Thank you very much, and welcome to our Q2 earnings call for 2026. Typically start by just explaining the basis of the company.

These as our financial figures for 2025. We are roughly $100 million in revenue.

We operate in 15 countries, meaning that we have customers in 15-plus countries. We are more than 500 people worldwide, and we are have offices in 6 countries.

Our main markets are Baltics, Continental Europe, UK, Canada and the US, Korea, and Japan. Continue also to remind us about our key offerings, and actually, the key markets we operate in.

If we start at the bottom right-hand corner, you see Life Science. This is an emerging area for us.

We have been in this area for quite some time now, but we see a lot of new developments in managing and handling highly radioactive isotopes for production purposes going into healthcare equipment, but also other industrial applications will require our competence and facilities. The main markets that we operate in are long-term operation and decommissioning.

Long-term operation is all about serving the existing 440, or roughly there are 440 plants in the world, and we are actively supporting more than 200 of these. That is both ongoing operation, but also securing lifetime extensions.

In decommissioning, we are active mainly in Germany and then also in Switzerland, Benelux, and then in the Nordics. This is to safely both support outages and maintenance, but also tearing down nuclear power plants that are shut down.

This is a process that typically takes 20 years or more, and a lot of our services comes into play there, including waste management, software to manage intermediate fuel, but also traditional decommissioning on-site services. The new area that we are exploring as newbuild is coming into play again into the nuclear sector is supporting existing reactor developers to do the licensing and development of reactors, but also, in the quarter, we have added a new company called Kärnfull Next or KNXT, that is a project development company focused on developing sites with nuclear here in Sweden.

That, obviously, gives us more into the center of those developments enabling us to become a big player also in the newbuild area. Highlights of our financial figures for Q2.

I'm very proud to say that we have grown with more than 9% in the quarter, up to 247 million Swedish kronas. That is driven by growth in all of the business areas, as you see below.

We have an adjusted operating margin of 5.8%. This is a bit on the low side, and that is due to the investments that we continue to do into the long-term scaling of this company, both into sales, product and service development, but I'll come to that a bit later.

If we then look into the three different business areas. I'm very proud to say that Decommissioning and Radiation Protection Services, DRPS, has strong growth in the quarter, almost 9%, and also extremely important that we have finally turned the corner making this business into a much more profitable business, reaching 7% in operating margin in the quarter.

This is due to strategic changes and moving our business into more profitable areas, and also change of leadership in this operation. Our business Fuel, Materials and Waste Management Technology is continuing to go very strongly with strong demand for developing new fuels, material testing, and other things that is required for lifetime extensions.

We see growth of almost 9% and a very healthy operating margin of more than 18%. Studsvik Scandpower, which is predominantly our software business for core fuel software, is a very seasonal business, and in the quarter, we have not received any material license sales, which is obviously hampering then our profitability to low levels in the quarter.

We have growth, and that is injected partly by the strong development for Black Star Tech, the products and company we acquired a little bit more than a year back in 2025. All in all, strong growth from all business areas and a strong revamp from decommissioning.

Key milestones: we talked about DRPS, we talked about FMWT. Kärnfull Next, very important, and we continue not only to acquire that, but also integrated.

The two founders, Christian Sjölander is now heading up the activity around newbuild, and John Ahlberg is supporting that, but also taking on the position in the executive team as Chief Marketing Officer. We have been very active in this space, with handing in yet another application for a site, in this case our own site in Studsvik, just north of Nyköping, and also handed in, very important, the State Aid application, as Sweden is have a very comprehensive support package from the state to enable new nuclear.

If we then move over to the rest of the world, and our biggest and most important market, of course, for nuclear is the US. We have taken advancement there in the advanced reactor sector with new software contract for an unnamed customer.

We also took a contract for Lightbridge that developing new types of fuel for the next generation reactors, and that they have also selected our software. Very importantly, US regulator NRC have approved the use of CMS5 for new reactor types, giving a clear indication that anyone that wants to go for licensing and approvals in the US, for them, it's very good to use our software.

