Earnings call transcript: Studsvik Q3 2025 sees stock dip amid mixed results

Studsvik AB reported its third-quarter 2025 earnings, revealing a mixed financial performance that led to a 4.12% drop in its stock price. The company posted net sales of SEK 205.8 million, a slight decrease from SEK 208 million in the same period last year. Operating profit, however, saw a significant increase to SEK 13.2 million from SEK 0.5 million in 2024. Despite these gains, the market reacted negatively, with Studsvik’s stock price falling to SEK 279. According to InvestingPro data, Studsvik has delivered an impressive 151% year-to-date price return, with analysts expecting net income growth this year.

Key Takeaways

• Operating profit increased significantly, improving the operating margin to 6.4%.
• Free cash flow turned positive, reaching SEK 17.3 million.
• The stock price fell by 4.12% following the earnings release.
• Strategic focus on U.S. market expansion and new nuclear build opportunities.

Company Performance

Studsvik’s overall performance in Q3 2025 showed resilience despite a slight decline in net sales compared to the previous year. The company’s strategic initiatives, such as restructuring its Decommissioning segment and focusing on higher-margin business units, contributed to a notable increase in operating profit and margin. The improvement in free cash flow further highlights the company’s operational efficiency.

Financial Highlights

• Revenue: SEK 205.8 million, a slight decrease from SEK 208 million in 2024.
• Operating profit: SEK 13.2 million, up from SEK 0.5 million.
• Operating margin: Improved to 6.4% from -0.3%.
• Free cash flow: SEK 17.3 million, up from negative SEK 18.4 million.

Market Reaction

Studsvik’s stock experienced a 4.12% decline, closing at SEK 279. This movement reflects investor concerns over the slight drop in revenue, despite improvements in profitability metrics. The stock’s performance is also influenced by broader market trends and sector-specific dynamics, with the company’s focus on nuclear power positioning it within an evolving energy landscape.

Executive Commentary

CEO Karl Thédéen highlighted the dynamic nature of the market, stating, "We are in a very dynamic and changing market, positively changing with more investments coming." He emphasized the strategic importance of the U.S. market and the opportunities arising from new nuclear builds.

Risks and Challenges

• Market volatility: Fluctuations in global economic conditions could impact demand.
• Regulatory changes: Potential shifts in nuclear energy policies might affect operations.
• Competitive pressures: Increasing competition in the nuclear sector could challenge market share.
• Supply chain disruptions: Ongoing global supply chain issues may affect project timelines.

Studsvik’s earnings call provided insights into its strategic direction and operational improvements, yet the market’s reaction underscores the challenges the company faces in sustaining growth amid evolving industry conditions.

Full transcript - Studsvik AB (SVIK) Q3 2025:

Conference Moderator: Welcome to Studsvik Q3 2025 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions-and-answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now, I will hand the conference over to CEO Karl Thédéen and CFO Peter Teske. Please go ahead.

Karl Thédéen, CEO, Studsvik: Good morning, and welcome to Studsvik’s Q3 earnings call. Just a short brief update again. I guess many of you know us by now, but we are a truly international company. Last year, we did around $100 million in revenue, or SEK 893 million. We are in roughly 15 countries. We are a little bit more than 500 employees. Key markets are Japan. Korea is very big for us. We are big in the European marketplace, of course, and also in the U.S. and Canada. Truly serving the nuclear market with services and products. We try to explain how we operate and what kind of market segments there are in the nuclear and adjacent industries. As you can see, we talk about new build. We talk about operating plants, around a little bit more than 400 in the world. We talk about the process of decommissioning sites as well.

The fourth one is other service that requires knowledge and expertise in handling radioactive material and isotopes. I think we serve this market with a lot of different offerings, and some of the offerings are sort of fit for the different parts of this market. I think the big change we all have seen over the last couple of years is the new focus on new build, both in the European marketplace, in Asia, and in the North American marketplace. That is very much driving a lot of investments. Many of those investments are in early days now. Those will be increasing year over year over the next 10-15 years. Maybe things that we have not spoken so much about are the operating plants and the huge investments going into lifetime extension or long-term operation of the more than 400 plants in the world.

