Studsvik: Restructuring program to hurt Q4 - ABG

F&MT initiates cost-cutting program
Gradual recovery expected
Q4 due on 10 February


Q4e: Organic sales +1% y-o-y, adj. EBIT margin 9.3% (12.5%)

Studsvik will report its Q4 on 10 February, and we expect a soft end to '24, as the company is currently struggling with technical production disruptions in Fuel and Materials Technology (F&MT). It is hindering Studsvik from realising the full effect of its backlog, and to protect profitability, it announced in November that a restructuring program had been initiated with the aim of reducing the cost base by SEK 15-20m yearly with the full effect in '25. Additionally, Scandpower had large licence sales in Q4'23, which will probably be hard to repeat to the same extent this year. The challenging outlook for Q4 is somewhat offset by a strong expected performance in Decommissioning, and for the group, we expect 1% organic sales growth y-o-y, albeit with a slightly lower adj. EBIT.