We also received a follow-on order from IFE that is managing the old research reactor that are out of service in Norway. We see this kind of back-end fuel, where we actually transform the spent fuel into a format that can be put in final repository as an important business not only from Norway, but also from other research reactors throughout Europe.

I wanted to take the opportunity in this call to talk a little bit about the investment case in Studsvik. It's basically one platform, but we have two return profiles with slightly different time horizons.

We have the cash-generating core, which is the quality of today's business, as we are reporting, for example, this quarter. That is built on the long heritage of our company.

It's built on the huge customer base we have and the fact that we are extremely well-known company in our business or in our sector. It's built on that we provide an end-to-end service offering.

To that, we have added over the last couple of years an asymmetric upside for the company, with four structural growth drivers: being the new investments that we see into extending life of existing plants. That is real investment that is coming, and we have not yet seen the biggest scale of this, going into securing the extension of the 440 light water reactors we have in the world.

At parallel, in many countries, there is a launch of gigawatt-scale newbuild programs in many countries in Europe, Asia, and in the US. We also see the development of Gen IV reactors, including fusion, where it's a lot of money poured in, being a big opportunity for us to also continue to drive and see upside on a lot of the services that we have.

As mentioned before, life science and industrial applications is also moving. Basically, a core business that is very healthy, and then we add to that the upside.

If you go into the upside with this picture, it's not only talking, this is actually for real. There is clear drivers, and we have momentum in all these four areas.

We have strong momentum in long-term operation, lifetime extensions, as we have proven, and I want to highlight the two research programs that we do on international scale, with up to 15 organizations and companies coming together asking us to do material and fuel testing for them. We also have a lot of activities and contracts for in-drum waste reduction technology in place.

In newbuild, as I said, we are applying for sites and State Aid applications, and we are supporting the advanced new generation reactors that also will be very big part of the worldwide nuclear developments. Healthcare is also a business we have been in, and we see new contracts coming our way in that sector.

This means that if you look on the investment case, we have big upside as this momentum will strive into bigger and bigger opportunities as more and more reactors are built, existing fleet goes into big investment to secure the lifetime, and advanced nuclear becomes a reality. With that said, I hand over to our CFO, Peter Teske, please.

Thank you Karl, and I will start with the group financial performance. As you see, the sales in the quarter amounted to 247 million, representing a growth of 9.2% in local currencies.

As you seen in the previous slides that we have all the three business areas that they are increasing their sales during the quarter. I will come back to the main reasons behind that later on in this presentation.

We reported an operating profit of 9.2 million. However, this includes the acquisition-related cost and cost for the implementation of the group's long-term incentive program, the LTIP program.

Adjusted for these one-off items, the operating profit is 14.3 million, corresponding to an adjusted operating margin of 5.8%. During the quarter, we have continued to build for the future.

We have completed the acquisition of Kärnfull Next, continued the integration and development of our recent acquisitions, including Extreme Boring & Sågteknik and Black Star Tech, and continued our investments in strategic growth initiatives. These action has a short-term negative impact on the earning and cash flow, but are intended to strengthening the group's long-term position.

The free cash flow for the quarter was impacted by the acquisition of KNXT and changes in working capital, but I will come back to that later on. Then if we go into our three business segments, we start with Decommissioning and Radiation Protection Services.

This business area delivered a strong quarter. The sales increased to 96.8 million, corresponding to a growth of 8.9% in local currencies.

The increase was supported by good progress in our planned outages projects in Belgium, Switzerland, and Netherlands, together with a higher capacity utilization across the whole business area. More importantly, the sales growth also translated into an improved profitability.

The operating profit increased from 4.4 million to 6.8 million, and operating margin improved from 4.9% to 7%. We are now beginning to see the effect of the strategic changes we made during the past year, and the improvement is a result of higher utilization, strong focus on higher margin services, cost control, and more efficient organization.

We also see during the quarter that we have seen more improved market conditions. Then we move to Fuel, Materials and Waste Technology, and also delivered a high and stable level of profitability.

We see an increased sales to 116.3 million and an increased operating profit to 21 million SEK, and we see an operating margin of 18.1%. The development was supported by good progress in our customer projects, improved productivity, higher capacity utilization, and a favorable product mix.

