• Sales SEK 247m, 8% above ABGSCe on DRPS and FM&WT
• Scandpower loss on licence timing and growth spend
• We cut '26e/'27e adj. EBIT by 3/2%; '28e broadly unchanged

Q2 expectations

Q2 sales came in at SEK 247m (+9% y-o-y, +8% vs. ABGSCe). Both Decommissioning (SEK 97m vs. ABGSCe 87m) and FM&WT (SEK 116m vs. 109m) beat our estimates. Adj. EBIT was SEK 14m (vs. ABGSCe 15m), with the miss due to Scandpower, which reported EBIT of SEK -5.4m (2.6m). The quarter had no material licence sales, the comparison year had FX support, and on top of that the company is spending somewhat more on BlackStarTech and product development. We find the Decommissioning print the most important takeaway: a 7.0% margin (vs. ABGSCe 4.6%, 4.9% LY) on higher utilisation, cost control and a shift towards higher-margin services. Management sees the level as sustainable through the year, although outage timing helped the quarter. FM&WT margins were strong, at 18%, and utilisation is not yet at peak, according to management.

Estimate changes

We cut '26e/27e adj. EBIT by 3/2%, mainly on lower Scandpower margins, partly offset by higher sales and higher margin assumptions in DRPS and FM&WT.

Newbuild optionality starting to take shape

The KNXT deal closed in the quarter, applications went in for up to 1,400 MW at the company's own site plus state support, and Rolls-Royce SMR, a Studsvik customer, was selected by Videberg Kraft. In the US, the NRC expanded its approval of CMS5 to new reactor types and Scandpower signed its first AMR contract.The stock is trading at '26e/'28e EV/EBIT of 29x/21x.