We see that in terms of material testing, new fuel types being tested, obviously upgrades of safety systems and all that. We see numbers of up to $1 billion per plant to make those plants extend their lives to 80 years and beyond. Decommissioning is part of the life cycle commitment that you need to have to nuclear power. We have a big business around that, mainly in the European marketplace. Last but not least, there are emerging services requirements for cancer treatment and other types of treatments in the medical industry, where our expertise is very much in demand. If we can go into the Q3 numbers, we delivered what I would say a solid quarter. We have basically a flat quarter in terms of revenue, but we continue, which has been the focus during this year. We continue to improve our profitability, and we deliver strong cash flows.

It is significantly better to the same period last year. If we also look into the nine-year period, we have more or less doubled the profits compared to last year. Free cash flow amounted to $55 million, which is an increase of quite. Impressive $140 million and $150 million compared to last year. We also should know that Q3 is a quarter where it’s not our strongest quarter. We obviously have the holiday seasons, and we have other seasonal variations, which means that this quarter is not the strongest, but we still deliver a better Q3 than we did in 2024. Some key milestones for our Q3 numbers, or we have very strong drive and business in our business are fuel materials and waste management technology. This is predominantly the services and products that we provide from our site just south of Stockholm, the Studsvik site.

It has continued to have a positive market environment, which is, to the point I made before, very much driven also by lifetime extension discussions with customers, testing how material is behaving after maybe 20 years under irradiation in nuclear power plants, as one example. We also had the eyes on new build, and we signed an MoU with BlueCloud, the AMR, SMR developer out of Sweden, and Ebb Rock, data center provider focusing on data centers for highly secure environments. Together with them, we investigate the feasibility commercially and technically to build data center, AI data centers and SMRs at our site with our competence, with our site to develop an AI nuclear-driven data center in a 10-year time frame. This is nothing that happens very quickly. The data center can come up earlier, but obviously the development of SMRs takes a lot of time. Very interesting.

This is obviously a development we have seen in the U.S. We will see that also now coming to Europe, and we are in the middle of that development. In business area Studsvik ScanPower, our software business out of the U.S., we saw momentum for the newly acquired Blackstar Tech offering. Not huge volumes, but some very interesting orders that we have taken, which gives us confidence that we have demand and a competitive product. We are now building an organization to drive that further into 2026. On October 7, which was just after the quarter finished, there was a very important international event hosted by the Swedish and Finnish governments in Stockholm to discuss focus on investments into nuclear, where the government hosted and invited a lot of high-ranked banks and also the industry in general.

We were obviously in the middle of that, had a lot of interesting meetings. It is very clear that Sweden is one of the most investable nuclear markets in the world at this time. We do believe there’s going to be quite a lot of investments into nuclear new build into Sweden. A little bit on our business areas. As you know, we have three: decommissioning, fuel materials and waste, and Studsvik ScanPower. Let me take a little bit of details of those. The business area decommissioning radiation protection is a business area where we have struggled. This year with our profitability numbers. It’s been a very competitive market. Not the market that you don’t have a market. It’s definitely demand, but it’s a lot of competition in the market. That’s been an important show in Dresden, in Germany, where I attended the COMTEC decommissioning exhibition.

We definitely have products and services that are of interest. We need to fine-tune organization and focus more on the higher profitability parts of that market. To do that, we have decided to do some changes in the business area management team. To basically increase the speed of the changes required to get that business into the profitability levels that we require. Mentioned shortly before, business area fuel, materials, and waste technology, very strong quarter. We have a total change in both our sales and our profitability numbers here. Momentum in the market. We have a strong order book, but also we now have a very much more efficient organization and a high engagement, which means that we actually deliver produce on time to a higher degree than last year, and by that also can invoice our customers.