What's particular positive is that increased sales were converted into earnings, while the margins remain above 18%, and this demonstrates a strength in underlying business model and our capability to maintain disciplined project execution. If we move to Studsvik Scandpower, we see an increase of sales to 37.1 million compared to 35.5 million last year.

Black Star Tech that we did acquire last year in Q1 had a positive effect on the revenues during Q2. At the same time, we see that operating profit amounted to a negative of 5.4 million.

There's two important factors behind the results. First, the business is seasonal, with a larger share of sales normally generated during the second half of the year, and a single quarter therefore does not necessarily reflect expected full-year performance.

Second, we are currently investing in long-term initiatives to drive future sales growth and product development, for example within the SMR and AMR market, and also we're building a pipeline and opportunities, particular within Black Star Tech. We should also notice that during last year, we had a positive exchange rate effect.

Then if we then look on our cash flow, finally, and we have during the quarter a negative free cash flow of 59.6 million compared to a negative of 1.3 million last year. We see, in the quarter, 34.1 million of the cash outflow was related to the completed acquisition of KNXT.

The remaining is driven by the changes in working capital, where including a reduction in customer advances as ongoing projects progressed during the quarter. This should mainly be seen as timing and acquisition-related effects.

As you see and as is illustrate in the graph, Studsvik's cash flow can vary significantly between the quarters, and this reflects the different business models across the three business areas, as well how important it is with timing of project execution, timing of invoicing, and timer of customer payments. As a consequence of the acquisition and the changes in working capital, we had an increase of the net debt during the quarter, but we see that the group has a solid capital structure, with an equity-to-asset ratio of 39.1%.

Looking ahead, cash flow and working capital will remain a key priorities, and we will continue to focus on our disciplined project execution, timing of the invoicing, customer collection, and overall financial control across the group. To summarize, this was a quarter of continued growth and continued investments of the future Studsvik.

We delivered sales growth across all three business areas, we completed acquisition of KNXT, and continued to build capabilities in important growth areas. With that said, I will hand over to Karl again.

Thank you Peter. I just want to continue a little bit and look outside and look into the nuclear market worldwide.

If we look at the world, obviously, we have seen over the last couple of years that nuclear is becoming a key critical energy and industry infrastructure as the world goes for more electrification and fossil-free power productions. The other trend is technology, and that SMRs is moving from plans and discussions and designs to execution.

We have seen that in China to some extent. We see it in the selections of various SMR projects, both in Czech Republic, in the UK, and now in Sweden.

That is, obviously, with the promise that SMR project would be more plannable, smaller, and also, for that reason, safer to invest in. If we look into where this is happening, Asia is leading the way.

China has never stopped to build nuclear and are building on large scale. We also see that US is accelerating.

They're both planning and building large-scale reactors, but also a lot of developments on SMR and AMR reactor types. The demand is coming, to a large extent, from AI.

The big data center deployments of AI is driving a lot of power demands, and we will see that coming very much coupled with a large buildup of nuclear power. If we then look into Europe, Europe is also moving into nuclear big time.

EU policy support is turning into projects. We see that in four main distinct markets: France, which is, obviously, the biggest nuclear market in Europe, and they are building and planning to build large-scale reactors continuously.

In the UK and Sweden, there have been during this year announcement of large-scale SMR projects, and that will continue. Nuclear is, for Europe, very important for energy security.

It's a way to remove the geopolitical uncertainty and being more self-sustained in your electricity production. If we specifically look into Sweden, and the reason I point that out is for us, as many other companies, it's important to have a strong home market.

Here, nuclear enters into execution phase, specifically with the announcement that the Wallenberg the Vattenfall-backed company, Videberg Kraft, announced the selection of Rolls-Royce as a technology for their buildout at the Ringhals site. The financing framework is now in law, and it's a framework that will enable a lot of new nuclear in this country.

The industrial demand is coming both from the electrification of transport sector, but also, for example, from things like fossil-free steel production. If we continue to look on a map, and I continue to take Sweden as an example, we see here different sources of research pointing out a surge in demand for electricity starting in the coming years.

