Earnings call transcript: Studsvik Q2 2025 shows revenue miss amid stable sales

Studsvik AB reported its financial results for the second quarter of 2025, revealing a revenue miss despite stable sales figures compared to the previous year. The company’s stock reacted with a 0.99% decline, reflecting investor concerns over the revenue shortfall. According to InvestingPro data, Studsvik’s market capitalization stands at SEK 177.48 million, with the stock trading at notably high valuation multiples. The earnings call highlighted an operating margin improvement and positive cash flow, which were overshadowed by the revenue miss.

Key Takeaways

• Studsvik’s Q2 net sales remained stable at SEK 227.6 million, missing the forecast of SEK 242 million.
• Operating margin improved to 7.7% from 5.8% last year.
• Stock price decreased by 0.99% following the earnings announcement.
• Positive cash flow of SEK 39.7 million was reported for the first half-year.
• New approvals and acquisitions in the nuclear sector signal potential future growth.

Company Performance

Studsvik’s performance in the second quarter of 2025 showed stability in net sales at SEK 227.6 million, consistent with the previous year. However, this was below the forecasted SEK 242 million, marking a notable revenue miss. Despite this, the company improved its operating margin to 7.7%, up from 5.8% a year earlier, indicating efficient cost management. InvestingPro analysis reveals a revenue growth rate of 7.57% over the last twelve months, with 12 additional exclusive ProTips available for subscribers.

Financial Highlights

• Revenue: SEK 227.6 million (stable YoY)
• Operating Profit: SEK 17.6 million
• Operating Margin: 7.7% (up from 5.8% last year)
• Positive Cash Flow: SEK 39.7 million in H1 2025

Earnings vs. Forecast

The actual Q2 revenue of SEK 227.6 million fell short of the forecasted SEK 242 million, resulting in a miss of approximately SEK 14.4 million. This deviation from expectations could influence investor sentiment, as the company’s historical performance has typically aligned more closely with forecasts.

Market Reaction

Studsvik’s stock price fell by 0.99% in pre-market trading, reflecting investor disappointment over the revenue miss. Despite recent volatility, InvestingPro data shows impressive returns of 68.41% over the past six months and 74.42% year-to-date. The stock currently trades at SEK 20.88, with an elevated P/E ratio of 169.35, suggesting premium pricing relative to earnings.

Outlook & Guidance

The company is focusing on organic growth opportunities and continuing its M&A strategy. Studsvik aims to expand its market presence in the nuclear sector, supported by new product approvals and strategic acquisitions. The company expects high margins in its Fuel Materials and Waste Technology segments, despite challenges in the decommissioning segment.

Executive Commentary

CEO Karl Tadien emphasized the potential for growth in the nuclear industry, stating, "By 2050, the global nuclear capacity could increase 2.5x the current capacity." He also highlighted the company’s role in the industry, saying, "We are empowering the nuclear industry with solutions from newbuild through to decommissioning."

Risks and Challenges

• Revenue miss raises concerns about meeting future forecasts.
• Workforce reduction could impact operational efficiency.
• Margin pressure in the decommissioning segment.
• Potential regulatory changes in nuclear power markets.
• Global economic conditions affecting capital investments in nuclear technologies.

Q&A

Analysts expressed interest in the future sales of the Scanpower software, which are expected to be back-ended in Q4. Concerns were raised about the ongoing pressure on margins in the decommissioning segment, and the effectiveness of the cost-saving program was discussed.

Full transcript - Studsvik AB (SVIK) Q2 2025:

Conference Moderator: Now I will hand the conference over to CEO, Karl Tadien and CFO, Peter Teske. Please go ahead.

Karl Tadien, CEO, Statsvik: Thank you, and welcome to Statsvik’s Interim Report for Quarter two of twenty twenty five. Just a short intro of Statsvik. We are empowering the nuclear industry with solutions from newbuild through to decommissioning. We these are our financial numbers for last year, eight ninety three million, truly international companies serving the nuclear industry all the way from Japan to The U. S.