We continue to view this business area very positively going into 2026 as well. Business area Studsvik ScanPower is where we have our software business, some consultancy, and then also the newly acquired Blackstar Tech. Here, we have a little bit softer. It’s very much seasonal variations in this business as it, the license sales that we do throughout the year, when it happens, has a big impact on revenue and not to say the least, margins. Here we have a little bit softer, but we still see very positively on this business, on the profitability levels and the outlook for this business area. With that, I hand over to Peter Teske, our CFO, please.

Peter Teske, CFO, Studsvik: Thank you, Karl. I will start to present our financials from our three segments and then go to the consolidated group numbers. At the end, I will talk a little bit about our financial targets. We start to look at the business area decommissioning and radiation protection services. The sales for the quarter amounted to SEK 19.7 million and for the first nine months, SEK 266.7 million, which in local currencies is a decrease of 2.4% in the quarter and 1.9% for the first nine months. The operating profit for the quarter amounted to SEK 4.4 million, which represents an operating margin of 4.9%. For the first nine months, the business area operating profit was SEK 10.7 million. The third quarter and the first nine months of the year were characterized by continued tough competition in the market and a strong cost focus among our customers.

These conditions limited Studsvik’s opportunities for additional sales. As a result, margins were lower in both the third quarter and the first nine months compared to the same period last year. To strengthen the business area, Group CEO Karl Thédéen has temporarily assumed responsibility for the business area. A strategic and organizational review is currently ongoing. If we then move on to fuel materials and waste technology, sales for the quarter amounted to SEK 79.5 million and for the first nine months, SEK 284.5 million, which in local currency is an increase of 17.6% in the quarter and 8.3% for the first nine months. Operating profit for the quarter amounted to SEK 9.3 million and for the first nine months, SEK 42.9 million. The business area demonstrated good progress in the customer projects, supported by improved productivity and a favorable mix in the production portfolio.

These developments contribute to a stronger competitiveness and improved profitability. Margin increased also due to the implemented cost efficiency program, improved purchasing routines, and a streamlined delivery organization. Together, this resulted in an improved operating margin for the first nine months to 15.1% compared to 5.4% in the same period last year. If we move on to Studsvik ScanPower, as Karl mentioned, Studsvik ScanPower’s sales are subjected to seasonal variations, which we saw also during the third quarter. Sales decreased in the quarter to SEK 38.7 million, and for the first nine months, we see an increase to SEK 120.5 million. In local currency, this is a decrease of 7.3% for the quarter and an increase of 5.5% in the first nine months. The increased sales contributed to improved earnings for the first nine months, and we see that the underlying business continued to demonstrate a stable profitability.

The operating profit increased in the quarter to SEK 7.8 million, and for the first nine months, an increase to SEK 21.4 million, representing an operating margin of 20.3% in the quarter and 17.8% for the first nine months. We also have a positive effect due to the third quarter. We recovered SEK 6 million from the fraud that occurred during Q3 2024. This had a positive impact in both operating profit and the cash flow. We see now in total that the financial impact of the fraud that occurred in Q3 2024 is now minimal for the group. If we then go to our consolidated group numbers, and if we start up and look on the third quarter over the past year, we see that the development has been quite stable. We see an upward trend and a solid and consistent performance.

The net sales in the third quarter 2025 increased to SEK 205.8 million compared to SEK 208 million last year. An improvement of just over 2%, or more than 5% when adjusted for currency effects. The growth in Q3 2025 was mainly driven by strong performance in fuel, material, and waste management technologies. If we look on the first nine months of the year, the sales amounted to SEK 660.4 million, up from SEK 645.8 million last year. In local currency, this represents a growth of above 4%. Here we see good effects from both Studsvik ScanPower and fuel materials and waste management technology. If we move on to our operating profit, and also here we start up and look in the past over the years, we see a strong performance in 2022, and that was mainly driven by license sales in Studsvik ScanPower.

