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Introduction & Market Context
Studsvik AB (STO:SVIK) shares fell 7.92% on July 22, 2025, following the release of its Q2 2025 interim report, which showed a revenue miss despite improved profitability. The nuclear services provider reported sales of SEK 227.6 million, falling short of the SEK 242 million forecast, while operating profit improved to SEK 17.6 million with margins expanding to 7.7%.
The presentation, delivered by CEO Karl Thedéen and CFO Peter Teske, highlighted Studsvik’s positioning across the nuclear power lifecycle amid growing global interest in nuclear energy, particularly in Small Modular Reactors (SMRs). With operations spanning 7 countries and sales in over 15 countries, Studsvik aims to capitalize on government support for nuclear energy in Sweden, the UK, and the US.
Quarterly Performance Highlights
Studsvik reported Q2 2025 sales of SEK 227.6 million, representing a 3.4% decrease from SEK 235.5 million in Q2 2024 (0.4% decrease in local currencies). Despite this decline, the company achieved its second strongest Q2 in a decade while improving operating profit to SEK 17.6 million, up from SEK 13.7 million in the same period last year.
As shown in the following financial performance overview:
The operating margin expanded to 7.7% from 5.8% in Q2 2024, driven primarily by strong performance in the Fuel, Materials and Waste Technology (FMWT) business area. The company also noted positive exchange rate movements and benefits from its 2024 cost efficiency program.
For the first half of 2025, Studsvik reported sales of SEK 454.6 million, a 2.2% increase from SEK 444.9 million in the first half of 2024. In local currencies, this represented a 3.7% increase.
Detailed Financial Analysis
Studsvik’s business is divided into three main segments, with each showing varying performance in Q2 2025:
The Fuel, Materials and Waste Technology segment, which accounted for 47% of total revenues, delivered exceptionally strong results with an 18.0% operating margin. This segment reported sales of SEK 107.4 million and operating profit of SEK 19.3 million, benefiting from high customer demand and increased interest from SMR technology companies.
As illustrated in the FMWT business area performance:
The Decommissioning and Radiation Protection Services segment, representing 39% of revenues, faced more challenging conditions. Sales decreased to SEK 89.7 million from SEK 102.2 million in Q2 2024, while operating profit fell to SEK 4.4 million from SEK 8.3 million. The operating margin declined to 4.9% from 8.1%, reflecting competitive market pressures and the need for improved efficiencies.
The performance details for this segment show:
Studsvik Scandpower, contributing 15% of revenues, experienced lower license sales in Q2 following strong performance in Q4 2024 and Q1 2025. Sales decreased to SEK 35.5 million from SEK 39.4 million, with operating profit falling to SEK 2.3 million from SEK 5.6 million. The operating margin declined to 6.5% from 14.3% in Q2 2024.
The quarterly sales trend from Q1 2022 through Q2 2025 shows the company’s overall revenue pattern:
Similarly, the operating profit trend demonstrates the company’s improving profitability despite fluctuations:
When comparing Studsvik’s performance against its financial targets, the company still has progress to make:
Strategic Initiatives
Studsvik highlighted several strategic initiatives aimed at capitalizing on growing nuclear market opportunities. The company established a new Executive Management Group with increased focus on group synergies, business development, and M&A strategy.
A significant milestone was the US Nuclear Regulatory Commission’s approval to review Studsvik’s fuel optimization software for use by companies developing Small Modular Reactors (SMRs). This positions the company to benefit from the growing SMR market, which could contribute approximately 25% of added nuclear capacity globally.
The global nuclear market statistics illustrate the potential growth opportunities:
Studsvik also emphasized its innovations, including the inDRUM facility in Sweden and new software solutions for fuel optimization in the SMR market. The company’s recent acquisition of BlackStarTech is expected to strengthen its software offerings.
Forward-Looking Statements
Looking ahead, Studsvik outlined four key focus areas to reach its financial targets: enhancing commercial management, capturing mid and long-term organic growth opportunities, executing on M&A strategy, and becoming the preferred global employer.
The company sees significant growth potential in the nuclear industry, noting that global nuclear capacity could increase 2.5 times by 2050. Government decisions supporting nuclear energy in Sweden, the UK, and the US are expected to create favorable market conditions.
The Q2 2025 summary highlights the company’s positioning and outlook:
Despite the revenue miss in Q2, Studsvik maintains a positive outlook based on strong demand for its FMWT services and increasing interest from SMR vendors. However, investors appear concerned about the company’s ability to meet growth targets, as reflected in the 7.92% stock price decline following the presentation.
With an operating margin of 8.1% for the first half of 2025 against a target of over 12%, and growth of 3.7% against a target of over 6%, Studsvik faces challenges in achieving its financial objectives while navigating competitive pressures in segments like Decommissioning and Radiation Protection Services.
Full presentation:
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