And we are about 500 people. Majority of those are in Europe, but we also have a pretty large setup for our software business in The US. So we have received many questions over the years on what we actually do. So we try to come back to that on these calls. So we see the life cycle of nuclear from newbuild through the more than 400 operating plants in the world and also in safe way decommission sites that are not in use.

In addition to that, we have also other services providing radioactive supporting other sectors working with radioactive materials such as life science. The big new thing over the last five years is the new activity in new build in basically all territories. And here we are increasing we come to a later increasing amount of questions from many companies developing new kind of nuclear technology. The operating plants are all in service and require constant maintenance, constant development and modernization. We are very active in that space as well.

And then decommissioning for nucleosides takes a lot of time and needs to be done in a very safe and controlled way, and we are actively supporting customers mainly in Europe with that. If I now come to the earnings results for quarter two of this year, We see a very solid sales number of SEK227 million in local currencies, basically exactly the same as last year. And we have there was also a strong quarter last year, and this is actually, in fact, our second largest quarter two for the last ten years. So a very strong Q2 from that point of view. Maybe even better and more important for us is that our operating profits are increasing, and we see an almost 30% increase in operating margin coming up to 7.7 margin level versus 5.8% of last year.

The strong development is mainly driven by our business area of Fuel Materials and Waste Technology, FMWT, which, as you may remember, not doing very well in the Q3 and Q4 of last year. We have turned the corner here. We are seeing a big demand for our services and offerings in that area, and we’re also doing strong results here. As you will see in the presentation, we continue to see strong and positive market developments in our industry. Key milestones in quarter two twenty twenty five.

Maybe start with the appointments of my new executive management team. Increased focus on synergies. We have operated very separately for the business areas in the past. We will still have focus on the different business areas, but there are also synergies we can take here in areas like sales and business development, strategy, M and A and obviously other function like HR. We have also appointed a new person heading up our strategy M and A department called Jason Babik, who comes with a strong background both for European and American nuclear sector.

He will be based in The US, and he also has a long history with the company, Westinghouse. We see a continued high interest for the strategic products and solution based on the more positive investment cycle. This means there is more incoming needs, incoming requests for both our existing services, but also additional new services. We have a very positive development in the quarter with the U. S.

Nuclear Regulatory Commission, NRC, approved the statistics fuel optimization software to be used for applications for new modular reactors, SMRs. And this is just a proof of our strong technology there and also that we are relevant for the new developments and the new technologies developed in the SMR sector. And we have a continued strong operating margin development, as I just highlighted. So we are definitely reaching some key milestones here in quarter two. Let me then go through the different three business areas we have, and I’ll start with decommissioning and radiation protection services, DRPS.

It’s a business area that serves mainly the German, Swiss market, but also some Nordic and some in the Benelux countries for decommissioning and planned maintenance outages work. Here, we have not lived up to the expectations of profitability, not in this quarter and not in the first half year. We have, however, seen a bit of improved business performance from the acquired company, Xtreme Borne and Sog, EBS, which is very positive. But here, we are taking actions to improve profitability, review what our offering should be in the future and work on increased efficiency because this is not where we should be. It’s important to state that the market is definitely here.

There is a big request for these services, but the competition mainly in the German market is very stiff, down profitability in the quarter. If I continue then with fuel, materials and waste technology, and you can say that’s the heart of what we do here at Stutzik. This is mainly driven out of our site, yes, South Of Stockholm in Stutzik. We here have a very strong operating profit in a very dynamic and growing market. The SMR technology, small modular reactors, we’re starting to see more interest from those vendors to get support on material testing, fuel analysis, different things around licensing as we have a lot of capabilities there for them.

We have also continued interest in our interim waste technology and a lot of customer visits coming to our demonstration facility at site. If you recall, the last quarter, we announced the customer ESS, European Spanation Source, that we are working to help them to take over their waste, and we are taking all the permits for our interim to build an interim for them at site. The numbers are truly strong here. We have more than doubled the profit in the quarter and we have strong growth as well. So very happy with fuel materials and waste technology.

Stutzik Scan Power, which is now, you can say, two different businesses. One is our fuel optimization software business driven out of our strong knowledge about how fuel is behaving in the reactors. That is a solid business. But in the quarter, we have lower license sales. This happens.