In 2023, we had some land sales in FMWT. That followed up by a dip last year as a result of the fraud that we talked about earlier, and also we had some disruptions in the FMWT. If we then look in 2025, we see that operating profit has improved in the third quarter, rising to SEK 13.2 million compared to last year of SEK 0.5 million. This corresponds to an operating margin of 6.4%, and that’s a clear turnaround from a negative margin of 0.3% last year. We see that improvement was mainly driven by a strong result in the fuel materials and waste management technology, and of course supported by the repayment of the SEK 6 million related to the 2024 fraud case. For the first nine months, operating profits have more than doubled to SEK 50.2 million, up from SEK 25.2 million last year.

That is an operating margin increase from 3.9% up to 7.6%. We take a look at the cash flow. The cash flow from operating activities in the third quarter amounted to SEK 26 million compared to SEK 38 million in the same period last year. Free cash flow showed a strong turnaround, improving to SEK 17.3 million from a negative SEK 18.4 million a year earlier. The improvement is mainly driven by higher operating profit, lower investment levels, and the complete acquisition of Extreme Boring Soak Technique that was made during 2024. For the first nine months, cash flow from operating activities strengthened to SEK 65.7 million, up from SEK 21.2 million last year. Free cash flow improved even significantly to SEK 55.6 million compared with a negative of SEK 59.3 million in the previous years.

This substantial year-over-year improvement reflects stronger underlying earnings, lower investment activity, and acquisition, as I earlier mentioned. Worth note is that during the same period this year, we have amortized SEK 25.3 million of our debt and distributed a dividend of SEK 16.4 million. Finally, a short look at our financial targets and year-to-date performance in 2025. We have a growth target of 6% that we did achieve during 2024, and we see that we are a little bit lower during 2025, and that is mainly due to the challenging market situation we see in Germany, but also we have the seasonal variation in Studsvik ScanPower sales. We see a strong improvement in the operating margins that go from 3% in 2024 to now 7.6%. In the equity-to-asset ratio, we see an underlying positive trend, but still we are on the same level as 2024.

With that said, I turn over to Karl Thédéen.

Karl Thédéen, CEO, Studsvik: Thank you, Peter. Let’s discuss a little bit on the market developments as we can see it. First of all, there is a move into the new generation of how to build reactors, small modular reactors. Some of those are, most of them are light water, but also a merging trend of other types of fuel types also coming called advanced modular reactors or AMRs. And here you see a snapshot of some of the announcements that were done during the quarter. Maybe for us in Sweden, the most we know was the Vattenfall’s announcement to shortlist GE Vernova and Rolls-Royce. All three parties in that consortia, Vattenfall, GE, and Rolls-Royce, are business partners of Studsvik already, and we obviously look forward to support that project as it goes into building reactors in 2030.

We also ourselves announced our partnership for data center powered by SMRs, and you can see some other examples of developments that you see around the world. Definitely a trend that this is happening. We should also say that there are obviously also large reactors being built, not to say the least in China, but also in the U.S., in the U.K., and so on. That is also still very much a very competitive way of building nuclear power. Yeah, we’ll talk about this. We have mentioned it. It’s an early investigation of how to do this. Data centers, when they are putting their, deciding on sites, they want to have a route to 200-300 megawatts of power that they can get hold of. They can obviously get that from the grid, but sometimes that’s not possible.

Having a possibility to develop a solution where they can rely on the grid, but also on nuclear power close to where they set these data centers up is very important for them. The trend on AI data centers is very much driving the renaissance for nuclear, specifically in the U.S., but I think we will see that more and more also as a trend here in the Nordics and in Europe. A little bit on the markets, and we are obviously in many markets. I took a snapshot here on three of them. You can see in the U.K., for example, you have nine plants in operation. There are two plants currently under construction, and there are small modular reactors that are going to be built initially by Rolls-Royce, but also Holtec are building together with EDF U.K. Very much a huge investment and commitment from the U.K.

government to build and increase the share of nuclear power in electricity production in the U.K. If we then go into the U.S., there have been several announcements by the new administration in the U.S. how to support this. There are 94 operating light water reactors. There have recently been completed two large power plants. There are a lot of lifetime extensions and actually refurbishments of. Sites that have been closed and now being refurbished to be open again. One or two of them here in Three Mile Island, the former Harrisburg site, and Palisades around Lake Michigan. There is a lot of development of new technology for AMR, SMR technology that will also be built here and very much driven by the AI build-out, data center build-out in the U.S.