On the high side, there are people saying, or research institutes saying this could be up to threefold over the next 20 years, but the minimum is up to two times from where we are today. Which means that we have a need in the world and in Sweden to continue to run existing nuclear power plants, and then add capacity to meet the demand from different sectors of the countries.

How would you then do that? In Sweden, this is happening in other countries as well, but we have a very focused system for regulatory requirements and enabling be easier to get permits to build new nuclear, but also financing mechanisms to do so.

There is now a plan to build up to 10 GW of new capacity, and the initial plan up to 2035 includes 2.5 GW. I specifically mention here our home turf.

Once again, we operate in a market where this is happening, which means that we have first-hand sight on what is required, and we will be very much into these developments with our acquisition of KNXT. You need to do both.

You need to continue to run your existing plants in the world, the 440 plants that are today operating, and you need to add more to improve or increase capacity. Studsvik, we are a company that are supporting these two streams of investment that is coming: long-term operation with a lot of our traditional services around fuel inspection, material analysis, our unique hot-cell capacity that we have at our site, and our support for different licensing activities.

We also do that both on technology, but also with project development for newbuild. Which means that we are in a very good position to take advantage of the two investment cycles that have started: both the new investments going into existing plants, and the even larger investments going into newbuild.

Also, back again to: why can I say that? Yes, we have proof points that we are in these markets.

Here, I highlight three examples of long-term operation. South Korea is the market that never stopped investing in building and investing in technology and capabilities around nuclear.

They are the power country of new nuclear and nuclear operations in the world. We have a strong customer commitment and contacts in that market.

Recently, in the early part of this year, we announced a big contract with Korea Nuclear Fuel for fuel testing when they develop new types of fuel. We also have waste management contracts here.

Korea is a very important market for us to be in to enjoy the new investments coming into this sector. We also, in the quarter, announced follow-on orders for back-end fuel treatments, where we take spent fuel and transform it to a format that can be put into the final repository.

We also in that process provide intermediate storage. This is large-scale projects that will require our unique infrastructure, and we are one of the few that can do this on the European soil.

We see these opportunities emerging not only from Norway, but from many other countries. Then, as mentioned before, the SCIP and SMILE projects, which keeps us a unique insight into the testing and material and fuel development that are required to do long-term operation.

Some examples excluding the project development for newbuild AMR and SMR market is also here highlighted by the two first I already talked about, Lightbridge doing next-generation fuel development, and the first AMR contract for an advanced reactor developer in the US. I also want to highlight here Rolls-Royce that we have highlighted in previous calls as well.

They were selected by Videberg Kraft, they have already been selected by a customer in Czech Republic, and they are also building and selected for customer deployments in the UK. They will now be very close to us, and we will continue to invest in that relationship to provide more and more services as they go into licenses and construction activities throughout Europe.

With that said, final remarks on the quarter. I'm proud to say that we have a strong quarter in terms of sales.

We've grown more than 9%, and growth come from all business areas. We have a strong foundation in our home turf, and we see Nordic expansion both on our traditional business, as highlighted by some key contracts in the quarter, but also in the new focus area of building new nuclear in Sweden.

Our software is very important for us, and we see, as I said before, this is an entry ticket to provide more software into modernization and new types of reactors, and we are winning ground and contracts in the US in the quarter. In parallel with that, we are investing in the business to take on what we have mentioned here, the asymmetric opportunity.

We need to have a stronger sales team, better coverage, and invest more into next-gen products and services, and we have taken those investments partly in this quarter. Once again, remind us all that this is investment case: one platform with two return profiles, the ongoing, strong operation business that we have today, and the upside opportunity with a lot of new investment into new areas that will support long-term growth opportunities for the company.

My last picture is now a more realistic showing the beautiful site that we have an hour south of Stockholm, and here you will see the SMRs that we are applying to build at the site, you will see our hot cells, you will see in-drum waste management facility, and possibility of building a fusion test facility. Not all of this will potentially happen in 10 years, but some of it will definitely.