It’s very seasonal business, which indicates that we actually had a lower sales and lower margin in the quarter compared to last year. But this is a normal seasonal effect, and we will continue to see those in the coming years as well. We have done another business that we acquired called Blackstar Tech, where we provide a software solution to monitor safety solutions. And the main safety that we bring out now is related to our battery technology, both for emergency lighting and power backup, but also things like fire alarm systems. Here we see low sales in the quarter.

This is very early days. We are building an organization. We are building the funnel, which with a strong interest in our technology. But the ongoing sales in the quarter were low, but we have very high hopes and high belief that this will be a very important business for us going forward. And with that, I’ll leave over to CFO, Peter Teske, to take us through some of the details in the financials.

Please, Peter.

Peter Teske, CFO, Statsvik: Yes. Thank you so much, Karl. And I will start with our go through our three segments business segments. And then after that, we look at the consolidated group numbers. And then we talk a little bit about our financial targets.

And here we see on the left, we have the decommission and radiation protection services, DRPS. The sales for the quarter amounted to SEK89.7 million and for the first half year 176,000,000. This is in local currency a decrease of 8.3% in the quarter and 1.6 for the first half year. Both the quarter and the first half year characterized by tough competition and strong cost focus among our customer, which combined with a cost saving program reduced our opportunities for additional sales. Therefore, this had a negative impact on our revenue and operating profit.

The decline compared to last year also affects due to the planned maintenance outage in Switzerland, which took place in Q2 twenty twenty four, but now is rescheduled to Q3 twenty twenty five. The acquisition of EBS, Xtreme Board and Sog Technique, contributed during the quarter with a net sales of SEK6.7 million and for the first half year SEK10.8 million. And as Karl mentioned, we are now back on higher utilization rate. And then on the right side, we have the fuel materials and waste technology, FMWT. Here we see the sales in the quarter amounted to SEK107.4 million and for the first half year SEK 205,100,000.0, which is in local currency is an increase of 9.2% in the quarter and 5.1% for the first half year.

The increased sales for the quarter and the half year are a result of a good progress in our projects and improved productivity. Also, had during the quarter a fuel transport that impacted our sales positively. We see a strong improvement compared to last year in operating margin for the quarter, where the margin increased from 7.2% to 18%. And that’s an effect of good progress in our project, improved productivity, but also an effect by our cost efficiency program that we have implemented. But also we have improved our partners routines and streamlined the delivery organization.

The business was during the quarter classified as an electricity intense business, which resulted in a tax repayment of 3,300,000.0. And that had, of course, a positive effect on the operating profit. On the other hand, we had the cost of SEK 1,400,000.0 attributed to the ongoing streaming effort affecting the quarter. And compared to last year, we had also in the first half year twenty twenty four, our property sales amounted to SEK 2,300,000.0. And then our third segment business area, Stutzik Scanpower.

And the sales decreased in the quarter to SEK 35,500,000.0. But on the first half year, we have an increase to SEK 81,700,000.0. And in local currency, we have the decrease in the quarter of 3.7%, but in the first half year, the increase is 12.9%. And as Karl mentioned, the business are subject to seasonal variations in sales, which was appearing now during the quarter. The sales increase for the first half of the year was primarily driven by the deliveries of the Gadell Monitor system as we spoke on during Q1.

The profit of the quarter is also affected by the seasonal variations in sales, of course. And during the quarter, we also see a little bit lower sales for Blackstar Tech products, but it has low negative impact on the overall profitability for the business area. For the first half year, we see an increased sales that contributed to the earnings that have improved the contributed earnings. And we see that underlying business are demonstrating stable profitability. The business area was positively impacted by exchange rates movement in both the second quarter and the first half year.

And the majority of the exchange rate movements relate to revaluation of balance sheet items. And if you then go to our group numbers when consolidated. So here we see the net sales per quarter. So the net sales for the quarter amounted to 227,600,000.0. And in local currency, that’s a decrease with 0.4, but basically it’s stable.