In Japan, obviously, the market was severely changed after the tragedy in Fukushima, but we now see that it’s so important for the nation of Japan to have independent power production. They are now set to restart up to 36 of the 60 that they had when Fukushima happened. There are also now developments and 300 sites under construction, new sites. We are active in all these three markets, United Kingdom, United States, and Japan. Very much, obviously, a lot of things happening in these markets. A little bit more data. Thirty countries are actually thinking about considering nuclear. Data centers are expected to triple by 2028. There is a commitment to a 2.5 increase of the global nuclear power, and 25% of that will be added through SMRs under these studies. Yeah, very much a trend that is happening.

We should also keep in mind that this trend is investments for a long-term period ahead, starting from now, but going 10, 20, 30 years from now to build up this increased capacity at the same time as we’re also investing in keeping the existing power plants for many, many years to come. How are we taking them? We obviously have our existing service, but we are also investing for the future. Here are some examples of innovation that we are driving to market. We have developed, and here is our test facility of the in-drum, where we can significantly reduce low and medium radioactive waste that are kept in drums, where we can, in a very environmentally friendly way, reduce the waste, meaning leading to significantly lower final repository cost for containing the waste.

We have also launched new software for the SMR market called Peacock that can also handle a new type of fuel that is coming into play in the advanced modular reactors. We have acquired two companies, Blackstar Tech, giving very advanced power and safety solutions, where we now see that that is starting to kick off with some interesting orders in the quarter. EBS, our advanced tool, is for cutting and sawing through reactor tanks and big concrete parts when doing decommissioning. That is something we are relying on and will drive harder to increase the profitability of our decommissioning business. Final comments. Q3 in summary, solid quarter, improved profitability and cash flow. We delivered improved profitability compared to Q3 last year, and we continue to do a better year than in the first nine months, where we doubled profitability compared to last year. We are in a very.

Dynamic and changing market, positively changing with more investments coming, and we are in the middle of that. We have a very strong brand name, and we have a strong offering that we are improving as we go quarter by quarter. We have done a lot of things to improve the way we operate, the way we discuss with customers, the way we do sales. We have an M&A organization set up, and we do a lot more business development. Together with financial discipline, this continues to deliver the increasing stakeholder value that we are set to do. With that, I think we can open up for questions. Thank you.

Conference Moderator: If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Lara Motadi from ABG Sundal Collier. Please go ahead.

Hi. Just a couple of questions from my end. The first one is on the fuels and materials. The turnaround has been impressive with improvement both in sales and margins. Your view, you mentioned that this was driven by both structural efficiencies but also a favorable mix. Can you maybe help us understand that split? How much of this would you say is from efficiency gains versus this temporary favorable mix that you mentioned?

Karl Thédéen, CEO, Studsvik: This is basically a factory or very advanced factory of doing testing in hot cell environments, doing analysis on the test, writing the reports, having the dialogues with the customer. That is a very tight process that needs to work. We have worked a lot on making that more efficient and taking away some stops and starts that you have in that process. I think that is a big part of it. The other thing is that we sit with a very solid order book here, so we can plan more efficiently quarter by quarter since we have the orders already. Also, we have a very strong competitive position here. We are the only lab in the world that is operating on commercial terms, which means that customers can go to us and order things and get things delivered on time.