All these we have strong dialogues to build. The company, the sector is definitely under a lot of change in the positive way.

With that, I would like to thank you all for listening, and we can go to questions. Thank you.

Hi guys, and thank you for taking my question. You mentioned that the profit improvement in FMWT was driven by higher utilization.

Can you maybe start by giving us some color on where utilization rates are currently and how far you are from reaching some sort of optimal rate?

Thank you for the question, Kaleb. It's a very tricky question, because utilization, it comes in many formats.

It's both people and staff utilization, and maybe more importantly, hot-cell utilization. We are definitely not on a peak.

We have, to some extent, during the quarter used extended working hours to make sure that we can fulfill customer requirements. We have also had some weekend extra work to perform.

We can do even more. Obviously, doing these kind of advanced testing requires a lot of extra when you do overtime, because it also comes with putting all the security and safety organization in service when you do that.

We have taken, as I said, those kind of measures, but we can definitely take more to deliver. There are not everything we can do.

Some of these things cannot not happen outside working hours, if you like.

Should I interpret that as you being relatively close, but not at some sort of peak, or being quite far away still from some sort of optimal rate?

This site can definitely have higher output, and it's also very much subject to what kind of work we should perform. Some work is easy to perform outside normal working hours, and you can fill and increase your dresses.

Some is not. Sometimes we're waiting for input from our clients.

It's not a given answer, but we are definitely not on the peak what our site can deliver, no.

That's very clear. Thank you.

For Scandpower, can you maybe give us an exact figure of how much the positive one-offs impacted year-over-year comps, as well as the sort of negative impact from this year's incentive program, or the impact from the incentive program, to kind of give us an idea of how the underlying performance was year-over-year? Sort of as a follow-up to that, last quarter, you said you expected Black Star Tech to contribute this year and maybe even reach the sort of 10% run-rate of Scandpower sales.

How far away from that are we right now, and what was the actual contribution this quarter?

I can take the first question there about adjusted numbers, and you asked about the incentive program. We have it on the group level, so that's in total we have one-off this quarter about 5.1 million, and that's the incentive, as well as the acquisition cost.

Yes, just to clarify, because in the Scandpower section specifically, it said that earnings in the period was held back by long-term initiatives undertaken to drive future sales growth. I interpreted that as being the incentive program.

No, no, no. The incentive program is on the group level.

What we're doing in Scandpower is that we have the strategic initiatives that we do for strengthen, yeah, for example, integration of the Black Star Tech and strengthen the sales pipeline and product development.

That's clear. How big was that effect roughly?

We have not monitored the effect in results. I think it's more like as you said before, when you compare Scandpower to the year-on-year, we should take into account that we had this pretty large impact of the FX exchange rate effect last year.

That's clear. Just could you comment on the Black Star Tech contribution as well, both in terms of what it contributed this quarter and how far away we are from the sort of 10% of Scandpower sales run-rate?

I think that the contribution of Black Star Tech was around 10 million SEK during the first half-year.

That's clear. Just another question on the sort of adjustments to operating profit related to the acquisition cost and long-term incentive program, because the adjustment this quarter was roughly 5 million, right?

Which, correct me if I'm wrong, but it's quite a bit less than the full impact should be, could you maybe first help me just split how much of that 5 million was related to the acquisitions versus the sort of long-term incentives, and second, could you maybe quantify how much, if anything, remains for the next two quarters this year?

Just to clarify, those 5.1 million is the one-off cost we had during the quarter. It's cost for, yeah, for the acquisition and then the incentive program.

Of course, there will be ongoing cost during the next quarter and next year, of course, but we have not quantified them yet in this perspective.

The full acquisition cost is included this quarter, there's nothing else spilling over into Q3?

Exactly.

Kaleb, I think it's important to say what we took here is, obviously, the overhead cost we took to perform the acquisition. That is what we put in there.

Then we have ongoing costs for running the KNXT staff and activities. Those are in the normal cost levels already in this quarter, and they will continue to effect as a cost continues over the next quarters.

The sort of 5 to

That was my next question, when did you consolidate it and how much of the sort of 5 to 7 million annual run-rate in increased costs do we see this quarter? I take your answer as we saw all of it.