And also this quarter is the second strongest Q2 in the past ten years. And we have a decrease in sales then for Stutzik Scanpower and the commissioning radiation protection services. But, we have seen compared to last year higher sales with infused materials and waste management technology. And if you summarize it for the first half year, the sales amounted to 454,600,000.0 SEK. And in local currency, that’s an increase of 3.7%.

And there we have Scanpower, Infused Materials and Waste technology that’s increased their sales. If you then go to the operating profit. So the operating profit for the quarter is 17,600,000.0 and the margin is 7.7%. And here, as we mentioned before, the improvement from last year is driven by FMWT. And also such as Scanpower, there we have some positive impacts of the exchange rate movements.

And then if we look on the operating profit for the first half year, it was 37,000,000. That’s an increase with SEK 11,300,000.0. And also we see an increase operating margin. And the increased operating margin is an effect of our strength and financial discipline, our cost saving program and then that we have some positive one off items, like the electricity intense business, as I mentioned about the tax return. We have some exchange rates movement, but also that we have some negative effects, for example, at the cost of the ongoing streaming effects.

And if you look at the cash flow for the Q2, we see that the cash flow from operating activities for the quarter was positive with SEK 3,500,000.0 and the free cash flow was negative with SEK 1.3 during the quarter, but it’s still a big improvement compared to last year. And then if you look at the cash flow from the full first half year, we see that it’s positive with SEK39.7 million, and that’s an increase with SEK56.5 million compared to last year. And the high operating profit, the positive development in working capital is, of course, impacting the cash flow really positive. And we are working continuously with our working capital. For example, we have now improved our accounts receivable procedures and our procurement procedures, increased cost control and we have better follow-up.

And our free cash flow low for the first half year was SEK 38,300,000.0, an improvement with SEK 79,200,000.0 compared to last year. And there also we see the improvements contribute with the higher operating profit, the working capital change, but also that we have lower investment levels this year compared to last year. And finally, if we just go to our financial targets and compare it to the first half year and the full year 2024. We see on the growth that we have a financial target of 6% or above, and we did achieve that during 2024. And for the first half year now, we are reaching 3.7%.

But as we mentioned, we are affected a lot by the challenging market situation in Germany. We see that we have a positive improvement of the operating margin that we go from 3% to 8.1%. And that’s yes, because of good development in our business, but also our improved internal efficiency improvement as well as our work with our financial discipline. And also we see a positive trend on the equity to asset ratio. So with that said, I will hand over my word to Karl, our CEO.

Karl Tadien, CEO, Statsvik: Thank you, Peter. And let me continue to talk a little bit about the market developments. And let me start with small modular reactors, which we see several announcements and several build outs of this new technology. In many cases, this is traditional light water reactors built in a smaller, more where you can do a lot of production in different factories and then ship it to the sites. We have seen we see ongoing plans.

The first that will go live is most likely the one in Ontario in Canada, which is planned to go live somewhere around 02/1930. But many of these others are coming alive in the early part of 02/1930. It’s still SMRs used to build for SMR campuses that will produce a high amount of electricity in traditional sites. In addition to that, we will also see more and more smaller SMRs to support AI data centers and other industry processes in different countries. So here you can see an example of a SMR campus.

And why is SMR of interest for utilities and others that want to build more power? Well, they are more flexible. You can put in this case you have I think up to six or seven, but you can have actually one or two as well. So they are very flexible. You don’t need to be one big site, you can build many smaller.

And they have reduced lead time for the construction. This has been one of the problems in the industry that some of these bigger sites have taken a long time and have also suffered from a lot of delays. And the promise of this technology is that they can be more easier to manufacture and also to then construct and keeping lead times and costs down. We have also seen positive nuclear market events based on government decisions. And the nuclear power industry is obviously an industry driven by market demand, but also controlled and to some sense driven by the different decisions made by the governments and politicians in different countries.

In the quarter, we have seen three significant and very important decisions by governments. If we start with Sweden, the Swedish parliament passed a legislation to finance new generation of nuclear reactors, which are key to the energy security in the country and achieving net zero emissions. This will drive applications for building new large sites, but also most likely SMR campuses. In The UK, there has been a similar, but actually probably larger big government funding released supporting both the development of SMR technology in the country. And one of the vendors that was mentioned in that support was Rolls Royce, which is a very important European vendor of SMART technology.