All the other labs of this kind are in state control, which means they also support other interests like academia and others. They have more difficulties to commit to timelines, for example. This means that we have also been effective by charging and increasing our prices for what we do, which is also part of being more commercially guided than we have been in the past. I think that is some of the reasons this business is doing significantly better.

Okay. Thank you. Also, in decommissioning, you’ve mentioned margin pressure for some time. With Karl, you’re now leading the segment temporarily. What would you say is your go-forward strategy? Will you pursue structural changes to maybe lower your cost base or seek new partnerships? Or maybe could you just walk us through some initiatives that you may put into place to increase your profitability in the segment?

I think, yeah, thank you for the question. I think I mentioned EBS, the tools that we have acquired a year back from Sweden. We have not yet been so successful as I wanted to include those kinds of materials and services in our offerings mainly in Germany. That is something that we need to do because that’s a margin improvement, and it gives us another competitive position as well. The other thing is that we are operating basically three business units under the business area: radiation protection, decontamination services, and dismantling. In that, there is a margin mix, and some of those are better than others. We will review how to move our attention more to the higher margin business out of these three business units, if you like, or product units.

Okay. Great. Very clear. Thank you. A bit on your geographical split. You saw a significant drop in Germany, which you’ve also mentioned has been a bit weaker, and also a drop in Asia, but this was offset by stronger growth in Sweden and North America. What would you say the specific market dynamics or major projects are that are driving this, what would you say, divergence between your key regions?

This is very seasonal variations, I would say. I think at this time, the snapshot for now is that we have a lot of very interesting discussions in South Korea. South Korea is obviously both an interesting market per se, but also has a lot of strong vendors into the nuclear industry, so we are supporting them. Very interesting. In terms of our software business, obviously, the U.S. is where we have the strongest foothold, and there is a lot of developments there with the SMR vendors as well. Whilst the FMT business, proximity to the site is important, so it is slightly easier for us to support FMT business for customers closer to Europe, if you like. No big change, I think, in terms of where we operate and where we see opportunities. It is just more of a seasonal variation than anything else.

Just my last one. You talked about the good momentum in Blackstar Tech, but as you mentioned, it’s not huge volumes yet. Just on Blackstar Tech, what would you say the typical, how are the typical sales cycles? How long does it take to turn the interest into a contract? For the mentioned signed contracts, when should we expect this to translate into material revenue for the segment?

That’s a good question. I think to get the first order, which we have some of the smaller orders with interesting customers in this quarter, that’s probably a three- to six-month period. Then it’s a little bit similar to my former industry, telecoms, in that you go in there, and before they really build it out for many power plants or full-scale in one power plant, that takes time because they need to test first, need to be comfortable with the technology, and then they roll it out. I think for the full potential of some of these customers that we assigned in Q3, there is probably at least 12-18 months to get the full potential, maybe even more sometimes. It is a go in there, you start in one area, and then you are happy with the solution, and then you build, and you build, and you build.

I think we should see these wins as a starting point for a longer rollout period.

Great. That was all from my end. Thank you very much.

Thank you.

Conference Moderator: The next question comes from Frederick Reuterhall from SEB. Please go ahead.

Good morning, and thank you for the presentation, Karl and Peter. Do you hear me?

Karl Thédéen, CEO, Studsvik: We do. Yeah.

I have a few questions as well here. ScanPower, net sales was down 7% as you said in local currencies, but up 6% last nine months. I saw that between 2021 and 2024, ScanPower had a CAGR of 22%, which is driven last year of the Cordell, which is important. Can you talk more about your expectation and main sales drivers of ScanPower coming years?

ScanPower is a combination of consultancy services, rollout services, maintenance, and software licenses. Software licenses is typically around 60% of the revenues in any given year. It can differ from year to year, maybe more importantly from quarter to quarter. We see the biggest sort of software module that we’re operating for in the more near-term is Cordell. That’s our monitoring where we monitor the reactor burnout, if you like, and making sure that we have done the right or the customers have done the right simulations and scheduling of how they work with their fuel rods. That is where we see the pickup at the moment. We also have launched new software models like the Peacock, which is similar too, but for other types of reactors.

