for 2024 was 5.1%, below the 12% target.

• Free cash flow Q4: SEK -18.8 million; full year: SEK -78.1 million, impacted by lower profit and higher investments.

• Net debt at year-end: SEK 132.2 million; net debt/equity ratio: 32.8%.

Outlook and guidance

• Entering 2025 with a strong team, positive market climate, and two recent acquisitions, with high demand for products and services.

• Efficiency program expected to lower annual costs by SEK 20 million from 2025, mainly impacting the fuel and materials segment.

• Organizational restructuring will merge waste management with fuel and materials, resulting in three reporting segments from Q1 2025.