That will also lead to that UK will start building more of that kind of technology into The UK grid. And last but not least is the executive orders signed and passed in The U. S. To support large increase of nuclear capacity through power updates to existing reactors and new reactor constructions and basically making sure that legislation and regulatory things would go faster for new build. So all these three countries have really pushed for and supporting the new build and life extensions of existing plants.

If you continue a little bit by the market development, we can see that there is projections of 25% of the added capacity that is required would be from SMR technology. 30 countries have announced that they’re considering to move forward with introducing nuclear power into their enemy mix or building new. We see a demand for electricity consumed from data centers expected to triple, and we have seen that very much in The U. S, but we also have dialogues and discussions where we see that also happening in the European marketplace. And by 02/1950, the global nuclear capacity could increase 2.5x the current capacity.

And to do that, it’s required both to make sure that you extend the life of existing plants and add new capacity. And that’s just exactly the two things that we at Stuttgart are very engaged with. Talk a little bit what we do in addition to what we have done in the past is obviously we are driving a lot of innovations into the marketplace. We have discussed before our in drum technology and this is our picture of our demo site, where we can reduce waste in drums with radioactive material with some 90%. This is generating a lot of interest from different companies around the world.

We’re also very active to drive new software and initiatives versus the SMR developer, both for the ones doing traditional light water, but also for the advanced modular reactor sector. And last but not least, the acquisitions of Blackstar Tech, which is a new technology that will be very essential for new build, but also for modernization of the existing power plants. So let me go then to my final comments. If you remember from last, we have focus areas to drive improvement of our financials. That starts with enhanced commercial management.

That is to focus more on the markets and the customers as a group, not as separate business areas that we have done in the past. That use that we’re going to increase our efforts in marketing and also make sure that we are more controlled and disciplined when we come how we offer and what kind of terms we have in our offers. That is already happening. We see we’re starting to see the result of that. We have a lot of mid- and long term organic growth opportunities.

Some of them I just highlighted with our innovations, and we continue to drive those opportunities. We have executed on our M and A strategy with the acquisition of EDS and Blackstar Tech during the last twelve months. We have appointed a new Head of Strategy and M and A to drive the agenda on M and A continuously to see more opportunity for strong and good M and A to add to our portfolio. And of course, important is to drive the growth from the acquired companies of UBS and Blackstar Tech to prove that we can actually be a good host for new companies. And it’s an intense war for talent.

The nuclear industry is waking up and we need to be work hard to be the preferred global employer wherever we are for companies into this sector. And that’s also an area where we have a lot of focus as we are set on a growth trajectory. So in summary, Q2 of twenty twenty five, strong profits in the quarter driven very much by the strong demand for our FMWT services in this quarter. We have a dynamic market that continues and which is in the quarter underpinned by government decisions creating opportunities for Stutzviq. We have positive developments in U.

S. Nuclear Regulatory Commission, NRC, with respect to our software for use by SMRs. We have a new executive management group appointed and we have two new board members added to our board. And we saw Armada investment AGE to become our largest shareholder in this quarter. So with that, we end our presentation and happy to take questions.

Conference Moderator: Next question comes from Caleb Solomon from SEB. Please go ahead.

Caleb Solomon, Analyst, SEB: Hi, guys. Just a few questions from my end. The margin in Fuel Materials and Waste Technology was up to 18%. And I mean, even without the one off related to the electricity tax, it’s up to 15% from just above 7% last year. So can you maybe just give us some color of how much of that is due to strictly due to the cost savings program versus kind of higher utilization rates?

Was there any sort of one off effects related to revaluations on the balance sheet in this segment? And how much can we sort of extrapolate of this profitability boost moving forward?

Karl Tadien, CEO, Statsvik: Thanks for the question. Very good question. I think, in general, what I saw when I joined as CEO in October, this area is an area where we have not that high competition. A lot of the other parties in the world that can do this are state owned laboratories in The U. S.