I think we’ll see growth, but it will be in a seasonal, and it’s a little bit difficult to say exactly which quarter they will hit. I think we have a good opportunity to harvest specifically Cordell. There’s a lot of focus in this lifetime extension of improving fuel efficiency and increasing also power % per % in the existing power plant. I think that will lend itself very much to work closely with us to use our tools for that. The further point on that is obviously Blackstar Tech, but that’s maybe another question because that’s obviously a totally different set of products with much higher growth opportunities.

Okay. I have a follow-up question on the RPS. I’m a bit more interested about the competition going forward. I mean, you mentioned it. It’s very tough out there. Do you think the competitive landscape will be even harder in the future? How will you address this?

I was down there to meet customers last week. I think there’s going to be a consolidation. There are some smaller, "not so competent" players that are around that are fighting. I think that will go away because it’s also a market that demands high safety standards and high professionalism, and it requires native German-speaking people and all that. I think there will be fewer, but still high competition going forward. I also think that the things we are doing now, reviewing where we should focus, making sure that we have the right management in place, will also be important parts of driving the change. It’s definitely possible to make better margins than we do today. Of course, this is not the business that will deliver the margins that we see in FMWT or ScanPower. It should be substantially better than we are today.

We saw last year, I think, the same period we had around 7-7.5%. There you can see a little bit where we are heading.

Yeah. My next question is regarding M&A. I mean, do you see yourself doing some acquisitions in the segment there, or, I mean, if the market is not as small?

M&A is definitely of interest, and we’re working closely with the board, and we have a team set to scout for M&As at this time. There could definitely be that we are buying ourselves and consolidating that. I think the Blackstar Tech is more of an acquisition that I’m keen to do. It gives us growth opportunities that are more imminent. It gives us a possibility to both support existing plans and new build. I think that’s a lot of where the focus for investments is going to be. I think we have a pretty strong setup in decommissioning in the market we operate anyway. We are 250 people in Germany with high competence. We have the tools. We have the partnerships.

I think we need to do better with what we have there in terms of profitability and then focus more on our M&A on the new build and operating plants.

Okay. My last question is regarding, I mean, with the new management team in place, can you talk more about your strategic vision coming two to three years? I mean, changing the RPS is ongoing, as you said, but will it make any major changes how you will structure and run the other business areas? I mean, you talked last earning calls regarding some positive synergies, but I’m more interested in a more overall strategic vision there.

Of course, this market is changing pretty fast for being in the nuclear sector with a lot of new initiatives and opportunities for us. I think one focus we discussed is the U.S. There is going to be significant build-out, and a lot of this market is a U.S. market. Capitalize on that. Becoming significantly larger in the U.S. is one key milestone or cornerstone of what we want to do. To make sure that we now, which I think is very interesting this quarter, we are going into, and thanks to where we are, Sweden is one of the best places to be to really come into new build and really learn that industry in linear one.

To be a key player in the early phases and the build-out of new nuclear, I think it is going to open a lot of opportunities and maybe for certain areas that we have not been in for a long time. Closer to building, understanding how you run a reactor, things that we did 15-20 years back will also be of interest. I think that is really the interesting part of this quarter, that we are both the Vattenfall announcement where we are close to those vendors that they are talking to. I think we announced on with BlueCloud and Ebb Rock our proof points that new build will be super important for us to be taking part of. We are in the position in the market that we will be part of these projects and learn and take advantage of that.

Taking advantage of that and making sure that we capitalize more on U.S., including M&A in that market.

Okay. Thank you very much. That was all for me.

Thank you.

Conference Moderator: As a reminder, if you wish to ask a question, please dial Pound Key 5 on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any written questions or closing comments.

Okay. Thank you very much for listening into our earnings call of Q3, and we look forward to meeting you all again when we report our Q4 results.

Yeah.

Thank you.

Thank you.

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