You saw all of the overhead costs to perform the acquisition. The running cost of running this new company, if you like, has been put as running costs already in Q2, and they will continue to affect the company in Q3 and Q4.

Okay. That's clear.

As extra costs, yeah.

Just a last question on the negative working capital effects from FMWT. How much of that or what exactly was the full effect, and should we expect it to be reversed in the next two quarters, the working capital effect?

I would just comment that it's more like it's a timing effect, because during the quarter and the first half-year, because the business model is we have a lot of prepayments from our customers, and during this quarter, we had a lot of focus on the project that were prepaid, and therefore that advanced accrued have gone down. We see that's an impact during the quarter, and so that's what we've seen, and we expect then during the coming quarter also that, of course, it will be changed.

That's very clear. Thank you for taking my questions, guys.

Hi. I just want to continue a bit on the one-off costs, or the costs attributed to in Scandpower, on the investments.

Could you just maybe elaborate a little bit what type of investments you're doing, and how long will these continue?

Thank you, Lara. In Scandpower, we obviously run a seasonal business when it comes specifically around the software licensing.

In terms of the costs, we obviously acquired Black Star Tech a little bit a year back. We have invested with more people specifically in sales and product development in that business.

To some extent, that has paid off. We're starting to see the pipeline going up, and we are also have taken sales and orders in this quarter.

Which means that the Black Star Tech business is not profitable at this stage, and we are going to continue to invest that as we see the opportunities for that business take a bigger share of Scandpower. You will continue to see investments and you can see increased cost in the Scandpower business area compared to last year.

Obviously, the effect is even more visible in the quarters such as this when we don't have a top line from the license sales coming with us.

Okay. We can expect these costs to continue throughout 2026 as well?

There are no extra, no sort of one-offs in those investments. The investments are investments we do for securing the long-term growth of the business.

Okay. Great.

Thank you. My next question is sort of on the DRPS margin, the durability.

Obviously, the margin improved this quarter. How much do you think was structural maybe versus maybe dependent on the outage calendar in Belgium, Switzerland, Netherlands?

Basically, is it a reasonable base going forward into the second half of the year, the 7% margin?

It's a good point that the outages typically have better margin for us, so that affected the quarter. I think the other change we have in this business is that we see a better demand for our services throughout.

Last year, we had, for example, difficulties that there was no overtime, there was no sort of extra jobs outside the standard orders. We see more of that now.

Then very importantly, I think utilization is high, and also sick rates are down. We believe that these numbers are definitely sustainable throughout the year.

Having said that, this business is sometimes volatile in terms that it's a high-staffing business, and things can happen. It's not a one-off things that is totally putting this up to 7%.

It's basically a change. For example, we have increased radio protection versus decontamination business area or business unit because it's sort of a higher-margin business.

We are doing also strategic changes in where we focus.

Okay. Thank you.

That's clear. Just a final one from me, a question on newbuild.

You described sort of Studsvik's position for both investment cycles, well, including project development and newbuild. If we could just maybe elaborate on that leg specifically.

What would you say that milestones are for Lisa maybe over the next 12 months, and sort of is the intention to develop and sell project companies or retain ownership into construction and operation?

Over the next 12 months, this would be very much a work to work with State Aid, work with the site developments. We will also probably, during these 12 months, select which of the Studsvik or Valdemarsvik that will continue being our first site.

Then, over time, we'll develop more sites, that's our plan, this becomes a fleet program. In the next 12 months, this is going to be an investment that we need to do into this.

The way we will exit and capitalize a gain on this will be either we sell this when we come to a certain milestones in the project development, or that we stay as a probably minority shareholder throughout the project. That we have to decide at a later stage.

The original plan from Kärnfull Next is to sell this before we go into construction. That is where we started, and I think that's the main plan, but we also have to be a bit open-minded and see what is the best outcome for us and the shareholders as we come closer to those dates.

Okay. Very clear.

Thank you. That was all from my end.

Thank you very much for listening, and we will speak again in second half of October for our Q3 earnings call.