Specifically. So I think we have a very good and strong competitive position. And we are set out to use that in a better way, which means that we have started to increase our prices for different services. We have started to change our payment terms. But also, it’s all about efficiency in the labs, making sure that we can do it to the times that we set aside for when we do the business cases for the different offers.

And I think we have been better in all these areas. So basically and also the higher demand gives us more opportunity to be more bold in terms of how we set our prices and so on. So a very strong competitive position leads to increased margins. It’s very strong in the quarter. There are the electricity side, I think, ends up in this business area.

Other than that, we have very few one offs. We also have some one offs that goes negative in the business area. So pleased with this. I wouldn’t say 18% is the new sort of target, but definitely, this should be a very high margin business.

Caleb Solomon, Analyst, SEB: And just sort of a follow-up on the sales growth. How much of that was due to the fuel transport carried out during the quarter?

Karl Tadien, CEO, Statsvik: So we have highlighted fuel transport. We do fuel transports every quarter. So it’s sometimes we have more than other quarters, but that’s part of our business. So it’s nothing totally unusual. It’s a usual part.

It’s a normal part of the business. We just highlight that what happens when we do that, it comes in as a, a pretty a peak, a little bit too. And it’s not material to the growth, but it’s one part of the things that we have done in the quarter.

Caleb Solomon, Analyst, SEB: Okay. That’s clear. Thank you. And just a question on Blackstar. You mentioned you’re seeing some large or you’re seeing a large number of interesting opportunities.

How much of that should we sort of expect to maybe show during the second half of this year?

Karl Tadien, CEO, Statsvik: I think we should be reasonably conservative of the big things for revenue in this year. This is a business that is both software licenses and hardware rollout, which means that we can take larger orders, but the revenue will come then as we roll out the projects. So when we say that we see big intercept, we see a lot of big plays also outside the nuclear sector interesting in this technology. But the actual revenue recognition of this can take some time before we build into substantial or material numbers.

Caleb Solomon, Analyst, SEB: Okay. And just one sort of housekeeping question. SG and A and development costs seems to be flattish year over year, but the other operating income is up almost 5x in Q2, and it was up quite a lot in Q1 as well. Can just sort of break down what that is and how we should think about it moving ahead?

Peter Teske, CFO, Statsvik: Yes. And the majority of the other operating income is correspond to the movement of FX exchange rates. And then I think it’s like SEK 3,300,000.0 is the tax return.

Caleb Solomon, Analyst, SEB: Okay. That’s clear. Thank you. And just one last question. In Q2, the U.

S. Nuclear Regulatory Commission approved your fuel optimization software for use by companies developing SMRs. Can you maybe just explain what this sort of means and when we could see this starting to impact growth?

Karl Tadien, CEO, Statsvik: So we have had, for more than twelve months now, intensified dialogue with all these SMR vendors to use our software for their design activities. Then also when you’re then starting to go into the regulator to be so forth, seek for approvals, you will need to prove how you have done these kind of calculations. And what this means that when SMR vendors are looking for software that can that can actually do this, we are one of them and not that many that can actually be used. And that gives us a sort of quality stamp that the SMR vendors will benefit from using our software to get sort of less questions from the regulator. So a positive thing for our opportunity to sell into this sector.

Caleb Solomon, Analyst, SEB: Okay. That’s very clear. That’s all from me. Thank you for taking my questions.

Karl Tadien, CEO, Statsvik: Thank you.

Conference Moderator: Next question comes from Laura Motadi from ABG Sundal Collier. Please go ahead.

Laura Motadi, Analyst, ABG Sundal Collier: Laura here from ABG. I’d like to start off with your Fuel Materials and Waste segment. Margins were very strong this quarter. And well, obviously, you flagged these few key drivers in your presentation as the reason to this. But how should we think about a sustainable normalized margin for this segment going forward?

And especially considering you had some positive impact from some one offs in the quarter.

Karl Tadien, CEO, Statsvik: Thank you. I think I probably answered the question before. I think, obviously, this was in this quarter, we had some one off effects pushing it up to 18%. But also, as I mentioned, I think we should consider this to be it should be a high margin business based on the fact that we have a very strong competitive position, and we have increased demand for these kind of services. So I’m not going to give you a target number, but we should be in high margins for a service for an offering in a business area like this.

