Studsvik AB (FRA:SUD) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

In This Article:

  • Q4 Revenue: SEK 248 million.

  • Full Year Revenue Growth: 8.4% in local currencies.

  • Adjusted Operating Profit: SEK 20.5 million.

  • Dividend Proposal: SEK 2 per share.

  • Decommissioning and Radiation Protection Services Revenue: SEK 94 million in Q4.

  • Fuel and Material Testing Revenue: SEK 86 million in Q4.

  • Scandpower Operating Profit Increase: SEK 4.9 million compared to last year.

  • Adjusted EBIT for Q4: SEK 20.5 million.

  • Cash Flow: Lower due to reduced profit levels and investments.

  • Trade Receivables Increase: SEK 75 million compared to Q3.

  • Growth Target Achievement: Exceeded by 2% in 2024.

  • Efficiency Program Savings: Expected SEK 20 million in 2025.

Release Date: February 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Studsvik AB (FRA:SUD) reported strong growth in Q4 2024, marking one of the strongest quarters in over a decade with net sales reaching SEK 248 million.

  • The company successfully integrated the acquisition of Extrem Borr&SAg AB (EBS), contributing positively to sales and profitability.

  • Studsvik AB (FRA:SUD) announced the acquisition of BlackStar Tech, enhancing their software capabilities for remote condition monitoring and emergency lighting systems.

  • The Scandpower division showed strong sales, particularly in the US market, driven by software license sales and recurring maintenance contracts.

  • The company has implemented a cost efficiency program expected to save SEK 20 million in 2025, aiming to improve profitability.

Negative Points

  • Despite strong sales growth, Studsvik AB (FRA:SUD) acknowledged that profitability could be improved, with adjusted operating profit not meeting expectations.

  • The waste management business area experienced negative development due to delays in metal treatment licensing in the UK.

  • The company faced challenges in the Fuel and Materials Technology division, with inventory impairments and efficiency program costs impacting results.

  • Studsvik AB (FRA:SUD) reported lower cash flow in 2024, affected by lower profit levels and increased investments.

  • The decommissioning and radiation protection services business is sensitive to revenue allocation, with profitability impacted by holiday seasons and tight margins.

Q & A Highlights

Q: On Scandpower, positive results here in the 4th quarter. How much of that was driven by license sales, and would you say that these license sales are recurrent or more of a one-time sale? A: Karl Thedeen, President and CEO: A big part of the growth comes from license sales. We have a software business that is recurring with strong maintenance contracts, but there is a mix of license sales and recurring maintenance and software upgrade business. It was driven by license sales to some big utilities in the US.