We should also add that into the business area is not only fuel and materials, but waste technology. And waste technology is a very reasonably small offering at this stage and is in under strong business development, and that is an investment there. We also have investments that we’re doing in this that could also obviously impact the margin negatively, but we are trying to control that, make sure that we have the right amount of investment in that kind of investment area like Intra.

Laura Motadi, Analyst, ABG Sundal Collier: Great. Thank you. And if we turn to Scanpower, well, given the seasonal patterns and the variability in the product mix, how should we think about the outlook for the second part of this year?

Karl Tadien, CEO, Statsvik: Well, we are we have a strong offering. We have definite customer demand for this. But since it’s very these license sales can be very they can they hit very favorable when we get them. So I think we should we see that we should have a good second half, but we don’t know exactly which quarter they will hit, and it would probably be a bit back ended, which means that Q4 would be as normal, a much stronger quarter for Scanpower than Q3, for example.

Laura Motadi, Analyst, ABG Sundal Collier: Okay. Very clear. Thank you. And just a follow-up on Scanpower regarding demand. Where would you say you’re seeing the greatest incremental demand?

For example, is it more from The US or Asia? Is it for more SMR customers compared to, like, a large part large plant operators?

Karl Tadien, CEO, Statsvik: I think for now, the big dollars comes from the operating plant sector. But we are definitely moving ahead with SMRs and making sure that they are using our software, which means that we have an increasing revenue potential from those vendors as those SMRs starts coming alive and they use our software more and more and also can commercially use it, if you like. So I think so that’s on the SMR versus operating plans. In terms of regions, U. S.

Is the strongest region for this, but we also have like in the funnel now, have strong opportunities both in Western And Eastern Europe. We have some in Middle East. We have Japan is a reasonably strong market, Korea as well. So this is a worldwide business, but the strongest market is The U. S.

Laura Motadi, Analyst, ABG Sundal Collier: Very clear. Thank you. And if we just move over to your decommissioning segment, margins declined this quarter, you stated that this is due to increased competition and price pressure maybe. But you briefly touched on your presentation on the measures you’re taking. But could you please elaborate a bit on this and what we should expect in the coming quarters when it comes to margins?

Karl Tadien, CEO, Statsvik: I think we should expect margins to be under pressure continuing through this year. These measures and actions we take will take time to implement. In fact, this business area is obviously not one single group of people doing the same thing. There are different sort of services offering we have there. And what we’re reviewing now is to what is the optimal mix between the different services and product areas that we have in that and obviously making sure that we can optimize that when we offer.

So I think we have opportunities to make this significantly better, but it’s not a short term fix.

Laura Motadi, Analyst, ABG Sundal Collier: Great. Thank you. And then lastly, I just wanted to ask ask a little on your cost savings programs. You previously guided for SEK 20,000,000 in annual savings from 2025 in FMWT. Could you maybe quantify how much of these savings have started to flow through the year and what remains for the second part of the year?

Peter Teske, CFO, Statsvik: Yes. We see that we have we see effects on the cost saving program during this quarter and a half year. And on the total group level, we see, for example, that we are more than 20 people less on the FTEs, but still we are growing as a business. So we are more efficient now than we were for a year ago. So we see positive effects from the efficient program.

Karl Tadien, CEO, Statsvik: But the question if it’s how much is left, I think, is also going to be difficult to measure because we took them. But now we also need to make sure that we invest for growth, which means that we may see opportunity where we need to increase cost and then it’s going to be but in actual fact, I think you can split this savings pretty much over the year. It’s we took all the cost in Q4, and we had the lower cost entry into 2025. So it’s evenly split, I think, between the quarter. But there could be cost increases as we hire for growth or take investments for growth.

Laura Motadi, Analyst, ABG Sundal Collier: Okay, great. Very clear. That was all from my end. Thank you very much.

Conference Moderator: There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

Karl Tadien, CEO, Statsvik: Okay. Thank you very much for listening. Talk to you again after our Q3 report. And thank you very much, and bye bye.

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